Brokerages Bet on Azad Engineering Stock after Mega Deal

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The Hyderabad-based precision manufacturer secures one of its biggest global partnerships yet, strengthening its position in the aero-engine supply chain as analysts turn bullish.

By S JHA

Mumbai, November 19, 2025 — Azad Engineering Limited has signed a long-term Master Terms Agreement and Purchase Agreement with Pratt & Whitney Canada Corp., marking a major milestone in the company’s aerospace expansion strategy.

“The deal—focused on developing and manufacturing aircraft engine components—positions Azad as a deeper partner in the global aero-engine ecosystem at a time when India is pushing hard to scale high-value aerospace manufacturing,” said ICIC Direct in a research note.

The brokerage firm also stated that “the collaboration will enable Azad Engineering to sharpen its precision manufacturing capabilities for global aviation programmes, giving the company greater access to complex, high-value components within Pratt & Whitney’s engine supply chain.”

While commercial terms and order size remain confidential, analysts note that this is among the company’s most significant global contracts to date.

ICICI Direct Research described its outlook as “positive,” noting that the long-term partnership provides steady revenue visibility and aligns with global OEMs expanding their supplier networks.

“The timing is ideal,” the note said, highlighting India’s growing traction as a precision manufacturing hub. The partnership supports Azad Engineering’s scale-up plans as it expands work across defence, commercial aviation, and regional aircraft engine programmes.

Excencial Research, citing Goldman Sachs India Aerospace & Defence insights, noted that while peers such as Solar Industries, Bharat Electronics and PTC Industries deliver ROEs consistently above 25%, Azad Engineering’s return on equity is steadily improving—from low initial levels to a projected 17.6% by FY28—indicating strengthening profitability as global partnerships ramp up.

Azad Engineering, a Tier-I supplier with a 10,578.81 crore market capitalisation, specialises in high-precision forged and machined components. Its portfolio spans aerospace, defence, energy and oil & gas sectors, supplying 3D rotating airfoils, mission-critical turbine engine parts, and components used in aircraft, missiles, space systems and power applications.

The market reacted positively to the development, with Azad Engineering’s stock rising 2% to close at ₹1,674 on Wednesday.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)