Lohia's Q2 revenue rose +18.15%, but costs grew faster
Consolidated operating margin slipped 0.49 percentage points QoQ as expenses outpaced revenue; the results were filed after market close.
Filed 04 Nov 2026, 20:54 IST · after market close · Lohia Corp Ltd (LCL)
Key takeaways
- Consolidated revenue grew +18.15% QoQ, but expenses grew +18.87%, narrowing operating margin by 0.49 percentage points.
- A 0.97-percentage-point fall in the tax rate helped net profit rise +17.34% QoQ, while other income was 5.69% of pre-tax profit.
- Management said it executed a 1,000 mm specialised stretching line and secured its first order from South Korea.
Price around the results
Revenue growth did not fully convert into operating profit
The +18.15% sequential increase in consolidated revenue to Rs 594.33 cr translated into a smaller +15.26% rise in operating profit, indicating weaker conversion of incremental sales. Net profit rose +17.34% to Rs 77.75 cr, helped by the lower tax rate.
Faster cost growth narrowed the margin
Expenses grew +18.87% QoQ, faster than revenue, so operating margin fell from 19.92% to 19.43%, a decline of 0.49 percentage points. The tax rate fell 0.97 percentage points to 26.43%, while interest expense rose +12.81%; other income contributed 5.69% of pre-tax profit and was not the main earnings driver.
Margin remains above the Industrials peer median
Lohia's 19.43% operating margin was 7.18 percentage points above the 12.25% median for the 146 Industrials peers that had reported the quarter. The sequential margin decline matters, but the company still operated above the reported sector comparison.
Management highlighted defence execution and a South Korea order
Management said the company had executed a 1,000 mm specialised stretching line for a key Indian defence-sector customer. The company also said it secured its first order from South Korea, describing it as a milestone in international expansion.
No post-results market reaction is available yet
The consolidated results were filed after market close on 04 Nov 2026 at 20:54 IST. There is therefore no market reaction to assess for this quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹594 cr | ₹503 cr | +18.15% |
| Other income | ₹6 cr | ₹7 cr | -8.38% |
| Expenses | ₹479 cr | ₹403 cr | +18.87% |
| Operating profit | ₹115 cr | ₹100 cr | +15.26% |
| Operating margin (%) | 19.43% | 19.92% | — |
| Interest | ₹3 cr | ₹2 cr | +12.81% |
| Depreciation | ₹13 cr | ₹13 cr | +0.08% |
| Profit before tax | ₹106 cr | ₹91 cr | +15.80% |
| Tax | ₹28 cr | ₹25 cr | +11.72% |
| Net profit | ₹78 cr | ₹66 cr | +17.34% |
| EPS (₹) | ₹7.36 | ₹6.27 | +17.38% |
Operating margin of 19.43% compares with a Industrials sector median of 12.25% across 146 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company executed a 1,000 mm specialised stretching line for a key Indian defence-sector customer.
New orders
- The company secured its first order from South Korea, marking a milestone in international expansion.
What to watch
- Whether operating margin recovers from 19.43% after the 0.49-percentage-point QoQ decline.
- Whether expenses continue to grow faster than revenue after rising +18.87% versus revenue growth of +18.15%.
- Disclosures on progress from the 1,000 mm defence-sector line and the first South Korea order.