Any current/future new fundraising through debt or equity?

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.

Any current/future capex/capital investment/strategic investment?

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 quarter

Future growth expectations in sales/revenue/volumes?

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-

Future growth expectations in earnings/operating earnings/profits/EPS?

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

Current/ Expected Orderbook/ Pending Orders?

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

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Azad Engineering LtdQ3 FY25Electrical Equipment

Azad Engineering Ltd Q3 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,020P/E: 113.6Market Cap: ₹14.0K CrSector: Electrical Equipment

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→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.

Margin guidance

Category 3

→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.

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Fundraise plans

Yes

→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

Yes

→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.

Capex plans

Yes

→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).

How does Azad Engineering Ltd rank vs peers in Electrical Equipment?

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1Azad Engineering Ltd

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