CA Darshan Bharuka

Chartered Accountant by profession. Stock market enthusiast by passion.

[CA Darshan Bharuka @Darshan27503236]

@ca_onlygain Sir, where can we get access to these BOA?

[CA Darshan Bharuka @Darshan27503236]

The Big Picture + Guidance

25%+ annual revenue growth guidance reiterated.

When asked if 35%+ CAGR is realistic over 3 years, Rakesh said:

"Of course. Right now we guide 25%+ because we know what situation we are in. As we shift to the next level, we'll change this guidance."

Infrastructure laid. Moats widening. Customers locked in. Now it's all about execution.

Note:-I am not a SEBI Registered Investment Advisor or Research Analyst. This information contained herein are strictly for educational purposes only.

[CA Darshan Bharuka @Darshan27503236]

Cost Structure: What's Temporary, What's Structural

Raw material cost as % of sales: 12% → 5%
Why? Indigenization via Sunflag & Star Wire — qualified for GE & Siemens global supply chains. Price + transport cost savings.
Employee cost elevated? Yes — but intentionally. Building bench strength for Q3/Q4 ramp. Will normalize as absorption rises.

CFO: "Margin is sustainable."

[CA Darshan Bharuka @Darshan27503236]

Rolls-Royce + Capex

✈️ Rolls-Royce civil aircraft engine deal: First batch of qualification parts to be delivered within this quarter. Almost finished.

📦 Capex: Current ~₹900 Cr deployed over 2 years. No large incremental capex needed for the next 2 years given current guidance. Larger capex being evaluated for opportunities beyond FY29.

Next quarter: More comprehensive view promised.

[CA Darshan Bharuka @Darshan27503236]

The Margin Magic

Azad started at 18–19% EBITDA on the same product lines.

Now delivering 37–38% consistently. Management guidance still says 32–35%.

Why the gap?

"It's process engineering on the shop floor — continuous improvement since inception. There's some magic happening on the floor."

The real kicker: New facilities haven't fully ramped yet. Operating leverage is still ahead.

[CA Darshan Bharuka @Darshan27503236]

Engine Volume: Not a Years Story

On how soon turbojet engine volumes translate to revenue:

Management guided → "This is a few months story, not a years story."

Weapon testing phase: 4–6 weeks away.
After airworthiness certification → ready for production.
Volumes? Could be 2-digit, 3-digit, or 4-digit. They're prepared for all three.
They've been guided to prepare for massive production.

[CA Darshan Bharuka @Darshan27503236]

The Billion Dollar Statement

On the hot section opportunity, Rakesh Chopdar said:

"People who know this subject know — this is not a million dollar story. This is a billion dollar story."

"There are only 2 or 3 players in the world who have cracked this. Azad will be the next. Once cracked, the league itself will change."

Hot section facility ready in 7–8 months. OEMs? Already lining up without being invited.

[CA Darshan Bharuka @Darshan27503236]

Capacity Machine at Full Throttle

8 dedicated plants at Tuniki Bollaram Industrial Park:

Each plant → ₹150–180 Cr at full capacity
Total new plant revenue potential → ~₹1,200 Cr
Baker Hughes 4th facility (7,600 sq mt) inaugurated April 2026 ✅
Q2: All spindles running at full throttle
Revenue reflection expected from Q3 onwards

FY26 = Stabilization. Q1 FY27 = Switch on. Q3/Q4 = Breakthrough.

[CA Darshan Bharuka @Darshan27503236]

Q1 FY27 Numbers

📊 Standalone:

Revenue: ₹170.5 Cr (+26.8% YoY)
EBITDA: ₹64 Cr (+32.1% YoY) → Margin at 37.6% (vs 36.1% last year)
PAT: ₹36.4 Cr (+21.2% YoY) → Margin at 21.3%

Aerospace & Defense grew 38.4% YoY. Energy & Oil/Gas grew 21.6% YoY.

[CA Darshan Bharuka @Darshan27503236]

3 things that changed on July 22nd

Vishnu Malpani laid it out clearly:

1️⃣ Value chain moved up — from component supplier to full propulsion system integrator

2️⃣ Moats got deeper — Azad now sits in a highly exclusive tier of global manufacturers capable of executing complete defense assemblies

3️⃣ Addressable market expanded — an entirely new structural growth engine was unlocked that day

[CA Darshan Bharuka @Darshan27503236]

Azad Engineering just delivered India's first indigenous expandable turbojet engine to DRDO & Ministry of Defense.

CEO Rakesh Chopdar called it "the need of the hour of the country."

This is not just a milestone. It's a permanent upgrade in Azad's market positioning.

Here's everything that matters from Q1 FY27 concall ↓

[CA Darshan Bharuka @Darshan27503236]

$AZAD is not just an engineering company — it's a precision execution story.

Watching closely how they navigate this scaling phase.

Note:-I am not a SEBI Registered Investment Advisor or Research Analyst. This information contained herein are strictly for educational purposes only.

[CA Darshan Bharuka @Darshan27503236]

Azad Engineering's Whole-time Director was asked:

"Everything looks positive. What challenges worry you?"

His answer reveals WHY great businesses stay great — and it has nothing to do with competition. 🧵

[CA Darshan Bharuka @Darshan27503236]

Management's framing is telling:

"I wouldn't see it as a challenge — it's something we are aggressively focusing on."

This is the language of operational confidence, not complacency. Every scaling business faces this inflection point. How you manage it defines the next decade.

[CA Darshan Bharuka @Darshan27503236]

@nsinghal211 Ya Acche shares karidne ka mauka.

[CA Darshan Bharuka @Darshan27503236]

@Akash17971 It differs company, sector, industries. So there is no standard formula to it. Some can be excellent even at 100cr.

[CA Darshan Bharuka @Darshan27503236]

@inda_yashwant @darshitpatel84 Absolutely correct.

[CA Darshan Bharuka @Darshan27503236]

@shome_rajarshi Congratulations sirji