Azad Engineering shares gain 4% after it inks ₹651 crore contract with Mitsubishi Heavy Industries

Shares of Azad Engineering Ltd. gained nearly 4% in early trade on Monday, September 29, after the company on Friday said it started a new long-term contract and price agreement with Japan’s Mitsubishi Heavy Industries Ltd. worth $73.47 million (₹651 crore).The contract includes the supply of highly engineered complex rotating and stationary airfoils for advanced gas and thermal power turbine engines to help meet MHI’s global demand in the power generation sector.

The deal is incremental to an earlier contract inked on November 3, 2024. This brings the combined value of contracts between the two firms to $156.36 million (₹1,387 crore).

The long-term international contract has a five-year execution period. Azad Engineering said it has no shareholding in MHI and the deal does not involve any related party transactions.Azad Engineering reported its first quarter earnings last month. Its net profit increased 73.7% to ₹29.7 crore, revenue was up 39.2% to ₹137 crore, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 50% at ₹49.2 crore from the previous year. The company’s operating margin expanded to 35.9% in the June quarter from 33.2% in the year-ago period.

Azad Engineering shares were up 3.7% at ₹1,615 apiece, in early trade on Monday. The stock has declined 11.9% this year, so far.

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