LMW Q2 FY27: net profit up 74% to ₹71 crore, income up 35%
Earnings
Textile
Blacklitt Research5 min read
LMW (NSE: LMW) reported consolidated net profit of ₹71.23 crore for the quarter ended 30 Sep 2026, up 74.1% from ₹40.92 crore a year earlier. Total income was ₹1,162.94 crore, up 34.8% from ₹862.91 crore. Standalone net profit was ₹87.21 crore, up 93.2% from ₹45.14 crore, on total income of ₹1,153.47 crore, up 41.5% from ₹815.38 crore.
Key highlights
Consolidated
Including its subsidiaries
Total income: ₹1,162.94 crore, up 34.8% from ₹862.91 crore in Q2 FY26.
Net profit: ₹71.23 crore, up 74.1% from ₹40.92 crore; net profit margin 6.1% against 4.7%.
EPS: basic ₹66.68, up 74.1% from ₹38.30.
Tax rate: 30.5% of profit before tax, against 25.5%.
Standalone
The company on its own, without its subsidiaries
Total income: ₹1,153.47 crore, up 41.5% from ₹815.38 crore in Q2 FY26.
Net profit: ₹87.21 crore, up 93.2% from ₹45.14 crore.
EPS: basic ₹81.63, up 93.2% from ₹42.25.
Tax rate: 26.4% of profit before tax, against 23.7%.
Summary
Consolidated ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
1,162.94
862.91
+34.8%
901.73
+29.0%
Revenue from operations
1,131.87
821.88
+37.7%
860.72
+31.5%
Other income
31.07
41.03
-24.3%
41.01
-24.2%
71.23
40.92
+74.1%
55.52
+28.3%
Finance costs
0.00
0.00
n/a
0.00
n/a
Depreciation
30.43
30.16
+0.9%
30.06
+1.2%
Tax expense
31.31
14.00
+123.6%
16.59
+88.7%
Net profit margin
6.12%
4.74%
+1.38 pp
6.16%
-0.03 pp
Tax as share of profit before tax
30.53%
25.49%
+5.04 pp
23.01%
+7.53 pp
EPS (₹)
66.68
38.30
+74.1%
51.97
+28.3%
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Revenue grew faster than expenses, so profit before tax rose 86.7%. Revenue from operations rose 37.7% to ₹1,131.87 crore, while total expenses rose 31.2% to ₹1,060.20 crore. Raw material cost was the largest increase: ₹742.23 crore, up 43.9% from ₹515.93 crore.
Employee benefit expense was ₹111.54 crore, up 13.1%, and other expenses were ₹197.24 crore, up 18.4%. Other income fell 24.3% to ₹31.07 crore, and the filing does not explain that fall.
Tax expense rose to ₹31.31 crore from ₹14.00 crore, which took 30.5% of profit before tax against 25.5% a year earlier. Exceptional items were ₹0.20 crore in the quarter and ₹2.41 crore in the June quarter. The notes describe the ₹2.61 crore six-month total as compensation under a voluntary retirement scheme.
Machine Tool and Foundry Division revenue rose 48.5% to ₹451.14 crore, and Textile Machinery Division revenue rose 27.3% to ₹648.05 crore, both before inter-segment eliminations. Segment profit before interest and tax for the Machine Tool and Foundry Division was ₹49.47 crore, against ₹23.70 crore a year earlier.
On the balance sheet, consolidated cash and cash equivalents were ₹156.34 crore at 30 Sep 2026, against ₹394.71 crore at 31 Mar 2026, while bank balances other than cash rose to ₹1,176.59 crore from ₹869.76 crore. Inventories rose to ₹786.60 crore from ₹575.27 crore and trade receivables to ₹323.50 crore from ₹280.23 crore. For the six months, operating cash flow after tax was ₹280.84 crore, against ₹65.07 crore; capital spending was ₹45.86 crore, against ₹43.62 crore. The company put ₹387.76 crore into bank balances that are not cash equivalents and ₹222.73 crore into shares, mutual funds and debentures. Finance costs were nil.
Brahmayya & Co. issued unmodified review conclusions on both sets of results. The filing refers to predecessor auditors for the June quarter and the year to 31 Mar 2026, so the statutory auditor changed; the filing does not describe the change further. Two subsidiaries were reviewed by other auditors: they hold total assets of ₹795.63 crore and posted losses after tax of ₹15.95 crore in the quarter and ₹26.46 crore in the half year. The company's dividends paid in the half year were ₹37.39 crore; the results report no new dividend declaration.
Standalone ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
1,153.47
815.38
+41.5%
891.47
+29.4%
Revenue from operations
1,127.52
776.03
+45.3%
853.30
+32.1%
Other income
25.95
39.35
-34.1%
38.17
-32.0%
87.21
45.14
+93.2%
66.01
+32.1%
Finance costs
0.00
0.00
n/a
0.00
n/a
Depreciation
28.75
28.73
+0.1%
28.41
+1.2%
Tax expense
31.31
14.00
+123.6%
16.59
+88.7%
Net profit margin
7.56%
5.54%
+2.02 pp
7.40%
+0.16 pp
Tax as share of profit before tax
26.42%
23.67%
+2.74 pp
20.08%
+6.33 pp
EPS (₹)
81.63
42.25
+93.2%
61.79
+32.1%
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Standalone profit rose faster. Net profit rose 93.2% to ₹87.21 crore, with revenue from operations up 45.3% to ₹1,127.52 crore and expenses up 36.8% to ₹1,034.75 crore. Standalone profit before tax rose 100.4%, and tax took 26.4% of it.
The standalone review also notes that the September quarter figure is a balancing figure between the half-year review and the June quarter review. Standalone cash and cash equivalents were ₹115.33 crore at 30 Sep 2026, against ₹136.74 crore at 31 Mar 2026.
What the results mean for shareholders
Basic EPS rose to ₹66.68 consolidated, from ₹38.30 a year earlier, and to ₹81.63 standalone, from ₹42.25. Consolidated net profit for the six months was ₹126.75 crore, against ₹52.39 crore. A non-executive independent director retires from the board with effect from 25 Oct 2026, after two five-year terms.
The filing gives no guidance on future earnings and reports no dividend declaration. Its next dated step is the new Machine Tool Division unit III, with capacity of 125 machines a month to be added by December 2026 on top of existing capacity of 6,750 machines a year, at 90% utilisation. The investment is ₹10 crore, funded from internal accruals.
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