1. Opening Hook
Just when Indian manufacturing thought the cycle might turn, LMW walked into Q2 FY26 like a parent-teacher meeting—numbers decent, but a lot of “needs improvement” on the textile side. Even the CFO sounded like he wanted to send a polite memo to global mills:“Please revive soon, regards.”
Meanwhile, machine tools partied at 70% utilization, while textile machinery continued its spiritual tapasya at 40–45%. As theGuru Granth Sahibgently reminds, “Patience and discipline lead to the right path”—LMW seems to be taking that literally.
Strap in—things get much spicier ahead.
2. At a Glance
- Revenue (Q2) – ₹790 cr– Jumped 15%, like mills briefly woke from hibernation.
- H1 Revenue – ₹1480 cr– Up 5%; growth slower than textile CapEx approvals.
- PBT – ₹92 cr– Includes a surprise guest star: ₹15 cr profit from asset sale.
- TMD H1 Revenue – ₹876 cr– Down 8%; still stuck in a deep CapEx winter.
- Machine Tool + Foundry H1 – ₹555 cr– The true hero segment, up strong.
- Order Book – ₹2700 cr– But only ₹1400 cr “active” (rest chilling).
- Utilization: TMD 40–45%, MTD 70%– Classic tale of two divisions.
3. Management’s Key Commentary
Quote:“We are in one of the longest down cycles in textile CapEx.”(Translation: Mills ghosted us harder than a bad Tinder match.)
Quote:“Tariffs, GST changes and PLI transitions delayed decision-making.”(Translation: Policy roulette made customers postpone everything.)
Quote:“Exhibition saw strong inquiries from Egypt, Indonesia, Bangladesh.”(Translation: Not everyone is asleep—some markets sent ‘U up?’ texts 😏.)
Quote:“Machine tool growth is structural, not cyclical.”(Translation: Finally, a segment that behaves like an adult.)
Quote:“New carding machine (LC9S), draw frame (LDF6) and 2400 spindle ring frame launched.”(Translation: We’re inventing things even if nobody’s buying… yet.)
Quote:“ATC has 2–2.5 years visibility on orders.”(Translation: Aerospace customers actually plan ahead—imagine that.)
Quote:“Composite margins still low; orders expected in 6 months.”(Translation: New plant waiting like Shahrukh at the train station.)
Quote:“Spinning
mills today run at 90% utilization.”(Translation: Mills are busy, but wallets locked tighter than demonetization queues.)
4. Numbers Decoded
| Metric | Value Q2 FY26 | YoY/Seq Change | One-Line Analysis |
|---|---|---|---|
| Consolidated Revenue | ₹790 cr | +15% QoQ | CapEx winter, but quarter warmed up. |
| H1 Revenue | ₹1480 cr | +5% YoY | Barely above inflation. |
| PBT | ₹92 cr | — | 15 cr asset sale saves the day. |
| TMD Revenue (H1) | ₹876 cr | –8% YoY | Still deep in the slowdown. |
| TMD Utilization | 40–45% | — | Machines mostly chilling. |
| Machine Tool + Foundry H1 | ₹555 cr | +16% YoY | The real MVP. |
| ATC H1 | ₹97 cr | +18% YoY | Aerospace/Defense momentum alive. |
| Order Book | ₹2700 cr (₹1400 cr active) | — | Booked but not cooked. |
One-liners: Machine tools hustled, textile slept, ATC flexed, asset sale patched margins, utilization screamed two different stories.
5. Analyst Questions
On revival signs:Mgmt: Exports (Egypt, Bangladesh, Indonesia) showing early positives; India still in wait-and-watch.(Translation: Some hope, but don’t pop champagne yet.)
On machine tool momentum:Mgmt: Structural—PLI, China+1, defense, EMS driving demand.(Translation: This segment finally found its personality.)
On competitive edge:Mgmt: Lower operating cost per kg yarn + automation (auto-piecing, IoT, ML).(Translation: Our machines now think smarter than some procurement teams.)
On ATC margins:Mgmt: Metallics at ~19% EBITDA; composites dragging.(Translation: New composite line still training wheels on.)
On hedging:
