LMW Q1: consolidated PAT ₹55.5 Cr ~5x YoY, revenue +24% as textile machinery clears losses

LMW Limited (formerly Lakshmi Machine Works) reported a strong year-on-year Q1 FY27 on a weak base. Consolidated revenue rose 24.0% YoY to ₹860.72 Cr (from ₹694.14 Cr) and consolidated net profit jumped to ₹55.52 Cr from just ₹11.47 Cr a year ago — roughly 4.8x. Net margin expanded to 6.4% from 1.6% and EBITDA margin to ~7.4% from 1.8%. The print carries a ₹2.41 Cr exceptional VRS charge; stripping it out on both sides leaves adjusted PAT growth of ~+369% YoY, so the one-off is immaterial to the story — the swing is real operating leverage off a depressed year-ago quarter. Sequentially the picture cools: revenue fell 7.8% and PAT 12.8% versus a seasonally strong Q4 FY26 (₹933.16 Cr / ₹63.69 Cr), a normal Q1 step-down rather than a break in trend.

The turnaround sits squarely in the Textile Machinery Division, which posted a near-breakeven consolidated segment result of ₹0.40 Cr against a ₹24.16 Cr loss a year ago on revenue of ₹492.34 Cr (vs ₹423.81 Cr) — the yarn-spread and order-intake recovery management flagged on the Q4 call is now showing in the P&L, though profitability there is still razor-thin. Machine Tool & Foundry remained the profit engine, revenue up 36.7% YoY to ₹343.03 Cr with segment profit of ₹29.09 Cr (vs ₹12.39 Cr), and the Advanced Technology Centre grew to ₹59.54 Cr revenue and ₹13.10 Cr profit. Standalone PAT of ₹66.01 Cr (EPS ₹61.79) runs ahead of the consolidated ₹55.52 Cr (EPS ₹51.97) because the China and UAE subsidiaries together lost ₹10.50 Cr in the quarter — readers seeing the higher standalone number elsewhere should note the consolidated basis is the fair one and the gap is subsidiary drag, not an error.

The stock went into the print at ₹16,650, up 4.1% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters.

Against management's own prior guidance the quarter delivers: the last concall projected continued Machine Tool growth on capacity additions and defence/aerospace demand, a textile recovery on improving yarn spreads, and ATC as the future growth pillar — all three are visible here, so the result is on-track with stated outlook. No formal quantitative street consensus was available for this mid-cap, and the company gives no numeric guidance; LMW has scheduled an analyst interaction for July 27 to detail capex and order-book plans. Alongside the numbers, the board approved a Memorandum object-clause expansion (postal ballot) into pharmaceuticals, specialty chemicals, EV/mobility, renewables, electronics manufacturing and robotics — a diversification signal beyond the textile-machinery core — and the quarter also saw completion of an additional-share acquisition in a wholly owned subsidiary and a fresh CRISIL ESG rating. The near-term watch is whether textile machinery can move from breakeven to durable profit while high cotton prices keep spinner capex under pressure.