Precision engineering firm Azad Engineering Ltd has been awarded a two-year long-term rate contract by Bharat Heavy Electricals Ltd (BHEL) for the supply of critical stationary and rotating airfoils (blades) for heavy-duty gas turbines. According to reports from CNBC TV18, the estimated contract value is approximately ₹52.7 crore. The contract is scheduled to run until October 9, 2028, and the company has been approved as a long-term source by BHEL, a public sector undertaking. The contract has been awarded by a domestic entity and represents a long-term rate contract arrangement.
This contract marks a step in Azad Engineering's growing role in India's domestic power generation equipment ecosystem and supports BHEL's indigenisation of critical gas turbine components. As reported by CNBC TV18, Goldman Sachs sees this development as supportive of its thesis around the firm's increasing participation in the domestic gas turbine supply chain, particularly given the growing opportunities for indigenization of critical turbine components and expansion of its customer base beyond global OEMs into domestic power equipment manufacturers. The company had executed a similar rate contract in May 2026, but at that time assessed it as not material from a business perspective and did not disclose it. Considering the combined value and duration of the arrangement, the contract is now being disclosed as material. This approval represents a significant milestone in the company's strategic partnership with BHEL and reinforces its position in India's power generation equipment sector.
According to CNBC TV18, last month Azad Engineering inaugurated two exclusive lean manufacturing facilities for GE Vernova's Gas Power business at its Centre of Excellence & Innovation Centre in Hyderabad. Each facility spans 7,600 square meters and is dedicated to manufacturing highly engineered rotating and stationary airfoils and specialised machined parts to meet GE Vernova's global demand in the power generation and essential industries segment. The company has now expanded its footprint to three dedicated facilities for GE Vernova, demonstrating its commitment to serving global power generation markets.
Global investment banking firm Goldman Sachs has maintained its 'buy' rating on Azad Engineering with a price target of ₹3,315 per share, indicating an upside potential of 11.7% from its previous closing price. This represents the highest price target on the street for the manufacturer of fabricated metal products and machined components for turbines and aerospace parts. Of the nine analysts covering the stock, eight have a 'buy' recommendation and one has a 'sell' rating. The consensus estimates of price targets imply a downside potential of 2.5% from current levels for Azad Engineering. Shares of Azad Engineering are trading 0.3% higher, having recovered from the lows of the day at ₹2,978.6. The stock has risen 83% so far this year, reflecting strong investor confidence in the company's growth trajectory.
According to CNBC TV18, shares of Azad Engineering Ltd are trading 0.3% higher, having recovered from the lows of the day at ₹2,978.6. The stock has risen 83% so far this year, demonstrating strong momentum following the latest contract win. However, as reported by Zee News, shares traded marginally lower on Tuesday, hovering around ₹2,957 per share with a decline of nearly half a percent, despite securing the high-profile domestic contract. The mixed performance reflects investor caution despite the positive contract news, with traders awaiting clearer signals before making significant investment decisions.
