Shares up 2.03% to ₹2,969.95 on BSE after Azad Engineering announced a ₹52.68 crore two‑year rate contract with BHEL for stationary and rotating airfoils used in heavy‑duty gas turbines.
The deal, slated to run until Oct 9 2028, marks the firm’s second long‑term rate contract with BHEL – the first was signed in May 2018 but was not material at that time. The ₹52.68 cr figure represents a material contribution to Azad’s revenue mix given the company’s modest order book.
BHEL’s push to indigenise critical gas‑turbine components aligns with national policy, while Azad’s recent expansion of three GE Vernova‑dedicated lean‑manufacturing plants—each 7,600 sq m—positions it to meet growing domestic demand for gas‑turbine parts.
Goldman Sachs maintained a “buy” rating, citing the contract’s multi‑year visibility and Azad’s move up the value chain. The brokerage set a ₹3,315 target price, implying a 22 % upside from the previous close of ₹2,910.75.
With the contract in place, Azad expects a steady revenue stream over the next five years, but the company has not issued new guidance for FY25. Investors will be watching the Q1 earnings release, slated for March 2026, for further clarity on margin and cash flow.