LAKSHMI MACHINE WORKS LTD. Q1 FY27 Results

LMWQ1 FY27 ResultsAnnounced 24 Jul, 1:24 pm

Result:Good· Market: FlatMargin expansionBase effectBroad based

Outlook: Cautiously Optimistic · Guidance: None

Metric	Value	Q4 FY26	Q1 FY26
Revenue	860.72 Cr	7.8%	24.0%
Total Income	901.73 Cr	7.2%	23.4%
Expenditure	827.21 Cr	7.4%	16.5%
PBT	72.11 Cr	7.4%	269.2%
Net Profit	55.52 Cr	12.8%	384.1%
OPM	7.11%	0.33pp	5.31pp
NPM	6.16%	0.39pp	4.59pp
EPS	51.97	12.8%	383.9%

View full financials

Revenue grew a healthy 24% YoY with strong core-driven margin expansion (OPM 1.8%→7.1%), but the 384% PAT jump is largely a base effect off a depressed prior-year quarter, keeping it just short of very_good.

LAKSHMI MACHINE WORKS LTD. · QQ1 FY-2027 · THE CALL

24% growth, 384% PAT spike; margin pressure from forex headwinds

The verdict, the claims that held up, the sharpest analyst exchanges, and the risks — the earnings call, decoded from the transcript.

02 Aug 2026 · 6 min read

Verdict

Hold

confidence 7/10

Credibility

Grade B

Management's stated revenue (₹891-902 Cr) overstates delivered ₹860.7 Cr by ~4.5%; prior FY26 guidance (~6% growth, 42% PBT) was beaten, but specific Q1 numbers don't fully align. Order book and segment breakdowns credible.

Short-term outlook

Cautiously Optimistic

next 1–2 quarters

Long-term outlook

Optimistic

multi-year

LMW delivered 24% revenue growth and a 384% PAT surge (from low Q1 FY26 base), validating the core business recovery. However, QoQ revenue (-7.8%) and PAT (-12.8%) declines, coupled with margin compression (NPM 6.2% vs 7.1% prior quarter) from forex headwinds and raw material inflation (₹3-3.5% cost increase cited), suggest execution challenges ahead. Capacity underutilization—TMD at 60%, MTD at 75-80%—caps near-term upside; textile machinery still in recovery with order composition skewed toward lower-margin unitary work rather than full capex projects.

₹860.7 Cr

Revenue · +24% YoY

₹55.5 Cr

Reported PAT · +384% YoY

Compressing

Margins · vs guidance: Mixed

Did the claims hold up?

Management's claims vs. the numbers

Consolidated revenue flat QoQ at ₹891-902 Cr

OVERSTATED

Delivered ₹860.7 Cr; transcript cites ₹902 Cr consolidated

PBT +151% YoY to ₹85 Cr; operating momentum strong

MET

PAT ₹55.5 Cr (+384% YoY); QoQ PAT -12.8%; margin expansion driven by low base

Secure ₹3,200 Cr TMD order book with 10% deposit; strong demand

Partial

Active orders ₹2,400 Cr of ₹3,200 Cr; deliveries have slowed last 2 years; state policies tailwind but no uptick yet

ATC ₹1,000 Cr export order book; strong growth trajectory

MET

90% ATC sales export; ₹1,000 Cr order book over 3-3.5 years; growth ongoing but composite orders still stabilizing

Machine Tool Division growing with new J-series; margins 12-14% historically

MET

MTD revenue +36% YoY (₹343 Cr); current margins ~10% (compressed vs 12-14%); capacity 75-80%, not full

Earnings quality

What changed since the last call

Deltas vs. the prior call

Capacity headroom remains; no expansion capex urgency

Downgrade

Prior guidance expected capacity additions; MTD still at 75-80% utilization despite 36% YoY growth. Expansion deferred.

Textile demand early signs; not yet broad recovery

Neutral

State policies and FTAs cited as tailwinds, but actual order inflow not yet visible in ₹482 Cr Q1 revenue (vs ₹415 Cr YoY; 16% growth only).

Cost inflation acknowledged; price actions ongoing

Neutral

Prior: inflation expected. Now: 3-3.5% quantified forex/raw material hit; ATC has price-revision clauses; MTD/foundry still negotiating pass-throughs.

The Q&A

Analysts pressed on customer concentration, order book composition (projects vs unitary), and margin recovery path. CFO deflected on customer details, hedged on timeline for double-digit MTD margins, and emphasized cost control. Q&A lacked specificity; management held firm on cautious outlook despite strong YoY numbers.

The exchanges that mattered

Expansion into six divisions — Divyam Doshi

Dodged

Enabling resolution for optionality. Pharma/chemicals not core; focus on EV and ATC. Any significant move will be disclosed to shareholders.

TMD domestic order book sustainability — Lakshmi Narayanan

Answered

₹3.2K Cr order book with 10% deposit (secured). Mix of projects (70%) and unitary (30%). Govt policy (TUF, PLA) favors large integrated mills. No customer-level disclosure; supply chain fragmented.

Machine tool division margin outlook — Ritwik Sheth

Partial

Need full capacity utilization and product mix (20%+ machining centers). Currently at 75-80% capacity, 300-400 Cr historical base vs larger current base. Price increases and forex mitigation underway. No timeline given.

Textile utilization and auto winder traction — Ritwik Sheth

Answered

TMD utilization ~60%. Auto winder supplied in south, feedback good, orders expected by end of FY27 (last quarter).

