Any current/future new fundraising through debt or equity?

Azad Engineering raised INR700 crores through QIP (Qualified Institutional Placement) recently. The company utilized incremental term funding of INR154 crores during FY '26 to support capacity expansions. Total borrowing stood at INR457 crores (gross) and INR272 crores (net) as of FY '26. Treasury balance includes INR184 crores, with INR160 crores coming from QIP proceeds. Going forward, no specific mention of additional fundraising through debt or equity beyond deploying the QIP proceeds and some planned capex (~INR180 crores remaining deployment). The focus appears to be on utilizing existin

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

FY '26 capex: INR 392 crores capitalized assets; incremental term funding of INR 154 crores utilized. FY '27 planned capex: Around INR 180 crores to be deployed, mainly linked to QIP proceeds raised (INR 700 crores). Focus this year: Complete commissioning of current and balance plants (total 8 dedicated lean manufacturing facilities; 4 completed, 4 to be completed in FY '27). Third expansion plan: 85,000 square meter plant civil work to start after current plants are fully ramped up. Strategic investment: Inaugurated dedicated facility for Baker Hughes in Saudi Arabia; capex plans on track bu

Future growth expectations in sales/revenue/volumes?

Azad Engineering expects a 25%+ annual revenue growth over the next several years, supported by a robust order book of around INR 6,500 crores with delivery schedules over 5-6 years. The company is ramping up 8 dedicated OEM plants, with 4 already commissioned and 4 more to be completed in FY '27, which will drive volume growth. Increased capacity and stabilization of new plants will convert elevated inventory investment into revenues, improving asset turns and cash flow from FY '27 onwards. Growth levers include ramp-up of qualified parts, addition of adjacent product categories, and onboardi

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

Azad Engineering expects a sustained top-line growth of 25%+ annually over multiple years, driven by ramp-up of newly commissioned plants and expanding customer wallet share. Margins are robust, with EBITDA margins around 33%-35%+, and management anticipates potential margin expansion as new plants reach optimal utilization and continuous improvements are implemented. Profit after tax grew strongly by ~54.4% in FY '26, demonstrating operational leverage despite ongoing capacity build-up. Operating cash flow and asset turns are expected to improve in FY '27 and beyond as utilization of capitali

Current/ Expected Orderbook/ Pending Orders?

Azad Engineering's rolling order book stands at approximately INR 6,500 crores net of deliveries in FY '26 (Page 17). The order book is described as INR 6,500 crores plus, reflecting some contracts with undisclosed values (Page 17). Contracts typically have delivery schedules extending over 5 to 6 years (Page 17). The order book represents about 11x to 12x of FY '26 revenue, providing strong forward visibility (Page 6). Around INR 600 crores of the order book were delivered in FY '26 (Page 6). Orders are diversified across multiple segments with notable contracts from GE, Siemens, Mitsubishi,

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Azad Engineering LtdQ1 FY26Electrical Equipment

Azad Engineering Ltd Q1 FY26 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

→Azad Engineering expects a 25%+ annual revenue growth over the next several years, supported by a robust order book of around INR 6,500 crores with delivery schedules over 5-6 years.
→The company is ramping up 8 dedicated OEM plants, with 4 already commissioned and 4 more to be completed in FY '27, which will drive volume growth.
→Increased capacity and stabilization of new plants will convert elevated inventory investment into revenues, improving asset turns and cash flow from FY '27 onwards.
→Growth levers include ramp-up of qualified parts, addition of adjacent product categories, and onboarding new customers leveraging horizontally developed capabilities.
→Vertical diversification is underway, with Energy expected to contribute 55-60% of revenues, and significant ramp-up planned in Oil & Gas and Aerospace & Defence segments.
→Demand outlook is strong due to global OEM order backlogs and India's emerging engine ecosystem, positioning Azad for sustained multi-year growth.

Margin guidance

Category 3

→Azad Engineering expects a sustained top-line growth of 25%+ annually over multiple years, driven by ramp-up of newly commissioned plants and expanding customer wallet share.
→Margins are robust, with EBITDA margins around 33%-35%+, and management anticipates potential margin expansion as new plants reach optimal utilization and continuous improvements are implemented.
→Profit after tax grew strongly by ~54.4% in FY '26, demonstrating operational leverage despite ongoing capacity build-up.
→Operating cash flow and asset turns are expected to improve in FY '27 and beyond as utilization of capitalized assets rises.
→The order book (~INR 6,500 crores) offers revenue visibility extending 5-6 years, supporting stable earnings growth.
→The company’s diversified industry focus (Energy, Aerospace & Defence, Oil & Gas) and ongoing capacity expansions underpin medium- to long-term profit and EPS growth potential.

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Fundraise plans

Yes

→Azad Engineering raised INR700 crores through QIP (Qualified Institutional Placement) recently.
→The company utilized incremental term funding of INR154 crores during FY '26 to support capacity expansions.
→Total borrowing stood at INR457 crores (gross) and INR272 crores (net) as of FY '26.
→Treasury balance includes INR184 crores, with INR160 crores coming from QIP proceeds.
→Going forward, no specific mention of additional fundraising through debt or equity beyond deploying the QIP proceeds and some planned capex (~INR180 crores remaining deployment).
→The focus appears to be on utilizing existing funds (QIP and debt) for capacity ramp-up and working capital normalization.

Order book

Yes

→Azad Engineering's rolling order book stands at approximately INR 6,500 crores net of deliveries in FY '26 (Page 17).
→The order book is described as INR 6,500 crores plus, reflecting some contracts with undisclosed values (Page 17).
→Contracts typically have delivery schedules extending over 5 to 6 years (Page 17).
→The order book represents about 11x to 12x of FY '26 revenue, providing strong forward visibility (Page 6).
→Around INR 600 crores of the order book were delivered in FY '26 (Page 6).
→Orders are diversified across multiple segments with notable contracts from GE, Siemens, Mitsubishi, Baker Hughes (Page 6-17).
→Revenue conversion from the order book depends on production schedules, capacity ramp-up, and part qualifications (Page 6).
→Growth guidance expects to consume the current order book over the next 5 years with 25%+ revenue growth trajectory (Page 17).

Capex plans

Yes

→FY '26 capex: INR 392 crores capitalized assets; incremental term funding of INR 154 crores utilized.
→FY '27 planned capex: Around INR 180 crores to be deployed, mainly linked to QIP proceeds raised (INR 700 crores).
→Focus this year: Complete commissioning of current and balance plants (total 8 dedicated lean manufacturing facilities; 4 completed, 4 to be completed in FY '27).
→Third expansion plan: 85,000 square meter plant civil work to start after current plants are fully ramped up.
→Strategic investment: Inaugurated dedicated facility for Baker Hughes in Saudi Arabia; capex plans on track but timelines shifted due to geopolitical events.
→Long-term: Capacity to be increased based on customer order schedules to support growth; ongoing efforts to bring special processes like heat treatment fully in-house.
→Large investments to support capacity building, operational readiness, and long-term earnings growth.

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