LMW Limited submitted the transcript of its Q2 FY26-27 earnings call held on 22nd October 2026, pursuant to Regulation 46 of SEBI (LODR) Regulations, 2015.

Financial Performance Overview

  • Q2 FY27 Revenue: ₹1,153 crores (vs. ₹815 crores in Q2 FY26), representing 30% YoY growth
  • H1 FY27 Revenue: ₹2,045 crores (vs. ₹1,537 crores in H1 FY26), representing 33% YoY growth
  • H1 FY27 PBT: ₹204 crores (vs. ₹93 crores in H1 FY26)

Divisional Performance Breakdown

Textile Machinery Division (TMD)

  • Q2 FY27 Turnover: ₹639 crores (vs. ₹482 crores previous quarter, 32% increase; vs. ₹482 crores Q2 FY26, 38% increase)
  • H1 FY27 Turnover: ₹1,121 crores (vs. ₹876 crores H1 FY26, 28% increase)
  • H1 FY27 Profits: ₹48 crores (vs. ₹2 crores H1 FY26)
  • Current Order Book: ₹3,400 crores total, ₹2,600 crores active order book
  • Sales Mix: 67% domestic, 8% exports, 25% spares (domestic spares only)
  • Capacity Utilization: ~60%

LMW Holding Subsidiaries

  • LMW Global (Dubai): H1 FY27 turnover ₹100 crores (vs. ₹71 crores H1 FY26), order book ₹163 crores
  • LMW China: H1 FY27 turnover ₹36 crores (vs. ₹41 crores H1 FY26), order book ₹128 crores

Machine Tool Division (MTD) and Foundry

  • H1 FY27 Turnover: ₹794 crores (vs. ₹555 crores H1 FY26)
  • Business Mix: 9% Foundry, 91% Machine Tool Division
  • Capacity Utilization: 75-80%
  • Machine Mix: 76% turning centers, 24% machining centers

ATC Division

  • H1 FY27 Turnover: ₹135 crores (vs. ₹97 crores H1 FY26)
  • Capacity Utilization: ~70%
  • Order Book: ~₹1,000 crores (70% metallics, 30% composites)
  • Business Focus: 90% exports, 10% Indian ecosystem historically; now increasing Indian defense focus

Expansion Plans and Investments

  • ATC Division: Planning ₹150 crore investment through MoU with Tamil Nadu government (timeline not specified)
  • Machine Tool Division: Investing ₹10 crores for capacity expansion, adding new unit for assembly operations
  • Land Development: 4.2-acre land parcel JV with Infinium Developers, expected realization ₹20-24 crores over 24-30 months

Market Outlook and Challenges

Textile Machinery Division

  • Positive factors: Karnataka government's ₹4,000 crore textile policy, New Zealand FTA, cotton duty exemptions (June 1-October 31)
  • Challenges: Commodity price inflation (copper, aluminum, steel), electronics availability issues, supply chain disruptions
  • No price pass-through mechanism currently; relying on VAVE (Value Analysis/Value Engineering) for cost control

Machine Tool Division

  • Growing at ~50% currently
  • Demand drivers: China+1 strategy, machine upgrades, auto sector (50%+ of business), defense, EMS, tooling segments
  • Market size: ~$2.5 billion in India, with 40-45% import volume, 50-55% import value
  • 5-axis machines represent <5% of market but growing due to labor availability issues

ATC Division

  • Growth drivers: Indian defense programs (drones, missiles, radar systems), export commercial business
  • Capabilities: Machining, special processes (not forging), titanium capabilities mentioned in annual report
  • Business model: Long-term contracts with Tier 1/Tier 2 players, focus on increasing wallet share with existing customers

Operational Updates

  • Lakshmi Auto Winder: Commercialized and available, accounts for 25-30% of spinning mill investment cost
  • Robotic Auto-piecing: Deployed in high-cost countries like Turkey, facing adoption challenges due to market conditions
  • Overseas Operations: LMW Global faced challenges in Bangladesh, Turkey markets; losses due to insufficient topline to absorb fixed costs

Capital Expenditure

  • Capex planned approximately equal to depreciation for current year
  • Increasing use of leased assets to maximize utilization, particularly for ATC division with 5-year contracts

Management Commentary

  • Cautious optimism on textile division despite strong order book due to cost pressures and geopolitical uncertainties
  • Confident in machine tool division growth trajectory with planned capacity expansions
  • Focus on controlling costs through digitization, automation, and VAVE initiatives across divisions
  • Fixed costs contained despite revenue growth through operational efficiency measures