Azad EngineeringNSE:AZAD +3.59%45 ROA % is 6.54% as of Mar. 2026, which is 0% below its 10-year median of 6.56. GuruFocus rates NSE:AZAD with a GF Score™ of 45/100. The stock has 5 warning signs investors should review. Among 3,074 Industrial Products companies, Azad Engineering ranks better than 73.98% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Azad Engineering's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹1,439 Mil.
Azad Engineering's average Total Assets over the quarter that ended in Mar. 2026 was ₹22,000 Mil. Therefore, Azad Engineering's annualized ROA % for the quarter that ended in Mar. 2026 was 6.54%.
The historical rank and industry rank for Azad Engineering's ROA % or its related term are showing as below:
NSE:AZAD'
s ROA % Range Over the Past 10 Years
Min: 1.71 Med: 6.56 Max: 8.92
Current: 6.63
During the past 6 years, Azad Engineering's highest ROA % was 8.92%. The lowest was 1.71%. And the median was 6.56%.
NSE:AZAD's ROA % is ranked better than 73.98% of 3074
companies
in the Industrial Products industry
Industry Median: 3.045
vs NSE:AZAD: 6.63
Azad Engineering (NSE:AZAD) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Azad Engineering ROA % Related Terms
Azad Engineering ROA % Historical Data
* Premium members only.
The historical data trend for Azad Engineering's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Azad Engineering's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Azad Engineering ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Azad Engineering's ROA % distribution charts can be found below:
* The bar in red indicates where Azad Engineering's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Azad Engineering (NSE:AZAD) has a ROA % of 6.54% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Azad Engineering and its competitors. This is near median its historical median of 6.56. Over the past decade, Azad Engineering's ROA % has ranged from 1.71 to 8.92. According to the industry distribution chart, Azad Engineering ranks #800 out of 3074 companies in the Industrial Products industry, placing it in the top 26%.
Is Azad Engineering's ROA % too high?
Azad Engineering's current ROA % of 6.54% is near median its 10-year median of 6.56. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 8.92. The Industrial Products industry median ROA % is 3.05. Azad Engineering's value of 6.54% is 114.8% above this industry median. Based on the distribution chart, Azad Engineering ranks #800 out of 3074 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Azad Engineering has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Azad Engineering's ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Azad Engineering ranks #800 out of 3074 companies for ROA %. This puts Azad Engineering in the upper half of its industry. The industry median ROA % is 3.05. Azad Engineering's value of 6.54% is 114.8% above this benchmark. Historically, Azad Engineering's own ROA % has ranged from 1.71 to 8.92 over the past decade. While the company's 10-year median is 6.56 vs. the industry median of 3.05, Azad Engineering has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Industrial Products company?
The median ROA % among Industrial Products companies is 3.05, based on 3,074 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Azad Engineering's current ROA % of 6.54% is 114.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Azad Engineering and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azad Engineering's current ROA % is 6.54%, which is near median its own 10-year median of 6.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azad Engineering stock overvalued right now?
Azad Engineering (NSE:AZAD) has a current ROA % of 6.54%. The current ROA % is 6.54%, which is near median its 10-year median of 6.56 and 114.8% above the Industrial Products industry median of 3.05. Azad Engineering's overall GF Score™ is 45/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Azad Engineering (NSE:AZAD), the current ROA % is 6.54% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Azad Engineering Ltd is an Original Equipment Manufacturer (OEM) and national defence agencies across power generation, aerospace, defence, and oil & gas. It delivers complex, high-precision components with uncompromising reliability and has earned the trust of industry leaders, including GE Vernova, Mitsubishi Heavy Industries, Rolls-Royce, Honeywell Aerospace, Siemens Energy, Eaton, Baker Hughes, and others. The company's products include 3D rotating airfoil portions of turbine engines and other key products for combustion, hydraulics, flight-controls, propulsion, and actuation which power defence and civil aircrafts, spaceships, defence missiles, nuclear power, hydrogen, gas power, oil, and thermal power. Geographically, the group generates a majority of its revenue from outside India.
45GF Score
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