Revenue rose 39.2% to ₹137 crore, while EBITDA jumped 50% to ₹49.2 crore. Operating margin expanded to 35.9% from 33.2% a year earlier, the company said in a regulatory filing.
The Hyderabad-based precision engineering firm attributed the margin gains to a favourable product mix, with consumption expenses as a percentage of sales declining to 12.1% in Q1 FY26 from 15.6% a year earlier.
Employee expenses rose during the quarter due to capacity expansion, new facility ramp-ups, and annual salary increases. Depreciation costs also increased, reflecting recent capacity additions.
Finance costs rose on account of loans availed during Q3 and Q4 of FY25, as well as foreign currency losses. The company said the increase in borrowing costs was in line with its growth plans.
Shares of Azad Engineering closed 3.3% higher at ₹1,500.55 on the NSE. However, the stock is down 18.7% on a year-to-date basis.
Azad Engineering manufactures mission-critical components for global aerospace, defence, energy, and oil & gas sectors.
