Financial Performance Highlights

Consolidated Performance FY26

  • Revenue: ₹3,082 crore (vs. ₹2,909 crore in FY25, +6% YoY)
  • Profit Before Tax (PBT): ₹221 crore (vs. ₹155 crore in FY25, +42% YoY)
  • Exceptional Items: ₹11.5 crore (one-time impact from new labor code and VRS outgo)

Quarterly Performance Q4 FY26

  • Revenue: ₹854 crore (vs. ₹767 crore in Q3 FY26 and ₹789 crore in Q4 FY25)
  • Exceptional Items: ₹1.68 crore

Divisional Performance

Textile Machinery Division (TMD)

  • FY26 Revenue: ₹1,801 crore (vs. ₹1,840 crore in FY25, -2% YoY)
  • Q4 FY26 Revenue: ₹485 crore (vs. ₹440 crore in Q3 FY26 and ₹493 crore in Q4 FY25)
  • FY26 Profit: ₹9.75 crore (vs. loss of ₹15.64 crore in FY25)
  • Order Book: ₹3,300 crore total, with ₹2,300 crore in active orders
  • Sales Ratio: Domestic 66%, Exports 8%, Spares 26%

LMW Global

  • FY26 Revenue: ₹184 crore (vs. ₹146 crore in FY25)
  • FY26 Loss: ₹32 crore (vs. profit of ₹1.9 crore in FY25)
  • Order Book: ₹44 crore

LMW China

  • FY26 Revenue: ₹130 crore (vs. ₹67 crore in FY25)
  • FY26 Performance: Break-even (vs. loss of ₹6.8 crore in FY25)
  • Order Book: ₹120 crore

Machine Tool Division and Foundry

  • FY26 Revenue: ₹1,205 crore (vs. ₹1,003 crore in FY25)
  • Composition: ~10% Foundry, balance Machine Tool Division

ATC Division (Advanced Technology Centre)

  • FY26 Revenue: ₹207 crore (vs. ₹169 crore in FY25)
  • Q4 FY26 Segment Result: ₹11 crore with ~20% margin
  • Order Book: ₹360 crore (18-month execution timeline)
  • Business Split: 78% Metallics, 22% Composites
  • Customer Focus: Tier 2 suppliers to aerospace companies (Boeing, Airbus), Indian space program (ISRO)

Consolidated Company Performance

  • FY26 Revenue: ₹3,353 crore (vs. ₹3,137 crore in FY25)
  • FY26 Profit: ₹195 crore (vs. ₹151 crore in FY25)

Operational and Strategic Updates

Market Outlook and Order Intake

  • Textile industry showing improvement in last two months with better cotton yarn spreads
  • Significant order intake in Q4 FY26, with order book increasing to ₹3,300 crore
  • Domestic outlook positive with good utilization rates
  • Export markets (Bangladesh, Turkey) showing reactivation
  • Synthetic yarn segment facing challenges due to crude price volatility

Capacity Utilization

  • Textile Machinery Division: 50-55%
  • Machine Tool Division: 70-75%
  • ATC Composites: ~50%

Capital Expenditure

  • FY26 Capex: Significant investment with 50% allocated to ATC division for machinery
  • Three-year Capex: ₹300+ crore invested in modernization and capacity expansion
  • Future Plans: New facility for ATC division with infrastructure capex of ₹150 crore over five years

Raw Material and Cost Pressures

  • Significant cost increases across logistics, raw materials, plastics, and commodities like steel
  • ~50% import content in Machine Tool Division
  • Active supply chain management to address availability challenges

Export Strategy and UAE Investment

  • UAE subsidiary approval for $30 million investment
  • Purpose: Working capital support and exploration of growth opportunities
  • Focus on expanding export portfolio to 23-25% of total revenue
  • Machine Tool export to GCC countries: ~₹20 crore in FY26

Management Commentary

Business Cyclicality

  • Textile machinery business described as heavily cyclical with 8-year cycles
  • Company maintaining investment during downtimes to capitalize on upcycles

Growth Runway

  • Machine Tool Division has capacity for 20% growth from current levels
  • ATC division has significant growth potential in aerospace and defense sectors
  • Company focusing on technically challenging, high-margin components

Certification and Compliance

  • ATC division requires 19 certifications including NADCAP approvals
  • Customer-specific certifications for aerospace manufacturers