LMW Q2 FY27 Results (NSE: LMW)
Signal: Growth reaccelerated
The read
The operating recovery strengthened as revenue rose 37.7% YoY to ₹1,131.87 crore and EBITDA margin reached 11.8%, but the trajectory is not yet clean: raw-material intensity increased to 65.6% of revenue, consolidated subsidiaries reported a ₹15.95 crore quarterly loss, and depreciation remained flat despite segment assets rising 16.1%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,131.87 Cr | +37.7% | +31.5% |
| EBIT | ₹102.74 Cr | +87.1% | |
| Net profit | ₹71.23 Cr | +74.1% | |
| EPS | ₹66.68 | +74.1% | |
| EBIT margin | 11.8% |
P&L walk
Revenue increased 37.7% YoY to ₹1,131.87 crore, EBITDA rose 56.5% to ₹133.17 crore and EBITDA margin expanded to 11.8%, but raw-material cost rose 43.9% and PAT growth to ₹71.23 crore was aided by the operating recovery while other income remained ₹31.07 crore.
Segments
Machine Tool & Foundry was the largest incremental driver, with revenue up 48.5% YoY to ₹451.14 crore and segment result up 108.7% to ₹49.47 crore; Textile Machinery also turned profitable at ₹21.38 crore versus a ₹8.83 crore profit a year ago, while subsidiaries dragged consolidated PAT below standalone PAT by ₹15.98 crore.
Key positives
- Revenue increased 37.7% YoY to ₹1,131.87 crore, accelerating from 24.1% YoY growth in Q1FY27.
- EBITDA rose 56.5% YoY to ₹133.17 crore and EBITDA margin expanded 140bps to 11.8%, as employee costs grew 13.1% and other expenses 18.4%, both below revenue growth.
- Machine Tool & Foundry revenue rose 48.5% YoY to ₹451.14 crore and segment result rose 108.7% to ₹49.47 crore.
- Textile Machinery returned to profitability at ₹21.38 crore of segment result versus ₹8.83 crore a year ago.
Key concerns
- Raw-material cost rose 43.9% YoY to ₹742.23 crore, faster than revenue growth of 37.7%, lifting raw-material intensity to 65.6% from 62.8%.
- Consolidated PAT of ₹71.23 crore was ₹15.98 crore below standalone PAT of ₹87.21 crore because subsidiaries reported a quarterly net loss of ₹15.95 crore.
- Inventory rose 36.7% from 31 March 2026 to ₹786.60 crore and trade receivables rose 15.4% to ₹323.50 crore, increasing working-capital intensity.
- The proposed Machine Tool Division - Unit III signals capacity expansion, but the filing provides no investment amount, commissioning date or expected returns.
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