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    LCL Q1 FY27 earnings call

    LCL
    Capital Goods·20 Aug 2026
    Management Summary

    Lohia Corp Limited reported a strong Q1 FY27, with significant revenue and profit growth driven by robust order book execution and margin expansion. The company's order book provides healthy visibility, and management expects to maintain strong profitability while investing in R&D and new initiatives like recycling solutions. Domestic demand is currently a key driver, with exports expected to rebound.

    Highlights

    5

    • Revenue from operations grew 60% YoY to INR503 crores, driven by domestic and international markets.

    • EBITDA surged 276% YoY to INR100 crores, with margin expanding to 19.9% due to higher volumes, operating leverage, and better efficiencies.

    • Profit after tax increased to INR66 crores from INR17 crores in the same quarter last year.

    • Order book reached INR1,778 crores, up 30% since March '26 and 195% since June '25, providing strong revenue visibility.

    • Net working capital cycle improved to 81 days from 84 days, demonstrating efficient management.

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue from Operations₹503 Cr+60%YoY
    2. 02EBITDA₹100 Cr+2.8%YoY
    3. 03EBITDA Margin19.9%
    4. 04Profit After Tax₹66 Cr+2.9%YoY
    5. 05PAT Margin13%

    Segment breakdown

    Domestic Business
    59% Revenue Contribution
    International Business
    41% Revenue Contribution
    List

    Order Book

    high confidence

    Total Value

    ₹ 1,778 crores

    as of 2026-06-30

    quantified
    195.0% YoY30.0% QoQ

    Execution

    6 to 9 months for new orders

    Composition

    Mix3 geographys
    • International Markets (Revenue)41.0%
    • Domestic Business (Revenue)59.0%
    • Exports (Order Book)30.0%

    Share of order book by geography · partial disclosure (130.0% of book)

    Pipeline

    other

    Conversion rate of 10-15% from inquiries

    "The order book growth is driven by post-COVID investment uptick, growth in non-packaging applications, and government impetus on banning single-use plastics. Management believes this is not the peak of the cycle."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹0 crores

    Guidance & targets

    6
    CategoryTargetPriority
    Profitability
    EBITDA Margin
    20%
    		High
    Revenue
    Top-line Growth
    20-25%
    		High
    Revenue
    FY27 Revenue from Order Book
    2150-2200 crores
    		Medium
    Capacity
    Capacity Utilization
    85%
    		High
    R&D
    R&D Spend as % of Revenue
    3%
    		High
    Revenue Mix
    Export Revenue Share
    50%
    		Medium

    What to watch in Q2 FY27

    5

    EBITDA Margin Sustainability

    next quarter
    Current19.9%
    TargetMaintain ~20%

    Why it matters

    Management stated 20% is the 'new normal' for EBITDA margins, and its sustainability is key for profitability.

    So we believe that this is going to be the new normal for us. So we can at least continue to assess it will be 20% at least, and from there if it improves, it improves because of operating leverage.

    Risks & concerns

    2
    RiskSeverity

    Raw material price volatility

    Global events and strong players like China can impact raw material prices, making it difficult to commit to long-term pricing. — Management acknowledged

    medium

    Competition from Chinese players

    Chinese competition is a reality in many markets, though Lohia Corp maintains a premium due to service and technology. — Both acknowledged

    medium

    Q&A highlights

    8

    “So to answer your question, pre-COVID, we have always had this between 15% to 20% kind of an EBITDA margins. In COVID years, it was lesser, but we are seeing regaining that EBITDA margin going forward. And we have actually achieved it in quarter 1 and also quarter 4 of last year. So we believe that this is going to be the new normal for us.”

    Analyst questioned if the current high margin is sustainable, and management confirmed it's the new normal, backed by historical performance.

    asked by Kiran

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Overview

    Lohia Corp Limited delivered a strong Q1 FY27, with revenue from operations growing 60% year-over-year to INR503 crores. EBITDA saw a significant increase of 276% to INR100 crores, leading to an expanded EBITDA margin of 19.9% compared to 11.5% in the prior year. Profit after tax also surged to INR66 crores from INR17 crores, reflecting improved operational efficiencies and higher volumes.

    02

    Robust Order Book and Future Visibility

    The company's order book stood at INR1,778 crores at the end of Q1 FY27, marking a 30% increase since March '26 and a 195% increase since June '25. This strong order book provides healthy visibility for the coming quarters, with management expecting most orders to be executed within 6 to 9 months. The order book is currently driven by domestic investments, but exports are anticipated to stabilize at 50% of revenue going forward⏳.

    03

    Operational Excellence and Innovation Focus

    Lohia Corp continues to prioritize operational excellence, focusing on improving productivity, reducing waste, and enhancing supply chain responsiveness. The company has a strong innovation-led R&D focus on mechanical design, polymer processing, textile engineering, and automation. Recent product launches include the CoEx 1600 multi-layer coating line and the nova 6 plus circular loom, demonstrating a commitment to expanding addressable markets and offering end-to-end solutions.

    04

    Strategic Investments and Sustainability Initiatives

    The company is selectively investing in areas that strengthen long-term competitiveness, such as product development, automation, digitalization, and emerging recycling and monofilament solutions. Currently, the focus in recycling is on polyolefin. These investments are managed with financial discipline, and the company remains net debt-negative, ensuring a strong balance sheet while pursuing growth opportunities.

    05

    Market Dynamics and Competitive Positioning

    Lohia Corp operates in a competitive global market, facing competition from Chinese players in Southeast Asia and Starlinger in developed markets. Management asserts that the company commands a 15-20% price premium over Chinese competitors due to superior service and technology. The current growth is fueled by an uptick in investment post-COVID, particularly in non-packaging applications and alternatives to single-use plastics, which their machines cater to.

    This is an AI-generated summary of a publicly available earnings call transcript.