Azad Engineering lands long-term deal with Mitsubishi Heavy Industries
The company reported 30% revenue growth for FY26 and secured an eight-year contract for critical gas turbine components.
What's new
- Eight-year, single-source contract signed with Mitsubishi Heavy Industries for hot-section nozzle vanes.
- FY26 revenue hit ₹590 crore with a 54% jump in net profit to ₹132 crore.
- Management projects at least 25% revenue growth for FY27 with EBITDA margins between 33-35%.
Why it matters
Landing a single-source contract for hot-section nozzle vanes places Azad in a restricted tier of global manufacturers. With an order book now exceeding 11 times annual revenue, the company has effectively de-risked its medium-term production targets.
What we're watching
- Final delivery timelines for the national defence HTT engine programme.
- Transition of Rolls-Royce airfoil qualifications into commercial production by late FY27.
- Utilization rates following the commission of four new dedicated production facilities.
The full read
Azad Engineering grew FY26 revenue 30% to ₹590 crore and net profit 54% to ₹132 crore, but the story in the earnings transcript is about production maturity. Management revealed an eight-year, single-source deal to supply hot-section nozzle vanes to Mitsubishi Heavy Industries. This component is technically complex; only three manufacturers worldwide currently supply it. The company is backing this expansion with four newly commissioned dedicated facilities, setting up a 25% top-line growth target for FY27 with targeted EBITDA margins of 33-35%. The order book is now worth ₹6,500 crore. Beyond the numbers, Azad is clearing technical hurdles for two major upcoming revenue streams: the imminent delivery of an HTT engine for a national defence programme and the move toward commercial production of Rolls-Royce airfoils by late FY27. This transcript confirms that Azad is moving from a prototype-heavy shop to a high-volume supplier of specialized engine parts.