Azad Engineering Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Azad Engineering Ltd filed with BSE on 22 May 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 Q4 FY26 revenue of INR157 crores, up 26.4% year-on-year, with EBITDA margin at 36.7% and PAT margin at 22.3%. For the full year, revenue reached INR590 crores versus INR453 crores in FY25, with EBITDA margin at 36.9% and PAT margin at 22.4%. Management discussed the commissioning of new dedicated facilities for global OEMs including Baker Hughes and a new single-source contract with Mitsubishi Heavy Industries for hot section nozzle vane components.
Numbers mentioned
Revenue: INR157 crores (Q4 FY26)
p. 4
“Revenue stood at INR157 crores, a year-on-year growth of 26.4%.”
Rakesh Chopdar, page 4 of the filed PDF · View the filing
EBITDA margin: 36.7% (Q4 FY26)
p. 4
“Reported EBITDA margin improved from 36.5% in Q4 FY '25 to 36.7% in Q4 FY '26, driven by operational efficiencies, scale benefits and improving product mix.”
Rakesh Chopdar, page 4 of the filed PDF · View the filing
PAT margin: 22.3% (Q4 FY26)
p. 4
“PAT margins expanded from 20.9% to 22.3% over the same period.”
Rakesh Chopdar, page 4 of the filed PDF · View the filing
Revenue: INR590 crores (FY26)
p. 4
“For the full year, FY '26 revenue was INR590 crores against INR453 crores in FY '25, a growth of approximately 30% plus.”
Rakesh Chopdar, page 4 of the filed PDF · View the filing
EBITDA margin: 36.9% (FY26)
p. 4
“Reported EBITDA margin stood at 36.9% for the year and the PAT margin at 22.4%.”
Rakesh Chopdar, page 4 of the filed PDF · View the filing
Revenue (consolidated): INR603 crores (FY26)
p. 7
“For FY '26, the company reported revenue from operations is INR590 crores on a stand-alone basis and INR603 crores on a consolidated basis.”
Ronak Jajoo, page 7 of the filed PDF · View the filing
EBITDA margin (consolidated): 37.4% (FY26)
p. 7
“Our EBITDA margin are around 37.4% (consolidated), reflecting strong execution discipline, supply chain efficiencies and margin benefit driven by backward integration, which reduced our outsourcing cost.”
Ronak Jajoo, page 7 of the filed PDF · View the filing
Profit after tax (standalone): INR132 crores (FY26)
p. 7
“Profit after tax stood at INR132 crores on a stand-alone basis and INR134 crores on a consolidated basis, delivering a strong growth of 54.5%”
Ronak Jajoo, page 7 of the filed PDF · View the filing
Capitalized assets: INR392 crores (FY26)
p. 7
“During the year, we have capitalized assets worth INR392 crores and record an increased CWIP and capital advance of INR191 crores during the year.”
Ronak Jajoo, page 7 of the filed PDF · View the filing
Total borrowing (gross): INR457 crores (FY26)
p. 7
“The company utilized incremental term funding of INR154 crores to support ongoing capacity expansions and total borrowing stood at INR457 crores on gross basis and INR272 crores on a net basis.”
Ronak Jajoo, page 7 of the filed PDF · View the filing
Treasury balance: INR184 crores (FY26)
p. 7
“Our treasury balance stood at INR184 crores, including INR160 crores from QIP proceeds.”
Ronak Jajoo, page 7 of the filed PDF · View the filing
Receivables: INR309 crores (FY26)
p. 7
“Receivables stood at INR309 crores, broadly in line with historical level.”
Ronak Jajoo, page 7 of the filed PDF · View the filing
Trade payables: INR87 crores (FY26)
p. 7
“Trade payables were INR87 crores, translating to approximately 51 days of sales, which was in line with historical number.”
Ronak Jajoo, page 7 of the filed PDF · View the filing
GST credit accumulated: approximately INR100 crores (over past 2 years)
p. 7
“Additionally, we have GST credit of approximately INR100 crores accumulated over the past 2 years.”
Ronak Jajoo, page 7 of the filed PDF · View the filing
Energy and Oil & Gas segment revenue: INR481 crores (FY26)
p. 5
“Energy and oil and gas remained the largest contributor for the full year '26 and continues to be one of the main engines of the business, contributing to roughly 81.5% for the full year in terms of our revenue, which is INR481 crores year-on-year, growing at least 34%.”
