Azad Engineering Limited announced robust financial results for the second quarter and first half of FY27. Revenue for Q2 FY27 reached INR187.8 crores, a 31.6% increase year-on-year, surpassing guidance. The company highlighted the completion of its foundational build-out, with a clear strategy to convert installed capacity into revenue and cash flow over the next six quarters, projecting an annual revenue run rate of over INR1,300 crores by FY28.
Azad Engineering Reports Strong Q2 FY27 Financial Performance
Azad Engineering Limited has announced its financial results for the second quarter and first half of the fiscal year 2027, showcasing significant growth and operational progress. The company’s Q2 FY27 standalone revenue from operations reached INR187.8 crores, marking a substantial 31.6% year-on-year growth and exceeding the first quarter by 10.1%. This performance is attributed to the strengthening of high-growth cycles across energy, oil and gas, aerospace, and defence sectors.
Key Financial Highlights
For the second quarter of FY27, Azad Engineering reported an EBITDA of INR70.4 crores, a 37.1% increase year-on-year, with an expanded EBITDA margin of 37.5%. Profit after tax stood at INR30.8 crores, resulting in a margin of 16.4%. On a consolidated basis, for the first half of FY27, revenue grew by 29.3% to INR363.5 crores, with EBITDA at INR136.6 crores and PAT at INR66.1 crores.
Capacity Expansion and Future Outlook
The company has completed its foundational initiatives, with all six customer-dedicated facilities now commissioned across 44,800 square meters for global OEMs like Mitsubishi Heavy Industries, GE Vernova, Siemens Energy, and Baker Hughes. The ramp-up of new capacity is expected to drive revenue growth, with the company projecting an annual revenue run rate of over INR1,300 crores by the end of FY28, more than double its FY26 revenue. Management emphasized that the cost base is largely in place, and rising revenue is expected to translate directly into improved profitability.
Operational and Strategic Developments
Azad Engineering highlighted that throughput from new capacity is expected to commence from Q3 of FY27, with full ramp-up anticipated by Q2 of FY28. The company is actively securing new contracts and expanding its capabilities in aero engines, following successful collaborations with Rolls-Royce, Pratt & Whitney, and Safran. Discussions for customer advances, including a 50% advance from one OEM for approximately $4.5 million, are also underway to stabilize working capital requirements. The focus remains on export-led growth, with exports contributing approximately 88% of revenue this quarter.
Order Book and Growth Trajectory
The current order book stands at over INR6,500 crores, characterized as a rolling order book based on customer demand over the next five to seven years. The company anticipates substantial growth beyond FY2030, driven by continued qualification and production cycles with existing and new customers. Management also addressed plans for automation and lean manufacturing to manage manpower costs effectively as the business scales.
Source: BSE
