LMW Q2 FY27 results: net profit up 74.1% to ₹71.23 crore, revenue up 37.7%

How did LMW perform in Q2 FY27?

LMW reported consolidated revenue of ₹1,132 crore for Q2 FY27, compared with ₹821.88 crore in Q2 FY26 and ₹860.72 crore in Q1 FY27. Revenue rose 37.7% year on year and 31.5% sequentially, while total income increased 34.8% and 29.0%, respectively.

EBITDA rose to ₹102.10 crore from ₹44.05 crore in Q2 FY26 and ₹63.57 crore in Q1 FY27. The EBITDA margin was 9.0%, compared with 5.4% a year earlier and 7.4% in the previous quarter, while profit before tax reached ₹102.54 crore from ₹54.92 crore and ₹72.11 crore.

The company reported a net profit of ₹71.23 crore and basic EPS of ₹66.68 for Q2 FY27. Net profit was up 74.1% from ₹40.92 crore in Q2 FY26 and 28.3% from ₹55.52 crore in Q1 FY27; the net profit margin was 6.3%, against 5.0% a year earlier. On the standalone basis, revenue was ₹1,127.52 crore and PAT was ₹87.21 crore.

What changed in LMW's costs and profit?

Total expenses rose to ₹1,060 crore in Q2 FY27 from ₹807.99 crore in Q2 FY26, an increase of ₹252.21 crore. Cost of materials increased ₹226.30 crore to ₹742.23 crore, employee cost rose ₹12.94 crore to ₹111.54 crore, depreciation increased ₹0.27 crore to ₹30.43 crore and other expenses increased ₹30.62 crore to ₹197.24 crore. Finance costs remained unchanged.

Other income fell to ₹31.07 crore from ₹41.03 crore in Q2 FY26, a decline of ₹9.96 crore. The quarter included an exceptional charge of ₹0.20 crore, compared with no exceptional item in the year-ago period, while tax increased ₹17.31 crore to ₹31.31 crore.

Sequentially, total expenses rose ₹232.99 crore from Q1 FY27, led by a ₹186.91 crore increase in cost of materials and a ₹41.57 crore increase in other expenses. Other income fell ₹9.94 crore, while tax rose ₹14.72 crore; the exceptional charge declined from ₹2.41 crore to ₹0.20 crore.

How did the first half of FY27 go?

LMW reported H1 FY27 revenue of ₹1,992.59 crore, compared with ₹1,516.02 crore in H1 FY26, an increase of ₹476.57 crore or 31.4%. Total income rose 29.6% to ₹2,064.67 crore from ₹1,593.65 crore.

Profit before tax for the first half was ₹174.65 crore, up 134.6% from ₹74.45 crore, while net profit rose 141.9% to ₹126.75 crore from ₹52.39 crore. Basic EPS increased to ₹118.64 from ₹49.04.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹4,907.33 crore, compared with ₹4,262.03 crore at 31 March 2026, and total equity was ₹3,039.65 crore against ₹2,866.52 crore. Borrowings remained unchanged, while cash fell to ₹156.34 crore from ₹394.71 crore.

Inventories increased to ₹786.6 crore from ₹575.27 crore, trade receivables rose to ₹323.5 crore from ₹280.23 crore and trade payables increased to ₹770.05 crore from ₹621.14 crore. For H1 FY27, operating cash flow was ₹280.84 crore, compared with ₹65.07 crore in H1 FY26.

Investing cash flow for H1 FY27 was negative ₹481.82 crore, compared with negative ₹30.74 crore a year earlier, while financing cash flow was negative ₹37.39 crore against negative ₹32.05 crore. Capital expenditure was ₹45.86 crore, compared with ₹43.62 crore in H1 FY26.

How has LMW done over the last 8 quarters?

Revenue and profit have risen year on year in each of the last three quarters. Q2 FY27 recorded the highest revenue in the eight-quarter series at ₹1,131.87 crore, compared with the lowest at ₹694.14 crore in Q1 FY26, while net profit was ₹71.23 crore against the low of ₹11.47 crore.

