Azad celebrates Azaadi!

Azad Engineering is currently among the top gainers on the BSE, rising 7.84% to Rs. 2,930.60. The stock touched a fresh 52-week high of Rs. 2,986.40 in early trade, against its previous close of Rs. 2,717.60. Market depth was supportive, with total buy quantity at 18,956 shares against sell quantity of 15,756 shares, indicating buying interest even after the sharp move. The company’s full market cap stands at Rs. 18,926 crore, while free-float market cap is Rs. 8,303 crore.

Trigger

• Azad reported its best-ever quarterly performance in Q1 FY27.
• Standalone revenue rose 26.8% YoY to Rs. 170.5 crore.
• Standalone EBITDA rose 32.1% YoY to Rs. 64.1 crore.
• EBITDA margin expanded to a strong 37.6%.
• Standalone PAT rose 21.2% YoY to Rs. 36.4 crore, with PAT margin at 21.3%.
• Consolidated revenue rose 25.9% YoY to Rs. 172.6 crore.
• Consolidated EBITDA grew 30.7% YoY to Rs. 64.4 crore, with 37.3% margin.
• Consolidated PAT rose 19.5% YoY to Rs. 35.2 crore.

The rally is being driven by the company’s high-margin, precision-engineering profile and strong growth across its two core verticals. Energy & Oil & Gas revenue rose 26.7% YoY to Rs. 138.4 crore and continues to dominate the mix at 81.2% of standalone revenue, while Aerospace & Defence revenue grew 24.7% YoY to Rs. 28.7 crore. Exports remain the core strength, contributing 88% of revenue, while domestic revenue almost doubled, rising 90.7% YoY to Rs. 20.5 crore.

Civil construction at the Azad Centre of Excellence in Tunki Bollaram is expected to be completed within this fiscal year, and the commissioning of four new dedicated lean manufacturing facilities is expected to support revenue acceleration. Management has also reiterated long-term revenue growth guidance of over 25%, with more meaningful contribution from these dedicated lines expected from H2 FY27 onward.

The stock is already trading at a rich PE of around 136 times, with price-to-book at 27.7 times. After today’s new high, the market may now closely watch whether order execution, export growth, and the new capacity ramp-up can sustain these premium valuations.