Vishnu Malpani, page 5 of the filed PDF · View the filing
Aerospace & Defence segment revenue: INR101 crores (FY26)
p. 6
“For the full year 2026, this segment contributed to INR102 crores (INR 102 crores was said erroneously. To be read as INR 101 crores), about 17.2% of our FY '26 revenue with a year-on-year growth of roughly 25%.”
Vishnu Malpani, page 6 of the filed PDF · View the filing
Order book: approximately INR6,500 crores
p. 6
“Our order book is at approximately INR6,500 crores with INR600 crores delivered in FY '26 and still remains at that level, which is about 11x, 12x our FY '26 revenue, given the forward visibility, which is very, very rare in the times today.”
Vishnu Malpani, 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.
Revenue growth — 25% plus · FY27
stated firmly by Rakesh Chopdar
p. 5
“We are confident in sustaining strong business momentum and in delivering on our previously communicated top line growth of approximately 25% plus for the current year.”
Rakesh Chopdar, page 5 of the filed PDF · View the filing
Revenue growth — 25% plus · multiyear
stated firmly by Vishnu Malpani
p. 6
“Customer schedules are firm and are in place, and that's why we remain confident in delivering 25% plus top line trajectory, not just for FY '27, but on a multiyear basis.”
Vishnu Malpani, page 6 of the filed PDF · View the filing
EBITDA margin — 33% to 35% plus
stated as an aspiration by Rakesh Chopdar
p. 11
“We always say 33% to 35% plus, and that plus can be anything.”
Rakesh Chopdar, page 11 of the filed PDF · View the filing
Inventory days — closer to 200 days · H1
stated firmly by Rakesh Chopdar
p. 9
“And then coming to the level where we have already WIP work in progress to cut down these inventories, as I promised in H1, you will see a drastic change coming to closer to 200 days.”
Rakesh Chopdar, page 9 of the filed PDF · View the filing
Inventory days — 160, 170 days · H2
stated firmly by Rakesh Chopdar
p. 9
“And H2, we get down to 160, 170 days. That's we have already planned, and it's in execution, and we will achieve it.”
Rakesh Chopdar, page 9 of the filed PDF · View the filing
New facilities — 4 more facilities · 6 months
stated firmly by Rakesh Chopdar
p. 9
“Yes, you're right. We are on track.”
Rakesh Chopdar, page 9 of the filed PDF · View the filing
Capex for FY27 — INR180 crores to INR190 crores · FY27
stated firmly by Ronak Jajoo
p. 15
“Yes, INR180 crores to INR190 crores will be coming there, which will happen towards...”
Ronak Jajoo, page 15 of the filed PDF · View the filing
Energy segment revenue share — 55% to 60% · next 4-5 years
stated as an aspiration by Vishnu Malpani
p. 13
“you will see that Azad is a fairly diversified business where Energy will be contributing anywhere between 55% to 60% and the balance will be contributed by our other verticals, which is Aerospace & Defence and even Oil & Gas for that matter.”
Vishnu Malpani, page 13 of the filed PDF · View the filing
Rolls-Royce supply start — Q4 FY27 or early FY28
stated conditionally by Rakesh Chopdar
p. 10
“That's where the supply starts. And followed by -- as you can see, it took 2.5, 2.5 years to come to the stage, and this is normal.”
Rakesh Chopdar, page 10 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 stabilization is 70-80% complete and growth will follow once facilities are fully stabilized, with the guidance potentially revised upward in future quarters.
Answered by Rakesh Chopdar
Asked by Amit Dixit: Given bullish OEM commentary, is the 25% growth guidance conservative?
p. 8
“But we can't see that massive jump immediately, right? Because we need capacity, we need infra, we need the orders, qualifications, redo delta qualifications.”
Rakesh Chopdar, page 8 of the filed PDF · View the filing
Management indicated the timeline has compressed from years to weeks.
Answered by Rakesh Chopdar
Asked by Amit Dixit: What is the status of ATGG engine delivery?
p. 9
“So Amit, I would just give you an idea, it was years, years got to months, now it has come to weeks.”
Rakesh Chopdar, page 9 of the filed PDF · View the filing
Management said contracts extend on average over 5-6 years.
Answered by Vishnu Malpani
Asked by Suraj Malu: What is the delivery timeline for the INR6,000 crores order backlog?
p. 9
“So if you look at it, over 5 to 6 years, we should be able to -- on an average, these contracts extend to over 5 to 6 years.”
