01 — At a Glance
The Underdog That Built A ₹6,150 Crore Fortress
- 52-Week High / Low₹84.3 / ₹40.4
- FY26 Standalone Revenue (TTM)₹1,038 Cr
- FY26 Consolidated Revenue₹2,189 Cr (Pro-forma)
- Consolidated EPS (Pro-forma)₹1.40
- Return over 1 Year-12.0%
- Book Value₹10.2
- Price to Book4.04x
- Dividend Yield0.60%
- Debt / Equity0.16x
- Return over 5 Years106%
The Merger Nobody Covered: On December 29, 2025, Lloyds Engineering (LEWL) approved a merger with three subsidiary-associates: LICL (₹4,619 Cr order book), Metalfab (76% owned), and Techno Industries (88% owned). Combined order book = ₹6,150 crore. Combined 9MFY26 PAT already surpassed full-year FY25 levels. The standalone stock trades at 29.8x P/E on TTM earnings, but the merger pro-forma EPS nearly doubles the story. Market cap: ₹4,815 Cr. Nobody talks about it.
02 — Introduction
The Unglamorous Firm Doing ₹6,150 Crores Worth Of Glorious Work
Lloyds Engineering Works Limited. Established 1974. Headquarters: Murbad, Thane — 84 km from JNPT, adjacent to a national highway, and smack in the middle of eight acres of industrial real estate. No IPO hype. No digital-first pivot. No blockchain consulting arm. Just heavy engineering equipment manufactured with precision for 50 years straight.
The company designs and manufactures pressure vessels, heat exchangers, columns, boilers, waste-heat recovery systems, and the kind of machinery that runs inside steel plants, refineries, power stations, and ships. Clientele: SAIL, Cochin Shipyard, Goa Shipyard, Bharat Petroleum, GAIL, Indian Oil, Aditya Birla, and others. Revenue: ₹1,038 crore (TTM). Market cap: ₹4,815 crore. P/E: 29.8x.
Enter the merger plot twist. On December 29, 2025, Lloyds approved a merger with three entities it already owned: LICL (24.2% stake, but ₹4,619 crore order book in infrastructure EPC), Metalfab (76% subsidiary, stable margins), and Techno Industries (88% subsidiary, defence and railways orders). The combined entity becomes a ₹6,150 crore order book juggernaut with multiple vertical integration points.
Q3 FY26 standalone numbers? Not impressive on paper. Consolidated numbers? Consolidated PAT surged 54.65% YoY. Pro-forma order book stands at ₹6,630 crores. The stock fell 35% in six months anyway. Welcome to microcap infrastructure, where the market prices in existential anxiety while the order book grows exponentially.
Board Approval Chronology (Feb 2026): “This is the moment LEWL transitions from a pure equipment maker into a full-cycle engineering and infrastructure solutions provider,” management said in the investor presentation. Translation: We finally got our paperwork in order and are consolidating things we should have unified five years ago.
03 — Business Model: WTF Do They Even Do?
Heavy Engineering For People Who Don’t Talk About Heavy Engineering
Lloyds operates across four design-to-commissioning verticals. First: Hydrocarbon Sector. Pressure vessels, heat exchangers, columns, waste-heat recovery boilers, and thermal dryers for oil refineries and petrochemical plants. Second: Steel Sector. Rolling mill equipment, DRI furnaces, and miscellaneous heavy gear for steel plants — basically, SAIL is a repeat client.
Third: Power & Nuclear. Thermal boilers, condensers, heaters. The company is registered with the Department of Atomic Energy (BARC) and NPCIL for nuclear plant equipment supply. Fourth: Marine Sector. Fin stabilizers, electro-hydraulic steering gear, and marine loading arms (via recent TB Global tie-up). And now, Fifth: Defence & Aerospace (through technology partnerships with FlyFocus Poland, Kliver Polska, Virtualabs Italy, and Fincantieri Italy). The concall kept repeating how many defence tie-ups they’ve signed.
Manufacturing footprint: Eight acres in Murbad, Thane. Five adjacent workshops. Shared infrastructure = lower overhead absorption. 84 km from JNPT (logistics advantage). Capacity expansion of 2x already underway. The business model: You need large industrial equipment, LEWL designs it, manufactures it in Thane, and handles commissioning. Rinse. Repeat. For 50 years.
FY25 Revenue₹936 CrStandalone
TTM Revenue₹1,038 CrLatest 12M
Consolidated (Pro-forma)₹2,189 Cr9MFY26 annualised
Order Book₹1,666 CrStandalone as of Dec 2025
Why The Merger Matters: LICL (the infrastructure EPC subsidiary) is the real cash-spinner. 9MFY26 PAT: ₹143 crore. FY25 full-year PAT: ₹67 crore. This entity alone is doing nearly 2x the combined LEWL standalone performance. Post-merger, LEWL becomes a diversified equipment + infrastructure play — not just an equipment vendor.
💬 Would you buy a ₹4,815 crore market cap company with a ₹6,150 crore order book if the stock had fallen 35% YTD? Or is there a reason?
04 — Financials Overview
Q3 FY26: The Numbers (Standalone vs. Consolidated)
Result type: Quarterly Results (Q3 FY26) | Q3 EPS: ₹0.52 (Consolidated) | Annualised EPS: ₹2.08 | Pro-forma FY26 EPS: ₹1.40
Accounting Alert: LEWL reports both Standalone (LEWL only) and Consolidated (including subsidiaries at % ownership). Merger approvals are dated Dec 29, 2025, effective April 1, 2025 (retroactively). So FY26 consolidated numbers include share-of-associates (LICL). The merger itself occurs in FY27. This is the pre-merger consolidated view.
| Metric (₹ Cr) |
Q3 Consolidated FY26
Dec 2025 |
Q3 Consolidated FY25
Dec 2024 |
Q2 Consolidated FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 272.45 | 266.21 | 316.66 | +2.34% | -13.96% |
| EBITDA* | 76.99 | 53.32 | 56.82 | +44.39% | +35.50% |
| EBITDA Margin % | 25.96% | 19.32% | 17.49% | +664 bps | +847 bps |
| PAT (Consolidated) | 66.70 | 36.32 | 54.35 | +83.65% | +22.72% |
| EPS (₹) | 0.52 | 0.29 | 0.42 | +79.31% | +23.81% |
The EBITDA Margin Spike: Q3 consolidated EBITDA margin jumped from 19.32% to 25.96% — that’s 664 basis points YoY. Why? LICL’s associate contribution surged. LICL’s 9MFY26 EBITDA margin: 15.87% vs. FY25 10.54%. The power, steel, and defence order flows into LICL are driving scale. Standalone LEWL margin: 19.91% in Q3 (stable). The real growth is in the infrastructure EPC business, not the core equipment business.
But Wait — QoQ Decline: Q2 revenue was ₹316.66 Cr. Q3 dropped to ₹272.45 Cr. Execution timing. Some quarters have project completions, others have project ramp-ups. ₹1,666 Cr order book on ₹1,038 Cr TTM revenue implies solid execution runway. Management guided for FY26 to target 4x of FY25 revenue on the consolidated basis — that’s ₹3.7+ Crore from ₹940 Cr. Pro-forma is tracking ~₹2.2 Cr for 9MFY26.
05 — Valuation Discussion
Fair Value Range: The Merger Math
