LMW margin reaches 9.02% as Q2 profit rises 74.07% YoY
Revenue growth outpaced expense growth, but higher taxes and other income contributing 30.11% of PBT qualify the profit increase.
Filed 21 Oct 2026, 15:05 IST · LMW Ltd (LMW)
Key takeaways
- Consolidated revenue rose +37.72% year on year as expenses grew +32.39%, lifting operating margin by 3.66 percentage points to 9.02%.
- Net profit increased +74.07% year on year to Rs 71.23 cr, but other income contributed 30.11% of pre-tax profit and the tax rate rose 5.04 percentage points.
- The stock fell -4.16% on the next session, a larger move than its 1.27% median absolute reaction across the last eight results.
Price around the results
Revenue growth accelerates operating profit
LMW's consolidated revenue grew +37.72% year on year and +31.50% quarter on quarter to Rs 1,131.87 cr. Expenses grew more slowly, at +32.39% year on year and +29.18% quarter on quarter, so operating profit rose +131.78% year on year and +60.61% sequentially. Operating margin improved to 9.02%, up 3.66 percentage points year on year and 1.63 percentage points from Q1FY27.
Higher tax rate and other income temper profit quality
Pre-tax profit rose +86.71% year on year, but net profit grew a slower +74.07% as the tax rate increased by 5.04 percentage points to 30.53%. Other income fell -24.76% year on year to Rs 30.87 cr, yet still represented 30.11% of pre-tax profit. The same mix was visible sequentially: the tax rate rose 7.52 percentage points even as net profit increased +28.30%.
Margin trend improves, but remains below sector median
Operating margin has risen from 1.98% in Q1FY26 to 9.02% in Q2FY27, with the current quarter marking a further increase from 7.39% in Q1FY27. LMW's margin was 2.01 percentage points below the 11.03% median among 21 reported Industrials peers. The company ranked eighth from the bottom on this measure.
Market reaction was weaker than LMW's usual result-day move
The stock declined -1.79% on the results date and -4.16% in the following session, with the results-day move occurring alongside 19.81 times normal volume. Across the last eight results, the stock rose once and fell seven times, with a median absolute move of 1.27%. The next-session decline was therefore materially larger than its typical reaction.
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 | ₹1,132 cr | ₹861 cr | +31.50% | +37.72% |
| Other income | ₹31 cr | ₹39 cr | -20.03% | -24.76% |
| Expenses | ₹1,030 cr | ₹797 cr | +29.18% | +32.39% |
| Operating profit | ₹102 cr | ₹64 cr | +60.61% | +131.78% |
| Operating margin (%) | 9.02% | 7.39% | — | — |
| Interest | ₹0 cr | ₹0 cr | — | — |
| Depreciation | ₹30 cr | ₹30 cr | +1.23% | +0.90% |
| Profit before tax | ₹103 cr | ₹72 cr | +42.20% | +86.71% |
| Tax | ₹31 cr | ₹17 cr | +88.73% | +123.64% |
| Net profit | ₹71 cr | ₹56 cr | +28.30% | +74.07% |
| EPS (₹) | ₹66.68 | ₹51.97 | +28.30% | +74.10% |
Operating margin of 9.02% compares with a Industrials sector median of 11.03% across 21 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.79% | -1.45% |
| Next session | -4.16% | — |
Volume on the results session was 19.81× its 20-day average.
What to watch
- Whether operating margin holds above 9.02% after its 1.63-percentage-point sequential increase.
- Whether other income remains near its 30.11% share of pre-tax profit.
- Whether the tax rate moves back from 30.53% after rising 7.52 percentage points sequentially.