Azad Engineering Q2 FY27 results: net profit down 5.2% to ₹30.93 crore, revenue up 31.1%

How did Azad Engineering perform in Q2 FY27?

Azad Engineering reported consolidated revenue of ₹190.94 crore in Q2 FY27, up ₹45.32 crore or 31.1% from ₹145.62 crore in Q2 FY26. Revenue also rose ₹18.34 crore or 10.6% from ₹172.60 crore in Q1 FY27. Total income was ₹195.10 crore, while EBITDA increased to ₹72.27 crore from ₹52.55 crore a year earlier, with the margin at 37.9%.

Profit before tax was ₹41.49 crore, down ₹4.94 crore or 10.6% from Q2 FY26 but up ₹2.52 crore or 6.5% from Q1 FY27. Net profit was ₹30.93 crore, down ₹1.68 crore or 5.2% year on year and ₹4.23 crore or 12.0% sequentially; basic EPS was ₹4.79, against ₹5.05 and ₹5.53, respectively.

On the standalone basis, Q2 FY27 revenue was ₹187.80 crore, profit before tax was ₹32.99 crore and profit after tax was ₹30.82 crore. The investor presentation reported standalone revenue growth of 31.6% and a 6.6% decline in quarterly profit after tax.

What changed in Azad Engineering's costs and profit?

Total expenses rose ₹42.17 crore or 37.8% to ₹153.61 crore in Q2 FY27 from ₹111.44 crore in Q2 FY26. Cost of materials increased ₹21.42 crore or 119.5% to ₹39.34 crore, employee cost rose ₹18.02 crore or 53.5% to ₹51.70 crore, and depreciation increased ₹10.85 crore or 93.1% to ₹22.51 crore.

Finance costs rose ₹5.73 crore or 85.4% to ₹12.44 crore, while other expenses increased ₹16.31 crore or 38.6% to ₹58.53 crore. Other income fell ₹8.08 crore or 66.0% to ₹4.17 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26, while tax expense was ₹10.56 crore against ₹13.82 crore.

Management attributed the standalone quarterly profit decline to lower treasury income and higher employee, depreciation and finance costs, which offset revenue growth. From Q1 FY27, tax rose ₹6.75 crore to ₹10.56 crore, while employee cost, finance cost and depreciation were also higher.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose ₹80.81 crore or 28.6% to ₹363.53 crore from ₹282.72 crore in H1 FY26. Total income increased ₹67.60 crore or 22.3% to ₹371.25 crore, and EBITDA rose 34.3% to ₹1,366.4 Mn, with a 37.6% margin.

Profit before tax fell ₹7.84 crore or 8.9% to ₹80.46 crore, but profit after tax increased ₹4.05 crore or 6.5% to ₹66.09 crore. EPS rose from ₹9.61 to ₹10.32. Management said standalone H1 FY27 revenue was ₹3,583.2 Mn and PAT was ₹671.7 Mn.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,404.66 crore, against ₹2,200.04 crore at 31 March 2026. Total equity increased to ₹1,595.44 crore from ₹1,528.84 crore, while borrowings rose to ₹561.62 crore from ₹456.64 crore and cash fell to ₹11.56 crore from ₹24.59 crore.

Inventories increased to ₹427.35 crore from ₹329.11 crore, trade receivables to ₹404.13 crore from ₹311.66 crore, and trade payables to ₹95.82 crore from ₹85.27 crore. In H1 FY27, operating cash flow was negative ₹43.62 crore, compared with negative ₹75.89 crore in H1 FY26; investing cash flow was negative ₹42.67 crore against ₹34.53 crore, and financing cash flow was ₹73.26 crore against ₹32.15 crore.

Capital expenditure was ₹139.75 crore in H1 FY27, compared with ₹306.79 crore in H1 FY26. Management noted that working-capital changes consumed ₹1,575.4 Mn and that additional working-capital loans supported growth.

How has Azad Engineering done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters and increased from ₹120.48 crore in Q3 FY25 to ₹190.94 crore in Q2 FY27. Q2 FY27 was the highest revenue quarter in the reported series, while the EBITDA margin peaked at 39.2% in Q3 FY26 and stood at 37.9% in the latest quarter.

Net profit rose from ₹23.72 crore in Q3 FY25 to a peak of ₹36.80 crore in Q4 FY26 before declining to ₹35.16 crore in Q1 FY27 and ₹30.93 crore in Q2 FY27. The direction is therefore mixed: revenue continued to rise, while profit and margin eased in the latest quarter.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statutory auditors’ limited review reports. The company also filed its investor presentation for the investors’ and analysts’ earnings conference call scheduled for 7 November 2026.

What did Azad Engineering's management say?

Management said all six lean customer-specific facilities were commissioned and that each was at a different stage of revenue ramp-up, in line with customer delivery plans. It said throughput from the new capacity would begin in Q3 FY27, revenue was expected to ramp up from Q4 FY27 onwards, and all plants were expected to be fully ramped up by Q2 FY28.

Management said installed capacity positioned Azad Engineering to reach an annual revenue run-rate of over ₹1,300 crore by the end of FY28, and reiterated long-term annual revenue growth guidance of over 25%. It said the Oil & Gas facility and its ramp-up, tied to the customer’s delivery plans, would add a further growth lever from Q4 FY27 onwards.

Management said Energy and Oil & Gas remained the largest segment, while Aerospace & Defence was expected to gain share as new programmes completed qualifications and moved to production. It also identified pending delta qualifications, customer delivery plans, working-capital use and increased borrowing as factors affecting the pace of revenue realisation and cash generation.

How did other Heavy Electrical Equipment companies do?

Eighteen other Heavy Electrical Equipment companies had filed results for the quarter as on 6 November 2026. Their median revenue growth was 16.1%; 12 peers grew revenue more slowly than Azad Engineering, while 6 grew faster. Profit increased at 10 of the 18 peers compared with the company.