Azad Engineering Limited: Complete Corporate Profile, Financial

Source: Azad Engineering Limited Annual Report & Accounts 2025-26.

Quick Facts / Company Snapshot

Company Overview

Azad Engineering Limited is a public limited company headquartered in Hyderabad, Telangana, operating as a build-to-print manufacturer of highly engineered, complex, mission- and life-critical precision-forged and machined components. The company operates within three regulated manufacturing ecosystems: energy and power generation, aerospace and defence, and oil and gas. Its manufacturing base is concentrated across six plants in Telangana, while its commercial reach spans across more than eleven countries globally, with exports accounting for approximately 93% of its total revenue.

The company’s operational philosophy rests on qualification-led manufacturing, where parts are produced under stringent tolerances measured in single-digit microns and subject to parts-per-million (PPM) defect standards. The company supplies global original equipment manufacturers (OEMs) that operate power generation turbines, aircraft engines, and industrial equipment functioning under extreme mechanical, thermal, and pressure loads. Over its operating history, the company has expanded its capabilities from manufacturing discrete compressor-side components to producing hot-section turbine parts, complex sub-assemblies, and complete propulsion systems.

• Founder-led evolution from a single 200 square metre workshop in Hyderabad into a multi-facility enterprise with over 2,500 personnel.
• High export orientation, with international sales representing approximately 93% of total standalone revenue in FY 2025-26.

Business Segments

Azad Engineering Limited reports its operational performance across two primary segments—Energy and Oil & Gas, and Aerospace & Defence—alongside a residual ‘Others’ category covering export incentives and scrap sales.

Energy and Oil & Gas Segment

The Energy and Oil & Gas segment is the company’s largest revenue contributor, generating ₹4,811.30 million in standalone revenue during FY 2025-26, which represents 81.50% (Calculated by FirmsWorld) of total standalone revenue from operations. This segment supplies rotating and stationary 3D airfoils, specialized machine components, and combustion assemblies to global original equipment manufacturers holding a substantial share of the global gas and steam turbine markets. It also encompasses nuclear turbine airfoils supplied for international and domestic applications following multi-year audits and global qualifications.

Aerospace & Defence Segment

The Aerospace & Defence segment generated ₹1,012.60 million in standalone revenue during FY 2025-26, accounting for 17.15% (Calculated by FirmsWorld) of total standalone revenue from operations. This segment is divided into aero systems—covering auxiliary power units, actuators, hydraulic systems, and structural components for civil and military aircraft platforms—and aero engines, covering critical rotating and stationary 3D airfoils and advanced propulsion systems for civil aviation and strategic defence platforms.

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Others Category

The ‘Others’ category contributed ₹79.90 million in standalone revenue during FY 2025-26, representing 1.35% (Calculated by FirmsWorld) of total standalone revenue from operations, comprising export incentives and scrap sales.

Source: Azad Engineering Limited Annual Report 2025-26 (Standalone Financial Statements and MD&A).

• Energy and Oil & Gas serves as the primary financial pillar of the company, driven by long-term master supply agreements with global turbine manufacturers.
• Aerospace & Defence crossed ₹1,000 million in annual revenue for the first time, reflecting the transition of multi-year development programmes into commercial production.

History and Evolution

Azad Engineering Limited commenced manufacturing operations in Hyderabad in 2008 under the leadership of Mr. Rakesh Chopdar, starting on a 200 square metre rented floor with a single machine and one operator. The initial focus centred on manufacturing three-dimensional compressor airfoils for power generation turbines. Over subsequent years, the enterprise broadened its technical capabilities, systematically clearing multi-year audit, validation, and qualification cycles demanded by global original equipment manufacturers in the energy sector.

In the following decade, the company expanded its manufacturing footprint across industrial areas in Jeedimetla, Pashamylaram, and Tuniki Bollaram in Telangana, growing from a single workshop into a multi-campus manufacturing hub. The company transitioned from supplying standalone cold-section compressor components to undertaking complex hot-section components, sub-assemblies, and full system integration. In January 2024, the company completed its initial public offering and subsequently raised capital via qualified institutional placement to fund its Phase 1 capacity expansion, inaugurating dedicated lean manufacturing facilities for marquee global original equipment manufacturers.

• Began operations in 2008 with a single machine and focused on critical 3D compressor airfoils.
• Completed public listing in early 2024, followed by capital raising to build dedicated manufacturing plants for global original equipment manufacturers.

