Azad Engineering LimitedQ1 FY27 Results & Financial Update

Azad Engineering Limited: Q1 FY27 consolidated results and company financials – revenue ₹172.60 Cr, PAT ₹35.16 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.

NSE: AZADPublished 19 Oct 2026Updated 19 Oct 2026~6 min read
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Revenue from operations₹172.60 CrReported Q1 FY27
Profit after tax₹35.16 CrReported Q1 FY27
EPS₹5.53Reported Q1 FY27

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Quarterly Results AnalysisExplore Azad Engineering Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.

Quarter overview

Quarterly earnings analysis

01

For the first quarter of fiscal year 2027 (Q1 FY27), Azad Engineering reported consolidated revenue from operations of INR 172.599 crore and total income of INR 176.148 crore, underpinned by steady demand for its high-precision engineering components.

02

Profit before tax (PBT) for the quarter stood at INR 38.965 crore, while profit after tax (PAT) reached INR 35.16 crore after accounting for total tax expenses of INR 3.805 crore. Total comprehensive income for the period was registered at INR 34.996 crore.

03

Basic and diluted earnings per share (EPS) for the quarter were both reported at INR 5.53 (not annualized), reflecting the stable earnings delivery of the manufacturing operations during the three months ended June 30, 2026.

04

The consolidated net profit attributable to the owners of the company was INR 357.45 million (approximately INR 35.745 crore), while the non-controlling interest absorbed a loss of INR 5.85 million for the quarter.

05

Cost management during the period included material consumption of INR 43.248 crore alongside inventory changes of negative INR 33.566 crore. Employee benefit expenses stood at INR 41.743 crore, and finance costs were recorded at INR 10.323 crore.

06

Depreciation and amortization expenses for the quarter amounted to INR 18.623 crore, reflecting ongoing capital investments in plant, equipment, and manufacturing infrastructure across operational units.

07

Other expenses for the quarter totaled INR 56.812 crore, incorporating general manufacturing overheads, administrative expenses, and operational support costs necessary to sustain complex engineering workflows.

01 · Business model

What does Azad Engineering do?

Azad Engineering Limited is a specialized precision engineering and manufacturing company headquartered in Hyderabad, Telangana, India. The company focuses on producing high-precision components and original equipment manufacturer (OEM) parts for global aerospace, defense, energy, and oil and gas industries.

The operational model revolves around manufacturing critical, mission-hardened rotating and structural components that demand stringent quality certifications, advanced metallurgical expertise, and complex machining capabilities. Its client base spans prominent global OEMs requiring high-reliability parts.

The company operates through its registered manufacturing facilities located in the Jeedimetla industrial area of Hyderabad and conducts business via both standalone operations and consolidated subsidiaries, including Azad VTC Private Limited and Azad Prime Private Limited.

02 · Historical context

What shaped the business before this quarter

QIP Capital Raising

Previously, the company raised capital through a Qualified Institutions Placement (QIP) issuing 5,468,750 equity shares at INR 1,280 per share, aggregating to INR 7,000 million.

03 · Financial snapshot

Current-quarter financial snapshot

MetricQ1 FY27
Revenue from operations₹172.60 Cr
Total income₹176.15 Cr
Profit before tax₹38.97 Cr
Profit after tax₹35.16 Cr
EPS₹5.53

Financial interpretation

What the reported numbers mean

Profit conversion

Profit after tax represented 20.4% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.

Pre-tax earnings

Profit before tax was equivalent to 22.6% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.

Operating revenue versus total income

Total income exceeded operating revenue by ₹3.55 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.

Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.

04 · Why it moved

Why the quarter looked the way it did

What drove revenue

Core Segment Performance

Revenue from operations reached INR 172.599 crore, driven by the manufacturing and sale of high-precision and OEM components.

Other Income Contribution

Other income added INR 3.549 crore to the top-line, bringing total consolidated income for the quarter to INR 176.148 crore.

What drove margins

Cost of Materials and Inventory

Cost of materials consumed stood at INR 43.248 crore, offset by a positive inventory adjustment of INR 33.566 crore representing changes in finished goods, work-in-progress, and scrap inventory.

Employee and Financial Overheads

Employee benefits expense totaled INR 41.743 crore, while finance costs of INR 10.323 crore and depreciation of INR 18.623 crore formed key components of the overall cost structure.

05 · Segments, products & geography

Which parts of the business are doing the work

Segments and products

Single Operating Segment

The operations of the company predominantly relate to the manufacture and sale of high precision and OEM components. As such, the company operates in a single primary reportable segment under Ind AS 108.

06 · Capacity, projects & execution

What is being built, commissioned or delivered

Projects, capex and execution

QIP Proceeds Deployment

Out of the total INR 7,000 million raised via QIP for funding and part-funding capital expenditure, INR 4,171.20 million had been utilized up to June 30, 2026, leaving an unutilized amount of INR 1,078.80 million designated for capex.

General Corporate and Issue Expenses

From the QIP proceeds, INR 1,562.10 million was fully utilized for general corporate purposes, while INR 160.90 million was utilized towards issue expenses out of the allocated INR 187.90 million.

07 · Strategy & new businesses

How the company is trying to change its growth mix

Subsidiary Network

The consolidated results incorporate the performance of subsidiary entities Azad VTC Private Limited and Azad Prime Private Limited.

08 · Reported developments

What changed operationally

Unmodified Auditor Review

Statutory auditors MSKA & Associates LLP issued an unmodified conclusion on both the standalone and consolidated financial results for the quarter ended June 30, 2026.

09 · Beyond the numbers

What changed beyond the numbers

Reported update

ESOP Options

The company granted 80,000 options to eligible employees under the Employee Stock Option Scheme on May 12, 2026, with each option carrying an exercise price of INR 1,050.

10 · Key Q&A

The quarter, answered directly

What does Azad Engineering do?

Azad Engineering Limited is a specialized precision engineering and manufacturing company headquartered in Hyderabad, Telangana, India. The company focuses on producing high-precision components and original equipment manufacturer (OEM) parts for global aerospace, defense, energy, and oil and gas industries.

What is the clearest takeaway from Q1 FY27?

For the first quarter of fiscal year 2027 (Q1 FY27), Azad Engineering reported consolidated revenue from operations of INR 172.599 crore and total income of INR 176.148 crore, underpinned by steady demand for its high-precision engineering components.

What drove revenue or demand?

Revenue from operations reached INR 172.599 crore, driven by the manufacturing and sale of high-precision and OEM components.

What mattered most for margins or profitability?

Cost of materials consumed stood at INR 43.248 crore, offset by a positive inventory adjustment of INR 33.566 crore representing changes in finished goods, work-in-progress, and scrap inventory.

What changed operationally beyond the headline numbers?

Out of the total INR 7,000 million raised via QIP for funding and part-funding capital expenditure, INR 4,171.20 million had been utilized up to June 30, 2026, leaving an unutilized amount of INR 1,078.80 million designated for capex.

What should the next disclosure help confirm?

Monitor the continued deployment of the remaining unutilized QIP proceeds of INR 1,078.80 million earmarked for capital expenditure.

11 · Scenario calculator

Earnings sensitivity: what if growth and margins change?

Starting point

Build your own next-quarter scenario

Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.

Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.

Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%

The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.

12 · Next filing checkpoints

What the next disclosure can confirm or change

  1. 01

    Unutilized QIP Deployment: Monitor the continued deployment of the remaining unutilized QIP proceeds of INR 1,078.80 million earmarked for capital expenditure.

Learn the metrics

Need the concepts first?

Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.

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