Azad Engineering shares soar 9% on Rs 960-cr order from US-based GE Vernova

Azad Engineering shares rallied a massive 151 percent in the past year.

Shares of Azad Engineering rallied as much as 9.5 percent to Rs 1,733 in morning trade on January 16 after the company announced it has penned a long-term supply agreement with US-based GE Vernova International to deliver complex rotating and stationary airfoils for advanced gas turbine engines.

In a regulatory filing, it said that this is a six-year contract worth $112 million (approximately Rs 960 crore) with GE Vernova, a significant step in strengthening its position in the advanced gas turbine engine market. These critical components aim to meet the evolving demands of the global power generation industry.

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The Hyderabad-based company highlighted that this agreement aligns with its strategy to emerge as a leading player in the niche field of gas turbine component manufacturing. This is the company's second order in less than 3 months. In November 2024, Azad Engineering signed a long-term contract and price agreement (LTCPA) with Japan's Mitsubishi Heavy Industries Ltd, valued at $82.89 million (around Rs 700 crore).

Azad Engineering reported a strong performance in Q2 FY25, with standalone net profit rising 42.3 percent year-on-year to Rs 21.07 crore. Revenue from operations grew 34.5 percent to Rs 111.41 crore compared to the same quarter last year. EBITDA surged 51.4 percent year-on-year to Rs 39.79 crore, with the EBITDA margin expanding by 400 basis points to 35.7 percent, showcasing improved operational efficiency. Profit before tax rose 48.8 percent to Rs 29.94 crore from Rs 20.11 crore in Q2 FY24.

The Hyderabad-based company specializes in manufacturing precision-forged and machined components for industries such as clean energy, aerospace, defence, oil and gas, and standalone power supply (SPS), catering to the needs of original equipment manufacturers (OEMs).

At about 10 am, shares of the company were trading at Rs 1,680, higher by 6.2 percent from the last close on the NSE. Azad Engineering shares rallied a massive 151 percent in the past year.