💰 Financial Performance

Revenue Growth by Segment

LMW Global (Dubai) revenue grew 44.9% YoY to INR 71 Cr in H1 FY26 from INR 49 Cr in H1 FY25. Textile Machinery Division (TMD) is operating at a low capacity utilization of 40-45% due to sluggish demand.

Geographic Revenue Split

The revenue split is 66% Domestic, 7% Exports, and 27% Spares as of Q2 FY26.

Profitability Margins

Operating profit before working capital changes fell 67.8% YoY to INR 148.53 Cr in FY25 from INR 460.73 Cr in FY24. Current period profit includes a one-time profit on sale of assets of INR 15 Cr.

EBITDA Margin

Advanced Technology Centre (ATC) metallics segment EBITDA margin is approximately 19%. Overall operating profit before working capital changes was 148.53 Cr in FY25.

Capital Expenditure

Purchase of Fixed Assets and Capital Work In Progress was INR 130.12 Cr in FY25, compared to INR 151.13 Cr in FY24.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company holds significant cash reserves with bank deposits (3-12 months maturity) of INR 1,212.26 Cr as of March 2025.

⚙️ Operational Drivers

Raw Materials

Steel castings, forgings, metallics, and composite materials used in aerospace and textile machinery.

Capacity Expansion

Current capacity utilization in the Textile Machinery Division is 40-45%. The company is maintaining a 5-day working week due to lower utilization.

Raw Material Costs

Raw material costs are managed through back-to-back sourcing for long-term contracts (e.g., 2.5-year contracts in ATC) to mitigate price volatility.

Manufacturing Efficiency

Capacity utilization is currently low at 40-45% in TMD, leading to a reduced 5-day work week to manage overheads.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is driven by the Advanced Technology Centre (ATC) through metallics and composite products for aerospace, and LMW Global (Dubai) which saw 44.9% H1 growth. The company is also integrating Industry 4.0, automation, and AI into its textile machinery portfolio.

Products & Services

Textile spinning machinery, CNC machine tools, foundry castings, and aerospace components (metallics and composites).

Brand Portfolio

LMW (formerly Lakshmi Machine Works Limited).

New Products/Services

Digitally enabled and Industry 4.0 ready textile machines; expansion into composite aerospace products which are currently in the pipeline.

Market Expansion

LMW Global (Dubai) is a key expansion vehicle, growing revenue to INR 71 Cr in H1 FY26.

🌍 External Factors

Industry Trends

Textile manufacturers are accelerating adoption of automation, energy-efficient solutions, and AI. LMW is positioning its portfolio to be Industry 4.0 ready to capture this shift.

Competitive Landscape

Competition intensity is noted in the Textile Machinery Division (TMD) side, though specific competitor names are not listed.

Competitive Moat

Moat is built on technological leadership in textile machinery and high-entry-barrier aerospace manufacturing (ATC) with 19% EBITDA margins in metallics.

Macro Economic Sensitivity

Highly sensitive to the textile industry cycle and domestic capital expenditure trends.

Consumer Behavior

Shift toward sustainable and automated textile production is driving demand for energy-efficient machinery.

Geopolitical Risks

Exposure to export markets (7% of sales) and international subsidiaries in China and Dubai.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act, 2013 and SEBI (LODR) Regulations 2015. LMW Aerospace Industries Limited has attained 'Dormant' status.

Taxation Policy Impact

Taxes paid in FY25 were INR 17.62 Cr, down from INR 118.58 Cr in FY24 due to lower operating profits.

⚠️ Risk Analysis

Key Uncertainties

Sluggish demand in the textile sector leading to low capacity utilization (40-45%) and reduced operating cash flows (down 79.3% YoY).

Geographic Concentration Risk

66% of sales are concentrated in the Indian domestic market.

Third Party Dependencies

Dependency on suppliers for steel castings and forgings, managed through back-to-back contracts for ATC.

Technology Obsolescence Risk

Risk is mitigated by R&D into Industry 4.0 and AI-enabled machinery.

Credit & Counterparty Risk

Expected credit loss allowance on trade receivables was INR 7.54 Cr in FY25, down from INR 13.52 Cr in FY24.