Azad Engineering shares achieved a new milestone, hitting a fresh 52-week high of ₹3,126 on Wednesday's trading session amid heavy volume activity. The stock surged 7% in intraday deals and has demonstrated exceptional momentum with 111% gains over the past six months from ₹1,483.90. According to Business Standard, the stock has experienced a 15% surge in the past two trading days, with 5.85 million shares representing 9% of total equity changing hands on NSE and BSE. However, the stock closed 3.5% lower at ₹2,860.05 per share on Thursday, October 1, as part of some correction after hitting the fresh 52-week high. At 02:55 PM, the stock was trading 2% higher at ₹2,974.20, outperforming the BSE Sensex which declined 0.01% during the same period.
ICICI Securities has upgraded its target price for Azad Engineering to ₹3,200 from ₹1,900 earlier, retaining its BUY rating while rolling forward valuation to FY29. The brokerage has applied a target multiple of 55 times estimated FY29 earnings per share (EPS) to arrive at the revised target price. As per LiveMint, the revised target reflects the company's expanding manufacturing capacity, improving order visibility, and expectations of stronger earnings over the coming years. The stock has already delivered strong returns across multiple timeframes, with shares gaining around 3% in one month, 38% in three months, and 77% over the past year. The latest quarterly performance also reflected strong operating momentum, with consolidated net profit rising 20.2% year-on-year to ₹35.7 crore and revenue from operations increasing 26% to ₹172.5 crore for the quarter ended June 30, 2026.
The company inaugurated two new exclusive lean manufacturing facilities for GE Vernova's Gas Power business at its Centre of Excellence & Innovation Centre in Tunikibollaram, Hyderabad on September 28, 2026. Each of the state-of-the-art facilities spans 7,600 sq. m and is dedicated to manufacturing highly engineered rotating and stationary airfoils and specialized machined parts, meeting GE Vernova's global demand in power generation and essential industries. With the addition of these facilities, Azad Engineering now has three dedicated facilities for GE Vernova, providing additional manufacturing capacity to support the customer's requirements as the business scales up. The expansion also supports the company's transition from being primarily a component supplier towards becoming a broader platform and integration partner, allowing participation in a wider range of opportunities across existing customer relationships. This represents the single-largest capacity addition Azad has made in one tranche (15,200 sq.mt.), taking its GE-dedicated footprint to three facilities - the deepest customer integration in its portfolio. With 6 of the 7 planned dedicated manufacturing facilities stand commissioned, along with a forging unit, the company expects follow-up large orders from GE, providing another 5-6 years of visibility to the newly commissioned unit.
The management has maintained its guidance of a 25%+ revenue CAGR with 32-35% margins, though analysts believe the company is providing conservative estimates amidst the current geopolitical situation. The brokerage has built in a 33% revenue CAGR over FY26–29E, with margins holding at 37-38% (partially benefiting from INR depreciation). With only one dedicated facility remaining to be commissioned by end-FY27, this marks the start of the execution phase, which will likely drive earnings for the next 2-3 years. The company delivered India's first indigenous turbojet engine to GTRE/DRDO in July 2026, with weapon-integration testing and subsequent certification expected to pave the way for serial production. Analysts expect the company to announce its next leg of growth capex soon to maintain visibility beyond FY30, with the equity story resting on throughput conversion and working capital normalisation. As per LiveMint, with most of the planned capacity now coming online, the focus will shift towards converting the new capacity into higher throughput and earnings, while working capital normalises.
Azad Engineering has delivered exceptional returns across multiple timeframes, with the stock gaining 98.73% in six months, 81.53% year-to-date, and 84.94% over one year. Over a two-year period, the stock has gained 97.41%, nearly doubling investors' money. The company's strong performance reflects its strategic expansion into manufacturing facilities for GE Vernova's Gas Power business, with this latest facility inauguration bringing Azad's total dedicated facilities for GE Vernova to three, positioning the company to serve the growing global energy market. The stock has a total market capitalisation of ₹18,470.70 crore as of October 1, 2026, with the rally coming despite broader market weakness as equity benchmark indices Sensex and Nifty fell sharply in early trade on Tuesday. The company operates in an industry with high entry barriers, providing competitive advantages, and manufactures mission-critical components for the energy, oil & gas, and aerospace & defence sectors, serving global OEMs in more than 11 countries across markets including the US, UK, China, Japan, Saudi Arabia, Singapore, Germany and the Middle East.
