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Lloyds Engineering Works Q2 FY26 – From Boilers to Drones, This Engineer Now Builds Everything Except Biryani


1. At a Glance

Once known as Lloyds Steels Industries (the OG boiler builder of the 80s), the company has now rebranded as Lloyds Engineering Works Ltd (LEWL) — because, let’s face it, “Steels” wasn’t sexy enough when you’re signing drone MoUs with Poland.

As of Nov 2025, the stock trades at ₹ 58.7, giving it a market cap of ₹ 8,128 crore. Quarterly revenue jumped to ₹ 317 crore, and PAT hit ₹ 54 crore, translating into an EPS of ₹ 0.44. That annualises to ₹ 1.76, implying a lofty P/E ≈ 34x on FY26 run-rate earnings.

In the last six months, the stock is up 17.6 %, but down 12 % in three months — basically the investor equivalent of doing cardio and still gaining fat. The company’s OPM stands at 14.9 %, Debt ₹ 189 cr, Debt-to-Equity 0.16, and ROE/ROCE are still “coming soon” to a ratio table near you.

The latest flex? A ₹ 613 crore + € 18.26 million contract from SAIL-IISCO for a 4.2 MTPA pellet plant. With an order book of ₹ 904 crore, drones, naval tie-ups, and a rights issue worth ₹ 1,050 crore, Lloyds now moonlights as India’s engineering all-rounder.


2. Introduction

Remember when Lloyds was just another sleepy boiler fabricator from Thane? Fast-forward to 2025 — they’re doing UAVs with Poland, propulsion with Italy, pellet plants for SAIL, and an ESOP party big enough to make startup bros jealous.

This company has quietly evolved from “weld-and-ship” to “design-integrate-deliver,” covering everything from nuclear reactors to naval gear. Their rebrand from Lloyds Steels Industries Ltd to Lloyds Engineering Works Ltd (w.e.f. 25 July 2023) wasn’t just marketing fluff — it was signalling: “Boss, we’ve entered the multi-engine zone.”

Yet, while expansion brings clout, it also brings complexity. Promoters have shuffled shareholding like IPL squads (down from ~60 % in FY24 to 49 % now), and a ₹ 1,050 crore rights issue in June 2025 has diluted equity to ₹ 132 crore.

So, what exactly is Lloyds building, and are these machines minting margins — or just noise? Let’s unbolt the numbers.


3. Business Model – WTF Do They Even Do?

LEWL is a one-stop fabrication circus catering to Power, Steel, Hydrocarbon, Marine, and Nuclear sectors.

  • Hydrocarbon Sector: Designs pressure vessels, heat exchangers, and waste-heat recovery boilers. In short, they build the metal intestines of refineries.
  • Steel Sector: Rolling mills, melting shops, and miscellaneous heavy gear. Basically, if it rolls, melts, or leaks, Lloyds has welded it.
  • Nuclear Power: Registered with BARC and NPCIL — supplying specialised seismic-tested equipment where one loose bolt can cause national news.
  • Marine & Defence: Makes fin stabilisers, steering gear, and now, through MoUs with Fincantieri (Italy) and FlyFocus (Poland), is flirting with drones and naval propulsion systems.
  • Power & Civil: Thermal power components — boilers, condensers, heaters — plus the occasional EPC side hustle.

Their five Murbad plants sit conveniently next to each other — perfect for economies of scale or gossip. Capacity expansion of ~2× is already underway.

Client list reads like a PSU roll call: Cochin Shipyard, Goa Shipyard, BPCL, IOCL, GAIL, Aditya Birla Utkal Alumina, etc. The FY24 order book of ₹ 904 crore is split across Power (40 %), Steel (38 %), Civil (8 %), Carbon (7 %), and Others (7 %).

In short: they’ll build anything heavy, except maybe your willpower.


4. Financials Overview

MetricSep 2025Sep 2024Jun 2025YoY %QoQ %
Revenue (₹ cr)31721721745.9 %46.1 %
EBITDA (₹ cr)49272781.5 %81.5 %
PAT (₹ cr)54303080 %80 %
EPS (₹)0.440.200.20120 %120 %

Annualised EPS ≈ ₹ 1.76 → P/E ≈ 33× on CMP ₹ 58.7.

So, yes — valuation richer than a PSU tender margin, but growth is visible.


5. Valuation Discussion – Fair Value Range Only

Let’s triangulate three ways.

(a) P/E Method

  • EPS (TTM) ₹ 1.0 → Fair range ≈ ₹ 34–50 (assuming P/E 34–50× for industrial peers).
  • EPS (FY26E annualised 1.76) → Fair range ₹ 60–88.

(b) EV/EBITDA Method

  • EV ₹ 8,119 cr; EBITDA TTM ₹ 153 cr → EV/EBITDA = 43× (now).
    Industry average ≈ 18–25× → Fair EV ₹ 2,750–3,825 cr → Fair Price ₹ 20–28.

(c) Simplified DCF Method

  • FCFO FY25 ₹ 158 cr; assume 8 % growth, WACC 11 %, TV growth 4 %.
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