Azad Engineering Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Azad Engineering Ltd filed with BSE on 14 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Azad Engineering reported Q1 FY27 standalone revenue growth of 26.8% year-on-year to Rs 170.5 crores, with EBITDA up 32.1% to Rs 64 crores and EBITDA margin expanding to 37.6%. Management said it delivered India's first indigenous expendable turbojet engine to GTRE, DRDO and the Ministry of Defense, describing it as a shift from component manufacturing to integrated propulsion systems. Management reiterated long-term annual revenue growth guidance of over 25% and said infrastructure at the Tuniki Bollaram Industrial Park, including a new facility for Baker Hughes, is progressing with more substantive revenue contributions expected from the second half of the fiscal year.
Numbers mentioned
Revenue from operations (standalone): INR170.5 crores (Q1 FY27)
p. 4
“Revenue from operations grew by 26.8% year-on-year, reaching to INR170.5 crores, up from INR134.5 crores in Q1 FY26.”
Rakesh Chopdar, page 4 of the filed PDF · View the filing
EBITDA (standalone): INR64 crores (Q1 FY27)
p. 4
“Reported EBITDA expanded at a faster pace of 32.1% year-on-year to arrive at INR64 crores, reflecting the compounding benefits of our operating leverage.”
Rakesh Chopdar, page 4 of the filed PDF · View the filing
EBITDA margin (standalone): 37.6% (Q1 FY27)
p. 4
“EBITDA margins expanded to robust 37.6%, up from 36.1% in the same quarter last fiscal.”
Rakesh Chopdar, page 4 of the filed PDF · View the filing
PAT (standalone): 36.4 crores (Q1 FY27)
p. 5
“Profit after tax registered a healthy growth of 21.2% year-on-year to stand at 36.4 % maintaining an exceptional PAT margin of 21.3%.”
Rakesh Chopdar, page 5 of the filed PDF · View the filing
Revenue (consolidated): INR172.6 crores (Q1 FY27)
p. 5
“On a consolidated level, our revenues came in at INR172.6 crores with an EBITDA of INR64.4 crores and PAT of INR35.2 crores.”
Rakesh Chopdar, page 5 of the filed PDF · View the filing
Revenue growth sequential (standalone): 8.3% (Q1 FY27 vs Q4 FY26)
p. 6
“On a sequential basis, our revenue grew by 8.3% over INR157.4 crores reported in quarter 4 FY26.”
Ronak Jajoo, page 6 of the filed PDF · View the filing
Other income: INR4 crores (Q1 FY27)
p. 6
“Other income came to INR4 crores in this quarter.”
Ronak Jajoo, page 6 of the filed PDF · View the filing
EPS (standalone): INR5.63 per share (Q1 FY27)
p. 6
“This yield an exceptional standalone PAT margin of 21.3%, basis EPS of INR5.63 per share.”
Ronak Jajoo, page 6 of the filed PDF · View the filing
Consolidated EBITDA margin: 37.3% (Q1 FY27)
p. 6
“Consolidated EBITDA at INR64.4 crores, yielding an operating margin of 37.3%, while consolidated PAT reached INR35.2 crores.”
Ronak Jajoo, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Annual revenue growth — over 25% · long-term
stated firmly by Rakesh Chopdar
p. 5
“We proudly reiterate our long-term annual revenue growth guidance of over 25%, while maintaining our stellar industry-leading profitability profile.”
Rakesh Chopdar, page 5 of the filed PDF · View the filing
Revenue contribution ramp-up — second half of FY27
stated conditionally by Rakesh Chopdar
p. 4
“We expect the more substantive revenue contributions to begin crystallizing in the second half of this financial year.”
Rakesh Chopdar, page 4 of the filed PDF · View the filing
EBITDA margin guidance range — 32% to 35%
stated firmly by Rakesh Chopdar
p. 12
“But for calculation purpose and for the guidance purpose, I think 32%, 35% is a good number, which we are holding for since long.”
Rakesh Chopdar, page 12 of the filed PDF · View the filing
Working capital days — 160 to 180 days · H2
stated conditionally by Ronak Jajoo
p. 11
“And by H2, we are targeting in the range of 160 to 180 type of days.”
Ronak Jajoo, page 11 of the filed PDF · View the filing
Working capital days — around 200 days · H1
stated firmly by Ronak Jajoo
p. 11
“So we are targeting H1 around 200 days.”
Ronak Jajoo, page 11 of the filed PDF · View the filing
Civil construction completion at Azad Center of Excellence — end of this financial year
stated firmly by Vishnu Malpani
p. 7
“Civil construction for the remaining units at the new plant, Azad Center of Excellence is on track to wrap by the end of this financial year.”
Vishnu Malpani, page 7 of the filed PDF · View the filing
Export hedging via bill discounting — entirely hedged · quarter 4
stated firmly by Ronak Jajoo
p. 19
“Entirely, it will be hedged by quarter 4 type of time once we have all the bill discounting facility in place.”
Ronak Jajoo, page 19 of the filed PDF · View the filing
Turbojet engine production timeline — 4 to 6 weeks
stated conditionally by Rakesh Chopdar
p. 8
“I think in next 4 to 6 weeks is what we know, okay?”
Rakesh Chopdar, page 8 of the filed PDF · View the filing
Rolls-Royce qualification parts first delivery — within this quarter
stated conditionally by Rakesh Chopdar
p. 13
“So, I think very soon, within this quarter, I think we should be delivering the first batch of the qualification parts.”
