LMW Ltd Q4 FY26 Earnings Call: Order Book Crosses Rs.3,300 Cr, Textile Machinery Swings to Profit

LMW Ltd held its Q4 FY26 earnings call on May 20, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Headline Financial Performance

• Rs.3,082 Cr standalone revenuein FY26, up 6% YoY from Rs.2,909 Cr in FY25; Q4 FY26 contributed Rs.854 Cr vs Rs.789 Cr in Q4 FY25.
• Rs.221 Cr standalone PBTin FY26, surging 42% YoY from Rs.155 Cr in FY25; exceptional items of Rs.11.5 Cr (full year) and Rs.1.68 Cr (Q4 FY26) related to the new labour code and VRS.
• Rs.3,353 Cr consolidated revenuein FY26 vs Rs.3,137 Cr in FY25; consolidated profit of Rs.194 Cr vs Rs.151 Cr in FY25.
• Rs.1,801 Cr Textile Machinery Division (TMD) revenuein FY26, down 2% YoY, but division swung to a profit of Rs.9.75 Cr from a loss of Rs.15.64 Cr in FY25.
• Rs.1,205 Cr Mission Tool Division & Foundry revenuein FY26, up from Rs.1,003 Cr in FY25; Foundry contributed ~10%.
• LMW Global posted a loss of Rs.32 Crin FY26 (vs profit of Rs.1.9 Cr in FY25) despite revenue growth to Rs.184 Cr; LMW China turned around with Rs.130 Cr revenue (vs Rs.67 Cr) and breakeven (vs loss of Rs.6.8 Cr).

Order Backlog and Segment Growth

• Rs.3,300 Cr TMD order bookas of Q4 FY26, with active orders of Rs.2,300 Cr; the domestic/exports/spares sales mix stood at 66:8:26%.
• Rs.360 Cr ATC division order bookas of Q4 FY26, executable over ~18 months from May 2026; Rs.195 Cr in new orders were booked during Q4.
• ~25-28% turnover growthin the Machine Tools Division (MTD) in FY26; management stated the division has capacity to grow by another ~20% based on past additions (period unspecified).
• Stable MTD revenue mixof 50-52% automotive and 48% non-automotive in FY26, with good traction in defence/aerospace.
• Rs.120 Cr order book at LMW ChinaandRs.44 Cr at LMW Globalas of Q4 FY26.
• Management highlighted textile machinery's 8-year cyclicality,noting the division is currently in a downcycle and the company is investing during the downturn to capitalise on the next upcycle.

Aerospace Division Growth Trajectory

• Rs.207 Cr ATC division revenuein FY26, up from Rs.169 Cr in FY25; Q4 FY26 segment revenue of Rs.56 Cr generated a segment profit of Rs.11 Cr (~20% margin).
• 90% of ATC revenue from exportsin FY26; revenue split was ~20-22% composites and 78% metallics (per Segment 10).
• Management cited "immense growth potential"in aerospace, describing the global addressable market in aircraft and defence as "trillions" and noting LMW exports constitute 90% of this segment. Current customers include Tier-1 suppliers to Boeing/Airbus, plus ISRO, HAL and defence.
• 19 certifications required(AS9100, NADCAP, etc.) plus customer-specific approvals; the company focuses on technically challenging composite/metallic combinations in engine parts, sheet metal, structural assemblies, and special processes.
• Composites facility utilisation at ~50%, leaving significant headroom; management plans a new, larger facility to scale beyond current capacity.
• Rs.150 Cr capex announced for ATCover the next 5 years (FY 2026-27 to FY 2030-31) — "for infrastructure only" with machinery costs to be additional and scaled later; the CFO stated the new facility can scale revenue beyond Rs.300 Cr but "did not commit to a specific target when asked if the business could reach Rs.1,000 crores in 5 years".
• ATC orders provide 3-4 years visibilitybut carry push-out/pull-in risk; the division is working-capital-intensive due to imported raw materials.

Profitability, Utilisation and Cost Pressures

• MTD EBIT margin hit 11-11.5%in Q4 FY26 — a multi-quarter high, partly aided by slight forex income; management expects this run rate to be sustainable in FY 2026-27 as turnover grows, with no price hikes taken in the division.
• ATC segment profit margin of ~20%in Q4 FY26, providing a profitable base for scaling the aerospace business.
• Textile machinery capacity utilisation at 50-55%and machine tools at 70-75% as of Q4 FY26; management will invest further only when utilisation nears 90%.
• Aggregate capex of ~Rs.300+ Crover the three fiscal years ending FY26, primarily for modernisation and MTD capacity; ~50% of FY26 capex was allocated to ATC.
• Raw material costs are rising across the board(commodities, logistics, availability); management declined to disclose specific price hike plans but is actively working on cost savings and supply chain actions.
• Risks flagged: absence of LPG and other industrial gases is impacting production;supply chain and production teams are actively working to reduce usage of these constrained inputs.
• Import content in MTD is ~50% of material; some imports are sourced locally in INR, others are USD-pegged. Localisation is a long-term effort and not immediately switchable.

Forward View and Capital Allocation

• Board-approved investment of US $30 millionin a UAE holding company to support working capital and export growth; management is targeting a return over the next 3 years to re-establish exports at 23-25% of company revenue.
• Machine tool division exported ~Rs.20 Cr of turning centersto GCC countries in FY26, a new segment with high demand.
• New ATC capacities expected to contributeto higher turnover from H2 FY 2026-27.
• Export markets (Bangladesh, Turkey) reactivating, supporting a positive domestic outlook for textile machinery.
• Management highlighted risks from volatile crude pricesimpacting synthetic fibres, which could affect textile machinery demand.
• ATC capex is project-specificand will continue as new orders are won; no separate capacity-driven spend beyond the Rs.150 Cr infrastructure plan.