Lohia Corp Q1 FY27 Earnings Call — Analysis (NSE: LCL)
Lohia Corp reported robust Q1FY27 results post-listing with 60% YoY revenue growth to ₹503 Cr and EBITDA margins expanding to 19.9%, supported by an order book of ₹1,778 Cr.
Result quality: strong — Margin expansion. Management sentiment: optimistic.
The take
Q1FY27 Revenue from Operations ₹503 Cr ( +60% YoY ) . New guidance — FY27 revenue growth 20% to 25% . New story: Domestic Capex & Application Diversification .
Results
Revenue grew 60% YoY to ₹503 Cr with EBITDA rising 276% YoY to ₹100 Cr (19.9% margin) and PAT reaching ₹66 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹503 Cr | +60% | yoy · Q1FY27 · vs ₹315 Cr in Q1FY26 |
| EBITDA | ₹100 Cr | +276% | yoy · Q1FY27 · vs ₹36 Cr in Q1FY26 |
| EBITDA Margin | 19.9% | +840bps | yoy · Q1FY27 · vs 11.5% in Q1FY26 |
| Profit After Tax | ₹66 Cr | +288% | yoy · Q1FY27 · vs ₹17 Cr in Q1FY26 |
| Order Book | ₹1,778 Cr | +195% | yoy · Q1FY27 · Jun-26 point-in-time vs Jun-25 |
| Net Working Capital Days | 81 days | -3 days | sequential · Q1FY27 · vs 84 days in FY26 |
Guidance
Management guided for 20-25% top-line growth with an internal target to sustain ~20% EBITDA margins on existing capacity capable of reaching ₹2,400-₹2,500 Cr turnover.
What management committed to
- [Lohia Corp] expects to grow revenue in the range of 20% to 25% [over FY27-FY28]. — 20% to 25%, FY27
- [Lohia Corp] internally targets 20% as [its] EBITDA margin number going forward. — 20%, FY27
- [Lohia Corp's] current manufacturing capacity will take [the company] to about ₹2,400 to ₹2,500 Cr turnover with minor balancing capex. — ₹2,400 to ₹2,500 Cr, FY28
- [Lohia Corp] will maintain [its] R&D spend at an average of approximately 3% of revenue. — 3%, FY27
- [Lohia Corp's] export revenue will stabilize at around 50% of revenue and order book going forward. — around 50%, FY28
Key themes
Order book execution and margin expansion
How the narrative shifted
- Domestic Capex & Application Diversification: Growth is driven by expansion into non-packaging applications (geotextiles, tarpaulins) and domestic woven plastics capacity, lifting order book to record levels.
- Pricing Power & Margin Normalization: EBITDA margins have returned to 19.9% due to operating leverage, periodic price revisions, and supply contracts, establishing ~20% as sustainable.
- Competitive Positioning vs Chinese Machinery: Management commands a 15-20% price premium over Chinese competitors due to technological barriers, superior after-sales service, and automation.
- Asset-Light Capacity Expansion: Existing capacity has headroom up to ₹2,500 Cr revenue; further expansions require low capex (₹80-₹100 Cr per ₹500 Cr turnover) with short 5-6 month execution cycles.
Operational commentary
- Rolled out new in-house R&D products: CoEx 1600 multi-layer coating line for flexible packaging, nova 6 plus circular loom (1,150 ppm weft speed), and specialized 1-loop/2-loop FIBC bag cutting machines.
- Established a virtual remote assistance center at Kanpur for real-time audio/video remote technical support to reduce machine downtime.
- Current manufacturing capacity operates at 70-72% utilization and can support ₹2,400-₹2,500 Cr revenue with minor debottlenecking/balancing.
- Entered polyolefin recycling machinery; exploring adjacent equipment like shredding and granulating lines.
- Order execution cycle averages 6 to 9 months across core product lines.
Analyst Q&A
Q. Can the current ~20% EBITDA margin sustain or improve further through FY27?
Management confirmed that 15-20% was their pre-COVID normalized level and 20% is expected to be the new normal, supported by operating leverage and price discipline.
Q. With domestic share high in the current order book (70%), will margins face pressure vs export-heavy periods?
Management clarified that although domestic revenue will dominate near-term deliveries, margins will remain protected via updated contract pricing and supplier agreements.
Q. What is the current inquiry pipeline size and conversion rate into executable orders?
Management stated exact inquiry pipeline figures were not handy on the call, but typical conversion from inquiries into advance-backed orders runs at 10-15% over 2-3 years.
Q. What capex and lead time is required to expand capacity beyond the current ₹2,400-₹2,500 Cr ceiling?
Management explained that existing land in Kanpur is available, requiring only sheds and machinery with 5-6 months lead time, requiring ₹80-₹100 Cr capex per ₹500 Cr incremental turnover.
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