Products and Services

The company’s product portfolio encompasses precision-engineered components that operate in mission- and life-critical environments.

Airfoil / Blade

The Airfoil / Blade category generated ₹4,094.25 million in revenue, representing 69.35% (Calculated by FirmsWorld) of total standalone revenue from operations during FY 2025-26. This category comprises 3D rotating and stationary airfoils for gas, steam, nuclear, and industrial power generation turbines, as well as compressor and turbine airfoils for civil and military aero-engines.

Non-Airfoil Components and Systems

The Non-airfoil category generated ₹1,729.60 million in revenue, representing 29.29% (Calculated by FirmsWorld) of total standalone revenue from operations during FY 2025-26. This category includes specialized machine components, combustion assemblies, auxiliary power unit parts, hydraulic and actuation systems, structural components, and fully assembled propulsion systems such as the 350 kg thrust class expendable turbojet engine.

Source: Azad Engineering Limited Annual Report 2025-26 (BRSR Section A and Standalone Financial Statements).

• Airfoils remain the foundational product line, accounting for over two-thirds of total revenue output.
• Non-airfoil components and assemblies represent a growing category encompassing actuation, combustion, and fully integrated propulsion systems.

Brand Portfolio

Not separately disclosed in the provided source.

Geographical Presence

Azad Engineering Limited operates an export-led business model with its manufacturing footprint concentrated in clusters across Hyderabad and surrounding districts in Telangana, India. The company serves customers spanning more than eleven countries, including the United States, Japan, Singapore, the United Arab Emirates, the United Kingdom, France, Germany, Switzerland, Poland, Hungary, and Italy.

Manufacturing and Office Footprint

The company operates six manufacturing plants situated in Telangana, India, along with its registered office in Jeedimetla, Hyderabad. The manufacturing facilities include units in Jeedimetla Phase-I, Jeedimetla Industrial Park Phase V, Pashamylaram, and Tuniki Bollaram in Siddipet.

Source: Azad Engineering Limited Annual Report 2025-26 (Corporate Overview and Statutory Reports).

• Exports accounted for approximately 93% of total revenue in FY 2025-26, up from 91.9% in FY 2024-25.
• The physical manufacturing footprint is entirely localized in Telangana to maintain close coordination across design, quality, and production clusters.

Profit and Loss

For the financial year ended March 31, 2026, the company reported standalone revenue from operations of ₹5,903.75 million, representing a 30.35% increase compared to ₹4,529.28 million in FY 2024-25. Profit after tax for FY 2025-26 reached ₹1,321.61 million, marking a 49.29% increase over the previous year’s PAT of ₹885.25 million.

Source: Azad Engineering Limited Annual Report 2025-26 (Standalone Statement of Profit and Loss).

• Profit growth outpaced revenue growth due to operating discipline, firm pricing across long-term contracts, component mix changes, and operational synergies.
• Other income of ₹475.33 million comprised foreign exchange gains and treasury income earned on unutilized QIP proceeds.

Balance Sheet

As at March 31, 2026, the company’s total standalone assets stood at ₹21,951.34 million, compared to ₹18,545.28 million as at March 31, 2025. Total equity stood at ₹15,519.78 million, while total liabilities amounted to ₹6,431.56 million.

Source: Azad Engineering Limited Annual Report 2025-26 (Standalone Balance Sheet).

• Capital expenditure capitalized during the year amounted to ₹3,920.20 million, with ₹2,566.82 million held in capital work-in-progress.
• Unutilized QIP proceeds of ₹1,599.99 million were held in fixed deposits with scheduled banks at year-end.

Cash Flow

For the financial year ended March 31, 2026, operating activities resulted in a net cash outflow of ₹1,232.63 million, primarily due to increases in working capital requirements, including trade receivables and inventory build-up for ramping customer programmes.

Source: Azad Engineering Limited Annual Report 2025-26 (Standalone Statement of Cash Flows).

• Investing cash outflows included ₹5,707.07 million directed towards the purchase of property, plant, and equipment, capital work-in-progress, and capital advances.
• Financing cash inflows included ₹1,538.85 million from new long-term borrowings and ₹708.82 million net proceeds from short-term borrowings.

