Lloyds Engineering revenue jumps, but costs cut margin to 11.04%
Expenses grew faster than revenue both year on year and sequentially, while higher interest and tax rates limited profit growth.
Filed 02 Nov 2026, 23:34 IST · after market close · Lloyds Engineering Works Ltd (LLOYDSENGG)
Key takeaways
- Consolidated revenue rose 87.44% year on year, but expenses grew faster at 97.01%, cutting operating margin by 4.32 percentage points to 11.04%.
- Net profit increased only 6.29% year on year as interest expense rose 147.06%, the tax rate increased 13.29 percentage points and other income contributed 39.31% of pre-tax profit.
- Sequentially, revenue grew 12.60% but net profit fell 15.33% because expenses rose 14.54% and interest expense jumped 196.32%.
Price around the results
Revenue growth did not translate into comparable profit growth
Lloyds Engineering Works reported consolidated revenue growth of 87.44% year on year in Q2FY27, but operating profit rose only 34.71%. The gap reflects expenses growing 97.01%, while net profit increased just 6.29% to Rs 57.77 cr. On a sequential basis, revenue rose 12.60%, but net profit declined 15.33%.
Costs, interest and tax weakened the quarter
Operating margin fell 4.32 percentage points year on year and 1.51 percentage points sequentially because costs grew faster than revenue in both comparisons. Interest expense rose 147.06% year on year and 196.32% sequentially, while the tax rate increased 13.29 percentage points year on year and 2.56 percentage points sequentially. Other income accounted for 39.31% of pre-tax profit, so reported profit also had a meaningful non-operating contribution.
Margin remains below the recent peak and sector median
The operating margin has stayed below the 19.42% recorded in Q3FY26, moving from 12.36% in Q4FY26 and 12.55% in Q1FY27 to 11.04% in Q2FY27. Lloyds Engineering's margin was 0.45 percentage points below the 11.49% median among 89 Industrials peers that had reported the quarter. The current margin ranked 45th from the bottom in that comparison.
Results were filed after market close
The consolidated results were filed after market close, so there is no market reaction to report for this quarter. Across the eight prior result reactions, the stock rose four times and fell four times, with a median absolute move of 3.67%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹594 cr | ₹527 cr | +12.60% | +87.44% |
| Other income | ₹28 cr | ₹26 cr | +8.39% | +49.84% |
| Expenses | ₹528 cr | ₹461 cr | +14.54% | +97.01% |
| Operating profit | ₹66 cr | ₹66 cr | -0.97% | +34.71% |
| Operating margin (%) | 11.04% | 12.55% | — | — |
| Interest | ₹10 cr | ₹3 cr | +196.32% | +147.06% |
| Depreciation | ₹12 cr | ₹7 cr | +71.63% | +108.35% |
| Profit before tax | ₹72 cr | ₹82 cr | -11.98% | +24.77% |
| Tax | ₹14 cr | ₹14 cr | +1.30% | +293.02% |
| Net profit | ₹58 cr | ₹68 cr | -15.33% | +6.29% |
| EPS (₹) | ₹0.38 | ₹0.47 | -19.15% | -7.32% |
Operating margin of 11.04% compares with a Industrials sector median of 11.49% across 89 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 11.04% after the sequential 1.51-percentage-point decline.
- Whether expense growth slows from 14.54% sequentially relative to revenue growth of 12.60%.
- Whether interest expense falls from Rs 9.66 cr after its 196.32% sequential increase.