LMW margin improves, but other income drives half of pre-tax profit
Standalone operating profit grew faster than expenses, while a lower tax rate and higher other income lifted quarterly net profit.
Filed 20 May 2026, 17:02 IST · after market close · LMW Ltd (LMW)
Key takeaways
- Standalone operating margin improved 0.37 percentage points year on year as revenue growth of 8.23% exceeded expense growth of 7.78%.
- Other income contributed 49.42% of standalone profit before tax, making the 10.69% rise in net profit less reflective of operating performance alone.
- The stock fell 1.27% in the first session after results, less than its 3.06% median absolute move across the last eight results.
Price around the results
Revenue growth translated into a modest margin gain
Standalone revenue grew 8.23% year on year and 11.34% sequentially, while expenses rose slightly more slowly at 7.78% and 11.16%, respectively. That spread lifted operating profit growth to 13.92% year on year and 13.62% sequentially, taking operating margin up 0.37 percentage points year on year and 0.15 percentage points from Q3FY26. Operating margin has improved in each quarter from 3.75% in Q1FY26 to 7.58% in Q4FY26.
Other income and tax rate shaped reported profit
Other income was 49.42% of standalone profit before tax, so the 10.69% year-on-year increase in net profit included a substantial non-operating contribution. Sequentially, other income rose 111.70%, while the tax rate fell 9.31 percentage points to 23.86%, helping net profit rise 81.60% despite the operating profit increase being 13.62%. Year on year, the tax rate instead rose 2.24 percentage points, limiting the conversion of pre-tax profit growth into net profit.
LMW remains below the Industrials margin median
LMW's standalone operating margin of 7.58% was 8.08 percentage points below the 15.66% median for the 71 Industrials peers that had reported the same quarter. The company ranked seventh from the bottom, even after improving margin for a fourth consecutive quarter.
Initial fall was ordinary against LMW's results history
The stock fell 1.27% on the first session after the results, with volume at 4.17 times its reference level, before gaining 9.13% by day five and 9.61% by day 30. Across the last eight results, the stock rose after one and fell after seven; the initial move was therefore directionally consistent with its usual reaction, while its size was smaller than the 3.06% median absolute move.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹854 cr | ₹767 cr | +11.34% | +8.23% |
| Other income | ₹35 cr | ₹17 cr | +111.70% | +4.84% |
| Expenses | ₹789 cr | ₹710 cr | +11.16% | +7.78% |
| Operating profit | ₹65 cr | ₹57 cr | +13.62% | +13.92% |
| Operating margin (%) | 7.58% | 7.43% | — | — |
| Interest | ₹0 cr | ₹0 cr | — | — |
| Depreciation | ₹29 cr | ₹29 cr | -0.80% | +2.87% |
| Profit before tax | ₹71 cr | ₹45 cr | +59.40% | +13.95% |
| Tax | ₹17 cr | ₹15 cr | +14.67% | +25.76% |
| Net profit | ₹54 cr | ₹30 cr | +81.60% | +10.69% |
| EPS (₹) | ₹50.89 | ₹28.03 | +81.56% | +10.68% |
Operating margin of 7.58% 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 | -1.27% | -1.25% |
| Next session | -1.49% | — |
| 5 sessions | +9.13% | +9.60% |
| 15 sessions | +9.48% | — |
| 30 sessions | +9.61% | — |
Volume on the results session was 4.17× its 20-day average.
What to watch
- Whether standalone operating margin holds above 7.58% after four consecutive quarterly improvements.
- Whether other income remains near or below its 49.42% share of standalone profit before tax.
- Whether revenue growth continues to exceed expense growth, compared with 8.23% and 7.78% year on year in Q4FY26.