Azad Engineering Ltd Q2 FY26 Earnings Analysis
Published 7 Jul 2026 | Electrical Equipment | Market Cap: ₹15.8K Cr
Price
₹2,722
Market Cap
₹15.8K Cr
P/E Ratio
118.9
How does Azad Engineering Ltd rank in Electrical Equipment?
Compare Azad Engineering Ltd against every Electrical Equipment company this quarter on revenue, margins and earnings-call signals.
Azad Engineering Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹157 Cr, net profit ₹35 Cr.
Full financials →Earnings Summary
The company targets a revenue growth of 25% to 30% year-on-year in the near to medium term, maintaining consistent guidance. Azad Engineering expects revenue growth of 25% to 30% year-on-year in the near to medium term, with an aim to sustain and possibly exceed this internally.
📊 Revenue & Sales Performance
- →The company targets a revenue growth of 25% to 30% year-on-year in the near to medium term, maintaining consistent guidance.
- →FY '26 is focused on stabilizing and consolidating new capacities rather than achieving a sharp growth jump.
- →New dedicated factories and capacity expansions are expected to contribute increasingly from FY '27 onwards, enabling further growth momentum.
- →The management emphasizes gradual ramp-up and operational stabilization of large-scale facilities over 12-24 months before peak utilization.
- →Market headroom is significant, with current wallet share at only about 1-1.5% of potential customer spend, indicating large growth opportunities.
- →Long-term contracts and strong customer relationships underpin confidence in sustained growth across aerospace, defense, energy, and industrial sectors.
- →Capex investments ordered for FY '26 to FY '28 support future scaling without the immediate need for additional fundraising.
📈 Profitability & Margins
- →Azad Engineering expects revenue growth of 25% to 30% year-on-year in the near to medium term, with an aim to sustain and possibly exceed this internally.
- →The company sees FY '26 as a year of stabilization for new capacities, with expectations that growth momentum may pick up strongly once stabilization is complete.
- →EBITDA margin is currently stable at around 36%, with potential for improvement as operational excellence and operating leverage increase.
- →Net profit growth was 57% YoY in Q2 FY '26 and 65% in H1 FY '26, indicating strong earnings growth momentum.
- →Expansion of wallet share from current ~1.5% points to significant future revenue upsides with existing and new customers.
- →The company is confident about sustaining profitability and margins amid growth, with focus on operational efficiency and indigenous sourcing to support margin expansion.
- →No specific EPS guidance provided, but the strong revenue and profitability trajectory supports positive EPS growth expectations.
🏗️ Capital Expenditure Plans
- →Azad Engineering is currently completing Phase 1 of its facility expansion and plans to start Phase 2 after finishing Phase 1 within the next 12 months (Page 19).
- →Capex for FY'26, FY'27, and partially FY'28 has already been ordered; future incremental capex will be funded through internal cash generation (Page 16).
- →Approximately INR 213 crores of capex deployed so far; total fundraise of INR 700 crores aimed at supporting growth with an expected asset turn of 1.7 to 1.8x (Page 16).
- →Building independent dedicated factories for customers; three plants inaugurated, more expected in coming quarters (Pages 12, 19).
- →Focus on stabilizing new facilities during FY'26 with full commissioning including housing colony for employees targeting about 12 months timeline (Page 11).
- →No specific quantification of upcoming capex plans beyond current orders; company on track with current investments unless a massive opportunity arises (Page 16).
💰 Fundraising & Capital Structure
- →The company stated that they are currently good with the fundraise they have done.
- →No immediate or specific plans for fresh fundraising through debt or equity were mentioned.
- →Capex for FY '26, FY '27, and partial FY '28 has already been ordered and funded.
- →Future capex needs will be funded through internal cash generation.
- →Additional large fundraising will only be considered if some massive new opportunity arises.
- →The management urges investors to focus on FY '26 stabilization before expecting new fundraising activities.
📋 Order Book & Pipeline
- →Azad Engineering Limited has a robust order book reflecting strong customer trust.
- →They recently signed Phase 2 of the Mitsubishi contract, indicating high demand.
- →Long-term contracts with global OEMs are in place, some spanning 5 years.
- →The company is building dedicated factories in response to increasing orders, with three operational and more planned.
- →For the Rolls-Royce aircraft engine component order, qualification is in process, with production deliveries expected next financial year.
- →Despite expansion plans (Phase 2 facility), revenue guidance for the next 3-4 years is not dependent on new facilities.
- →Their current Annualized Run Rate (ARR) revenue stands at about INR 577 crores.
- →They are targeting 25%-30% year-on-year growth, with capex aligned to scale up order fulfilment.
- →No specific total pending order value disclosed, but contract durations and expansions indicate a healthy and growing pipeline.
Key Metrics
Frequently Asked Questions
What were Azad Engineering Ltd Q2 FY26 results?
The company targets a revenue growth of 25% to 30% year-on-year in the near to medium term, maintaining consistent guidance. Azad Engineering expects revenue growth of 25% to 30% year-on-year in the near to medium term, with an aim to sustain and possibly exceed this internally.
What is Azad Engineering Ltd share price analysis?
Azad Engineering Ltd currently shows a neutral. The stock trades at a P/E of 118.9 with a market cap of ₹15,802 Cr. Investors should review the full earnings analysis for detailed insights.
Is Azad Engineering Ltd planning capital expenditure?
Azad Engineering is currently completing Phase 1 of its facility expansion and plans to start Phase 2 after finishing Phase 1 within the next 12 months (Page 19).
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.