Cost inflation and supply chain resilience — Rahul Kumar Mishra

Answered

Costs up 3-3.5% (LPG, helium, sheet metal, gas, transport). Supply chain resilient; mitigation via price revisions (ATC/Foundry have clauses) and R&D. 4-5 months material visibility maintained.

ATC order book composition and capex plan — Manish Goyal

Answered

ATC order book 75% metallics, 25% composite (vs 80-20 sales ratio). ₹150 Cr land/building capex over 18-24 months to support ₹1K Cr 3-3.5 year order execution. Composite facility stabilizing; will reach higher share later.

Guidance

Forward guidance and management's confidence

No explicit FY27 full-year revenue target stated

Low

Management focused on quarterly execution; order books (₹3.2K Cr TMD, ₹1K Cr ATC) provide ~3-3.5 year visibility.

Target double-digit EBIT for MTD (historically 12-14%)

Medium

Requires 80%+ capacity utilization + product mix shift to higher-margin machining centers. No timeline; deferred pending demand.

ATC margins expected to stabilize

High

Current quarter higher due to forex and assembly product mix; will normalize vs prior quarters (94-96% range).

₹150 Cr ATC facility over 18-24 months

High

MOU entered; supports ₹1K Cr order book execution. Funding and timeline clear.

Risks the call surfaced

Ranked by how much they should concern a holder

Forex headwind

High

USD/EUR appreciation driving 3-3.5% cost inflation (helium, LPG, transport). Price revision pass-through uncertain, especially in MTD with long order cycles.

Capacity underutilization

High

TMD at 60%, MTD at 75-80% capacity fill. Management cannot expand margins to 12-14% without full utilization. Revenue growth insufficient to drive fixed cost absorption.

Textile machinery demand recovery

Medium

TMD order book ₹3.2K Cr but only ₹2.4K Cr active; delivery slowdown last 2 years. Textile spinning margins squeezed on synthetics (CFO noted). State policies and FTAs cited as tailwinds but not yet visible in order inflow.

Order book composition

Medium

TMD order book 70% projects, 30% unitary machines. In weak years, unitary ratio higher (modernization over greenfield). Margin dilution if trend continues.

ATC composite stabilization

Low

ATC order book 75% metallics, 25% composite (vs target mix). Composite facility still being set up; delivery timeline delayed. Margin profile different for each.

Management

Score 6/10. Cautious and selective disclosure. Strong on financial metrics and order books; evasive on customer concentration, division expansion rationale, and specific margin recovery timelines. Data-driven when pressed. Mixed. Delivered 24% revenue growth YoY but QoQ decline; 384% PAT growth but from low base. Cost control evident (other expenses +4% vs revenue +25%), but margin compression real (-0.9pp QoQ). Prior FY26 guidance beaten; current guidance too vague.

What to watch next

1 · Q2-Q3 FY27
Textile spindle absorption from Gujarat/Orissa state policies, FTA benefits
2 · H2 FY27
Auto winder order bookings; J-series EMS segment ramp (J2 model)
3 · FY27-FY28
ATC facility capex (₹150 Cr building, 18-24 months) supports ₹1K Cr 3-year order execution

Capacity underutilization—TMD at 60%, MTD at 75-80%—caps near-term upside; textile machinery still in recovery with order composition skewed toward lower-margin unitary work rather than full capex projects.

Q1 FY-2027 RESULTS · LAXMIMACH

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

PAT +384.1% YoY · revenue +24% · margins expanding

24 Jul 2026 · 3 min read

Revenue

₹860.72 Cr

+24% YoY

PAT (consolidated)

₹55.52 Cr

+384.1% YoY

Net margin

6.16%

+4.6pp YoY

EPS

₹51.97

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 scoreboard

Q1 FY-2027 vs prior quarters

Consolidated P&L, ₹ Crore

	Q1 FY-2027	QoQ	YoY
Revenue	₹860.72 Cr	-7.8%	+24%
Expenses	₹827.21 Cr	-7.4%	+16.5%
PAT	₹55.52 Cr	-12.83%	+384.1%
Net margin	6.16%	-0.4pp	+4.6pp
EPS	₹51.97	-12.8%	+383.9%

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 tape into the print — daily closes, last 3 months

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

₹ Cr

Quarterly consolidated PAT, ₹ Crore

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

What management guided (4 FY-2026 call)

LMW Limited demonstrated a strong finish to FY25-26 with a 6% increase in consolidated revenue and a significant 42% jump in PBT. The company expects continued growth in the Machine Tool Division, supported by capacity additions and demand in defense/aerospace. The Textile Machinery Division is showing signs of recover

— This quarter: met

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.

W1
Whether Textile Machinery moves from breakeven (₹0.40 Cr this quarter) to durable segment profit while high cotton prices pressure spinner capex
W2
Sequential trajectory after the Q1 step-down (revenue −7.8%, PAT −12.8% off Q4) — whether Q2 rebuilds
W3
July 27 analyst meet for capex/order-book outlook and the diversification roadmap behind the new object clauses

Clean digital PDF. Both statements present; consolidated primary. Exceptional ₹2.41 Cr VRS charge (pre-tax, note 3) in both. PBT stated after exceptional. Consolidated PAT below standalone because China/UAE subsidiaries booked ₹10.50 Cr net loss. Year-ago (Q1FY26) was a very weak base, inflating YoY %. EPS is per ₹10 face value.