AZAD
Small CapAzad Engineering Limited
Industrials
Azad Engineering Limited is a manufacturer of highly-engineered, complex, and mission & life-critical components for global OEMs in the Aerospace & Defence, Energy, and Oil & Gas industries. It operates with stringent vendor qualifications and high entry barriers, supplying to 12 countries.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +28% YoY · PAT +48% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹162 Cr | +27.6% | +1.9% |
| EBITDA | ₹61 Cr | +32.6% | -1.6% |
| Operating margin | 38.0% | +200 bps | -100 bps |
| PAT | ₹37 Cr | +48.0% | +5.7% |
| PAT margin | 22.8% | +315 bps | +83 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Azad Engineering reported highest-ever Q4FY26 and FY26 consolidated performance. FY26 revenue grew 31.8% YoY to Rs. 6,029.8 Mn, with PAT up 54.4% to Rs. 1,335.6 Mn. Q4FY26 revenue rose 27.3% YoY to Rs. 1,615.4 Mn, and PAT increased 48.4% to Rs. 368.1 Mn.
The company delivered robust financial performance in FY26 and Q4FY26, driven by consistent execution and contributions from advanced manufacturing programs. Management is confident in sustaining strong growth, supported by industry tailwinds and continued investments in capacity expansion.
Revenue by Vertical (Standalone FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Wallet Share Gains
Increasingly catering to diverse component needs for clients, reflected in growing order book across key clients.
New Clients & Product Portfolio
Utilizing existing product and technology capabilities to serve new clients, building a comprehensive product portfolio.
Higher-Value Products
Expanding into manufacture of higher-value products along the client value chain, including advanced gas, steam, nuclear turbines and landing gears.
End-to-End Production Capabilities
Leveraging core competencies to provide end-to-end production capabilities, including manufacturing, assembly, and integration of ATGG.
GE Vernova (Steam Power) Facility
7,600 sq.m facility inaugurated in April 2025.
Mitsubishi Heavy Industries Facility
7,200 sq.m facility inaugurated in March 2025.
Siemens Energy Facility
7,200 sq.m facility inaugurated in September 2025.
Baker Hughes Facility
7,600 sq.m facility inaugurated in April 2026.
Increased Defence Spending
Rise in Defence spending with focus on modernization and advanced aircrafts.
Commercial Aircraft Demand
Increasing demand for commercial aircrafts; 15,000 units of backlog order with Boeing and Airbus.
Turbine Replacement Market
Replacement market for turbines given their limited operational lifespan.
Conventional Energy Support
Continued support of conventional energy to supplement renewable sources.
Increased Finance Cost
Finance cost increased due to additional term loans and working capital loans availed to support business growth.
Working Capital Management
Changes in working capital resulted in a cash outflow of -3,003.0 Mn in Mar-26 (standalone), with significant increases in inventories and trade receivables.
Execution Risk for New Capacities
Commissioning of four dedicated lean manufacturing facilities for customers since listing, including two during FY26 and one last month, presents ramp-up and qualification risks.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both annual (FY26 vs FY25) and quarterly (Q4FY26 vs Q4FY25) comparisons are relevant as the company reported 'highest ever' performance for both periods, indicating sustained momentum and consistent execution.
Revenue (Consolidated FY26)
Rs. 6,029.8 Mn, up 31.8% YoY.
EBITDA (Consolidated FY26)
Rs. 2,253.1 Mn, up 39.7% YoY, with a 37.4% margin.
PAT (Consolidated FY26)
Rs. 1,335.6 Mn, up 54.4% YoY, with a 22.2% margin.
Revenue (Consolidated Q4FY26)
Rs. 1,615.4 Mn, up 27.3% YoY.
FY26 Focus
FY26 was a year of clear focus on consolidation and stabilization - embedding newly commissioned capacities, strengthening OEM qualifications, and building human capital.
Growth Confidence
Remain confident of sustaining strong growth momentum, supported by favourable industry tailwinds and continued investments in capacity expansion.
Strategic Geographical Expansion
MoU signed for expansion into Saudi Arabia, ensuring co-location with manufacturing footprint of key global OEMs.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Inflow Conversion | Multiple new supply agreements and business awards secured. | Conversion of MoUs and business awards into firm orders and revenue. |
| Capacity Utilization | Four dedicated lean manufacturing facilities commissioned. | Ramp-up of utilization rates in newly commissioned facilities. |
| Working Capital Cycle | Working Capital Days at 154 in FY26 (standalone). | Improvement in working capital cycle, especially receivables and inventory. |
| Debt Management | Finance cost increased due to additional term loans and working capital loans. | Prudent management of debt levels and interest coverage ratios. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +30.3% / mo · near 52W high
Technical chart
AZADweekly · 3Y+35.9%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 65.
- SMA20 rising (~23.3% over last month) — short-term momentum positive.
- RSI(14) at 65 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 5% off 52W high · 64% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 23/25 to the score.
- Balance sheet contributes 8/15 to the score.
- Valuation contributes 0/30 to the score.
Main drags
- Fair-value margin of safety is negative at -145.3%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 53rd percentile of the scored universe and 49th percentile within Industrials. Main check: cash conversion is weak at 28/100.
Healthy Trust Lite: Promoter holding is 55.8%. Key concern: Operating cash flow is negative at ₹-119 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 49th pctile, median 68 · Small: 58th pctile, median 65
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 55.8%.
- ▸Promoter pledge is zero.
- ▸8/8 recent quarters had positive YoY revenue growth.
- ▸8/8 recent quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-119 Cr.
- ▸Only 0 years of positive FCF.
- ▸ROCE trend is -3.1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 106.00
- P/B
- 9.18
- EV/EBITDA
- 52.19
- Market Cap
- 14035.00Cr
Profitability
- ROE
- 9.09%
- ROCE
- 11.90%
- ROA
- 6.09%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 37.00%
- EPS 5Y
- 63.00%
- Revenue 3Y
- 34.00%
- EPS 3Y
- 150.00%
Balance Sheet
- Debt/Equity
- 0.31
- Interest Coverage
- 7.26×
- Altman Z
- 7.83
- Book Value
- 237.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -119.00 Cr
- EPS TTM
- 20.58
Shareholding
- Promoter Hold
- 55.84%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 82%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.