Azad Engineering Q1 FY27 Results (NSE: AZAD)
Signal: Margin expansion
The read
The key inflection is margin: consolidated EBITDA margin expanded 330bps YoY to 39.3% on revenue growth of 25.9%, but EBITDA growth of 17.2% lagged revenue and EBIT growth was only 3.2%, making depreciation and the durability of margin expansion the main trajectory questions.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹172.6 Cr | 25.9% | N/A |
| EBIT | ₹49.29 Cr | 3.2% | N/A |
| Net profit | ₹35.74 Cr | 21.4% | N/A |
| EPS | ₹5.53 | 21.3% | N/A |
| EBIT margin | 39.3% |
P&L walk
Consolidated revenue rose to ₹172.6 million, +25.9% YoY, while EBITDA increased 17.2% to ₹67.91 million and margin expanded 330bps to 39.3%; EBIT grew only 3.2% to ₹49.29 million, indicating depreciation or other below-EBITDA pressure, while PAT rose 21.4% to ₹35.74 million.
Segments
No segment results table is disclosed; standalone PAT of ₹36.35 million was ₹0.61 million above consolidated PAT of ₹35.74 million, so subsidiaries did not materially enhance group earnings.
Key positives
- Consolidated revenue reached ₹172.6 million, +25.9% YoY, sustaining the company’s aerospace and precision-manufacturing growth trajectory.
- EBITDA margin expanded 330bps YoY to 39.3%, the strongest disclosed margin improvement in the current filing.
- EPS rose 21.3% YoY to ₹5.53, closely tracking PAT growth of 21.4%, with no dilution signal from the PAT-to-EPS check.
- The company recently delivered its first expendable indigenous turbojet engine to DRDO, supporting its strategic aerospace qualification and self-reliance positioning.
Key concerns
- EBITDA grew 17.2% YoY versus revenue growth of 25.9%, a 8.7 percentage-point shortfall despite the 330bps margin expansion.
- EBIT grew only 3.2% YoY to ₹49.29 million versus EBITDA growth of 17.2%; the filing does not separately disclose depreciation, limiting visibility on the capital-intensity burden.
- Consolidated PAT growth of 21.4% remained below revenue growth of 25.9%, so margin expansion did not fully flow through to net earnings.
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