LMW Q3 FY26 earnings call.
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Revenue
₹758 Cr
verified against source
Revenue YoY
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EBITDA
Pending
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What the record says.
LMW reported flat sequential revenue at Rs 767 crore for Q3 FY26, with 9-month revenue of Rs 2,228 crore growing ~5% YoY. The textile machinery division (TMD) continues to drag, with Q3 revenue declining to Rs 440 crore from Rs 461 crore in Q2, though the 9-month loss has narrowed dramatically to Rs 1 crore from Rs 23 crore last year. Machine tools and foundry (Rs 853 crore, +17% YoY) and ATC (Rs 150 crore, +22% YoY) are the bright spots. Management acknowledged the 8-year demand cycle hasn't bounced back as anticipated due to tariff uncertainties and weak customer confidence. With TMD running sub-50% utilization on a 5-day week, cost discipline remains the priority. ATC order book has grown 20% to Rs 360 crore, providing revenue visibility over 18 months. Commodity price pressures exist but are being managed through value engineering and contract pass-throughs in foundry/ATC.
Colored figures show movement against the previous available record.
Guidance to track
- Management expressed optimism on machining centers, particularly VMCs, where new products introduced over 5 years are expanding market share. With capacity utilization at 75%, there is bandwidth to absorb incremental orders without major capex.
- Order book grew from Rs 300 crore to Rs 360 crore, deliverable over 18 months. Management continues to see strong RFQ flow despite tariff concerns, with no major push-outs observed as of now.
- While order flow in current year is better than previous 12 months and government policies (PLI, PM Mega Parks) are supportive, actual capex decisions are being deferred due to tariff uncertainty and external geopolitical factors.
- Value engineering and alternates being pursued; foundry and ATC have contract-based pass-through mechanisms protecting margins. TMD commodity cost as percentage of machine price is not large.
Risks flagged
- The 8-year cyclical recovery expected after 18 months of downturn has not materialized. Management attributes this to tariff-related uncertainties and global geopolitical factors not present in prior cycles.
- LMW Global (Dubai) swung to Rs 25 crore loss in 9M FY26 from Rs 1.5 crore profit last year, while China loss widened to Rs 11 crore from Rs 4 crore. Export share has shrunk to ~9-10% from historical 20-25%, insufficient to absorb fixed costs.
- Analyst raised concerns about tariff impact on ATC (90% export). Management acknowledged it as the only challenge but gave no concrete mitigation strategy, stating only that negotiations with customers are ongoing.
- Management confirmed commodity prices are rising but declined to quantify margin impact, saying they will manage through internal cost initiatives rather than price increases given muted demand.
Key quotes
- The anticipation was that post downturn of almost 18 months there will be a bounce back and this has not happened because of the uncertainty on the demand side. Having said that, what we still anticipate is that during this time as well within India, there has been a consistent utilization of spinning mills at a fairly high level and the mills which continue to operate are waiting for certain indications.
- This is the time for us to become lean. This is the time for us to increase our efficiencies and this is the time for us to invest. We continue to invest in IoT. We continue to make our process efficient and costs efficient and these are the time we also invest in our new product development.
- The volume of business within India for this particular type of machine in itself is closer to 7 to 8,000 machines or a little bit more per year from the Indian ecosystem point of view itself and without considering the new EMS which is coming.
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