LMW Shares Rise 5% After Financial Results

Key numbers

P/E Ratio	97.82Sector: 51.6
Market Cap	₹17,098 CrGeneral Industrials
RSI	40.02Neutral Zone
Promoter Holding	30.8%No change QoQ

Key highlights

• Net profit increased to ₹71.2 crore in Q2 FY27 from ₹40.9 crore in the year-ago period
• Revenue from operations grew 37.7% YoY to ₹1,132 crore for the September quarter
• Operating margins expanded to 8.8% in Q2 FY27 compared to 6.4% in Q2 FY26
• Board approved Machine Tool Division - Unit III in Coimbatore with a ₹10 crore investment
• Textile Machinery Division contributed ₹648.05 crore to segment revenue
• Company recorded an exceptional VRS cost of ₹2.61 crore during the quarter

Operational Performance and Segment Growth

LMW Ltd reported a sharp improvement in its operational execution for the quarter ended September 30, 2026. Revenue from operations reached ₹1,132 crore, a substantial increase from ₹822 crore in the same period last year. The Textile Machinery Division led the growth with revenue of ₹648.05 crore, while the Machine Tool and Foundry Division and the Advanced Technology Centre contributed ₹451.14 crore and ₹75.59 crore respectively.

This performance follows an earlier update in July 2026 where the textile division reported a robust executable order book of ₹2,400 crore. The current quarter's success is reflected in the consolidated operating margin, which expanded by 240 basis points YoY.

Capacity Addition: A ₹10 Crore Production Expansion

• The board approved 'Machine Tool Division - Unit III' at Arasur Village, Coimbatore, to be funded via internal accruals.
• The new unit will add a capacity of 125 machines per month to address current 90% utilization levels.
• Existing capacity stands at 6,750 machines per annum, making this a significant addition to current capabilities.
• The investment of ₹10 crore aims to significantly reduce lead times for machine deliveries.
• Completion of the expansion project is targeted for December 2026.
• The unit will focus on manufacturing and assembly operations as part of a broader production expansion plan.

Profitability Trends and Exceptional VRS Costs

Net profit for the quarter stood at ₹71.2 crore, marking a 28.3% increase over the preceding quarter. This growth was achieved despite an exceptional expenditure of ₹2.61 crore towards a Voluntary Retirement Scheme (VRS) opted for by employees. The company's durability score remains high at 80, though its P/E multiple of 97.82 remains well above the sector average of 51.6.

Other income decreased slightly to ₹31.1 crore from ₹41 crore in the year-ago period. Total assets for the company stood at ₹4,907 crore as of September 30, 2026, up from ₹4,262 crore in March 2026, indicating a growing balance sheet.

Exceptional Expenditure Disclosure

The exceptional item for the quarter ended 30th September 2026 represent compensation of Rs. 2.61 Crores towards Voluntary Retirement Scheme opted by Employees.

What to watch next

• Retirement of Independent Director Sri Arun Alagappan effective October 25, 2026
• Operational commencement of the new Machine Tool Unit III by December 2026
• Execution of the ₹1,000 crore aerospace export order book over the next 3 years

“The new unit will reduce Lead Time for machine deliveries.”

LMW · financial snapshot

Share price	₹16005
Market capitalisation	₹17,098.14 Cr
Revenue (annual)	₹3,207.42 Cr
Net profit (annual)	₹130.73 Cr
Revenue (latest quarter)	₹860.72 Cr-7.76% vs previous quarter
Net profit (latest quarter)	₹55.52 Cr-12.83% vs previous quarter
P/E (TTM)	97.82×Sector 51.6×
Promoter holding	30.8%0.00% QoQ
FII holding	5.41%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.