Azad Engineering wins ₹52.68 crore BHEL turbine contract

what happened

CNBC TV18 reported that precision-engineering company Azad Engineering Ltd has received a two-year rate agreement from Bharat Heavy Electricals Ltd (BHEL). The contract covers the supply of key stationary and rotating airfoils, or blades, for heavy-duty gas turbines and is estimated at approximately ₹52.68 crore. It will remain in force until October 9, 2028.

BHEL, a public sector undertaking, has approved Azad Engineering as a long-term source. The company said it had carried out a comparable rate contract in May 2018, but did not disclose it at the time because the order was considered immaterial to the business. The combined value and duration of the current arrangement have led Azad Engineering to classify it as material.

The company said the approval strengthens its position in India’s domestic power-generation equipment ecosystem and supports BHEL’s effort to localise critical gas-turbine parts. Last month, Azad Engineering told the exchanges that it had opened two dedicated lean-manufacturing units in Hyderabad for GE Vernova’s gas-power operations. Each covers 7,600 square metres and will produce highly engineered rotating and stationary airfoils as well as specialised machined components. The additions bring its total number of dedicated GE Vernova facilities to three. Goldman Sachs later kept a “buy” rating on the stock and a ₹3,315 target, representing 22% upside from the prior close. Eight of the nine analysts covering the shares have a “buy” view, while one has a “sell” rating. The stock finished at ₹2,969.95 on the BSE, up ₹59.20, or 2.03%.

why it matters

The award adds to Azad Engineering’s multi-year revenue visibility and reinforces its role in localising gas-turbine components for BHEL. Its expanded manufacturing base for GE Vernova is also linked to the company’s stated growth focus in gas turbines.

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