Azad Engineering Limited, originally incorporated as Azad Engineering Private Limited in 1983 and later converted to a public limited company in September 2023, is headquartered in Hyderabad, Telangana. The company currently holds a market capitalization of ₹11,735 Crore as of May 23, 2025. Azad Engineering operates as one of the key manufacturers of qualified product lines in the aerospace and defense, energy, and oil and gas industries, manufacturing highly engineered, complex, and mission-critical components.
The company's business model centers around manufacturing precision-engineered components that serve critical applications across multiple industries. Azad Engineering manufactures highly engineered, complex, mission and life-critical high precision forged and machined components like 3D rotating airfoil and blade portions of turbine engines and other critical components for gas, nuclear, and thermal turbines, with a portfolio of 1,400 qualified parts and components.
The company's product portfolio includes 3D rotating airfoil portions of turbine engines and other critical products for defense and civil aircraft, spaceships, defense missiles, nuclear power, hydrogen, gas power, oil and thermal power. The precision forged and machined components are highly complex and mission-critical, with some requiring "zero parts per million" defects.
In the aerospace sector, Azad Engineering manufactures medium and highly complex precision components, assemblies and sub-assemblies that are mission-critical for civil and military platforms such as airfoils/blades for aircraft engines and APUs, body valve, housing mount, housing compressor, fan blisk, mixed flow impeller, and various other components. The company supplies precision-forged and machined components to the Energy/Oil and Gas, Aerospace and Defense industry, including components to major oilfield industry players with products like drill bits and slips used in drilling equipment for exploration and production.
Azad Engineering has demonstrated robust financial growth across recent quarters. For the quarter ended March 2025, net profit rose 69.26% to ₹25.27 Crore compared to ₹14.93 Crore in the previous year, while sales increased 36.78% to ₹126.93 Crore against ₹92.80 Crore in Q4 FY24.
For the full year ended March 2025, net profit surged 49.06% to ₹87.32 Crore compared to ₹58.58 Crore in FY24, while sales grew 34.21% to ₹457.35 Crore against ₹340.77 Crore in the previous year. The company also reported strong Q3 FY25 results with net profit rising 42.30% to ₹23.92 Crore and sales increasing 35.02% to ₹120.48 Crore.
Key Financial Metrics:
- Revenue (FY25): ₹457.35 Crore
- Net Profit (FY25): ₹87.32 Crore
- Q4 FY25 Revenue: ₹126.93 Crore
- Q4 FY25 Net Profit: ₹25.27 Crore
- Q3 FY25 Revenue: ₹120.48 Crore
- Q3 FY25 Net Profit: ₹23.92 Crore
Azad Engineering has secured several significant long-term contracts that strengthen its market position. The company signed a long-term Contract & Price Agreement with Siemens Energy Global GmbH & Co. KG for manufacturing and supply of mission-critical components, including combustion commodities, cold blades & vanes, and machined parts & assemblies, with the current phase valued at €90.1 million (₹811 Crore) for a span of 6 years.
The company has also signed a pact with Rolls-Royce PLC, London-United Kingdom to produce civil aircraft engine components in India. Additionally, Azad Engineering signed a six-year, ₹452.5 Crore supply agreement with GE Vernova Power to manufacture critical components for the global power industry.
Azad Engineering operates in the aerospace and defense, energy, and oil and gas industries, working with global original equipment manufacturers (OEMs) and has sales in more than 16 countries. The company started its core manufacturing in 2008 and has become a key player in the industries it operates.
The company has over 15 years of experience as a Tier-1 supplier of high-precision forged and machined components. The demand for these products is driven by orders for military aircraft, commercial aircraft, spaceships, gas, hydrogen, nuclear and thermal turbine engines, and oil and gas components.
Currently, 84% of revenues come from Energy/Oil Gas segments and about 13% from Aerospace & Defense segments, though the latter has shown impressive 95% growth in contribution to overall revenue. The company has a well-established energy business with a cash conversion cycle of approximately 130 to 140 days.
Azad Engineering has delivered 3.09 million 'zero-defect' units between FY09 to FY23, demonstrating exceptional quality standards. The company has in-house capabilities and proficiency in engineering, design, tooling, material development coupled with a range of finishing and assembly operations focused on continuous improvements to manufacturing and quality processes.
For supplying parts to end customers, specific components are required to be qualified by the Performance Review Institute and Qualified Manufacturers List Program. Products are examined, tested, and evaluated for conformance with standard/specification requirements and listed on the qualification product list.
The company's commitment to quality positions it as a trusted supplier in highly regulated industries where precision and reliability are paramount, making it an attractive investment opportunity in the precision engineering sector.
