Q4 Boost: Defence Player Azad Engineering's Stock To Be In Focus On Monday

Azad Engineering will be in focus on Monday on back of its consolidated financial results for the March quarter. The private defence manufacturer demonstrated strong growth across various segments, surpassing its own revenue guidance for financial year 2024-25.

Azad Engineering Q4 FY25 Results Highlights (Consolidated, YoY)

• Revenue up 36.9% at Rs 126.9 crore versus Rs 92.7 crore

• Ebitda up 45.8% at Rs 45.5 crore versus Rs 31.2 crore

• Margin at 35.9% versus 33.7%

• Net Profit up 69% at Rs 25.2 crore versus Rs 14.9 crore

The company achieved its highest-ever annual and quarterly revenue figures. Operational efficiency was evident with a 130 basis points improvement in Ebitda margins, reflecting strong operational leverage and cost efficiencies. The increase in depreciation was attributed to significant capacity additions during the period.

FY25 Segmental Performance And Export Contribution

• The Energy and Oil & Gas segment recorded a robust growth of 26.0%.

• The Aerospace & Defence segment saw a significant growth of 84.1%.

• Export contribution to total revenue increased to 91.9%, up from 87.5% in the previous year, highlighting the company's strong international presence.

"We are pleased to report that the company concluded the financial year with outstanding performance, delivering our highest-ever quarterly and annual results. We surpassed our given revenue and margin guidance, reflecting the effectiveness of our strategic initiatives and execution ", said Rakesh Chopdar Chairman and CEO at Azad Engineering

"Our expansion plans continue to gain strong traction, with several key customers securing long-term capacity through our on-going capacity expansion. This has significantly strengthened our order book and reaffirmed our leadership position in the market," he added

FY25 Guidance Vs Actual Performance

Azad Engineering had provided a revenue guidance of 25%-30% for FY25. The company successfully surpassed this guidance, achieving an actual sales growth of 33% for the full fiscal year.

Recent Capital Raise And Fund Utilisation

The company successfully raised Rs. 700 crore through a Qualified Institutional Placement in February 2025. The proceeds are earmarked for capital expenditure (purchase of machinery and equipment) and general corporate purposes

Key Strategies Going Forward

Azad Engineering is focussed on several strategic initiatives for future growth:

• Wallet Share Gains: Driving increased revenue from existing long-standing clients.

• Strategic Inorganic Acquisitions: Pursuing acquisitions to complement and enhance current capabilities.

• Strategic Geographical Expansion: Expanding its manufacturing footprint globally to co-locate with key global Original Equipment Manufacturers (OEMs), with a memorandum of understanding already signed for expansion into Saudi Arabia.

• Higher-Value Product Manufacturing: Expanding into the production of more complex and higher-value products along the client value chain.