LMW earnings for the second quarter of fiscal 2026–27 showed revenue rising 30% year over year to INR 1,153 crore, supported by a recovery in textile machinery sales. In its October 22, 2026 earnings commentary, the company also described strong machine-tool demand and a substantial aerospace order book, while warning that higher input costs remained difficult to pass on to customers.
Key Takeaways
- Textile machinery revenue rose 32% sequentially, while first-half segment profit increased sharply.
- Management reported nearly 50% machine-tool growth, supported by manufacturing diversification and equipment upgrades.
- Overseas orders offer a recovery opportunity, but cost pressure and an unconfirmed aerospace expansion timeline remain constraints.
Table of Contents
- LMW earnings show textile recovery with cost constraints
- Machine-tool demand strengthens beyond automotive customers
- Aerospace orders grow, but expansion timing remains open
- Overseas recovery depends on executing existing orders
- Conclusion
LMW earnings show textile recovery with cost constraints
First-half revenue reached INR 2,045 crore, up 33% from a year earlier. The textile machinery division generated second-quarter revenue of INR 639 crore, a 32% increase from the preceding quarter.
Textile machinery profit for the first half rose to INR 48 crore from INR 2 crore a year earlier. That improvement points to a stronger earnings contribution from the division, although the first-half profit comparison and the sequential quarterly sales increase cover different periods.
CFO V. Senthil said government policies and export incentives were supporting demand, but management remained cautious about its durability. Rising copper, aluminum and electronics costs, electronics availability and geopolitical uncertainty continued to complicate operations.
Pricing was fixed with no immediate cost pass-through, although customer discussions were ongoing. LMW was emphasizing value analysis and value engineering to control costs, making margin protection a separate challenge from securing more sales.
| Item | Details |
|---|---|
| Machine-tool capacity utilization | 75%–80%. |
| ATC capacity utilization | Approximately 70%. |
| ATC order-book composition | Approximately 70% metallics and 30% composites. |
| Machine-tool product mix | Approximately 23%–24% machining centers and 76% turning centers. |
Machine-tool demand strengthens beyond automotive customers
Senthil described machine-tool growth as nearly 50% for the current fiscal year, supported by the China-plus-one manufacturing strategy and customers replacing older equipment with modern machines.
Automotive customers remained the largest demand source, accounting for more than half of the business, while defense, electronics manufacturing services and tooling were also expanding.
Management said capacity could be added relatively quickly because expansion mainly required assembly space. Senthil also clarified that a recent small capacity addition reflected a statutory requirement for a specific machine type rather than the company's overall approach to growth.
Aerospace orders grow, but expansion timing remains open
The Advanced Technology Centre, or ATC, had an order book of approximately INR 1,000 crore. Senthil highlighted opportunities in structural assembly, special processes and machining for drone, missile and radar programs, rather than electronics manufacturing.
LMW's aerospace composites capabilities include manufacturing structural parts, subassemblies and assemblies for aerospace and defense applications. This existing manufacturing scope provides background to the opportunities management described; it does not establish when new orders or expansion spending will become revenue.
For the planned INR 150 crore investment, LMW had signed a memorandum of understanding with the Tamil Nadu government and was undertaking planning. Management did not provide a commissioning date, leaving the timing of additional capacity and its revenue contribution unresolved.
Overseas recovery depends on executing existing orders
LMW Global held INR 163 crore of orders and LMW China held INR 128 crore, which management expected to execute over the following six months. Those orders provide potential support for overseas operations, rather than a completed recovery.
LMW Global's prior-year loss was INR 29.5 crore on revenue of INR 184 crore. Senthil attributed the loss to difficult conditions in markets including Bangladesh and Turkey, which prevented the business from absorbing fixed costs.
For fiscal 2026–27, management expected capital expenditure to be similar to annual depreciation. Some assets could be leased to preserve flexibility for contract-based work, including ATC activities.
Conclusion
LMW earnings show a stronger sales base, but converting demand into sustained profit still depends on input-cost control and order execution. The stated six-month overseas delivery window is the clearest near-term checkpoint; the aerospace investment still lacks a commissioning date.
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