LMW's ATC backlog surges, machine tool margins lag
Q1 revenue jumped 24% to ₹891 crore, but management flagged margin pressure in the machine tool segment with no recovery timeline.
— 1 earlier story on LMW Ltd. →What's new
- Q1 revenue up 24% YoY to ₹891 crore, PBT up 151%.
- ATC backlog surged to ₹1,000 crore from ₹360 crore; TMD order book at ₹3,200 crore (₹2,400 crore active).
- Management flagged margin pressure in machine tools, no recovery timeline.
Why this matters
The ATC backlog tripling signals strong demand in aerospace and defence, but the machine tool margin compression and lack of visibility cloud the near-term. The diversification resolution adds optionality but remains early. The call largely reaffirmed known numbers, so a re-rating catalyst is limited.
What we're watching
- ATC execution and margin trajectory.
- Machine tool margin recovery timeline or cost actions.
- Any progress on pharma, chemicals, and EV diversification.
The full read
LMW's Q1 delivered strong top-line growth: revenue up 24% to ₹891 crore and profit before tax surging 151%. But the real story is in the order backlog. The advanced technology centre (ATC) backlog jumped to ₹1,000 crore from ₹360 crore, a near-tripling that signals strong aerospace and defence demand. The textile machinery division (TMD) holds ₹3,200 crore in orders, ₹2,400 crore of which are active and backed by deposits. Yet the machine tool segment is bleeding margins, and management offered no timeline for a fix. No timeline. That's the problem. A new enabling resolution to explore pharma, chemicals, and EVs adds optionality but is early-stage. The call adds colour to familiar numbers — the next test is execution on the ATC backlog and whether machine tool margins stabilise.
Questions answered
- How large is the ATC backlog now compared to before?
- The ATC order book jumped to ₹1,000 crore from ₹360 crore in the prior quarter, reflecting strong demand in aerospace and defence.
- What caused the margin pressure in the machine tool segment?
- Management flagged margin compression but did not provide a recovery timeline. The specific factors were not detailed in the call.
- What is the new enabling resolution about?
- The board passed a resolution to explore diversification into pharma, specialty chemicals, and electric vehicles, but no concrete plans have been announced.
- How does the TMD order book compare to the prior quarter?
- The TMD order book stands at ₹3,200 crore with ₹2,400 crore in active orders, compared to an overall order book of ₹3,300 crore as of May 2026.
- Did management provide any formal guidance for FY27?
- No formal revised guidance was issued. The call largely elaborated on already-released Q1 results and offered qualitative commentary.
LMW Ltd.
Latest quarter · Jun 2026
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All notes on LMW →- 27 Jul 2026 · 5:02 PM IST LMW's ATC backlog surges, machine tool margins lag
- 68d ago LMW locks in ₹3,300 cr order book, execution is the test