Film
During her final year at FTII, Azmi was offered Khwaja Ahmad Abbas' Faslah (1974) and Kanti Lal Rathore's Parinay (1974) but Shyam Benegal's Ankur (1974) became her debut film. Speaking to Mumbai Mirror, Benegal said he took one look at Azmi and knew she was perfect for the role of Laxmi,"a Hyderabadi servant girl who could speak a smattering of Telugu." Waheeda Rehman and Aparna Sen were two of the four actors under consideration to play Laxmi, but had rejected the offer. At the time of casting, Azmi didn't speak Telugu, but she was fluent in Deccani, a dialect of Urdu that borrows from Marathi, which Benegal thought "was essential to fleshing out the character." He also said that at twenty four years old, Azmi "looked too young" to play Laxmi but he was "willing to tweak the role" for her. The film received critical acclaim upon release, earning her first National Film Award for Best Actress and her first nomination for the Filmfare Award for Best Actress. Indian Urdu novelist and journalist
Qurratulain Hyder wrote that Azmi "lives her role [as Laxmi]" and "acts like a seasoned dramatic actress" despite Ankur being her first film. Paramita Ghosh from The Indian Express said that "Azmi's Laxmi is a woman of touching vulnerability and pragmatism."
Impressed with Azmi's "huge range" as an actor, Benegal also cast her in Nishant (1975), Junoon (1978), Mandi(1983), Susman (1978), and Antarnaad (1991). Mandi was a "bawdy black comedy" featuring Azmi as the brothel madam Rukminibai and Smita Patil, with whom she had also shared the screen in Arth (1982). She played an urban Indian wife, mother, and homemaker in Shekhar Kapur's directorial debut Masoom (1983). Between 1983 and 1985, Azmi received three National Film Award for Best Actress for her performance in Arth, Mrinal Sen's Khandhar (1984) and Gautam Ghose's Paar (1984).
She also starred in Aparna Sen's Picnic (1975), Satyajit Ray's Shatranj Ke Khilari (The Chess Players) (1977), Manmohan Desai's Amar Akbar Anthony (1977), Parvarish (1977), Prakash Mehra's Jwalamukhi (1980), Saeed Mirza's Albert Pinto Ko Gussa Kyon Aata Hai (1980), Sai Paranjpye's Sparsh (1980), Genesis (1986), Ek Din Achanak (1989), and Sati (1989). She was also seen in John Schlesinger's Madame Sousatzka (1988).
In 1990, Azmi teamed up with Sai Paranjpye again for Disha. She also appeared in Roland Joffe's City of Joy (1992). She dabbled in experimental and parallel Indian cinema with Deepa Mehta's Fire (1996), playing Radha, a lonesome young woman in love with her sister-in-law. The film received critical acclaim after being released overseas in 1996. Azmi won the Silver Hugo Award for Best Actress at the 32nd Chicago Film Festival and Jury Award for Best Actress at Outfest, Los Angeles.
When Fire was released in India two years later, the on-screen depiction of lesbianism (perhaps the first in Indian cinema) was deemed "alien to Indian culture" and led to numerous protests urging the Central Board of Film Certification (CBFC) to ban the film. In her memoir, Hit Girl (2017), the then CBFC chairperson and actor Asha Parekh wrote that Fire explored "the bold theme of same-gender love between two women" aesthetically and without sensationalism. "There was no reason to ban it at all or delete a kissing scene between Shabana Azmi and Nandita Das," she said, "Sanjivani Kutti (regional manager of CBFC) and I stuck to the collective decision, the censors would not recall the film for a second opinion."
Azmi's performance in Godmother (1999) earned her a fifth National Film Award. She was the initial choice for Deepa Mehta's Water (2005), which was planned to hit the floors in 2000. A few scenes were already shot. Azmi had to shave her head with Nandita Das to portray the character of Shakuntala. However, due to political reasons, the film was shelved and later shot in 2005 with Seema Biswas replacing Azmi.