Hyderabad-based Azad Engineering Ltd. announced it has secured a long-term rate contract valued at approximately Rs 52.68 crore from Bharat Heavy Electricals Ltd. (BHEL). The precision engineering firm will supply crucial components for heavy-duty gas turbines, bolstering India's domestic manufacturing capabilities.
Under the terms of the contract, Azad Engineering will provide stationary and rotating airfoils, specifically including stator vanes and rotor blades. These components are vital for the efficient operation of gas turbines used in power generation. The agreement is scheduled to run until October 9, 2028.
Boosting Indigenous Manufacturing
This new contract underscores BHEL's ongoing commitment to indigenisation, aiming to reduce reliance on foreign suppliers for critical gas turbine parts. Azad Engineering's role in this initiative strengthens its position within India's power generation equipment ecosystem, contributing to the nation's self-reliance in advanced manufacturing.
The company confirmed that it had been approved as a long-term source by BHEL, a significant endorsement of its capabilities and quality standards. Azad Engineering had previously executed a similar rate contract in May 2026, though it was not disclosed at the time due to its then-immaterial business perspective. The combined value and extended duration of the current arrangement, however, necessitated its public disclosure.
Market Reaction and Company Outlook
Following the announcement, Azad Engineering shares saw an upward movement, opening at Rs 3,024.40 and reaching a high of Rs 3,030, marking a 2.02% increase from its previous close of Rs 2,969.95. The stock has demonstrated robust performance throughout 2026, recording an 84% gain year-to-date.
The company also clarified that the contract was awarded by a domestic entity, and there are no related-party transactions or interests from its promoter or promoter group in the awarding entity, ensuring transparency and adherence to corporate governance standards.