Key Metrics of Azad Engineering Limited
About Azad Engineering Limited
Sectors
Company details
- Registered office
- 90/c,90/d, Phase 1 I.d.a, Jeedimetla, Hyderabad, In-ts, 500055
- Listed
- NSE: AZAD · ₹2,577.50
Operational Areas of Azad Engineering Limited
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
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Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
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Credit ratings
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 22 Jun 2026 | CARE | Reaffirmed | A | A2+ | Stable | ₹564 Cr | View |
| 06 Aug 2025 | CARE | Reaffirmed | A | A2+ | Stable | ₹248 Cr | View |
| 23 Jul 2025 | CARE | Upgraded (from A-) | A | — | Stable | ₹180 Cr | View |
| 07 Nov 2024 | CARE | Assigned | A- | A2+ | Stable | ₹180 Cr | View |
| 22 Mar 2024 | CARE | Other | — | — | — | — | View |
| 07 Apr 2023 | CARE | Assigned | BBB+ | — | Stable | ₹142 Cr | View |
| 03 Mar 2023 | CARE | Assigned | BBB+ | — | Stable | ₹15.0 Cr | View |
Credit strengths (CARE, Jun 2026)
+ Experienced promoters and leadership team
Promoter Rakesh Chopdar brings over 27 years’ experience in the precision engineering industry. He has established strong relationships with customers through timely execution, consistent quality, and by securing relevant process certifications. The company’s operations are managed by a team of seasoned professionals, each with an average experience of over 18 years in their respective domains, having held key roles in reputed organisations such as Siemens, Godrej Aerospace, and Toshiba.
+ Consistent growth in revenue with healthy profitability margins
The company’s TOI registered a robust compound annual growth rate (CAGR) of 37.80% over five-years ending March 31, 2026, increasing from ₹123.12 crore in FY21 to ₹611.78 crore in FY26. This growth has been driven by the consistent supply of high- quality components and a strong focus on quality assurance. A significant portion of the company’s revenue is derived from exports, which yield superior profitability margins. As on March 31, 2026, the company has an outstanding order book of ₹6,500
+ Comfortable financial profile despite moderate leverage build-up
As on March 31, 2026, the company’s financial profile remains comfortable, with an overall gearing of 0.30x (PYE: 0.18x) and a debt-to-equity ratio of 0.22x (PYE: 0.14x). The increase in leverage in FY26 was primarily due to term loans availed for debt - funded capital expenditure. Despite the rise in debt, coverage indicators remain satisfactory on March 31, 2026, with total debt to gross cash accruals (TD/GCA) at 2.28x (PYE: 2.07x), PBILDT interest coverage ratio at 8.05x (PYE: 9.23x), and TOL
+ Presence in critical products of energy, aerospace, and oil and gas
The company manufactures airfoils used across the energy, defence, aerospace, and oil and gas sectors, where fail-safe performance is critical. Downtime of these turbines can result in disruptions to power transmission grids, making their reliability essential. These blades are produced from single-piece, high-grade metal alloys capable of withstanding extreme temperatures and pressures. AEL has developed the capability to supply such components consistently, maintaining high precision with tole
+ Established track record and advanced infrastructure
The company has an established manufacturing facility in Hyderabad and has been consistently expanding its capacity since FY18. The infrastructure currently includes a Forge Shop, Heat Treatment Shop, Hi -Tech CNC Machines, a state -of-the-art Laboratory and Inspection Facility, a Heavy Machining Shop, and advanced manufacturing software. It holds several international certifications, including National Aerospace and Defence Contractors Accreditation Program (NADCAP), ISO 9001:2015 (QMS),
Credit challenges
− Lengthy qualification process and commercialisation thereof
AEL serves the energy, aerospace, defence, and oil and gas sectors, industries characterised by lengthy and stringent qualification processes due to the critical nature of component applications. Each component must undergo rigorous validation, requiring sustained capital investment in product development and financial resilience to navigate the development phase. This process must be continuously undertaken to diversify the product portfolio and end-user sectors.
− Elongated working capital cycle
The company’s working capital cycle remained elongated at 344 days as on March 31, 2026, compared to 287 days in the previous year, primarily considering increased inventory holding period. The average inventory holding period rose to 262 days in FY26 from 209 days in FY25, driven by higher inventory requirements for products under development that involve customised alloys, which must be procured in bulk due to minimum order quantity constraints. In addition, inventory levels remained elevated
− Risk associated with large-sized debt-funded capex
The company has been augmenting its manufacturing capacity through the establishment of a new facility at Tuniki Bollaram, Hyderabad, in response to the full utilisation of its existing capacity. The new facility features well -segregated production areas designed to safeguard clients’ intellectual property rights. Given that AEL’s key customers account for a significant share of the global gas turbine manufacturing market, it is expected that the enhanced infrastructure strengthens customer con
Could lead to an upgrade
• Substantial improvement in scale of operations by leveraging newly added capacity while maintaining PBILDT margin at current level. • Sustained improvement in return on capital employed (ROCE) to above 20%, supported by efficient capital deployment and healthy profitability.
