Azad Engineering (AZAD) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly and half-yearly financial performance in H1FY26 and Q2FY26, with revenue and profitability surpassing all previous benchmarks.

• Robust order inflows and major contract wins, including new MoU with Safran Aircraft Engines and phase 2 contract with Mitsubishi, supporting continued growth.

• Three new lean manufacturing facilities inaugurated in 2025 for Siemens, Mitsubishi, and GE, supporting capacity expansion.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with statutory auditors issuing an unmodified review conclusion.

• Results include two subsidiaries: Azad VTC Private Limited and Azad Prime Private Limited.

Financial highlights

• Q2 FY26 standalone revenue reached Rs 1,426.7 Mn, up 28.1% year-over-year; H1 FY26 revenue at Rs 2,771.8 Mn, up 32.1% year-over-year.

• Q2 FY26 standalone net profit was Rs 332.79 Mn, up from Rs 206.39 Mn in Q2 FY25; H1 FY26 net profit at Rs 630.70 Mn, up from Rs 378.86 Mn.

• Q2 FY26 EBITDA margin improved to 36.02%, with PAT margin at 23.1%; H1 FY26 EBITDA margin at 36.0%, PAT margin at 22.7%.

• Basic and diluted EPS (standalone) for H1 FY26 was Rs 9.75, up from Rs 6.46 in H1 FY25.

• Consolidated revenue and profit also showed strong year-over-year growth.

Outlook and guidance

• Management anticipates even stronger performance in H2FY26, targeting 25%-30% topline growth for FY26, with guidance maintained for the near and medium term.

• Focus on stabilization of new capacity in FY26, with nonlinear growth impact expected from FY27.

• Expansion strategy includes further capacity additions, technology-led optimization, and strategic geographic expansion.

• Management and auditors confirm compliance with Indian Accounting Standards and SEBI regulations.