Azad Engineering to be in focus on Wednesday as it inks aircraft engine parts deal with Pratt & Whitney Canada

Shares of Azad Engineering, a leading manufacturer of aerospace components and turbines, are likely to attract investors' interest as the market opens on Wednesday, November 19, after the company said in its regulatory filing that it has signed an agreement with Pratt & Whitney Canada Corporation to develop and manufacture aircraft engine components

The agreement establishes a framework for long-term collaboration aimed at strengthening Azad's manufacturing capabilities in the aerospace sector, in alignment with national strategic priorities.

Hyderabad-based Azad, which makes industrial machinery and equipment across sectors such as aerospace, defense, and energy, did not provide the value of the order, citing confidentiality. However, it was confirmed that there is no shareholding involved between the parties and that the deal does not fall under related-party transactions.

Earlier in September, the company signed a new long-term contract and price agreement with Mitsubishi Heavy Industries Limited (MHI), Japan, for the supply of highly engineered and complex rotating and stationary airfoils for advanced gas and thermal power turbine engines, with the contract valued at ₹651 crore.

This agreement is incremental to the earlier contract signed on November 3, 2024, taking the combined value with MHI to ₹1,387 crore.

Brokerage firms also remain optimistic on the company's growth prospectus, with ICICI Securities having reinitiated coverage on the stock with a BUY rating and a target price of ₹1,882, based on 50x P/E FY28E EPS, and Choice Institutional Equities having also upgraded the rating on the stock to buy from reduce and lifted its target price to ₹1,865 apiece.

Azad Engineering Q2 performance

Looking at the company's financial performance, it ended the September quarter with solid performance, as its net profit jumped 60% year-on-year to ₹33 crore, while the revenue from operations rose 30.6% to ₹145.6 crore, compared with ₹111.5 crore in Q2FY25.

At the operating level, the EBITDA increased 32.1% to ₹53.2 crore, from ₹40.3 crore a year ago, with the EBITDA margin at 36.5%, slightly higher than 36.1% in Q2FY25.

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