Could lead to a downgrade
• Inability to scale up operations and PBILDT margin falling below 30%. • Failing to improve operating cycle from current levels leading to further increase in reliance on working capital debt. • Significant weakening in the capital structure, reflected by total outstanding liabilities to tangible net worth (TOL/TNW) exceeding 0.5x.
Agency-reported financials (CARE, 22 Jun 2026)
| Metric | March 31, 2025 | March 31, 2026 |
|---|---|---|
| Total operating income | ₹457 Cr | ₹612 Cr |
| PBILDT* | ₹166 Cr | ₹239 Cr |
| Profit after tax (PAT) | ₹88.53 Cr | ₹132 Cr |
| Overall gearing (x) | 0.18× | 0.30× |
| Interest coverage (x) | 9.23× | 8.05× |
| Revenue growth (YoY) | — | 33.7% |
| PAT margin | 19.4% | 21.6% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long-term bank facilities | Working capital & bank lines | — | ₹337 Cr | — | A (Stable) | Reaffirmed | CARE |
| Long-term Short-term bank facilities | Working capital & bank lines | — | ₹5.00 Cr | — | A / A2+ (Stable) | Assigned | CARE |
| Long-term Short-term bank facilities | Working capital & bank lines | — | ₹200 Cr | — | A / A2+ (Stable) | Reaffirmed | CARE |
| Short-term bank facilities | Working capital & bank lines | — | ₹22.9 Cr | — | A2+ | Assigned | CARE |
Debt instruments
| ISIN | Instrument | Type | Coupon | Issued | Maturity | Amount | Rating | Status |
|---|---|---|---|---|---|---|---|---|
| — | — | Debentures & bonds | — | 31 Mar 2023 | 31 Mar 2030 | ₹0 | — | Withdrawn |
CARE ratings on record (checked 23 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| Bank Guarantee | ₹5.00 Cr | CARE A; Stable / CARE A2+ |
| Cash Credit | — | Withdrawn |
| Credit Exposure Limit | ₹22.9 Cr | CARE A2+ |
| Non Convertible Debentures | — | Withdrawn |
| Packing Credit in Foreign Currency | ₹200 Cr | CARE A; Stable / CARE A2+ |
| Proposed fund based limits | — | Withdrawn |
| Term Loan | — | Withdrawn |
| Term Loan | ₹337 Cr | CARE A; Stable |
Lenders
| Fund-based - LT | Term Loan | Bajaj Finance Ltd. |
| Fund-based - LT | Term Loan | Bandhan Bank Ltd. |
| Fund-based - LT | Term Loan | HDFC Bank Ltd. |
| Fund-based - LT | Term Loan | ICICI Bank Ltd. |
| Fund-based - LT | Term Loan | IndusInd Bank Ltd. |
| Fund-based - LT | Term Loan | Tata Capital Ltd. |
| Fund-based - LT | Term Loan | Union Bank of India |
| Fund-based - LT | Term Loan | Yes Bank Ltd. |
| Fund-based - LT/ ST | Packing Credit in Foreign Currency | ICICI Bank Ltd. |
| Fund-based - LT/ ST | Packing Credit in Foreign Currency | IndusInd Bank Ltd. |
| Fund-based - LT/ ST | Packing Credit in Foreign Currency | Union Bank of India |
| Non-fund-based - LT/ ST | Bank Guarantee | IndusInd Bank Ltd. |
| Non-fund-based - ST | Credit Exposure Limit | ICICI Bank Ltd. |
| Non-fund-based - ST | Credit Exposure Limit | IndusInd Bank Ltd. |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Next action stable or better (model) | 81% |
| Information on file | 78% · missing: Capex / investment plans, Auditor details |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 68% chance the next rating action is stable or better
- Current rating A (investment grade)
- Interest coverage 8.05×
- Working-capital limits 68% utilised on average
Rated limits by facility
Timeline
From the report
The increase in leverage in FY26 was primarily due to term loans availed for debt - funded capital expenditure.
From the report
Average utilisation of working capital limits stood at ~68% for the 12 months ended March 31, 2026, supported by a current ratio of 3.10x as on March 31, 2026.
From the report
Free cash and liquid investment balance stood at ₹183.58 crore as on March 31, 2026.
From the report
The increase in leverage in FY25 was primarily due to term loans availed for debt-funded capital expenditure, which raised the total debt from ₹39.43 crore in FY24 to ₹25 6.99 crore in FY25.
From the report
The increase in leverage in FY25 was primarily due to term loans availed for debt-funded capital expenditure, which raised the total debt from ₹39.43 crore in FY24 to ₹25 6.99 crore in FY25.
From the report
The net proceeds amounted ₹681.21 crore after deducting fees, commissions, and issue-related expenses of ₹18.79 crore.
From the report
Average utilisation of working capital limits stood at a moderate ~84% for the 12 months ended May 31, 2025, supported by a strong current ratio of 5.00x as on March 31, 2025.
From the report
The company maintained a robust cash and liquid investment balance of ₹58.76 crore as on March 31, 2024, which significantly increased to ₹695.62 crore as on March 31, 2025, primarily due to proceeds from issue of equity shares in FY25.
