Azad Eng rises over 4%
Azad Engineering shares gained over 4% in early trade on Wednesday after the company announced a long-term manufacturing partnership with Pratt & Whitney (P&W) Canada, reaffirming its positioning as a critical precision-engineering supplier in global aerospace and energy markets.
The stock opened firm at Rs.1,695, hit a high of Rs.1,717, and was last trading around Rs.1,689, up 3%, outperforming a largely flat Sensex. At current levels, the stock sits 12% below its 52-week high of Rs.1,928, while still up nearly 50% from its yearly low of Rs.1,128, reflecting strong medium-term investor conviction.
The company informed exchanges that it has signed a Master Term Agreement and Purchase Agreement with Pratt & Whitney Canada for the development and manufacturing of aircraft engine components. While financial details remain confidential, the partnership gives Azad multi-year visibility in a highly specialised supply chain where entry barriers and qualification cycles are high. Industry analysts noted that the deal expands Azad’s credentials with global OEMs at a time when the aerospace supply chain is rebalancing toward India under long-term localisation and strategic capability programmes.
The stock reaction also reflects the company’s record operational performance, with Azad posting its strongest-ever quarterly and half-yearly results in FY26. H1FY26 revenue rose 32% YoY, EBITDA grew 37%, and PAT jumped 65%, supported by sustained 36% operating margins — among the highest in India’s precision manufacturing ecosystem. Q2FY26 carried forward this momentum with PAT up 57% YoY, driven by scale benefits, richer product mix, and high utilisation in customised customer-dedicated plants.
Operationally, Azad continues to benefit from dual growth engines:
• Energy & Oil & Gas, where revenue rose 35.7% in H1 on the back of customer-specific plants.
• Aerospace & Defence, which grew 30.3% as new components moved into commercial production.
The company’s order visibility has strengthened further with the Phase-2 Mitsubishi contract worth Rs.1,387 crore, adding to an already robust pipeline. With capacity expansion underway and diversified revenue streams scaling simultaneously, management reaffirmed its 25–30% topline growth outlook for FY26.
While long-cycle aerospace contracts often take time to translate into peak revenue, the P&W agreement signals rising global confidence in Azad’s engineering capabilities. Investors will now watch execution timelines, working-capital discipline, and the cadence of new OEM partnerships as key markers of sustainability through FY26 and FY27.