Azad Engineering Ltd. announced on Sunday that it had signed a long-term contract and pricing agreement (LTCPA) with Japan’s Mitsubishi Heavy Industries Ltd.

The order is for the supply of high-tech and complex rotating and stationary airfoils for advanced gas and thermal turbine engines to meet Mitsubishi’s demand in the global power generation industry.

Azad Engineering further said that the current phase of the contract is valued at $82.89 million, or nearly ₹700 crore. This long-term contract must be executed over a period of five years.

In October this year, Azad Engineering had received an order worth ₹134 crore from Honeywell Aerospace Ltd. to manufacture and supply highly complex components to meet the global demand of the aerospace industry. The company did not specify the current status of its order book after securing the order from Mitsubishi.

At the end of the June quarter, 78.4% of Azad Engineering’s revenue came from the energy, oil and gas businesses, while 18.5% came from aerospace and defense.

Most of Azad Engineering’s business comes from exports, as nearly 91% of its sales mix comes from overseas markets in the June quarter.

Azad Engineering has four manufacturing plants in Hyderabad, spread over 20,000 square meters.

Brokerage firm ICICI Securities, in a July note, said that even factoring in a 25-30 per cent growth rate for Azad Engineering till fiscal 2035, the company will achieve only 7 per cent. market share in the mature energy market, i.e. less than 2% share in the Aerospace & Defense market and just under 4% share in the Oil & Gas market.

Azad Engineering was one of the last listings of 2023, having debuted on the stock exchange at the IPO price of ₹524. As of Friday’s close, the stock was almost triple that price, closing the Mahurat trading session at ₹1,463.65.