Azad Engineering Q3 Profit Jumps 44% on 33% Segment Growth, Margin Expands to 39%

Hyderabad-based precision engineering company Azad Engineering Ltd reported a significant increase in its financial performance for the third quarter. Net profit rose by 43.7% to ₹34.5 crore, up from ₹24 crore in the same quarter last year. Revenue grew by 31.8% to ₹158.7 crore compared to ₹120.4 crore in the prior year period.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 45.6% to ₹62.2 crore, up from ₹42.7 crore year-on-year. This improvement was reflected in the EBITDA margin, which expanded to 39.2% from 35.5%.

First Nine Months Financial Highlights

For the nine months ending December 2025 (9MFY26), Azad Engineering posted a standalone revenue of ₹432.98 crore, marking a 31.8% growth over the same period in the previous fiscal year.

Key financial figures for this period include:

EBITDA increased by 38.4% to ₹159.98 crore, with a margin of 36.9%.
Profit before tax rose 52.8% to ₹136.34 crore, representing a 31.5% margin.
Profit after tax climbed 55.3% to ₹97.03 crore, with a margin of 22.4%.

The company noted that its earnings before interest, taxes, depreciation, and amortization, as well as profit after tax for the first nine months of this fiscal year, have already surpassed the full-year results for FY25.

Segment Growth and Operational Details

Azad Engineering’s Energy, Oil & Gas, and Aerospace & Defence segments achieved 33% year-on-year growth. This growth was driven by new capacity additions and the completion of First Article Inspections across segments.

Operational expenses saw some increases due to company expansion:

Employee expenses rose because of higher headcount following new facility openings.
Depreciation expenses increased as a result of added capacity.
Other income grew, mainly due to higher interest earnings on fixed deposits.

As of December 2025, Azad Engineering’s net debt stood at ₹157.5 crore, with finance costs rising due to additional loans taken to support business growth.

Despite the positive financial results, shares of Azad Engineering Ltd closed at ₹1,575.00 on the Bombay Stock Exchange, down ₹40.70 or 2.52%.

Key Takeaways

Azad Engineering Ltd reported a 43.7% increase in Q3 net profit, reaching ₹34.5 crore.
Revenue and EBITDA for Q3 grew by over 30% and 45% respectively, with margins improving notably.
For the first nine months of FY26, the company achieved strong growth in standalone revenue, EBITDA, and profit metrics.
Energy, Oil & Gas, and Aerospace & Defence segments expanded by 33%, supported by new capacity and inspections.
Operational costs rose due to expansion, yet profitability margins continued to improve.
Shares declined despite solid performance, reflecting market dynamics.