Lloyds Engineering profit jumps, but other income remains material
Revenue growth outpaced expenses and lifted operating margin sequentially, though the margin stayed below the Industrials peer median.
Filed 06 Aug 2026, 16:23 IST · after market close · Lloyds Engineering Works Ltd (LLOYDSENGG)
Key takeaways
- Consolidated net profit rose 127.21% year on year to Rs 68.23 cr, while revenue increased 142.92% to Rs 527.15 cr.
- Operating margin improved 0.19 percentage points sequentially to 12.55% as revenue growth of 6.49% exceeded expense growth of 6.26%.
- Other income contributed 31.92% of pre-tax profit, while the sequential tax-rate decline of 13.63 percentage points also lifted net profit.
Price around the results
Revenue growth lifted operating profit
Lloyds Engineering Works reported consolidated revenue growth of 142.92% year on year and 6.49% sequentially in Q1FY27. Expenses grew 141.99% year on year and 6.26% sequentially, allowing operating profit to rise 149.53% year on year and 8.14% sequentially. The result was an operating-margin improvement of 0.33 percentage points year on year and 0.19 percentage points sequentially.
Other income and tax rate shaped profit quality
Other income accounted for 31.92% of pre-tax profit, making it a material contributor to reported earnings. The tax rate fell 13.63 percentage points sequentially to 16.91% and 13.19 percentage points year on year, supporting the 46.76% sequential and 127.21% year-on-year increase in net profit. Interest expense fell 11.17% sequentially but rose 36.4% year on year.
Margin recovered from Q4 but trails sector median
Operating margin recovered from 12.36% in Q4FY26 to 12.55% in Q1FY27, reversing the prior-quarter decline from 19.42% in Q3FY26. It remained 1.65 percentage points below the 14.2% median among 67 Industrials peers that had reported the quarter. The latest margin was also below the 15.36% recorded in Q2FY26.
No market reaction yet after the after-close filing
The consolidated results were filed after market close, so there is no post-result stock reaction to assess yet. Across the last eight results, the stock rose after three and fell after five, with a median absolute move of 3.67%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹527 cr | ₹495 cr | +6.49% | +142.92% |
| Other income | ₹26 cr | ₹16 cr | +60.70% | +18.97% |
| Expenses | ₹461 cr | ₹434 cr | +6.26% | +141.99% |
| Operating profit | ₹66 cr | ₹61 cr | +8.14% | +149.53% |
| Operating margin (%) | 12.55% | 12.36% | — | — |
| Interest | ₹3 cr | ₹4 cr | -11.17% | +36.40% |
| Depreciation | ₹7 cr | ₹7 cr | +1.45% | +118.81% |
| Profit before tax | ₹82 cr | ₹67 cr | +22.70% | +91.15% |
| Tax | ₹14 cr | ₹20 cr | -32.05% | +7.42% |
| Net profit | ₹68 cr | ₹46 cr | +46.76% | +127.21% |
| EPS (₹) | ₹0.47 | ₹0.34 | +38.24% | +88.00% |
Operating margin of 12.55% compares with a Industrials sector median of 14.20% across 67 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +9.93% | +10.19% |
Volume on the results session was 5.39× its 20-day average.
What to watch
- Whether operating margin holds above 12.55% after the 19.42% level in Q3FY26.
- Whether other income remains below or above its 31.92% share of pre-tax profit.
- Whether the tax rate stays near 16.91% rather than returning towards Q4FY26's 30.54%.