💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations reached INR 845.74 Cr in FY25, representing a significant increase from standalone sales of INR 312.45 Cr in FY23. H1FY26 performance is described as broad-based with all major verticals contributing to growth, though specific percentage splits by segment are not disclosed.

Geographic Revenue Split

Not explicitly disclosed in available documents, though the company operates primarily in India with strategic international technology tie-ups in Italy (Virtualabs S.r.l.).

Profitability Margins

Gross margins are impacted by raw material costs which represent 50.6% of revenue (INR 428.43 Cr). PAT margin for FY25 stood at 12.4% (INR 105.04 Cr PAT on INR 845.74 Cr revenue). H1FY26 margins remain stable at approximately 18%.

EBITDA Margin

EBITDA margin was 18.84% in FY25 (INR 159.33 Cr) compared to 17.26% in FY24 (INR 92.13 Cr), showing an improvement of 158 basis points YoY due to operational efficiencies and scale.

Capital Expenditure

Capital Work In Progress (CWIP) stood at INR 63.08 Cr as of March 31, 2025, with payments towards capital expenditure including advances totaling INR 66.89 Cr during the fiscal year.

Credit Rating & Borrowing

Total borrowings as of March 31, 2025, were INR 58.34 Cr (INR 15.47 Cr non-current and INR 42.86 Cr current). Interest expenses for FY25 were INR 8.53 Cr, implying an average borrowing cost of approximately 14.6%.

⚙️ Operational Drivers

Raw Materials

Steel and specialized metal components are the primary raw materials, with 'Cost of Raw Materials Consumed' totaling INR 428.43 Cr, representing 50.6% of total revenue.

Import Sources

Not specifically disclosed, though the company has entered into technology agreements with Italian firms (Virtualabs S.r.l.) suggesting some high-tech component sourcing or design influence from Europe.

Key Suppliers

Not explicitly named in the documents, but the company operates in the heavy engineering and steel fabrication space, likely sourcing from major domestic steel producers.

Capacity Expansion

The company is expanding through acquisitions, including a 66% stake in Techno Industries for which it recognized goodwill of INR 122.78 Cr. It is also expanding into the defence sector via the newly incorporated Lloyds Advance Defence Systems Limited (Dec 2025).

Raw Material Costs

Raw material costs stood at INR 428.43 Cr in FY25. Procurement strategies involve a mix of direct consumption and purchase of traded goods (INR 59.35 Cr).

Manufacturing Efficiency

Working capital requirements reduced from 116 days to 85.6 days, indicating improved operational cycle efficiency despite an increase in debtor days from 73.6 to 97.9.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

400%

Growth Strategy

The company is targeting 4x growth in FY26 revenue through a combination of a massive order book (INR 1,303.81 Cr standalone + INR 4,558.8 Cr from associate LICL), strategic acquisitions like Techno Industries and Metalfab, and a pivot into the high-growth defence sector with FPV drones and SIGINT UAVs.

Products & Services

Heavy equipment and machinery for HydroCarbon, Oil & Gas, Steel, Power, and Nuclear plants; Turnkey project execution; First Person View (FPV) drones; Defender SIGINT UAVs; and Pellet plant projects.

Brand Portfolio

Lloyds Engineering Works, Lloyds Steels Industries, Lloyds Advance Defence Systems.

New Products/Services

Advanced FPV drones and Defender SIGINT UAVs for India's defence sector; 4.2 MTPA Pellet Project for SAIL-IISCO.

Market Expansion

Strategic push into the Defence sector via a dedicated subsidiary; expansion into the Italian market/technology via Virtualabs S.r.l. agreement.

Market Share & Ranking

Not disclosed, but positioned as a niche player in heavy engineering and a new entrant in advanced defence electronics.

Strategic Alliances

MoUs with FlyFocus (Drones), Virtualabs S.r.l. (Italy), Kliver, and Fincantieri; Consortium with Primetals for SAIL projects.

🌍 External Factors

Industry Trends

The industry is shifting toward automation and indigenous defence manufacturing (Atmanirbhar Bharat). The company is positioning itself by moving from pure fabrication to high-tech electronics and UAVs.

Competitive Landscape

Competes with other heavy engineering firms and EPC contractors; now entering the competitive drone market against established defence PSUs and startups.

Competitive Moat

Moat is built on 'Technological Tie-ups' in underpenetrated sectors like Defence and Nuclear. This is sustainable due to high entry barriers and long certification cycles in these industries.

Macro Economic Sensitivity

Highly sensitive to industrial CAPEX cycles and the National Infrastructure Pipeline. A 1% change in GDP growth typically correlates with higher industrial machinery demand.

Consumer Behavior

Shift in government procurement toward domestic private players in the defence sector is a key demand driver.

Geopolitical Risks

Trade barriers or export restrictions on high-tech drone components could impact the new defence subsidiary's manufacturing timeline.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Ministry of Defence procurement policies and industrial licensing for heavy equipment manufacturing.

Environmental Compliance

Not disclosed in INR values.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 23.5% (INR 33.14 Cr tax on INR 141.14 Cr PBT).

Legal Contingencies

Not explicitly detailed in the provided MDA or financial notes, though the auditor noted the first-time recognition of INR 122.78 Cr in goodwill related to acquisitions.

⚠️ Risk Analysis

Key Uncertainties

Integration risk of new acquisitions (Techno Industries, Metalfab) and the success of the pivot into the defence sector, which has high R&D risks.

Geographic Concentration Risk

Primarily concentrated in India, with the registered office and major operations in Mumbai/Maharashtra.

Third Party Dependencies

High dependency on technology partners like FlyFocus for the success of the new drone vertical.

Technology Obsolescence Risk

Rapid changes in drone technology and SIGINT capabilities require continuous R&D investment to avoid obsolescence.

Credit & Counterparty Risk

Trade receivables stood at INR 256.79 Cr as of Sept 2025. Debtor days increased to 97.9, suggesting a slight deterioration in collection efficiency or longer credit terms for large infrastructure projects.