Annual Report for the Financial Year 2025-26

AZAD September 7,2026 The Listing Department The Listing Department Limited BSE National Stock Exchange of India Limited Department of Corporate Affails Exchange Plaza, Plot No. c/7,G Block Street Phiroze Jeejeebhoy Towers, Dalal Bandla-Kulla Cornplex, Bandra (E) Mumbai, Maharashtra - 400 001 Mumbai, Maharashtra - 400 051 Scrip ID - 544061 Scrip Code - AZAD Dear Sir/Madam, Subject : Annual Report for the Financial Year 2025-26 along with the Notice of the 43.d Annual Ceneral Meeting ("AGM"). We heleby inform you that the 43.t Annual General Meeting ('AGM') of the members of the Company will be held on Tuesday, September 29, 2026 at 2:30 P.M. (IST) through Video Conferencing ( 'VC') / Other Audio-Visual Means ("OAVM"), in accordance with the relevant circulars issued by the Ministry of Corporate Affairs ancl the Securities and Exchange Board of India (SEBI). Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listir-rg Regulations), please find enclosed Notice convening the 43.t AGM of the Company and Arurual Report for the financial year 2025-26, being sent through electronic mode to the Members, who have registered their e-mail addresses with the Cornpany/ Registrar and Transfel Agent/ Depository Participants. Further, pursuant to Regulation 36(1)(b) of the SEBI Listing Regulations, a letter is also being sent to the Members, whose email addresses are not registered as aforesaid, providing tl-re web-link where the Annual Repolt for financial year 2025-26 is made available on the Company's website. The Annual Report 2025-26 containing the Notice of tl-re 43.4 AGM is also uploaded on the Company's website at https: / / www.azad.in / annual-r eport / You are requested to please take tl-re same in youl record. Thanking you. Yours truly, For Azad Engineering Limited G. Praneeth Abhishek Company Secretary, Compliance Officer and Head Legal M, No.:435583 Encl.: As Aboae Limited Azad Engineering A\=- Plot No.90/c ,1olD, Phase -'1, contact: o4.o-23o97007 clN No: L7421OrGrc83PLCOO4132 z--N\ l.D.A., Jeedimetla, Hycierabad, Email:info@azad.in GSTIN:36AAECA9452H1ZJ lndia. www.azad.in AZA ily Telangana-SOO 055, Web: CS_2601_353 POWERING ENGINES WORLDWIDE ANNUAL REPORT 2025-26 AZAD: POWERING ENGINES WORLDWIDE It all began in Hyderabad, in just 200 sq. m of rented floor, with one man behind one machine, driven by his childhood hunger to do more. He fell in love with this intricate work, the work which takes years to learn – and made a promise, which he and AZAD still keep: nothing will ever leave our hands until it's right, however long that takes to achieve. We began with one part: the compressor airfoil - three-dimensional, curved along every axis, extremely critical, turning unseen in the power stations that light our factories and rooms, in the rigs that pull oil from under the ground, and in the jets that keep our borders sound. Slowly, one part became many, and many became a whole system - each earned alone, each taking years, until 2026, when we sent out not a part, but an engine. Come, let us see a place where our components are placed, An aircraft waiting at the gate, its engines beneath its wings, past the wide fan at the front, deeper in, beyond what the eye can follow, that is one place where our parts can be met. Each made to tolerances measured in microns, each checked over, then verified and even reverified, so that every part that leaves our floor leaves just right; led by our Chairman's promise, whether at noon or in the night. Qualifying took years: a sample, an audit, another sample sent, for the strict approval of customers whose standards cannot bend. That patience built what stands before us today - one workshop grown into a campus, a Centre of Excellence, a line for every customer in the trade; run by many hands, where there was once only one, all powered by the founding passion that our Chairman made back in 2008. Each day, at AZAD, we do not wait to be told what must be done - we value this work too much for that: whatever is coming next, our work has already begun. CONTENT 01 02 CORPORATE OVERVIEW STATUTORY REPORT Chairman's Message 02 Management Discussion & Analysis 24 About Us 06 Corporate Information 34 Our Footprint 08 Board's Report 35 Key Performance Indicators 10 Corporate Governance Report 56 Highlights of FY 2025-26 12 Business Responsibility & Sustainability Report Business Verticals 14 Board of Directors 22 Senior Management 23 FINANCIAL STATEMENTS Standalone - Independent Auditor's Report 106 Consolidated - Independent Auditor's Report 180 Standalone - Balance Sheet 118 Consolidated - Balance Sheet 188 Standalone - Profit & Loss 119 Consolidated - Profit & Loss 189 Standalone - Cash Flow 120 Consolidated - Cash Flow 190 Standalone - Changes in Equity 122 Consolidated - Changes in Equity 192 Standalone - Notes 123 Consolidated - Notes 193 Notice of the AGM 250 CHAIRMAN’S MESSAGE THE PROMISE, THE PASSION, AND THE CAPABILITY TO DELIVER. 02 AZAD ENGINEERING LIMITED POWERING ENGINES WORLDWIDE CORPORATE OVERVIEW Dear Shareholders, Each year, this letter gives me a reason to step back from the Profit growth outpaced revenue - the result of daily press of the business and ask what we have achieved in operating discipline, firm pricing across long- the twelve months past. For FY 2025-26, the answer is unusually term contracts, a change in component mix, clear. We qualified more of the components we make. We added and the benefits of synergies achieved through more customers to make them for. And we changed how much backward integration and a more indigenised we can deliver, and how we are prepared to deliver it. supply chain. Part of that growth also came from other income - H475.3 million, principally When I wrote to you a year ago, I described this work as both a foreign-exchange gains and treasury income privilege and a responsibility - the privilege of being trusted with on the QIP proceeds - and I would rather say components that are mission- and life-critical, on which lives and so plainly than let it flatter the operating story. billion-dollar platforms depend, and the responsibility that such trust creates. All of AZAD’s verticals grew this year, as we intended. Energy and Oil & Gas, the vertical we In FY 2025-26, that responsibility asked something specific of us. were built on, contributed H4,811.3 million and grew 34.2%. Aerospace & Defence delivered In our industry, onboarding a customer is one thing - but earning H1,012.6 million, growing 25.4% and crossing qualifications and then delivering on commitments is another. H1,000 million for the first time in our history. Trust is earned through years of qualifications and audits that Revenue depicted in the financial statements come before the first shipment is even sent out from our shop also includes 'Other Operating Revenue', floor. amounting to H79.9 million, which includes FY 2025-26 was the year we built the readiness to deliver on those export incentives and scrap sales. Exports commitments. Four dedicated factories are now commissioned - accounted for almost 93% of revenue, sold three by March 31, 2026 and the fourth, for Baker Hughes, in April into the same global platforms contested by 2026 - the CNC machines that fill them are largely in place, and suppliers from across the world - the United the recruitment and training of the people to run them are well States, European countries, China and Japan under way. While building this readiness, we also strengthened among them. our order book, delivered consistent growth and met customer Our order book stood at approximately H65,000 expectations throughout the year. million as at March 31, 2026, about 11 times Paving the Path for the Future the revenue we have just delivered. It gives us rare revenue visibility across every customer FY 2025-26 saw us turning customer contracts and the capital engagement for several years ahead, and it raised through QIP in [Showing first 8,000 characters — download PDF for full document]