LMW Ltd Q1 FY27 Earnings Call: Record Rs. 3,200 Cr Order Book, PBT Up 151% YoY

CompoundingAI Research Published July 28, 2026 6 min read

LMW Ltd held its Q1 FY27 earnings call on July 24, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Headline numbers show strong YoY profit growth despite flat sequential revenue

Standalone revenue of Rs.891 Cr — Q1 FY 2026-2027, up 24% YoY (vs Rs.722 Cr in Q1 FY 2025-2026) and flat sequentially (vs Rs.899 Cr in Q4 FY 2025-2026).
Standalone PBT of Rs.85 Cr — Q1 FY 2026-2027, up 151% YoY (vs Rs.34 Cr in Q1 FY 2025-2026) and up 18% QoQ (vs Rs.72 Cr in Q4 FY 2025-2026).
Consolidated revenue of Rs.902 Cr — Q1 FY 2026-2027, vs Rs.972 Cr in Q4 FY 2025-2026; consolidated profit of Rs.75 Cr vs Rs.78 Cr in the prior quarter.
Textile Machinery Division (TMD) revenue of Rs.482 Cr — Q1 FY 2026-2027, up 16% YoY; domestic sales contributed 64%, exports 10%, and spares 26%.
Machine Tool Division & Foundry revenue of Rs.343 Cr — Q1 FY 2026-2027, vs Rs.251 Cr YoY and Rs.352 Cr in Q4 FY 2025-2026; ~8% from the foundry division.
ATC division revenue of Rs.60 Cr — Q1 FY 2026-2027, vs Rs.57 Cr previous quarter and Rs.46 Cr YoY.

Total textile machinery order book of Rs.3,200 Cr — as of Q1 FY 2026-2027, with Rs.2,400 Cr active (all orders require a 10% deposit); management noted a steep order inflow in the quarter.
ATC order book of ~Rs.1,000 Cr — with a 3–3.5 year execution horizon (through ~FY 2028-2029); export share at 90% for the past 4–5 quarters.
Order book mix: 70% project machines, 30% unitary — in the current subdued capex environment, unitary machines for modernization dominate over new capacity additions; historically a 60/40 split in strong cycles.
TMD export order book of Rs.150 Cr — LC-based with immediate delivery; LMW Global order book at Rs.22 Cr and LMW China at Rs.128 Cr.
ATC revenue mix: 70% with material, 30% without material — composites at 20% of current turnover and 25% of the order book; ATC order book composition is 20% composite / 80% metallics.
Delivery timelines have shrunk to current levels — from 14–15 months two years ago (FY 2024-2025), reflecting slower absorption of spindles over the past two fiscal years.

Machine Tool Division (MTD) saw sequential decline — Q1 FY 2026-2027 vs Q4 FY 2025-2026, but strong YoY growth vs Q1 FY 2025-2026; management cited product portfolio strength (machining centers) and expects continued growth.
MTD revenue mix: 56% automotive — balance from EMS, general engineering, and other segments; machining centers contribute 20%+ of MTD revenue.
J series (J1–J6) gaining market acceptance — J2 model particularly well-received in the EMS segment; six models launched.
LMW China revenue of Rs.11 Cr — Q1 FY 2026-2027, down sharply from Rs.76 Cr in Q1 FY 2025-2026, with a loss of Rs.7 Cr; order book of Rs.128 Cr.
LMW Global revenue of Rs.51 Cr — Q1 FY 2026-2027, with a loss of Rs.5.6 Cr; order book of Rs.22 Cr.
Auto winder product supplied in southern India — customer feedback positive; management expects to book initial orders closer to Q4 FY 2026-2027.

Middle East tensions adding 3% to 3.5% cost increase — CFO V. Senthil reported higher raw material, commodity, and logistics costs for the TMD segment in Q1 FY 2026-2027; cost mitigation underway through R&D, design changes, and price renegotiations.
MTD margins historically at 12%–14% EBIT — achieved on a smaller base of Rs.300–400 Cr; with a larger current base and increased expenses, margin improvement requires full capacity utilisation, though no timeline was provided.
Q1 FY 2026-2027 revenue up 25% YoY, other expenses up only 4% YoY — attributed to ongoing cost optimisation initiatives including VRS costs incurred in the quarter; management reiterated a tight cost control approach.
Textile division utilisation at ~60% — Q1 FY 2026-2027; MTD capacity utilisation at 75–80%; pushing beyond this level would require additional capex, which is being planned.
ATC Q1 margins higher than typical — due to a favourable product mix (higher proportion of assemblies vs components); management expects full-year FY 2026-2027 margins to be similar to FY 2025-2026 levels.
Forex tailwind for ATC — USD/INR stayed in the 94–96 range in Q1 FY 2026-2027, following a significant jump from 85 to 95 in Q4 FY 2025-2026; CFO confirmed positive margin impact.

Management expects gradual increase in spindle installations — not a sharp uptick, as modernisation and new projects are likely to resume; cotton spinning margins currently strong, synthetic margins under some strain.
State policies and FTAs cited as positives — management cited spinning subsidies in Gujarat, policies in Odisha and Madhya Pradesh, free trade agreements benefiting downstream demand, and India's energy cost competitiveness as tailwinds for the textile machinery outlook.
ATC investing Rs.150 Cr in new land and building facility — timeline of 18–24 months (likely through FY 2027-2028); previously disclosed via an MOU in the December 2024 quarter.
Auto winder initial orders expected by Q4 FY 2026-2027 — product supplied in southern India; customer feedback positive; management expects bookings to materialise in the final quarter of the fiscal year.
Government schemes (TUFS, PLI) designed to encourage large integrated players — management noted these schemes aim to build scale, though the current order book includes a mix of large integrated mills, pure spinners, and converters across regions.
Rising interest rates flagged as a risk — an analyst noted the risk to order book sustainability from rising interest rates; management did not directly address this scenario.

Board resolution to explore six new divisions — including pharma, specialty chemicals, EV, and advanced technology; management clarified this is an enabling resolution, not a committed plan, and any material developments requiring shareholder disclosure will be communicated separately.
Domestic procurement of mechanical, electrical, and electronic parts actively pursued — as a substitute for imports, provided components meet quality standards; part of ongoing cost mitigation efforts.
Price revisions applied across divisions — ATC foundry has a contractual price revision clause; machine tools are also seeing price adjustments; cost mitigation through R&D and design changes also underway.
Supply chain resilience efforts targeting 4–5 months of material pipeline visibility — management noted that availability was a concern last quarter (Q1 FY 2026-2027) but has since eased.
MTD capacity exists to produce 20% more output — management attributed the Q1 FY 2026-2027 margin drop to lower turnover (operational deleverage), not structural cost issues; an estimated 15% margin lift would accompany higher utilisation.