Azad Eng hits all-time high

Azad Engineering was among the notable outperformers in early trade today, with the stock hitting a fresh all-time high of Rs.2,202.75 and extending its three-session up-move to 18%, even as the broader market remained weak. Post the spike, the counter cooled off from the peak and was trading around Rs.2,119, reflecting some intraday profit-taking after a sharp run-up.

The trigger is a clear “visibility upgrade” narrative around Baker Hughes. Azad announced Amendment No. 3 to its Strategic Supply Agreement with Nuovo Pignone S.r.l. (Baker Hughes group), extending the arrangement through December 2030, and explicitly linking the amendment to a “significant increase” in annual demand for critical turbomachinery components used in power generation.

Alongside this, the company also flagged the inauguration of a 7,600 sq. m advanced lean manufacturing facility at Hyderabad, dedicated to supporting Baker Hughes, which reinforces that this is not a one-off order headline but a capacity-and-relationship deepening event.

What the market appears to be pricing in is operating leverage and a longer, stickier revenue runway: Azad’s business model is built around high-precision, mission-critical components where qualification cycles are long and switching costs are high, so once volumes step up, the earnings profile can change meaningfully.

The company has already been showing traction, 9MFY26 revenue rose 32% YoY to Rs.433 crore and nine-month profit at Rs.97 crore has crossed its full-year FY25 profit of Rs.88 crore, while the order book was indicated at over Rs.6,500 crore, so the incremental “demand + dedicated facility + contract extension” combo strengthens the market’s conviction that FY26 is a transition year and the heavier benefits start showing from FY27 as utilisation improves.