Azad Engineering Signs Master Agreement with Pratt & Whitney Canada; Reports 60% YoY PAT Growth in Q2 FY26.

Executive Summary Azad Engineering Ltd has successfully expanded its global aerospace footprint by securing a strategic agreement with Pratt & Whitney Canada. 1. Strategic Development: Pratt & Whitney Canada Partnership Azad Engineering has executed a Master Terms Agreement (MTA) and Purchase Agreement with Pratt & Whitney Canada Corp. Scope: The agreement entails the development and manufacturing of critical aircraft engine components. Strategic Impact: This collaboration is a testament to Azad’s growing acceptance among global OEMs. Deal Structure: This is an arms-length transaction with no equity exchange or related-party involvement. While specific commercial terms remain confidential, the deal follows a recent $73.47 million contract with Mitsubishi Heavy Industries, highlighting strong order book momentum. 2. Financial Highlights (Q2 FY26) Net Profit: Surged by 60% YoY to ₹33 crore, up from ₹20.5 crore in Q2 FY25. Revenue: Recorded a robust growth of 30.6% YoY to ₹145.6 crore. EBITDA: Grew by 32.1% YoY to ₹53.2 crore. Margins: EBITDA margin expanded to 36.5% (vs. 36.1% YoY), reflecting improved efficiency and a superior product mix. 3. Segmental & Geographic Performance (H1 FY26) Energy & Oil & Gas: Remains the dominant revenue driver, contributing ₹226.1 crore (35.7% of total revenue) in H1 FY26, driven by capacity expansion. Aerospace & Defence: Revenue stood at ₹47.1 crore (30.3% of total revenue), showing strong traction compared to ₹36.1 crore in H1 FY25. Export Focus: The business remains heavily export-oriented, with overseas sales contributing ₹260.4 crore (approx. 94% of revenue mix) in H1 FY26, underscoring the company’s integration into global supply chains. Investment Rationale Despite a 2.08% correction in the stock price to ₹1,638.60 following the announcement, the fundamental outlook remains positive. The addition of Pratt & Whitney Canada to the client roster, combined with a 60% profit jump