Board of Directors and Leadership Team

Board of Directors

• Rakesh Chopdar: Executive Chairman and Chief Executive Officer. Serves as Chairman of the Board and CEO, leading overall strategy and executive management. Member of the CSR Committee and Stakeholders’ Relationship Committee.
• Murali Krishna Bhupatiraju: Managing Director. Responsible for operational execution and management. Member of the CSR Committee and Stakeholders’ Relationship Committee.
• Jyoti Chopdar: Whole-Time Director. Involved in executive management and operations. Spouse of Rakesh Chopdar.
• Vishnu Malpani: Whole-Time Director. Manages operational functions and serves as a member of the Audit Committee, CSR Committee, and Stakeholders’ Relationship Committee.
• Madhusree Vemuru: Non-Executive Independent Director. Serves as Chairperson of the Audit Committee and Risk Management Committee, and member of the Nomination and Remuneration Committee.
• Subba Rao Ambati: Non-Executive Independent Director. Serves as Chairman of the Stakeholders’ Relationship Committee and member of the Nomination and Remuneration Committee and Risk Management Committee.
• Michael Joseph Booth: Non-Executive Independent Director. Serves as Chairman of the Nomination and Remuneration Committee and member of the Audit Committee and CSR Committee.
• Deepak Kabra: Non-Executive Independent Director. Serves as member of the Audit Committee, Nomination and Remuneration Committee, and Risk Management Committee.

Senior Management Personnel

• Ronak Jajoo: Chief Financial Officer.
• G. Praneeth Abhishek: Company Secretary, Compliance Officer, and Head Legal (appointed November 29, 2025).
• Saravanan Krishnan: Chief Business Officer (appointed November 14, 2025).
• Ashok Gentyala: Director – Technical / Head – Engineering & Operations.
• PR Balaji: Head – Growth / Business Growth.
• Upendra Tummala: Head – Business Excellence (appointed April 2, 2025).
• Matthew Childs: Head – Key Accounts / Program Management.
• Dinesh J Shetty: Head – Supply Chain.
• Atin Agarwal: Head – Analytics & IT.
• Silpa Kanaka Bellamkonda: Head – Quality Management Systems.

Subsidiaries, Associates, Joint Ventures

As at March 31, 2026, the company has two subsidiaries and no associate or joint venture companies.

Azad VTC Private Limited

• Ownership Percentage: 50.99% equity shareholding.
• Nature of Business: Advanced surface engineering, aerospace coatings, and special processes.
• Financial Contribution: Recorded turnover of ₹104.30 million and profit after tax of ₹16.68 million for FY 2025-26. Total assets and liabilities stood at ₹122.47 million each.

Azad Prime Private Limited

• Ownership Percentage: 50.99% equity shareholding.
• Nature of Business: Manufacturing of precision components outside Azad’s primary heritage scope.
• Financial Contribution: Recorded turnover of ₹83.07 million and net loss of ₹2.69 million for FY 2025-26. Total assets and liabilities stood at ₹226.94 million each.

Source: Azad Engineering Limited Annual Report 2025-26 (Annexure 1 – Form AOC-1).

• Both subsidiaries achieved EBITDA breakeven during the year, expanding the group’s in-house capabilities in coatings, heat treatment, and specialized manufacturing.

Other Investments (Including Minority / Portfolio Holdings)

Not separately disclosed in the provided source.

Physical Properties (Offices, Plants, Factories, etc.)

The company’s operations are anchored by its registered and corporate office and six manufacturing plants, all located in the state of Telangana, India.

• Registered Office and Plant 1: 90/C, 90/D, 90/E, Phase-I, I.D.A, Jeedimetla, Hyderabad, Telangana – 500055.
• Plant 2: Plot No D42/43, Phase V, TSIIC, I.D.A, Jeedimetla Industrial Park, Quthbullapur Mandal, Hyderabad, Medchal Malkajgiri, Telangana – 500055.
• Plant 3: Plot No 63/A, Phase I, TSIIC I.D.A, Survey No 298, Jeedimetla Village, Industrial Park, Quthbullapur Mandal, Hyderabad, Medchal Malkajgiri, Telangana – 500055.
• Plant 4: Plot No. 17/B, Pashamylaram, Isnapur, Sangareddy, Telangana – 502307.
• Plant 5 (Mega-Campus / Centre of Excellence): SY No. 340, Plot No 85 to 92 & 118 to 123, Industrial Park Tuniki Bollaram, Siddipet, Telangana – 502279.
• Plant 6: Plot No 30 & 31 Phase 5, I.D.A, Jeedimetla, Hyderabad, Medchal Malkajgiri, Telangana – 500055.

