Azad Engineering reported its highest-ever quarterly and nine-monthly standalone financial performance as of December 31, 2025. For Q3FY26, revenue grew 31.4% YoY to ₹1,558.0 Mn, with PAT rising 40.1% YoY to ₹340.4 Mn. The nine-month period (9MFY26) saw a topline surge of 31.8% to ₹4,329.8 Mn, with 9M PAT growing 55.3%.
Azad Engineering Limited has announced its financial results, marking a period of substantial growth evidenced by the highest recorded quarterly and nine-monthly performance in the company’s history up to December 31, 2025. The company continues its strong trajectory, underpinned by growth across its core business segments.
Q3FY26 Standalone Highlights vs Q3FY25
The third quarter of FY26 demonstrated robust operational performance:
- Revenue from Operations: Increased by 31.4% YoY to ₹1,558.0 Mn.
- EBITDA: Grew by 40.7% YoY to ₹600.9 Mn, with the margin improving to 38.6% (up from 36.0%).
- Profit Before Tax (PBT): Increased by 34.9% YoY to ₹471.0 Mn, achieving a margin of 30.2%.
- Profit After Tax (PAT): Increased significantly by 40.1% YoY to ₹340.4 Mn, with the margin reaching 21.8%.
Nine Months Ended FY26 Performance vs FY25
For the nine-month period ending December 31, 2025, performance surpassed the full year results of FY25:
- Revenue from Operations: Showed a growth of 31.8% YoY, reaching ₹4,329.8 Mn.
- EBITDA: Increased by 38.4% YoY to ₹1,599.8 Mn, with the margin at 36.9%.
- PBT: Grew substantially by 52.8% YoY to ₹1,363.4 Mn (31.5% margin).
- PAT: Soared by 55.3% YoY to ₹970.3 Mn, achieving a margin of 22.4%.
Key Financial Takeaways (Standalone)
The standalone Profit & Loss statement highlights consistent operational efficiency:
- Employee Expenses: Increased primarily due to an expansion in employee count to support new facilities.
- Other Income: Increased mainly due to higher interest income generated from fixed deposits.
- Finance Cost: Increased due to the requirement for additional loans to support ongoing business growth.
- Debt Position: As of December 25, the Net Debt stood at ₹1,575 Mn.
- Capacity Expansion: The company is focusing on execution excellence, fulfilling commitments for the GTRE project in 2026, and deepening global OEM partnerships.
Segment Momentum and Expansion
Growth momentum is building across key segments. Both Energy & Oil & Gas and Aerospace & Defence business segments grew by 33% Year-over-Year (YoY) for the quarter. Furthermore, the company recently inaugurated three new lean manufacturing facilities as part of its expansion plan, specifically catering to Siemens Energy, GE Vernova, and MHI, with areas ranging from 7,200 sq. mts to 7,600 sq. mts.
Future Strategy
Key strategies moving forward focus on:
- Increasing wallet share and catering to diverse component needs from existing clients.
- Technology-led optimization through automation, lean manufacturing, and improved capacity utilization to drive down cost and operating efficiencies.
- Strategic geographical expansion, including a signed MoU for expansion into Saudi Arabia to ensure co-location with key global OEMs.
- Expanding into the manufacture of higher-value products along the client value chain, including advanced gas, steam, and nuclear turbines, and landing gears.
Historical Performance Snapshot (FY21-FY25 Standalone)
Historical financials show consistent expansion:
- Revenue from Operations grew at a CAGR of 39.2% between FY21 and FY25, reaching ₹4,529.3 Mn in FY25.
- Adjusted EBITDA Margin improved from 31.2% in FY21 to 36.3% in FY25.
- PAT and PAT Margin saw a significant increase, with PAT growing 60.0% between FY22 and FY25 to reach ₹885.3 Mn.
The company remains confident in achieving its targeted 30% topline growth for FY26 by building a robust, long-term growth platform.
Source: BSE
