Detailed Narrative
Strong Financial Performance in FY26 with PBT Surge
LMW reported a consolidated revenue of ₹3,353 crores for FY26, marking a 6.88% year-on-year growth from ₹3,137 crores in FY25. Profit Before Tax (PBT) saw a significant increase of 42.58%, reaching ₹221 crores in FY26 compared to ₹155 crores in the previous year. The company's consolidated profit for FY26 stood at ₹195 crores, up 29.13% from ₹151 crores in FY25, reflecting overall improved profitability.
Mixed Segmental Performance with Key Turnarounds
The Textile Machinery Division (TMD) returned to profitability in FY26, reporting a profit of ₹9.75 crores against a loss of ₹15.64 crores in FY25, despite a slight revenue decline of 2.12% to ₹1,801 crores. LMW China achieved breakeven in FY26, a significant improvement from a loss of ₹6.8 crores in FY25, with its turnover nearly doubling to ₹130 crores (94.03% growth). However, LMW Global recorded a loss of ₹32 crores in FY26, reversing a profit of ₹1.9 crores in FY25.
Robust Order Book and Growth in Machine Tools & ATC
The Textile Machinery Division (TMD) reported a strong total order book of ₹3,300 crores, with ₹2,300 crores in active orders, indicating future revenue visibility. The Machine Tool Division (MTD) and Foundry segment demonstrated robust growth, with revenue increasing by 20.13% to ₹1,205 crores in FY26. The Advanced Technology Centre (ATC) also showed healthy growth, with revenue up 22.48% to ₹207 crores in FY26, and an order book of ₹360 crores executable over the next 18 months.
Strategic Capex and Expansion in Advanced Technology Centre (ATC)
LMW is making significant capital investments in its high-margin ATC division, with almost 50% of the total FY26 capex allocated to machinery for this segment. The company has announced a capex of approximately ₹150 crores over the next five years for a new, larger ATC infrastructure, which will be followed by machinery investments. These investments are aimed at expanding capacity and capitalizing on the immense potential in the aerospace and defense sectors, with new capacities expected to contribute higher turnover in the second half of the current fiscal year.
Navigating Rising Input Costs and Market Dynamics
Management acknowledged the challenge of rising costs across logistics, raw materials (plastics, steel), and commodities. While specific price hike plans were not disclosed, the company is actively working on cost savings and localization efforts to mitigate these pressures. The textile sector is experiencing a recovery, particularly for cotton spinners, with improved profitability and reactivating export markets like Bangladesh and Turkey, though the synthetic fiber segment continues to face headwinds due to crude price volatility.
Focus on Technically Challenging Exports and Working Capital Management
LMW's ATC division is highly export-oriented (90%) and focuses on technically challenging parts in both metallics and composites for aerospace and defense clients, including Tier 1 suppliers to Boeing and Airbus, and Indian space programs. The business is working capital intensive due to imported raw materials, and the company is exploring an investment of up to US$30 million in a UAE holding company to support working capital for export growth, aiming to build a 23-25% export portfolio over the next three years.