Vishnu Malpani, page 9 of the filed PDF · View the filing
Management gave a breakdown by segment in dollar terms.
Answered by Vishnu Malpani
Asked by Suraj Malu: Can you split the order backlog by segment?
p. 10
“today, we have over $400 million worth of orders towards Energy, approximately $200 million plus for Aerospace & Defence and about $100 million plus in Oil & Gas.”
Vishnu Malpani, page 10 of the filed PDF · View the filing
Management said the part was manufactured in-house by Mitsubishi previously, given the critical nature requiring specialized infrastructure.
Answered by Rakesh Chopdar
Asked by Gaurav: Was the Mitsubishi nozzle vane part previously made in-house or by another vendor?
p. 10
“So it was manufactured in-house. The parts are very critical in nature, right?”
Rakesh Chopdar, page 10 of the filed PDF · View the filing
Management reiterated their margin band and said continuous floor improvements support margin delivery.
Answered by Rakesh Chopdar
Asked by Gaurav: Could margins surprise further given new plants are underutilized?
p. 11
“So definitely, I wish and hope that we deliver that plus every time.”
Rakesh Chopdar, page 11 of the filed PDF · View the filing
Management explained growth comes from ramping wallet share on qualified parts, adding adjacent categories, and adding new customers.
Answered by Vishnu Malpani
Asked by Bhavika Singhvi: What is driving Energy & Oil segment growth - new customers or new products?
p. 12
“So most of the growth that you see today is coming out of qualifications of parts that have been done and ramp-up that is coming in.”
Vishnu Malpani, page 12 of the filed PDF · View the filing
Management said Oil & Gas contribution was under INR10 crores in the current year, with ramp-up expected in FY27.
Answered by Vishnu Malpani
Asked by Bhavika Singhvi: How much of the Energy & Oil & Gas segment is Oil & Gas specifically?
p. 13
“So if you look at any revenue contribution for the current year, it was not material. It was under about INR10 crores between -- because we are largely doing qualification.”
Vishnu Malpani, page 13 of the filed PDF · View the filing
Management said they have derisked from major issues given multiyear contracts and purchase order visibility, with execution risk remaining.
Answered by Vishnu Malpani
Asked by Pratik Dharmshri: Are there risks from Middle East geopolitical tension on the supply chain?
p. 13
“We have purchase orders and visibility over the next 5, 7 years. The other thing that we can have a risk on is capacity creation, which we've been able to do to a large extent.”
Vishnu Malpani, page 13 of the filed PDF · View the filing
Management said the plan is still on but timelines have shifted due to current situation.
Answered by Vishnu Malpani
Asked by Sahil Karia: Is the Saudi Arabia capex plan with Baker Hughes on track?
p. 15
“But yes, the time lines have been shifted. We are still in discussions with our customer on how do we best take this forward given the current situation and priorities.”
Vishnu Malpani, page 15 of the filed PDF · View the filing
Management said inventory is elevated due to upfront investment but will convert to revenue and ease cash flow from FY27.
Answered by Ronak Jajoo
Asked by Manish Ostwal: How is working capital being managed given heavy capex investment?
p. 17
“Looking forward from FY '27 and onwards, we see that this inventory will be converted into the revenues and that will ease out the cash flow from that particular perspective.”
Ronak Jajoo, page 17 of the filed PDF · View the filing
Management said development costs are generally expensed, with only specific customer tools capitalized.
Answered by Ronak Jajoo
Asked by Jai Chauhan: Are development costs capitalized or expensed, and what would margins look like otherwise?
p. 18
“We generally don't capitalize any development cost in our balance sheet and we expense out as a part of our accounting policies.”
Ronak Jajoo, page 18 of the filed PDF · View the filing
Risks flagged
Execution risk from having to scale capacity, manpower and processes simultaneously
p. 13
“So it's about our ability to be able to do all of this together. So that execution risk remains.”
Vishnu Malpani, page 13 of the filed PDF · View the filing
Shifted timelines for Saudi Arabia capex plans with Baker Hughes due to current situation
p. 15
“But yes, the time lines have been shifted. We are still in discussions with our customer on how do we best take this forward given the current situation and priorities.”
Vishnu Malpani, page 15 of the filed PDF · View the filing
Elevated inventory and working capital from upfront investment in ramping facilities
p. 17
“So these plants are at different level of maturity, but your investment has to be upfront. That is the reason this year, the inventory is slightly looking elevated.”
Ronak Jajoo, page 17 of the filed PDF · View the filing
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