What’s new

• Azad locked in an eight-year, single-source contract with Mitsubishi Heavy Industries for hot-section nozzle vanes.
• Delivery of the first HTT engine for a national defence programme is imminent.
• FY27 guidance is for at least 25% revenue growth with 33-35% EBITDA margins.

Why it matters

The Mitsubishi deal is the real news. Eight years of guaranteed revenue on a component only three factories on Earth can produce is the kind of visibility that reshapes a company's growth profile. Combined with a ₹6,500 cr backlog, management is effectively selling growth it has already booked.

What we’re watching

• The first HTT engine shipment, which would mark a major defence milestone.
• Rolls-Royce airfoil qualifications converting to commercial production in late FY27.
• Whether the 33-35% EBITDA margin guide holds as new facilities ramp.

The full read

Azad Engineering's Q4 earnings call was a platform for news that overshadows the quarterly numbers. The company landed an eight-year, single-source contract from Mitsubishi Heavy Industries for hot-section nozzle vanes. These are among the most engineered components in a gas-turbine engine. Only three shops globally make them. Azad just secured one of them for the better part of a decade. The financials support the story. Revenue grew 30% to ₹590 cr in FY26, net profit surged 54% to ₹132 cr. More importantly, the company now sits on an order book of ₹6,500 cr, equal to 11-12 times its annual revenue. Management is guiding for 25%+ top-line growth in FY27 with 33-35% EBITDA margins. Two other catalysts are lining up: the imminent shipment of the first HTT engine for a national defence programme, and Rolls-Royce airfoil qualifications targeting commercial production in late FY27. The concall summary covered the basics. The full transcript confirms a business with a transformed growth profile.

Primary source: BSE · NSE