Lloyds Engineering revenue more than doubled, but margin fell sharply
Costs grew faster than revenue, while the tax rate and other income supported net profit; the stock rose 1.92% on results day.
Filed 05 May 2026, 14:21 IST · Lloyds Engineering Works Ltd (LLOYDSENGG)
Key takeaways
- Consolidated revenue grew 113.41% year on year, but expenses rose faster at 119.89%, narrowing operating margin by 2.58 percentage points.
- Sequential operating margin fell 7.06 percentage points to 12.36% after reaching 19.42% in Q3FY26.
- Net profit rose 137.80% year on year to Rs 46.49 cr, helped by a lower 30.54% tax rate and other income equal to 24.37% of pre-tax profit.
Price around the results
Revenue growth came with a margin setback
Consolidated revenue increased 113.41% year on year and 81.69% sequentially, but expenses grew faster in both comparisons. That cost gap reduced operating margin by 2.58 percentage points year on year and 7.06 percentage points from Q3FY26. Operating profit still grew 76.49% year on year, but fell short of the pace of revenue growth.
Other income and tax supported reported profit
Other income was 24.37% of pre-tax profit, making it a material contributor to reported earnings. The year-on-year tax rate fell 9.26 percentage points to 30.54%, which supported the 137.80% rise in net profit. Sequentially, the tax rate increased 17.01 percentage points and net profit declined 30.30%, despite revenue growth.
Margin retreated after two quarters of expansion
Operating margin moved from 12.22% in Q1FY26 to 15.36% in Q2FY26 and 19.42% in Q3FY26 before falling to 12.36% in Q4FY26. The latest margin was also below the 15.66% median for 71 reported Industrials peers, by 3.30 percentage points. This makes the sequential margin reversal more important than the headline revenue growth.
The stock's initial move was modest versus its history
The stock rose 1.92% on the results date, with a 2.33 times volume ratio, and was up 15.49% after five sessions. The same-day move was smaller than the 3.76% median absolute move after the company's previous eight results. Its past reaction was negative in six of those eight instances, so the initial gain differed in direction from the usual pattern.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹495 cr | ₹272 cr | +81.69% | +113.41% |
| Other income | ₹16 cr | ₹35 cr | -52.86% | +328.08% |
| Expenses | ₹434 cr | ₹220 cr | +97.63% | +119.89% |
| Operating profit | ₹61 cr | ₹53 cr | +15.59% | +76.49% |
| Operating margin (%) | 12.36% | 19.42% | — | — |
| Interest | ₹4 cr | ₹4 cr | -8.48% | +23.15% |
| Depreciation | ₹7 cr | ₹6 cr | +8.01% | +128.57% |
| Profit before tax | ₹67 cr | ₹77 cr | -13.24% | +106.07% |
| Tax | ₹20 cr | ₹10 cr | +95.79% | +58.08% |
| Net profit | ₹46 cr | ₹67 cr | -30.30% | +137.80% |
| EPS (₹) | ₹0.34 | ₹0.51 | -33.33% | +112.50% |
Operating margin of 12.36% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.92% | +2.28% |
| Next session | -0.77% | — |
| 5 sessions | +15.49% | +18.56% |
| 15 sessions | +31.82% | — |
| 30 sessions | +50.10% | — |
Volume on the results session was 2.33× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 12.36% after the Q4FY26 decline.
- Whether other income remains below its 24.37% share of pre-tax profit.
- Whether the tax rate stays near or below 30.54%.