AZAD agreements include $112 million GE Vernova, $90 million Siemens

AZAD disclosed a $112 million agreement with GE Vernova for advanced gas-turbine airfoils and a $90 million Siemens Energy Global agreement in its H1 FY27 presentation, alongside nuclear, aerospace and defence programmes. The presentation names multiple customers and contract types but does not state one aggregate value or delivery schedule for all agreements.

What customer agreements has AZAD disclosed?

AZAD has disclosed agreements with global original equipment manufacturers, or OEMs, across power, energy and aerospace, with individual stated values ranging from $16 million to $112 million. The largest stated agreement is the $112 million GE Vernova contract to supply highly engineered rotating and stationary airfoils for advanced gas-turbine engines. A separate GE Vernova agreement, valued at $53.5 million, covers rotating and stationary airfoils for advanced nuclear, industrial and thermal-power industries.

The disclosed values are contract-specific rather than a company-reported aggregate. Siemens Energy Global has an agreement for combustion commodities, cold blades and machined parts valued at $90 million, while Mitsubishi Heavy Industries signed a current five-year phase valued at $83 million for advanced gas- and thermal-power-turbine airfoils. Arabelle Solutions signed a $40 million supply agreement for critical rotating and stationary components.

AZAD also lists arrangements without a disclosed US-dollar value. These include a Bharat Heavy Electrical Limited purchase order for supercritical-turbine airfoils and a separate two-year long-term rate contract estimated at approximately Rs 52.68 crore for blades used in heavy-duty gas turbines. Pratt and Whitney Canada has a framework for aircraft-engine component development and manufacturing, while Rolls Royce Plc London has a civil aircraft-engine components agreement for the life of the engine programme.

How is AZAD positioned in turbine and nuclear programmes?

AZAD’s two disclosed GE Vernova agreements carry combined stated values of $165.5 million and cover gas turbines, nuclear, industrial and thermal applications. The $112 million agreement concerns advanced gas-turbine engines, whereas the $53.5 million agreement concerns advanced nuclear, industrial and thermal-power industries. The presentation lists these as separate agreements and does not identify their combined amount as an aggregate order measure.

Siemens Energy Global adds a $90 million programme covering combustion commodities, cold blades and machined parts, as well as a separate agreement for critical rotating components for advanced gas- and thermal-turbine engines. Mitsubishi Heavy Industries’ $83 million current phase extends for five years. Its separate long-term contractual partnership for gas-turbine hot-section nozzle-vane segments runs for eight years, although AZAD does not disclose a value for that arrangement.

The Bharat Heavy Electrical Limited relationship combines two routes to turbine work. One purchase order covers advanced high-complex rotating airfoils for supercritical turbines under a collaborative indigenisation project evaluated and approved by the Central Electricity Authority, Ministry of Power, NTPC and Bharat Heavy Electrical Limited. The other is the Rs 52.68 crore estimated two-year rate contract for critical stationary and rotating airfoils, or blades, for heavy-duty gas turbines.

What aerospace and defence work has AZAD disclosed?

AZAD has disclosed a $16 million Phase 1 Honeywell Aerospace award, a Pratt and Whitney Canada aircraft-engine framework, a Rolls Royce Plc London civil-engine programme deal and a Gas Turbine Research Establishment contract. Honeywell Aerospace ISC, USA awarded business for high-complex components intended to meet global aviation demand, with the $16 million spend specified over the contract period.

The Pratt and Whitney Canada Master Terms Agreement and Purchase Agreement establish a framework to develop and manufacture aircraft-engine components, but the presentation does not state a value or term. Rolls Royce Plc London signed a deal to produce civil aircraft-engine components and supply super-critical complex machined parts for the life of the engine programme, also without a disclosed value. These arrangements describe programme scope but do not permit a monetary comparison with the $16 million Honeywell award.

In defence, AZAD reports a contract from the Gas Turbine Research Establishment, an organisation under the Defence Research and Development Organisation and Ministry of Defense. The work covers end-to-end manufacturing, assembly and integration of a complete advanced turbo gas-generator engine. AZAD does not disclose the contract value or delivery period, so the contract cannot be compared by value with its aviation agreements.

How do the agreements connect to AZAD’s new capacity?

AZAD had 44,800 square metres across six customer-dedicated facilities for four global OEMs at Tunikibollaram, Hyderabad, after inaugurating two 7,600-square-metre GE Vernova Gas Power facilities in September 2026. GE Vernova then had three dedicated facilities. The other listed facilities serve Baker Hughes, Siemens Energy, GE Vernova Steam Power and Mitsubishi Heavy Industries.

Management said all six lean facilities had been commissioned by H1 FY27, although they were at different revenue-ramp stages according to customer delivery plans. Management expects throughput from new capacity to begin in Q3 FY27, revenue to ramp from Q4 FY27 and all plants to be fully ramped by Q2 FY28. Its installed-capacity objective is an annual revenue run-rate of more than Rs 1,300 crore by the end of FY28.

Energy and oil and gas remained AZAD’s largest segment, producing Rs 290.46 crore, or 81.1% of H1 FY27 revenue, compared with Rs 226.09 crore, or 81.6%, in H1 FY26. Aerospace and defence contributed Rs 60.37 crore, or 16.8%, compared with Rs 47.06 crore, or 17.0%, a year earlier. Energy and oil and gas grew 28.5%, marginally ahead of the aerospace and defence segment’s 28.3% growth, while their revenue shares were largely unchanged.

What financial results accompanied the capacity build-out?

AZAD reported H1 FY27 revenue from operations of Rs 358.32 crore, up 29.3% from Rs 277.18 crore in H1 FY26, while reported earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 34.7% to Rs 134.51 crore. The EBITDA margin increased to 37.5% from 36.0%. Profit after tax, or PAT, rose 6.6% to Rs 67.17 crore, while the PAT margin declined to 18.7% from 22.7%.

Management attributed the slower H1 PAT growth to lower treasury income, higher manpower costs and higher finance costs while new capacity had not fully contributed revenue. In Q2 FY27, revenue rose 31.6% year on year to Rs 187.80 crore, but PAT fell 6.6% to Rs 30.82 crore. Employee expense increased to Rs 90.95 crore in H1 FY27 from Rs 60.88 crore a year earlier, while finance cost rose to Rs 22.32 crore from Rs 12.02 crore.

Conclusion

AZAD’s disclosed agreements span gas and thermal turbines, nuclear-related power components, aviation parts and a defence-engine assembly programme. The largest individually stated contracts are GE Vernova’s $112 million advanced gas-turbine airfoil agreement and Siemens Energy Global’s $90 million components agreement, while several aerospace and defence arrangements do not have stated values.

The next disclosed milestones are management’s expected Q3 FY27 throughput start, Q4 FY27 revenue ramp and full facility ramp-up by Q2 FY28. The key disclosed plan to watch is whether utilisation of 44,800 square metres of dedicated capacity supports management’s target of an annual revenue run-rate above Rs 1,300 crore by the end of FY28.