Azad Engineering Releases Q4 FY26 Earnings Call Transcript; Secures MHI Contract
Azad Engineering reported Q4 FY26 revenue of ₹157 crore, up 26.4% YoY, with PAT margins at 22.3%. FY26 revenue reached ₹590 crore, up 30% YoY. The company secured an 8-year single-source contract with Mitsubishi Heavy Industries for gas turbine components. They also inaugurated a dedicated facility for Baker Hughes. The order book stands at ₹6,500 crore, providing strong visibility for a projected 25%+ annual revenue growth.
The securing of a long-term, single-source contract with a major player like Mitsubishi Heavy Industries, coupled with strong financial results and capacity expansion, is expected to have a significant positive impact on the company's future growth and market position.
The company reported strong financial performance with significant year-on-year revenue and profit growth. The announcement also highlighted a prestigious new contract with Mitsubishi Heavy Industries and the inauguration of a dedicated customer facility, indicating positive business development and strong customer relationships.
Azad Engineering Limited has released the transcript of its Q4 FY26 earnings conference call, which was conducted on May 16, 2026. The call featured insights from Chairman and CEO Rakesh Chopdar, Whole-Time Director Vishnu Malpani, and CFO Ronak Jajoo.
During the call, Mr. Chopdar highlighted that FY26 was a year of consolidation, focusing on embedding new capacity, converting earned qualifications, and strengthening human capital and systems for future growth. He emphasized that the company's growth is a result of long-term efforts and not short-term tailwinds, competing with established global suppliers in manufacturing critical rotating components for gas, steam, and nuclear turbines, as well as aerospace and defense parts.
Key milestones announced include the inauguration of a fourth dedicated lean manufacturing facility for Baker Hughes in April 2026, signifying deep customer integration. Additionally, Azad Engineering has been awarded a prestigious single-source contract by Mitsubishi Heavy Industries (MHI) Japan for an 8-year supply agreement of highly engineered hot section Nozzle Vanes segments for gas turbine engines. This contract is considered a strong endorsement of the company's technical and process capabilities.
Financially, Q4 FY26 saw revenue of ₹157 crore, a 26.4% year-on-year growth, with EBITDA margins improving to 36.7% and PAT margins expanding to 22.3%. For the full year FY26, revenue reached ₹590 crore, a growth of over 30% compared to FY25, with EBITDA margins at 36.9% and PAT margins at 22.4%.
The company is building its organization for the next phase of growth, with infrastructure build-out approximately 70-80% complete. Organizational restructuring and upgrading of systems, planning, ERP, and quality management systems are ongoing. The overall outlook remains strong, with a confident projection of sustaining business momentum and delivering a top-line growth of approximately 25% plus for the current year.
Mr. Malpani detailed the calibrated execution in FY26, emphasizing the highest ever revenue, EBITDA, and PAT achieved while commissioning two plants and qualifying parts at a record pace. The Energy and Oil & Gas segment contributed approximately 81.5% of full-year revenue (₹481 crore), growing by 34%, while Aerospace & Defence contributed ₹101 crore, a 25% year-on-year growth. The order book stands at approximately ₹6,500 crore, offering strong forward visibility.
Mr. Jajoo reported FY26 revenue of ₹590 crore standalone and ₹603 crore consolidated, a 32% growth. EBITDA margins were around 37.4% consolidated. Investments in plant and machinery amounted to ₹392 crore capitalized during the year. Profit after tax stood at ₹132 crore standalone and ₹134 crore consolidated, a 54.4% growth.
During the Q&A, management confirmed that the 25% plus revenue growth projection is conservative and may see an upward revision. They also discussed the ATGG engine delivery roadmap, stating they are close to delivery. The company is on track to set up four more new facilities over the next six months. The order backlog of ₹6,500 crore is expected to be delivered over 5 to 6 years. The company is also an existing player in the nuclear space, supplying critical rotating components for nuclear turbines to EDF's subsidiary, Arabelle Solutions, for the last couple of years.
Azad Engineering aims for a diversified business in five years, with Energy contributing 55-60% and the balance from Aerospace & Defence and Oil & Gas. The Oil & Gas segment is expected to see material contribution starting FY27, following the recent inauguration of a dedicated facility.
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