1. At a Glance – When Turbines Meet Tadka
Market Cap: ₹11,108 Cr
Current Price: ₹1,720
Stock P/E: 90.3
ROCE: 12.2%
ROE: 8.58%
Q3 FY26 Revenue: ₹155.8 Cr (+31% YoY)
Q3 FY26 PAT: ₹34 Cr (+40% YoY)
OPM: 39%
Order Book: ₹6,500+ Cr
Exports: 92%
Azad Engineering isn’t making nuts and bolts. It’s making parts that sit inside jet engines and gas turbines — the kind of components that explode if you sneeze wrong. Q3 FY26 delivered ₹156 Cr revenue and ₹34 Cr profit, with margins flirting around 39%.
Sounds sexy? Wait.
The stock is trading at 90x earnings while ROE is chilling at 8.5%. That’s Ferrari pricing on Maruti-level return ratios.
But here’s the twist — a ₹6,500+ Cr order book, multi-year contracts with global OEMs, and new lean plants getting ready for take-off.
Is this India’s aerospace manufacturing champion in the making?
Or are we paying tomorrow’s dream price for today’s stabilization phase?
Grab chai. We’re going full turbine mode.
2. Introduction – From Hyderabad to High-Altitude Engines
Incorporated in 1983, Azad Engineering has quietly built a reputation in an industry where mistakes are not forgiven.
This is not a commodity business.
This is “one-micron error and your jet engine goes boom” business.
The company manufactures highly engineered forged and machined components — rotating airfoils, turbine blades, compressor parts — the works. These are mission-critical components used in aerospace engines and gas turbines.
And here’s the part that makes investors sit up:
They are a Tier-1 supplier to global OEMs like:
- GE Vernova
- Mitsubishi Heavy Industries
- Siemens Energy
- Honeywell
- Rolls-Royce
- Baker Hughes
That’s like being invited to the Avengers team, but for turbines.
Q3 FY26 saw 31% YoY revenue growth and 40% PAT growth. Management proudly stated that 9M FY26 profitability has already exceeded full FY25 profit.
But hold on — before we throw confetti, we need to examine margins, working capital, and that 90x valuation.
Because in aerospace, lift-off is slow.
Qualification takes years.
