Azad Engineering Limited (AZAD) AI Stock Analysis

Azad Engineering Limited

(NSE:AZAD)

Select Model

Rating:63Neutral

Price Target:INR 2,604.00▲(3.78% Upside)

Action:reiterated

Date:10/10/26

The score is driven primarily by strong growth and profitability plus improved balance-sheet leverage, but it is meaningfully capped by weak cash conversion (negative operating cash flow and deeply negative free cash flow). Technicals are supportive with price above key moving averages, while the very high P/E and lack of dividend support keep valuation risk elevated.

Positive Factors

Strong revenue growthThe substantial increase in revenue demonstrates that Azad has expanded its business materially over several years, supported by renewed growth in 2026. A larger revenue base can improve operating scale, support customer diversification, and create a stronger platform for future capacity utilization.

Negative Factors

Weak cash conversionNegative operating cash flow alongside strong accounting profits indicates that earnings are not currently converting into cash effectively. Deeply negative free cash flow may reflect heavy reinvestment or working-capital absorption, increasing execution demands and potentially limiting internally funded growth.

Azad Engineering Limited (AZAD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 185.67B
Dividend Yield: ―
Average Volume (3M): 60.38K
Price to Earnings (P/E): 113.7
Beta (1Y): 1.39
Revenue Growth: 28.72%
EPS Growth: 31.60%
Country: India
Employees: 2,168
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Azad Engineering Limited Business Overview & Revenue Model

Company Description

Azad Engineering Limited, established in Hyderabad, India, in 1983, specializes in the manufacturing and distribution of high-precision engineered components crafted through advanced forging and machining processes. Their comprehensive product portfo...

How the Company Makes Money

AZAD makes money by manufacturing and supplying precision-engineered components and assemblies to customers (typically industrial OEMs and tier suppliers) under purchase orders and longer-term supply arrangements. Its primary revenue stream is the sa...

Azad Engineering Limited Financial Statement Overview

Summary

Income statement strength (revenue scaled from 1.18B in 2021 to 6.03B in 2026 with strong margins) and a healthier leverage profile (debt-to-equity ~0.31x in 2026) are major positives. However, cash flow is a significant risk: operating cash flow was negative in 2026 and free cash flow is deeply negative (about -6.91B in 2026), raising near-term cash conversion and execution concerns.

Income Statement

86Very Positive

Balance Sheet

74Positive

Cash Flow

29Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.38B	6.03B	4.44B	3.28B	2.42B	1.85B
Gross Profit	4.82B	3.56B	3.26B	2.48B	1.84B	1.40B
EBITDA	2.77B	2.71B	1.64B	1.34B	564.11M	619.75M
Net Income	1.39B	1.33B	873.18M	585.80M	84.73M	294.57M
Balance Sheet
Total Assets	0	22.00B	18.61B	7.97B	5.89B	4.04B
Cash, Cash Equivalents and Short-Term Investments	1.85B	1.85B	468.85M	587.62M	400.06M	113.98M
Total Debt	0	4.74B	2.63B	394.33M	3.01B	1.97B
Total Liabilities	-15.29B	6.71B	4.68B	1.52B	3.85B	2.84B
Stockholders Equity	15.29B	15.29B	13.94B	6.45B	2.04B	1.20B
Cash Flow
Free Cash Flow	-3.83B	-6.91B	-2.40B	-822.89M	-958.31M	-962.08M
Operating Cash Flow	-758.90M	-1.19B	536.67M	-69.49M	-102.09M	209.39M
Investing Cash Flow	345.26M	-714.22M	-9.18B	-552.55M	-1.01B	-1.14B
Financing Cash Flow	321.52M	1.74B	8.77B	709.87M	1.26B	959.11M

Azad Engineering Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price2509.10

Price Trends

50DMA2771.22Negative

100DMA2541.61Negative

200DMA2148.95Positive

Market Momentum

MACD-80.69Positive

RSI34.67Neutral

STOCH23.23Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AZAD, the sentiment is Negative. The current price of 2509.10 is below the 20-day moving average (MA) of 2747.99, below the 50-day MA of 2771.22, and above the 200-day MA of 2148.95, indicating a neutral trend. The MACD of -80.69 indicates Positive momentum. The RSI at 34.67 is Neutral, neither overbought nor oversold. The STOCH value of 23.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AZAD.

Azad Engineering Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AZAD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:KIRLOSBROS	76Outperform	INR 127.28B	33.82	―	0.44%	10.85%	-4.06%
IN:INGERRAND	72Outperform	INR 127.38B	47.54	―	1.86%	8.28%	1.08%
IN:KIRLPNU	66Neutral	INR 69.94B	26.95	―	1.11%	9.10%	38.69%
IN:SHAKTIPUMP	63Neutral	INR 43.61B	27.25	―	0.28%	15.77%	-60.93%
IN:AZAD	63Neutral	INR 157.88B	113.68	―	―	28.72%	31.60%
IN:KSB	58Neutral	INR 113.26B	1.31	―	0.67%	4.63%	-4.40%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:AZAD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AZAD	Azad Engineering Limited	2444.65	789.00	47.65%
IN:INGERRAND	Ingersoll-Rand (India) Limited	4035.25	327.85	8.84%
IN:KIRLOSBROS	Kirloskar Brothers Ltd.	1602.85	-280.48	-14.89%
IN:KIRLPNU	Kirloskar Pneumatic Co. Ltd.	538.15	-16.52	-2.98%
IN:KSB	KSB Ltd.	650.75	-130.49	-16.70%
IN:SHAKTIPUMP	Shakti Pumps (India) Limited	353.40	-457.14	-56.40%

Azad Engineering Limited Corporate Events

Azad Engineering Secures ₹52.68 Crore Long-Term Gas Turbine Parts Contract from BHEL

Oct 12, 2026

Azad Engineering Limited has been empanelled as a long-term source by Bharat Heavy Electricals Limited and awarded a two-year long-term rate contract to supply critical stator vanes and rotor blades for heavy-duty gas turbines. Valued at approximatel...

Azad Engineering Publishes Q1 FY27 Earnings Call Transcript for Investors

Aug 14, 2026

Azad Engineering Limited has submitted to the BSE and NSE the official transcript of its Q1 FY27 earnings conference call held on August 8, 2026. The company has also made the transcript available in the Investors Relations section of its website, re...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 10, 2026

Azad Engineering Limited AI Stock Analysis