LMW Q2 FY27: consolidated PAT up 74% YoY to ₹71 Cr as machine tool, ATC margins expand

LMW Limited (formerly Lakshmi Machine Works) reported consolidated revenue of ₹1,131.87 Cr for Q2 FY27 (quarter ended September 30, 2026), up 37.7% YoY (₹821.88 Cr) and 31.5% QoQ (₹860.72 Cr). Consolidated PAT came in at ₹71.23 Cr, up 74.1% YoY (₹40.92 Cr) and 28.3% QoQ (₹55.52 Cr), with basic EPS of ₹66.68 versus ₹38.30 a year ago. The print comfortably cleared our pre-result preview band of ₹850-900 Cr revenue and ₹45-60 Cr PAT — a clear beat on both lines. Street coverage remains thin (per the preview, just 2 analysts, split 1 Hold/1 Strong Sell, with a median target implying ~28% downside pre-result); no quarter-specific consensus PAT/revenue figure could be independently sourced via web search, though full-year FY27 EPS consensus of roughly ₹212 (+57.6% YoY) is broadly consistent with the growth trajectory confirmed this quarter.

Margins expanded on both counts. Consolidated operating margin rose to roughly 9.0% from 5.36% a year ago and 7.11% in Q1 FY27, with the Machine Tool & Foundry division — the largest profit contributor — posting segment PBT of ₹49.47 Cr on ₹451.14 Cr revenue (+48.5% YoY, ~11% segment margin). The Advanced Technology Centre delivered the richest margin in the group at ~22.8% (segment PBT ₹17.26 Cr on ₹75.59 Cr revenue, nearly tripling from ₹4.34 Cr YoY). Textile Machinery, the largest revenue segment at ₹648.05 Cr (+27.3% YoY), stayed margin-thin at ~3.3% (segment PBT ₹21.38 Cr) — the spindle-market volume recovery management has talked about is showing up in the topline but not yet in segment profitability. Net margin was roughly flat sequentially at 6.13% (vs 6.16% in Q1) but up sharply from 4.74% YoY. The ₹0.20 Cr exceptional item (VRS compensation) is immaterial to the result; adjusted for it, YoY PAT growth is ~74.4%, essentially identical to the reported 74.1%.

The stock went into the print at ₹16,578, down 5.9% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.

Standalone PAT of ₹87.21 Cr (+93.2% YoY) ran well ahead of the consolidated number; the gap is explained almost exactly by a combined ₹15.95 Cr net loss after tax at two subsidiaries this quarter — LMW Holding Limited (UAE) and LMW Advanced Materials and Technologies Limited (renamed from LMW Aerospace Industries in August 2026) — the group's new-age pharma/advanced-materials bets that the pre-result preview flagged as an execution-risk watch item. Management issued no formal numeric guidance on the prior concall, only directional commentary on textile spindle-absorption recovery (aided by state policies and FTAs), Machine Tool growth via the J-series portfolio, and offsetting ~3-3.5% input-cost inflation through pricing and domestic sourcing; this quarter's print is directionally consistent with that framing on revenue and margin, though nothing was quantified enough to score as beat/met/miss. No management press release accompanied this filing. Separately, the board approved a new Machine Tool Division – Unit III at Sulur, Coimbatore (₹10 Cr capex via internal accruals, targeting +125 machines/month of added capacity by December 2026) to cut machine-delivery lead times, alongside routine items — an independent ESG rating received in September and the scheduled retirement of an independent director effective October 25, 2026.