Synopsis: Azad Engineering has extended a global supply agreement, supported by rising demand, strengthening its long-term business visibility and positioning in the energy equipment space with continued focus on key components.
The shares of this engineering company majorly engaged in manufacturing of aerospace components and turbines and supplies its products to original equipment manufacturers (OEMs) in the aerospace, defence, energy, and oil and gas industries, jumped upto to 5 percent after extending the global supply agreement of turbomachinery components.
With the market capitalization of Rs. 13,884 Crores, the shares of Azad Engineering Ltd reached an intraday high of Rs. 2202 per share raising nearly 4.5 percent from its previous day close of Rs. 2108 per share and is trading at a P/E of 113 whereas industry P/E stands at 36.3
What is the NEWS
Azad Engineering has extended its strategic supply agreement with Nuovo Pignone S.r.l, a company that is part of Baker Hughes, to continue supplying critical turbomachinery components used in power generation. The agreement is international in nature and will run until December 2030, giving the company long-term business visibility. This extension comes as there has been a significant increase in annual demand for components, which are important for energy applications, especially in the oil and gas sector.
The scope of the agreement remains focused on supplying key components, although the overall size or value of the contract has not been disclosed as it is confidential. The deal does not involve any related party transactions, and there is no promoter or group company interest in the entity awarding the contract.
About the Company and Financials
Azad Engineering Ltd Incorporated in 1983, Azad Engineering Limited is a manufacturer of aerospace components and turbines and supplies its products to original equipment manufacturers (OEMs) in the aerospace, defence, energy, and oil and gas industries.
The company has a strong presence in the global turbine components market, with its customers accounting for nearly 75% share, largely concentrated among the top three players, while others hold smaller shares of 10% and 5%. On a quarterly basis, the Energy & Oil & Gas segment contributed 81.6% while Aerospace & Defence contributed 17 percent during Q3 Fy26.
Exports continue to dominate the business with a 91.1% share in Q3 FY26, though slightly lower than 94.6% earlier. Domestic business, while smaller, improved its share from 5.4% to 8.9%. Overall, the numbers reflect strong growth led by exports and the core energy segment, along with gradual improvement in domestic contribution.
Year on Year analysis: Revenue from operations has increased from Rs. 119 Crores to Rs. 156 Crores, up 31 percent. Operating profit has increased from Rs. 43 Crores to Rs. 60 Crores, up 39.5 percent and net profit has increased from Rs. 24 Crores to Rs. 34 Crores, up 41.6 percent
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 143 Crores to Rs. 156 Crores, up 9 percent. Operating profit has increased from Rs. 51 Crores to Rs. 60 Crores, up 17 percent and net profit has increased from Rs. 33 Crores to Rs. 34 Crores, up 3 percent
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