From the report
The increase in leverage in FY25 was primarily due to term loans availed for debt-funded capital expenditure, which raised the total debt from ₹39.43 crore in FY24 to ₹25 6.99 crore in FY25.
From the report
The increase in leverage in FY25 was primarily due to term loans availed for debt-funded capital expenditure, which raised the total debt from ₹39.43 crore in FY24 to ₹25 6.99 crore in FY25.
From the report
The net proceeds amounted ₹681.21 crore after deducting fees, commissions, and issue-related expenses of ₹18.79 crore.
From the report
Average utilisation of working capital limits stood at a moderate ~84% for the 12 months ended May 31, 2025, supported by a strong current ratio of 5.00x as on March 31, 2025.
From the report
The company maintained a robust cash and liquid investment balance of ₹58.76 crore as on March 31, 2024, which significantly increased to ₹695.62 crore as on March 31, 2025, primarily due to proceeds from issue of equity shares in FY25.
From the report
However, overall gearing is projected to moderate in the medium term but remain below ~0.32x in FY25, considering newly sanctioned term loan of ₹139 crore and ₹35 crore of working capital borrowings.
From the report
Liquidity: Adequate Liquidity is marked by strong accruals against repayment obligations of ₹9.91 crore and cash and cash equivalents of ₹58.76 crore on March 31, 2024 ( ₹39.99 crore on March 31, 2023).
From the report
Liquidity: Adequate Liquidity is marked by strong accruals against repayment obligations of ₹9.91 crore and cash and cash equivalents of ₹58.76 crore on March 31, 2024 ( ₹39.99 crore on March 31, 2023).
From the report
Though the bank limits have been reduced by us ing IPO proceeds, the company availed fresh term loans and working capital borrowings in Q1FY25.
From the report
Positive factors • Increase in scale of operations with total operating income (TOI) improving to ₹350 crore and above while maintaining profit before interest depreciation and tax (PBIDT) margin 30% on a sustained basis. • Improvement in liquidity position with average working capital utilization levels falling below 70% and operating cycle shortening to less than 150 days on a sustained basis.
From the report
Liquidity: Strong Liquidity is marked by strong accruals against repayment obligations of ₹ 25 crore and cash & cash equivalents of ₹ 67.38 crore on December 31, 2022 (₹ 17.66 crore on March 31, 2022).
From the report
Liquidity: Strong Liquidity is marked by strong accruals against repayment obligations of ₹ 25 crore and cash & cash equivalents of ₹ 67.38 crore on December 31, 2022 (₹ 17.66 crore on March 31, 2022).
From the report
Though the bank limits have bee n utilised to average of 95%, company has maintained minimum free cash of ₹ 2 crore in last 12 months ended January 31, 2023.
From the report
Liquidity: Strong Liquidity is marked by strong accruals against repayment obligations of ₹ 25 crore and cash & cash equivalents of ₹ 67.38 crore on December 31, 2022 (₹ 17.66 crore on March 31, 2022).
From the report
Liquidity: Strong Liquidity is marked by strong accruals against repayment obligations of ₹ 25 crore and cash & cash equivalents of ₹ 67.38 crore on December 31, 2022 (₹ 17.66 crore on March 31, 2022).
From the report
Though the bank limits have been utilised to average of 95%, company has maintained minim um free cash of ₹ 2 crore in last 1 2 months ended January 31, 2023.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Azad Engineering Limited
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
 Larsen & Toubro |
Capital Goods & Power Equipment · Heavy Engineering & Capital Goods | larsentoubro.com | 1938 | Mumbai, India |
 Thermax |
Capital Goods & Power Equipment · Heavy Engineering & Capital Goods | thermaxglobal.com | 1980 | Pune, India |
 Blue Dart Express |
Outlets operated by Blue Dart Express. | bluedart.com | 1983 | Mumbai, India |
| H.G. INFRA ENGINEERING LIMITED (PART IX) | Machine Tools & Industrial Machinery · Heavy Engineering & Capital Goods | — | — | Jodhpur, Rajasthan, India |
 Tata Hitachi Construction Machinery Company |
Machine Tools & Industrial Machinery · Heavy Engineering & Capital Goods | tatahitachi.co.in | — | India |
 Kirloskar Brothers |
Capital Goods & Power Equipment · Heavy Engineering & Capital Goods | kirloskarpumps.com | 1888 | Pune, India |
 SANSERA ENGINEERING LIMITED |
Machine Tools & Industrial Machinery · Heavy Engineering & Capital Goods | sansera.in | — | Bangalore, Karnataka, India |
 Action Construction Equipment Limited |
Fertilisers, Seeds & Crop Protection · Agriculture & Agri-Inputs | ace-cranes.com | 2009 | Palwal, India |
 AJAX Engineering |
Commercial Vehicles & Buses · Automobile Manufacturers | ajax-engg.com | 1992 | Bangalore, India |
| IL&FS ENGINEERING AND CONSTRUCTION COMPANY LIMITED | · Construction | — | — | Hyderabad, Telangana, India |
Similar companies
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Principal business activities and related-party transactions are read from MGT-7 and AOC-4 filings.
Filings
No filings on record yet.