Azad Engineering Limited’s shares surged over 3% following the announcement of a major long-term contract with Mitsubishi Heavy Industries Limited (MHI), Japan. Under this agreement, Azad Engineering will supply highly engineered and complex rotating and stationary airfoils for advanced gas and thermal power turbine engines, catering to MHI’s global demand in the power generation industry.
The contract, valued at USD 73.47 million (approximately INR 651 Crores), marks Phase 2 of the partnership between Azad Engineering and MHI. With this addition, the combined value of contracts between the two companies now stands at USD 156.36 million (around INR 1,387 Crores), reinforcing a strong strategic relationship that began with the initial contract signed on November 3, 2024.
According to Azad Engineering, this long-term contract and price agreement (LTCPA) highlights the company’s expertise in delivering advanced, precision-engineered components for global power generation markets. The execution of this contract is planned over a five-year period, demonstrating a steady pipeline of business and long-term revenue visibility for the company.
Azad Engineering clarified that there are no shareholding connections or related-party transactions involved in this contract. The deal is strictly at arm’s length, with no conflicts of interest, nominee appointments, or amendments currently impacting the agreement.
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