LMW Q4 FY26 Results Analysis: Revenue Jumps Sequentially, TMD Turns Profitable

LMW's Q4 FY26 numbers came in strong, with revenue of Rs. 853.69 Cr (+8.23% YoY) and PAT growth of +10.69% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

LMW delivered Q4 FY26 with strong sequential recovery - revenue up 11.34% QoQ to Rs.853.69 Cr, EBITDA margin expanded to 7.54%. MTD exceeded revenue target (Rs.351.85 Cr vs Rs.240 Cr target) with double-digit 11.68% margin. TMD turnaround confirmed with Q4 profit of Rs.10.77 Cr vs Q3 loss. Strong cash generation with FCF turning positive at Rs.84.61 Cr. Concerns include material cost inflation (12.65% YoY vs revenue 8.23%), subsidiary losses creating 15% PAT drag, and TMD still declining 1.57% YoY.

Key Investment Insights

Key Positives

• MTD revenue grew 27.78% YoY to Rs.351.85 Cr with 11.68% margin - exceeding Rs.240 Cr quarterly target
• TMD turned profitable at Rs.10.77 Cr in Q4 from Rs.2.92 Cr loss in Q3 - confirming turnaround
• ATC margin at 19.78% matches management's metallics EBITDA target of ~19%
• Operating cash flow at Rs.153.58 Cr covers 99.78% of PAT - excellent earnings quality
• Free cash flow turned positive at Rs.84.61 Cr vs negative Rs.100.97 Cr in FY25
• Debt-free balance sheet with zero finance costs provides financial flexibility
• Six-day work week restored from February 2026 driving sequential recovery

Risk Factors

• Material costs grew 12.65% YoY outpacing revenue growth of 8.23% - margin pressure
• TMD revenue declined 1.57% YoY - weakest segment still challenged
• Subsidiaries created Rs.23.19 Cr PAT drag (15.06% of standalone PAT) - international operations loss-making
• Trade receivables up 43.12% YoY - higher sales with extended credit terms raises working capital concern
• FY26 normalized PAT grew 26.93% YoY but this excludes exceptional charges and prior year gains