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Earnings Call Transcript

Azad Engineering Earnings Call Transcript: Key Takeaways

Azad delivered strong FY27 Q1 results, hitting guidance with 27% revenue growth. The standout is the successful delivery of India's first indigenous turbojet engine, signaling a high-margin structural shift into complex propulsion systems.

Guidance and delivery
Management target Revenue 25.0% Long-term
Highlights
Revenue growth26.8% YoY growth driven by energy and aerospace segments.
MarginsStructurally expanding; standalone EBITDA margin reached 37.6%.
Demand visibilityStrong multi-year visibility through long-cycle OEM contracts.
Management confidenceExtremely high following the successful DRDO turbojet engine delivery.

Growth

Revenue grew 26.8% YoY; EBITDA expanded 32.1% with margins rising to 37.6% due to cost indigenization.

Outlook

Management reiterated long-term annual revenue growth guidance of over 25% with sustained profitability.

Risks

Near-term risks include high working capital (200 days) and significant debt-funded capex for facility expansions.

Last quarter's promises, checked

Delivered

  • Guided 25%+ revenue growth → delivered 26.8% (= BEAT)
  • Guided 33-35% EBITDA margin → delivered 37.6% (= BEAT)
  • Inaugurate Baker Hughes facility by April 2026 → delivered April 2026 (= BEAT)

Partly delivered

  • Reduce inventory to 200 days in H1 → delivered 200 days (= PARTIAL)
Source

Earnings Call Transcript filed with NSE, NSE: AZAD. Summary written with AI assistance from the document.

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Azad Engineering Ltd: key numbers

Share price
₹2,728.00
Market cap
₹17,618 Cr
Revenue (annual)
₹603.0 Cr
Net profit (annual)
₹132.9 Cr
P/E (TTM)
126.8×Sector 53.6×
Promoter holding
55.84%+0.00% QoQ
FII holding
13.30%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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