LMW Limited — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

LMW is navigating a prolonged downturn in the textile machinery cycle, which has lasted nearly two years, resulting in sub-50% capacity utilization for that division. While the core textile business faces headwinds, the Machine Tool and Advanced Technology segments are showing positive momentum with growing order books and improved margins. Management is focusing on cost-efficiency and internal value engineering to mitigate rising commodity prices and subsidiary losses in Dubai and China.

Highlights

  • Standalone Revenue for Q3 FY26 stood at ₹767 crores, compared to ₹776 crores in Q2 FY26.

  • 9-month Consolidated Revenue reached ₹2,274 crores with a PAT of ₹104 crores.

  • Textile Machinery Division (TMD) order book remains robust at ₹2,600 crores, though actual orders are ₹1,500 crores.

  • Advanced Technology Centre (ATC) order book grew 20% to ₹360 crores, deliverable over 1.5 years.

  • Machine Tool Division (MTD) and Foundry revenue for 9M FY26 was ₹853 crores, up from ₹728 crores YoY.

  • Subsidiary losses in LMW Global (₹25 crores) and LMW China (₹11 crores) impacted consolidated performance.

  • TMD capacity utilization is currently sub-50%, leading to a 5-day working week.

  • Spares business remains a strong contributor, accounting for 26% of TMD sales.

Concerns

  • Prolonged Textile Cycle Downturn

Key financials

3 periods

Headline

  • TMD Order Book
    ₹2,600 Cr

Consolidated 9M

  • Revenue
    ₹2,274 Cr
    YoY -0.61%
  • Profit
    ₹104 Cr
    YoY +15.6%

Standalone Q3

  • Revenue
    ₹767 Cr
    QoQ -1.2%
  • PBT
    ₹56 Cr
    QoQ -5.1%

What they filed

Q1 FY27: revenue up 24.1%, net profit up 409.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue769 766 804 694 822 +7%758 −1%933 +16%861 +24%
EBITDA32 36 58 14 44 +38%42 +17%70 +21%64 +357%
Net profit24 19 48 11 41 +71%15 −21%64 +33%56 +409%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of 9M Revenue
₹2,499 Cr Total
  • Textile Machinery Division (TMD) ₹1,316 Cr 52.7%
  • Machine Tool Division & Foundry ₹853 Cr 34.1%
  • Advanced Technology Centre (ATC) ₹150 Cr 6.0%
  • LMW Global (Dubai) ₹128 Cr 5.1%
  • LMW China ₹52 Cr 2.1%

Guidance & targets

Other

  • ATC Order Book Delivery Other · next 1.5 years · High confidence ₹360 crores

    Previously ₹300 crores → ₹360 crores

    It is around 360 odd crores which is deliverable over one and a half years.

    — Mr. V. Senthil, CFO

Capacity

  • MTD Capacity Utilization Capacity · Current · High confidence 75%
    We still are clocking only 75% capacity utilization. So, there is enough space for us to move and deliver for the balance capacity.

    — Mr. V. Senthil, CFO

Market Share

  • MTD Product Mix Market Share · Current · Medium confidence 75% turning centers, 25% machining centers
    I think with respect to MTD, the machining center, turning center, you can take a percentage of 75% turning centers and 25% machining centers.

    — Mr. V. Senthil, CFO

Risks & concerns

  • Prolonged Textile Cycle Downturn

    high

    Textile machinery utilization is sub-50% and the anticipated recovery has not yet materialized due to demand uncertainty.

    Both acknowledged

  • Subsidiary Performance Drag

    medium

    Significant losses in Dubai (₹25 cr) and China (₹11 cr) are weighing on consolidated profits.

    Analyst acknowledged

  • Commodity Price Inflation

    medium

    Rising commodity prices are creating margin pressure, particularly in segments without automatic pass-through clauses.

    Management acknowledged

  • Export Market Volatility

    medium

    Key markets like Bangladesh and Turkey are facing economic challenges, reducing export volumes to 9-10% of total turnover.

    Management acknowledged

Areas of evasion (2)

  • Specific customer names for the EMS/Apple ecosystem due to confidentiality.
  • Exact New Product Development (NPD) revenue percentages.

Q&A highlights

2 direct
Textile Demand Recovery Timing Partial
Our anticipation was that post slowdown of almost 18 months there will be a bounce back and this has not happened because of the uncertainty on the demand side.

Reveals that the expected recovery in the core textile segment is delayed, extending the downturn beyond management's initial projections.

Asked by Mr. Divyam Doshi

Subsidiary Losses and Global Setup Direct
The increase in loss in consolidated financials is on account of loss in both these divisions because of the increasing costs on account of, now the entire global setup... On account of low turnover as a percentage to costs is more which resulted in loss.

Explains that the consolidation of global export operations under the holding company has created a high fixed-cost structure that is currently not being absorbed by low export volumes.

Asked by Mr. Manish Goyal

Opportunity in Electronics Manufacturing (EMS) Direct
We have participated in various discussions with the customer. We have developed product; we have been able to successfully deliver the product as well... the volume of business within India for this particular type of machine in in itself is closer to 7 to 8,000 machines.

Confirms LMW's entry into the high-growth electronics machining sector (drill tap centers) and their engagement with major ecosystem players, despite confidentiality constraints.

Asked by Mr. Amit Shah

2 min read 5 chapters

Detailed narrative

Textile Machinery Facing Extended Lean Period

The Textile Machinery Division (TMD) is currently operating at sub-50% capacity utilization, leading the company to maintain a five-day working week. Management noted that the textile cycle, typically eight years, has been in a downturn for nearly two years, and the expected recovery post-December has not yet materialized. Despite this, the division holds a total order book of ₹2,600 crores, with actual executable orders at ₹1,500 crores. Spares continue to be a resilient segment, contributing 26% of TMD revenue, driven by a separate dedicated division and new warehouses in Indore.

Subsidiary Losses Impact Consolidated Bottom Line

Consolidated performance was weighed down by losses in international subsidiaries, with LMW Global (Dubai) reporting a loss of ₹25 crores for the 9-month period compared to a ₹1.5 crore profit YoY. LMW China also saw its loss widen to ₹11 crores from ₹4 crores in the previous period. Management attributed these losses to a high fixed-cost global setup that is currently under-utilized due to low export volumes (9-10% of total) and economic challenges in key markets like Bangladesh and Turkey.

Machine Tool Division (MTD) Shows Resilience

The MTD and Foundry segment reported a 9-month revenue of ₹853 crores, a significant increase from ₹728 crores in the prior year. The division is operating at 75% capacity utilization, providing room for further growth. Management is particularly optimistic about Machining Centers (VMCs), which currently make up 25% of the MTD mix, and plans to continue expanding its footprint in this high-demand sector.

Advanced Technology Centre (ATC) Momentum

The ATC segment is a bright spot, with its order book growing by 20% to approximately ₹360 crores, deliverable over the next 1.5 years. Revenue for the 9-month period stood at ₹150 crores, up from ₹123 crores YoY. The segment is highly export-oriented (90%) and has successfully pivoted from space programs to broader aerospace and advanced technology applications, with composite billing starting to contribute to improved margins.

Entry into Electronics Manufacturing Services (EMS) Ecosystem

LMW has developed and successfully delivered 'drill tap centers' (J1 and J2 models) targeted at the electronics machining ecosystem, including suppliers to major players like Foxconn. Management estimates the Indian market for these specific machines at 7,000 to 8,000 units per year. While specific customer contracts remain confidential, the company is actively participating in tenders and sees significant long-term demand in this segment.

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