Long-Term Deal to Supply Complex Turbine Components
Azad Engineering Limited has signed a long-term contract and price agreement with Mitsubishi Heavy Industries Ltd. (MHI), Japan, valued at $73.47 million (₹651 crore). The agreement covers the supply of highly engineered, complex rotating and stationary airfoils for advanced gas and thermal power turbine engines, supporting MHI’s global power generation requirements.
Contract Highlights
- Incremental Deal: This contract adds to a previous agreement inked on November 3, 2024, bringing the total contract value with MHI to $156.36 million (₹1,387 crore).
- Execution Period: The long-term international contract has a five-year timeline.
- Independent Transaction: Azad Engineering holds no shareholding in MHI, and the deal does not constitute a related-party transaction.
Financial Performance Update
Azad Engineering recently reported strong Q1 results for FY26:
- Net Profit: ₹29.7 crore (up 73.7% YoY)
- Revenue: ₹137 crore (up 39.2% YoY)
- EBITDA: ₹49.2 crore (up 50% YoY)
- Operating Margin: Expanded to 35.9% from 33.2% in the year-ago period
The robust performance underscores the company’s growing capabilities in high-precision engineering for the global turbine sector.
Summary
- Contract: ₹651 crore with Mitsubishi Heavy Industries for airfoil supply
- Scope: Rotating and stationary components for gas and thermal power turbines
- Total Engagement: Combined contract value with MHI now ₹1,387 crore
- Execution Period: Five years
- Financials: Q1 net profit ₹29.7 crore; revenue ₹137 crore; EBITDA ₹49.2 crore; operating margin 35.9%
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