LMW Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,131.87 Cr (+37.72% YoY) and PAT growth of +74.07% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 21, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,131.87 Cr (+37.72% YoY) |
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| PAT (Q2) | Rs. 71.23 Cr (+74.07% YoY) |
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| EBITDA margin | 9.00% (+364 bps YoY) |
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| EPS (Q2) | Rs. 66.68 (+74.07% YoY) |
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| Market cap | Rs. 17,382.14 Cr |
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| CMP | Rs. 16,265.05 |
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Quarter Snapshot
LMW posted its best quarter in at least four periods: consolidated revenue rose 37.7% YoY to Rs.1,131.87 Cr, PAT grew 74.1% to Rs.71.23 Cr, and EBITDA margin expanded 364 bps YoY to 9.00%. All three segments grew over 27% YoY with margin expansion — TMD swung from an H1 FY26 loss of Rs.15.33 Cr to H1 FY27 PBIT of Rs.21.78 Cr, MTF crossed double-digit PBIT margin (10.97%) for the first time in recent quarters, and ATC's margin reached 22.83% on a weaker rupee against its 90% export mix. Subsidiary losses of Rs.26.46 Cr in H1 and a Q2 effective tax rate of 30.53% (vs 25.49% YoY) remain the drags, while the newly approved Machine Tool Unit III (125 machines/month by December 2026) addresses 90% utilization.
Key Investment Insights
Key Positives
- Consolidated revenue grew 37.7% YoY to Rs.1,131.87 Cr (standalone +45.3% to Rs.1,127.52 Cr) — the strongest quarterly print in at least four quarters.
- PAT grew 74.1% YoY to Rs.71.23 Cr (standalone +93.2% to Rs.87.21 Cr); H1 PAT of Rs.126.75 Cr equals 97% of FY26 full-year PAT of Rs.130.73 Cr.
- EBITDA margin expanded 364 bps YoY to 9.00% (from 5.36%), with employee costs down from 12.0% to 9.9% of revenue.
- All three segments grew revenue over 27% YoY with margin expansion: TMD +27.3%, MTF +48.5% (PBIT margin 10.97% vs 7.80%), ATC +49.2% (PBIT margin 22.83% vs 8.56%).
- MTF crossed double-digit PBIT margin for the first time in recent quarters; TMD swung from an H1 FY26 loss of Rs.15.33 Cr to H1 FY27 PBIT of Rs.21.78 Cr.
- CFO of Rs.280.84 Cr was 2.22x PAT; free cash flow of Rs.234.98 Cr after capex of Rs.45.86 Cr.
- Board approved Machine Tool Division Unit III (Rs.10 Cr, 125 machines/month by December 2026) with existing MTD capacity utilization at 90%.
- Debt-free balance sheet with zero finance costs and liquid assets of Rs.2,187.91 Cr (cash, bank balances and investments).
Risk Factors
- Two subsidiaries (combined assets Rs.795.63 Cr) reported net losses of Rs.15.95 Cr in Q2 and Rs.26.46 Cr in H1 FY27, pulling consolidated PAT (Rs.71.23 Cr) below standalone (Rs.87.21 Cr).
- Material cost grew 43.9% YoY versus revenue's 37.7%, lifting material cost to 65.6% of revenue from 62.8%.
- Q2 effective tax rate rose to 30.53% from 25.49% YoY, with tax expense up 123.6% against PBT up 86.7%.
- Unrealized FX loss of Rs.73.80 Cr in H1 FY27 OCI (zero in prior periods) pulled standalone total comprehensive income to Rs.(0.35) Cr.
- Other income fell 24.3% YoY to Rs.31.07 Cr on lower mutual fund redemption profits and interest income.