Azad Engineering is well-positioned to benefit from the ongoing China+1 supply chain shift, according to Goldman Sachs' recent note, which highlighted the company as a key player in India's evolving defence aerospace ecosystem. As global OEMs reassess sourcing strategies post-COVID, India is increasingly being seen as a credible alternative to China.
Goldman noted that sourcing from Western markets has become significantly more expensive since the pandemic, with cost structures inflated by 45-50%. This has accelerated efforts by global aerospace manufacturers to diversify supply chains.
India's advantages — a deep engineering talent pool, cost competitiveness and strong build-to-print capabilities — position it favourably in this transition. Goldman also highlighted that global engine suppliers currently have order book visibility extending to the end of 2035, suggesting that OEMs are actively building out supply chains to meet sustained demand.
Azad Engineering's Niche: Complex Component Machining
Within this broader realignment, Azad Engineering stands out for its capabilities in complex component machining - an area Goldman described as one of the most sought-after skill sets in aerospace manufacturing. As OEMs deepen integration with Indian suppliers, companies with proven precision engineering and high-spec manufacturing capabilities are likely to see increased order flows and export traction.
The brokerage reiterated its positive stance on private-sector defense and aerospace suppliers exposed to advanced materials and subsystems, including Azad Engineering, which carries a 'Buy' rating.
Photo Credit: Data sourced from Goldman Sachs' report.
A Structural, Not Tactical, Opportunity
Beyond the China+1 narrative, Goldman Sachs has strengthened its bullish stance on the sector. The global brokerage has highlighted a significant shift underway — the growing prominence of private‑sector players as India accelerates its push for Atmanirbharta in defence.
With this trend in mind, Goldman Sachs has reaffirmed its ‘buy' calls on six major private‑sector defence stocks, noting that each stands to gain from a substantial domestic opportunity estimated at around $120 billion.
For Azad Engineering, the confluence of global supply chain diversification, long-cycle aerospace order visibility and India's push to build advanced manufacturing capabilities suggests that the opportunity may extend well beyond a short-term sourcing shift.
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