LMW profit jumps YoY as operating margin slips sharply QoQ
The consolidated result benefited from a lower tax rate, but operating margin was 6.16 percentage points below the Industrials peer median.
Filed 24 Jul 2026, 14:00 IST · LMW Ltd (LMW)
Key takeaways
- Consolidated net profit rose +384.05% YoY to Rs 55.52 cr as revenue grew +24.00% while expenses grew +17.16%.
- Sequentially, revenue fell -7.76% and operating margin narrowed 0.09 percentage points as expenses fell -7.67%.
- Other income contributed 53.53% of pre-tax profit, making the Rs 55.52 cr profit less purely operating.
Price around the results
Year-on-year profit recovery was led by operating leverage
Revenue grew +24.00% YoY, while expenses rose +17.16%, lifting operating margin by 5.41 percentage points. The lower tax rate, at 23.01% versus 41.27% a year earlier, further amplified net profit growth. Other income was 53.53% of pre-tax profit, so earnings quality was not entirely operating-led.
Sequential momentum weakened slightly after Q4FY26
Revenue declined -7.76% QoQ, while expenses fell -7.67%, meaning costs contracted less than revenue. Operating margin narrowed 0.09 percentage points, and the tax rate rose 4.82 percentage points to 23.01%, contributing to the -12.83% fall in net profit.
LMW remains below the Industrials margin benchmark
LMW's operating margin of 7.39% was 6.54 percentage points below the 13.93% median for 112 Industrials companies that had reported the quarter. It stood 20th from the bottom among those reported peers, despite improving 5.41 percentage points from Q1FY26.
The initial stock reaction was milder than its usual results-day move
The stock fell -1.07% on the results day, with a -0.47% opening gap. After the previous eight results, it declined seven times and recorded a median absolute move of 2.96%, making this initial fall smaller than its typical reaction.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹861 cr | ₹933 cr | -7.76% | +24.00% |
| Other income | ₹39 cr | ₹38 cr | +0.89% | +9.32% |
| Expenses | ₹797 cr | ₹863 cr | -7.67% | +17.16% |
| Operating profit | ₹64 cr | ₹70 cr | -8.91% | +362.33% |
| Operating margin (%) | 7.39% | 7.48% | — | — |
| Interest | ₹0 cr | ₹0 cr | — | — |
| Depreciation | ₹30 cr | ₹30 cr | -0.46% | +1.79% |
| Profit before tax | ₹72 cr | ₹78 cr | -7.37% | +269.23% |
| Tax | ₹17 cr | ₹14 cr | +17.16% | +105.83% |
| Net profit | ₹56 cr | ₹64 cr | -12.83% | +384.05% |
| EPS (₹) | ₹51.97 | ₹59.61 | -12.82% | +383.89% |
Operating margin of 7.39% compares with a Industrials sector median of 13.93% across 112 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.07% | -0.65% |
| Next session | +1.29% | — |
| 5 sessions | +1.37% | -0.79% |
Volume on the results session was 12.14× its 20-day average.
What to watch
- Whether operating margin holds above 7.39% after the 0.09-point sequential decline.
- Whether other income's 53.53% share of pre-tax profit reduces in the next quarter.
- Whether expenses continue to grow slower than revenue, as they did at +17.16% versus +24.00% YoY.