Azad Engineering Q3 profit jumps 44% on 33% segment growth, margin expands to 39%

Hyderabad-based precision engineering firm Azad Engineering Ltd on Friday (February 13) reported a 43.7% year-on-year increase in net profit to ₹34.5 crore in Q3, compared to ₹24 crore in the same period last year.

Revenue for the quarter rose 31.8% to ₹158.7 crore from ₹120.4 crore a year ago. EBITDA increased 45.6% to ₹62.2 crore versus ₹42.7 crore in the corresponding quarter of the previous year. The EBITDA margin stood at 39.2% in Q3, compared to 35.5% in the year-ago period.

Azad Engineering reported standalone revenue of ₹432.98 crore in 9MFY26, up 31.8% compared to 9MFY25. EBITDA stood at ₹159.98 crore, marking a 38.4% year-on-year increase, with an EBITDA margin of 36.9%.

Also Read: Azad Engineering signs $73.47-million deal with Mitsubishi Heavy Industries

Profit before tax (PBT) rose 52.8% to ₹136.34 crore, with a margin of 31.5%. Profit after tax (PAT) increased 55.3% to ₹97.03 crore, translating to a margin of 22.4%. The company stated that its 9M EBITDA and 9M PAT for FY26 surpassed its full-year FY25 performance.

Azad Engineering's Energy and Oil & Gas and Aerospace & Defence segments recorded 33% year-on-year growth. The business registered growth across segments, supported by new capacity additions and completion of First Article Inspections (FAIs). Employee expenses increased primarily due to a rise in headcount following the expansion of new facilities.

Depreciation rose during the period on account of capacity additions. Other income increased mainly due to higher interest income from fixed deposits. As of December 2025, net debt stood at ₹157.5 crore. Finance costs increased due to additional loans availed to support business growth.

Also Read: Azad Engineering Q2 net profit spikes 60% to ₹33 crore driven by energy, aerospace growth

Shares of Azad Engineering Ltd ended at ₹1,575.00, down by ₹40.70, or 2.52%, on the BSE.