Azad Engineering wins Rs 52.68 crore BHEL contract for gas turbine airfoils

Azad Engineering Ltd has secured a two-year long-term rate contract from Bharat Heavy Electricals Ltd, or BHEL, for the supply of critical stationary and rotating airfoils used in heavy-duty gas turbines.

The domestic contract, estimated at about Rs 52.68 crore, covers stator vanes and rotor blades and is scheduled for execution by October 9, 2028. BHEL has approved Azad Engineering as a long-term source for these components, which are manufactured to demanding metallurgical and dimensional specifications.

The contract is modest against Azad Engineering’s scale but strategically relevant. Its estimated value is equivalent to about 8.7 per cent of the company’s consolidated FY2025-26 revenue from operations of Rs 602.98 crore. More importantly, the deal deepens Azad’s presence in India’s power-generation supply chain, where qualification requirements for critical turbine parts can create high entry barriers.

Azad Engineering said it had undertaken a similar rate contract with BHEL in May 2018. The company did not disclose that earlier arrangement because it had assessed it as immaterial to its business at the time. The combined value and duration of the current arrangement have now made the transaction material under listing regulations.

The company said the approval supports BHEL’s effort to indigenise critical gas-turbine components. It also clarified that neither its promoters, promoter group nor group companies have an interest in BHEL, and the transaction is not a related-party deal.

The order fits Azad Engineering’s established energy business, which remains its largest operating segment. In FY2025-26, its standalone Energy and Oil and Gas segment revenue rose 34.2 per cent to Rs 481.13 crore. The company manufactures precision-engineered components for energy, Aerospace and Defence, and oil and gas applications, serving global original equipment manufacturers.

Azad has also been expanding manufacturing capacity through dedicated facilities for customers including Mitsubishi Heavy Industries, GE Vernova, Siemens Energy and Baker Hughes. Management has previously said that substantive contribution from newer manufacturing lines is expected from FY2026-27, although the pace of ramp-up, customer qualification and working-capital management remain key execution factors.

For the June 2026 quarter, Azad Engineering reported net sales of Rs 172.60 crore, up 25.9 per cent year on year and 6.9 per cent sequentially. Profit after Tax rose 19.5 per cent year on year to Rs 35.16 crore, though it was 4.5 per cent lower than in the March quarter. Operating margin, measured as PBIDT excluding other income, stood at 37.3 per cent.

As of 3:51 pm on October 12, 2026, Azad Engineering shares were trading at Rs 2,970.00, up 2.04 per cent from the previous close. The stock was around 3.0 per cent below its 52-week high of Rs 3,060.70 and had gained 86.95 per cent over the preceding year, compared with a 6.29 per cent decline in the BSE 500.

Disclaimer: The article is for informational purposes only and not investment advice.