Shares of Azad Engineering rose over 5% on Friday, trading at Rs 1,548.70 during the session, after the company announced a long-term partnership with Mitsubishi Heavy Industries (MHI), Japan.
The company has secured an 8-year Long Term Contract & Price Agreement (LTCPA) with MHI, under which it will act as a single source supplier for manufacturing and supplying highly engineered hot-section nozzle vane segments used in gas turbine engines.
This agreement marks a significant milestone for Azad Engineering, as it transitions from manufacturing cold-section components to producing critical combustion hot-section turbine parts, which are among the most complex components in gas turbine systems.
The partnership will cater to global power generation markets and will utilize advanced manufacturing processes at dedicated facilities designed for precision engineering. The contract also highlights Azad Engineering’s growing capabilities in high-end turbine component manufacturing and its integration into the global supply chain of one of the world’s leading turbine manufacturers.
Importantly, the agreement is classified as an international contract with no related party transactions and no promoter group interest, in compliance with regulatory disclosure requirements.
During Friday’s session, the stock traded sharply higher, reflecting positive market sentiment around the long-term revenue visibility offered by the 8-year agreement.
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