The EBITDA margin was 9.0% in Q2 FY27, the highest in the reported series, compared with 2.0% in Q1 FY26. Q2 FY27 revenue rose from ₹860.72 crore in Q1 FY27, while net profit increased from ₹55.52 crore.

Which businesses drove the quarter?

The Textile Machinery Division reported revenue of ₹648.05 crore in Q2 FY27, up 27.3% from ₹508.98 crore in Q2 FY26. Its EBIT was ₹21.38 crore, compared with ₹8.83 crore a year earlier, and the EBIT margin was 3.3%.

Machine Tool & Foundry Division revenue rose 48.5% to ₹451.14 crore from ₹303.84 crore, while EBIT increased to ₹49.47 crore from ₹23.7 crore. The division reported an EBIT margin of 11.0%.

Advanced Technology Centre revenue increased 49.2% to ₹75.59 crore from ₹50.68 crore. Its EBIT was ₹17.26 crore, compared with ₹4.34 crore in the year-ago quarter, and the EBIT margin was 22.8%.

What else did the company announce?

The board approved unaudited standalone and consolidated financial results, segment results, the statement of assets and liabilities, and the cash flow statement for the quarter and period ended 30 September 2026. It also approved the proposed Machine Tool Division - Unit III on company-owned land at Sangothipalayam, Arasur Village, for manufacturing and assembly operations as part of the production capacity expansion plan.

The board also approved the retirement of Arun Alagappan as Non-Executive Independent Director with effect from the close of business hours on 25 October 2026, following completion of his second term of five consecutive years. The filing did not mention a dividend or a fund raise.

What did LMW's management say?

Management said the Textile Machinery Division had an order book of about ₹3,400 crores, including roughly ₹2,600 crores of active orders. It aspired to Machine Tool revenue growth closer to 50% for FY27, expected FY27 capex to be broadly similar to depreciation with some leased assets, and said the new ATC plant remained at the planning stage.

Management expected about ₹300 crores of LMW Global and LMW China order books to be executed over the next six months and a little beyond. It estimated Infinium land-development realisation at approximately 25%, valued at ₹20–24 crores, over 24–30 months, with some proceeds this year and some next year. No formal company-wide revenue or margin guidance was changed.

CFO V. Senthil said the company remained cautious about how order rollouts would continue over the next six months. He said domestic Textile Machinery contracts were fixed-price and currently had no input-cost pass-through, and identified weakness in Bangladesh and Turkey, electronics availability, overseas losses, geopolitics and tariffs among the risks discussed. The call included analyst questions on division margins, capacity expansion and the ATC order book.

How did LMW shares react?

LMW rose 4.3% within five minutes of the filing appearing, gained 1.5% after 15 minutes and fell 0.6% after 30 minutes. It closed the reaction day unchanged from its pre-results close, then was down 3.7% by the next day's close and up 1.0% by the fifth session, cumulatively from the same pre-results close.

The Industrial Products sector's median move was negative 3.1% on the reaction day, negative 3.5% by the next close and negative 4.3% by the fifth session. LMW's corresponding excess moves were 3.1 percentage points, negative 0.2 percentage points and 5.4 percentage points, while the Nifty Microcap 250 moved negative 2.6%, negative 3.6% and negative 3.8%.

Earlier reaction-day moves were negative 1.8% on 24 July 2026, negative 1.9% on 20 May 2026, negative 0.4% on 28 January 2026 and unchanged on 5 November 2025. The stock also fell 1.1% on 17 July 2025, 3.8% on 14 May 2025 and 5.6% on 24 January 2025, before rising 3.5% on 28 October 2024.

How did other Industrial Products companies do?

Thirty-eight Industrial Products companies were compared for revenue growth, with a median revenue growth of 31.6% as of 4 November 2026. Of the other companies, 20 grew slower than LMW and 18 grew faster than LMW's 37.7% revenue growth.

Among the 32 peers for which profit was compared, 23 reported higher profit. LMW's 74.1% net profit growth therefore came alongside a broader increase in profit across the peer set.