1. Opening Hook
Hyderabad’s favourite turbine tinkerer,Azad Engineering, just fired on all cylinders this quarter. While most companies blame supply chains, Azad’s CEO was busy inaugurating factories faster than a politician cuts ribbons before elections. The firm isn’t just making turbine parts anymore—it’s building India’s aerospace dreams one superalloy at a time. And the best part? Management swears it’s“just getting started.”Read on—because between a 36% margin, a defence tie-up with Safran, and DRDO’s engine project, this call had more thrust than a jet engine afterburner.
2. At a Glance
- Revenue up 28% YoY:Apparently, “turbine blades” now spin money too.
- EBITDA Margin 36%:CFO calls it “stabilized.” Analysts call it “jaw-dropping.”
- PAT Margin 23.1%:Profit’s flying high—no turbulence here.
- Order Book:Mitsubishi ₹1,387 crore, Safran joins the chat.
- Capex Firepower:₹213 crore deployed; more fuel loading.
- Export Mix 94%:Dollar inflows so strong, rupee barely gets a cameo.
- Guidance:25–30% topline growth. (They said it thrice, just in case anyone missed it.)
3. Management’s Key Commentary
“This has been our best-ever quarterly and half-yearly performance.”(Translation: We’re flexing hard, and deservedly so.😏)
“We inaugurated a new lean manufacturing facility for Siemens.”(Because one ribbon-cutting ceremony per quarter isn’t enough.)
“Contract value with Mitsubishi now stands at ₹1,387 crores.”(MHI loves us more than their own turbines.)
“Signed an MoU with Safran Aircraft Engines.”(Finally, all the engine big boys are on speed dial.)
“Azad VTC got NADCAP accreditation for coatings.”(That’s aviation-speak for ‘we passed the nerd test.’)
“EBITDA margin improved to 36%, PAT up 65% YoY.”(When efficiency meets ambition, accountants cry happy tears.)
“FY26 is a year of stabilization.”(Read: We’re too busy building empires to chase moonshots—for now.🚀)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Growth | Commentary |
|---|---|---|---|---|
| Revenue | ₹143 Cr | ₹112 Cr | +28% | Jet-fueled growth |
| EBITDA | ₹51.3 Cr | ₹40 Cr | +28% | Cost control nirvana |
| EBITDA Margin | 36.0% | 35.7% | Flat | CFO’s “stabilized” baby |
| PAT | ₹33 Cr | ₹21 Cr | +57% | Net profit with afterburners |
| H1 Revenue | ₹277 Cr | ₹210 Cr | +32% | Scaling faster than vendors can keep up |
| H1 PAT Margin | 22.7% | 18.9% | +380 bps | Efficiency + rupee tailwind |
Decoded:
Even with aggressive capex and hiring, Azad’s managed to print margins most manufacturers can only dream of. The new facilities haven’t just expanded capacity—they’ve upgraded bragging rights.
5. Analyst Questions (and Translations)
Q:Will cost benefits from domestic sourcing sustain?A:Yes, we’ve “indigenized” raw materials.(Translation: Finally found Indian suppliers who deliver on time.)
Q:What’s the Safran MoU impact?A:It’s top-secret defence stuff.(Translation: We can’t tell you, but it’s cool enough to impress DRDO.🕶️)
Q:FY26 guidance still 25–30%?A:Yes, FY26 is for stabilization.(Translation: Next year, the real fireworks.)
Q:How about working capital?A:Stabilizing soon.(Translation: Customers will pay. Eventually.)
Q:Rolls-Royce program timeline?A:Deliveries from next year.(Translation: Engines before Diwali 2026—if all goes right.)
6. Guidance & Outlook
Management’s tone was a mix of confidence and caffeine. They reaffirmed25–30% revenue growthfor FY26, calling it a“year of stabilization.”Capex is largely funded; Phase 1 completion expected in 12 months before