Rakesh Chopdar, page 13 of the filed PDF · View the filing
Capex requirement update — next quarter
stated as an aspiration by Vishnu Malpani
p. 16
“I think maybe in a quarter or so, we should be able to give a more comprehensive perspective that should probably address all of these things at a granular level.”
Vishnu Malpani, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the engine is under testing and expects clarity on production scale within a few weeks, based on informal guidance from the customer.
Answered by Rakesh Chopdar
Asked by Vikas Singh: What is the timeline for the turbojet engine testing to translate into orders?
p. 9
“So, this is not some years story. These are a few months story.”
Rakesh Chopdar, page 9 of the filed PDF · View the filing
Management said the addressable market is large and did not give a specific margin or growth number, framing the opportunity as a long-term structural one.
Answered by Rakesh Chopdar
Asked by Amit Dixit: What is the growth trajectory for Azad given peers like Howmet report much higher growth and margins?
p. 11
“So definitely, what would Azad make? It's a good thing to understand and guess.”
Rakesh Chopdar, page 11 of the filed PDF · View the filing
Management gave a phased target for debtor days reduction tied to bill discounting facilities.
Answered by Ronak Jajoo
Asked by Amit Dixit: When will working capital days plateau?
p. 11
“So this is largely back on the bill discounting facility where our current debtor stage, which are around 170, 180 days will go down to 90 days.”
Ronak Jajoo, page 11 of the filed PDF · View the filing
Management attributed the improvement to shop-floor skill development and continuous improvement over years, without changing the stated guidance range.
Answered by Rakesh Chopdar
Asked by Gaurav: Why is EBITDA margin guidance conservative at 32-35% when actuals are running at 37-38%?
p. 12
“It's the skill set what we are obtaining on the shop floor and this continuous improvement, which is not only the last 3 years, we've been seeing since inception, where we -- I remember the days, we were operating at 18%, 19% EBITDA.”
Rakesh Chopdar, page 12 of the filed PDF · View the filing
Management said each dedicated plant is expected to generate Rs 150-180 crores at full utilization, implying roughly Rs 1,200 crores from the new plant overall.
Answered by Vishnu Malpani
Asked by Aditya Bhartia: What is the peak revenue potential from the new asset base at Tuniki Bollaram?
p. 14
“I'd like to say that each of these plants are poised to generate at full utilization and full capacity from INR150 crores to, let's say, about INR180-odd crores, right?”
Vishnu Malpani, page 14 of the filed PDF · View the filing
Management said currency movement could help revenue by roughly 5-6% but is not a factor considered in business planning.
Answered by Vishnu Malpani
Asked by Aditya Bhartia: Could rupee depreciation provide a meaningful boost to revenue growth?
p. 15
“But you're right to mention that rupee depreciation could probably help us to an extent of 5%, 6%.”
Vishnu Malpani, page 15 of the filed PDF · View the filing
Management said the comparison is not appropriate given the vast difference in scale and years of capacity build-out between Azad and larger global peers.
Answered by Vishnu Malpani
Asked by Kamlesh Bagmar: Why does growth of 23-24% look lower compared to global peers growing 25-26% in dollar terms?
p. 16
“We have done INR600 crores in the full financial year.”
Vishnu Malpani, page 16 of the filed PDF · View the filing
Management attributed the decline to qualifying domestic suppliers for critical raw material grades, reducing cost and transportation expenses versus imports.
Answered by Ronak Jajoo
Asked by Basant Bansal: What has driven the sharp decline in raw material cost as percentage of sales?
p. 18
“So there, we are getting a benefit of the price benefit and also transportation cost benefit since these are the local supplies, which have a very less transportation cost compared to a global transportation cost when we import these materials from overseas, which is around 4% to 5% type of situation.”
Ronak Jajoo, page 18 of the filed PDF · View the filing
Management described the challenge as one of execution complexity in scaling multiple workstreams simultaneously, not a shortage of opportunity.
Answered by Vishnu Malpani
Asked by Basant Bansal: What challenges or concerns does management have given the positive outlook?
p. 19
“So this is a really large execution thing. And for us, we are trying to do everything, right?”
Vishnu Malpani, page 19 of the filed PDF · View the filing
Risks flagged
Other income declined sharply due to normalization of foreign currency gains seen in the prior quarter
p. 6
“I must emphasize that the sequential drop is entirely a function of foreign currency dynamics.”
Ronak Jajoo, page 6 of the filed PDF · View the filing
Treasury income expected to moderate as cash reserves are deployed into infrastructure
p. 6
“Furthermore, our treasury income is expected to moderate, as I mentioned in last call also as we steady deploy our cash reserves into active factory infrastructure and machines.”
Ronak Jajoo, page 6 of the filed PDF · View the filing
Elevated employee costs currently not matched by proportional sales, tied to inventory build for future quarters
p. 18
“This is for the future sales what we are targeting in quarter 3, quarter 4.”
Ronak Jajoo, page 18 of the filed PDF · View the filing
Complexity of simultaneously executing on capacity build-out, hiring, training and contract delivery
p. 18
“Because if you imagine what we are attempting to achieve as an organization, our team put together, we are building factories at the same time, ramping up capacities in some hiring people, training people, growing and catering to all contracts.”
Vishnu Malpani, page 18 of the filed PDF · View the filing
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