Founders

• Mr. Rakesh Chopdar: Founder, Chairman, and Chief Executive Officer. Started operations in 2008 in Hyderabad with a 200 square metre rented floor and one machine. Under his leadership, the company grew into a global supplier of mission- and life-critical components for aerospace, defence, energy, and oil and gas sectors.

Parent

Azad Engineering Limited is the ultimate parent company and does not have a parent entity.

Investments and Capital Expenditure Plans

During FY 2025-26, the company capitalised assets worth ₹3,920.20 million and held ₹1,921.9 million (within total CWIP and capital advances) in capital work-in-progress and advances, funded substantially through proceeds raised from its qualified institutional placement. Phase 1 of the company’s capacity expansion is progressing towards completion, creating an incremental capacity of approximately 95,000 square metres across dedicated customer facilities. Total planned expansion across phases is designed to take the manufacturing footprint to approximately 182,000 square metres.

• Four dedicated customer manufacturing facilities commissioned by early 2026 (for Mitsubishi Heavy Industries, GE Vernova, Siemens Energy, and Baker Hughes).
• Capital expenditure is tied directly to contracted customer commitments and an order book standing at approximately ₹65,000 million.

Shareholding Pattern

As at March 31, 2026, the total paid-up share capital of the company was ₹129.16 million, comprising 64,581,743 equity shares of face value ₹2 each.

Source: Azad Engineering Limited Annual Report 2025-26 (Corporate Governance Report).

• Promoter and promoter group hold a majority stake of 55.84% in the company.
• Institutional ownership remains robust, with Foreign Portfolio Investors (14.75%) and Mutual Funds (10.19%) holding significant public stakes.

Future Strategy

Management has outlined a strategic roadmap focused on executing committed order books, ramping up newly commissioned dedicated manufacturing facilities, and driving operational efficiencies.

• Year of Conversion (FY 2026-27): Focus shifts from infrastructure construction to operational conversion, ramping newly capitalized plants to committed throughput, and normalising working capital cycles.
• Value Chain Progression: Advancing higher-margin opportunities, including single-source hot-section turbine components with Mitsubishi Heavy Industries and complete propulsion system assembly following the delivery of the GTRE turbojet engine.
• Segment Diversification: Expanding aerospace and defence and oil and gas verticals to achieve a long-term revenue mix where Energy settles between 55% and 60%, with Aerospace & Defence and Oil & Gas carrying the balance.

Key Strengths

• Extensive Qualification Base: Over 1,700 qualified components and 45+ specialised manufacturing processes established through multi-year OEM validation cycles that create a 15–20 year barrier to entry.
• Long-Standing Customer Relationships: Key global OEM relationships exceeding ten years with high repeat business, reinforced by dedicated manufacturing facilities and on-site customer integration.
• Strong Revenue Visibility: An order book standing at approximately ₹65,000 million as at March 31, 2026 (~11x FY 2025-26 revenue), providing multi-year visibility across all three segments.
• High Profitability Margins: Standalone reported EBITDA margin of 36.9% and PAT margin of 22.4%, supported by operating discipline, firm pricing across long-term contracts, and component mix optimization.

Key Challenges and Risks

• Working Capital Intensity: Elevated working capital days (244 days at year-end) driven by long qualification cycles, extended production lead times, and inventory required for ramping programmes.
• Concentrated Customer Base: Revenue remains heavily weighted towards export markets and a concentrated group of large global original equipment manufacturers.
• Input and Raw Material Dependency: Requirement to source raw materials from customer-mandated approved mills, limiting flexibility in supplier substitution or terms negotiation outside the $\pm 5\%$ price pass-through band.
• Qualification and Execution Risks: Operational performance depends on timely conversion of qualified programmes and retention of scarce precision machining and process engineering talent.

Conclusion and Strategic Outlook

Azad Engineering Limited concluded FY 2025-26 with record financial performance, achieving standalone revenue of ₹5,903.75 million and profit after tax of ₹1,321.61 million while executing the largest capacity expansion in its history. By commissioning dedicated manufacturing facilities for global original equipment manufacturers, entering the hot-section turbine market, and delivering India’s first indigenous turbojet engine, the company has strengthened its competitive positioning across energy, aerospace, and defence sectors. Backed by an order book of approximately ₹65,000 million and ongoing capacity scale-up, the company enters FY 2026-27 positioned for multi-year revenue growth and operational maturity.

Official Site: https://www.azad.in