LMW Q2 FY27 Earnings Call — Analysis (NSE: LMW)
LMW posted 30% YoY revenue growth in Q2FY27 to ₹1,153 Cr with strong H1 PBT doubling to ₹204 Cr, led by recovery in textile machinery and rapid expansion in machine tools and aerospace divisions.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q2FY27 Consolidated Revenue ₹1,153 Cr ( +30% YoY ) . New guidance — FY27 mtd revenue growth 50% . New story: Machine tool multi-sector tailwinds .
Results
Revenue grew 30% YoY to ₹1,153 Cr in Q2FY27, while H1FY27 revenue reached ₹2,045 Cr (+33% YoY) with PBT of ₹204 Cr (+119% YoY).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹1,153 Cr | +30% | yoy · Q2FY27 · vs Q2FY26 (₹815 Cr) |
| Consolidated Revenue | ₹2,045 Cr | +33% | yoy · H1FY27 · vs H1FY26 (₹1,537 Cr) |
| Profit Before Tax (PBT) | ₹204 Cr | +119% | yoy · H1FY27 · vs H1FY26 (₹93 Cr) |
| TMD Revenue | ₹639 Cr | +38% | yoy · Q2FY27 · vs Q2FY26; +32% QoQ vs Q1FY27 (₹482 Cr) |
| TMD Revenue | ₹1,121 Cr | +28% | yoy · H1FY27 · vs H1FY26 (₹876 Cr) |
| TMD Segment Profit | ₹48 Cr | +2300% | yoy · H1FY27 · vs H1FY26 (₹2 Cr) |
| TMD Total Order Book | ₹3,400 Cr | point_in_time · Q2FY27 · As of Sep-2026; active order book ₹2,600 Cr | |
| MTD & Foundry Revenue | ₹794 Cr | +43% | yoy · H1FY27 · vs H1FY26 (₹555 Cr); Foundry is 9% of total |
| ATC Revenue | ₹135 Cr | +39% | yoy · H1FY27 · vs H1FY26 (₹97 Cr) |
| ATC Order Book | ₹1,000 Cr | point_in_time · Q2FY27 · As of Sep-2026; 70% metallic, 30% composite |
Guidance
Machine Tool Division is targeting ~50% growth in the current year, while full-year capex is guided to be in line with annual depreciation alongside selective equipment leasing.
What management committed to
- Machine Tool Division [MTD] growth pattern as of now is closer to a 50% growth for the current year [FY27]. — 50%, FY27
- For [LMW Limited], capex will be similar to what the depreciation we will be having in the current year [FY27]. — similar to what the depreciation we will be having, FY27
- The land parcel of the 4.2-odd acres, [JV with Infinium Developers], will realize around ₹20 to ₹24 crores value over a timeline of anywhere from 24 months to 30 months. — ₹20 to ₹24 crores, FY29
- Lakshmi Auto Winder ramp-up will probably happen by next year [FY28] in terms of more deliveries across India beyond South India. — FY28
Key themes
Cyclical textile recovery and non-textile diversification
How the narrative shifted
- Machine tool multi-sector tailwinds: MTD is benefiting from China+1 shifts, machine upgrades, EMS demand, and auto sector expansion, driving sustained 50% growth with quick modular assembly capacity additions.
- Textile machinery cyclical rebound vs margin headwinds: While order inflows and capacity utilization have improved to 60%, unhedged input cost inflation (copper, aluminum) and electronics supply constraints keep management cautious on margin pass-through.
- Aerospace and defense localisation: ATC is pivoting from 90% export focus to capture expanding domestic Indian defense tenders across metallic sub-assemblies and composite structures.
- International subsidiary turnaround: LMW Dubai and LMW China hold combined order books of ~₹291 Cr to recover prior losses and serve as international export hubs for GCC and African markets.
Operational commentary
- Machine Tool Division (MTD) is operating at 75-80% capacity utilization; expanding assembly capacity into an existing repurposed unit to sustain 50% annual growth trajectory.
- Advanced Technology Centre (ATC) is operating at ~70% capacity with higher spare capacity in composites; traction is shifting from pure export Tier-1/Tier-2 supply to domestic Indian defense programs.
- Textile Machinery Division (TMD) capacity utilization is at ~60%; domestic order inflows gained ~₹200 Cr this quarter, with 70% of new orders coming from greenfield/expansion project orders.
- Commercialized the Lakshmi Auto Winder in South India, penetrating the ₹1,500+ Cr domestic winding market previously served entirely by imports.
- Overseas subsidiaries under LMW Dubai hold ₹163 Cr order book and LMW China holds ₹128 Cr, positioned to execute and narrow prior losses over the next 6-12 months.
Analyst Q&A
Q. Can management specify the peak revenue and commissioning timeline for the ₹150 Cr ATC capex and name specific defense programs like BrahMos?
CFO declined to specify individual defense programs due to confidentiality and stated the timeline for new ATC capex commissioning will be announced at an appropriate time, though 1:1 to 1:1.3 asset-turn thumb rules apply.
Q. Is management planning a demerger of the textile machinery business or promoter shareholding increases?
Declined to comment on corporate restructuring or shareholding plans.
Q. Can cost inflation in raw materials and electronics in the textile machinery division be passed on via price hikes?
Domestic OEM contracts are fixed price so there is no automatic pass-through; price adjustments are actively discussed internally while relying heavily on value analysis and value engineering (VAVE) cost-reduction initiatives.
Research and educational content only. Not investment advice.