Lloyds Engineering Works: H1 Revenue Doubles, Margin Falls

Lloyds Engineering Works Limited reported H1-FY27 consolidated revenue of Rs 1,120.7 crore, up 110% year on year, while its EBITDA margin fell 288 basis points to 13.84% from 16.72% as manufacturing, construction and operating expenses increased 123% to Rs 884.5 crore.

What drove Lloyds Engineering Works' H1-FY27 revenue growth?

Lloyds Engineering Works generated Rs 1,120.7 crore of consolidated revenue in H1-FY27, compared with Rs 533.7 crore in H1-FY26. The 110% increase exceeded the 72% rise in reported earnings before interest, tax, depreciation and amortisation (EBITDA), which reached Rs 158.8 crore from Rs 92.1 crore. Other income increased 59% to Rs 27.1 crore from Rs 17 crore over the same period.

The second quarter accounted for Rs 593.6 crore of H1-FY27 revenue, up 87% from Rs 316.7 crore in Q2-FY26 and 13% from Rs 527.2 crore in Q1-FY27. Q2 EBITDA was Rs 78.8 crore, 39% above Rs 56.9 crore a year earlier but 1% below Rs 79.2 crore in Q1-FY27. Thus, revenue increased sequentially in Q2 while EBITDA was marginally lower.

Why did Lloyds Engineering Works' EBITDA margin decline?

Lloyds Engineering Works reported manufacturing, construction and operating expenses of Rs 884.5 crore in H1-FY27, up 123% from Rs 397.5 crore in H1-FY26. That increase was faster than the 110% rise in revenue. Employee expense rose 74% to Rs 73.6 crore, while sales, administration and other expenses rose 65% to Rs 30.9 crore.

The reported consolidated EBITDA margin was 13.84% in H1-FY27, versus 16.72% a year earlier. The 288-basis-point reduction means a 2.88-percentage-point change, as one basis point equals one-hundredth of a percentage point. In Q2-FY27, the margin was 12.97%, down 500 basis points from 17.97% in Q2-FY26 and 169 basis points from 14.66% in Q1-FY27.

Depreciation rose 113% to Rs 19 crore in H1-FY27, and interest rose 105% to Rs 12.9 crore. Both increased faster than EBITDA, which was up 72%. Profit before tax nevertheless increased 65% to Rs 126.9 crore, while tax increased 72% to Rs 28.4 crore and profit after tax rose 61% to Rs 98.5 crore.

How did Lloyds Engineering Works perform in Q2-FY27?

Lloyds Engineering Works reported Q2-FY27 revenue of Rs 593.6 crore, Rs 66.4 crore higher than Q1-FY27, but Q2 EBITDA of Rs 78.8 crore was Rs 0.4 crore below the preceding quarter. This movement coincided with EBITDA margin declining to 12.97% in Q2 from 14.66% in Q1. The Q2 margin was also below the H1-FY27 level of 13.84%.

Q2 profit after tax was Rs 43.4 crore, down 1% from Rs 43.6 crore in Q2-FY26 and down 21% from Rs 55.1 crore in Q1-FY27. Profit after tax including associates was Rs 57.8 crore, up 7% year on year but down 15% sequentially from Rs 68.2 crore. Share of associates was Rs 14.4 crore in Q2, compared with Rs 10.8 crore a year earlier and Rs 13.1 crore in Q1.

Manufacturing, construction and operating expenses were Rs 465.4 crore in Q2-FY27, up 97% year on year and 11% from Rs 419.8 crore in Q1. Employee expense reached Rs 43.1 crore, increasing 97% year on year and 41% sequentially. Sales, administration and other expenses rose 95% year on year and 90% sequentially to Rs 20.3 crore.

How did standalone operations and subsidiaries compare?

Lloyds Engineering Works' standalone business reported H1-FY27 revenue of Rs 718.1 crore, up 72% from Rs 418.4 crore, and EBITDA of Rs 122.1 crore, up 56% from Rs 78.2 crore. Its EBITDA margin was 16.33%, down 167 basis points from 18.00%. The standalone margin decline was smaller than the consolidated reduction of 288 basis points, while the standalone margin remained 249 basis points above the consolidated result.

Standalone profit after tax increased 72% to Rs 87.2 crore from Rs 50.8 crore in H1-FY26. The standalone profit-after-tax margin was 11.67%, compared with 11.69% a year earlier. In Q2-FY27, standalone revenue was Rs 362.3 crore and EBITDA was Rs 62.2 crore, resulting in a 16.49% EBITDA margin, 148 basis points below Q2-FY26.

The consolidation includes Lloyds Engineering Works, Techno Industries, Metalfab, Lloyds Advance Defence Systems and SISCOI. Techno Industries reported an H1-FY27 EBITDA loss of Rs 9.1 crore, compared with a Rs 2.4 crore loss in H1-FY26, despite revenue rising to Rs 89.9 crore from Rs 70.1 crore. Metalfab reported H1 revenue of Rs 198.2 crore, up 134%, while its EBITDA margin declined 624 basis points to 15.39%.

What should readers watch in Lloyds Engineering Works' next results?

Lloyds Engineering Works' next results will show whether the Q2 movement in costs and margin persists. The company reported Q2 manufacturing, construction and operating expenses of Rs 465.4 crore against revenue of Rs 593.6 crore, while consolidated EBITDA margin was 12.97%. Techno Industries' EBITDA result is also relevant because its H1 loss widened to Rs 9.1 crore from Rs 2.4 crore.

Management disclosed that a new high-tension motor line at Techno Industries' Vatva facility is scheduled to be live in FY27. The presentation also states that the Ahmedabad unit is expanding from 10,000 square metres to 60,000 square metres. These are disclosed operating plans, not revenue or margin guidance.

Techno Industries had an order book of Rs 252.7 crore as of 30 September 2026, while SISCOI had an order book of Rs 1,260.1 crore. Metalfab reported an order book of Rs 189.9 crore, and Lloyds Advance Defence Systems reported Rs 8.1 crore. The presentation identifies these amounts as order books rather than forecast revenue.

Conclusion

Lloyds Engineering Works combined a 110% increase in H1-FY27 consolidated revenue with a 72% increase in EBITDA and a 61% increase in profit after tax. However, manufacturing, construction and operating expenses rose 123%, faster than revenue, and the EBITDA margin fell to 13.84%; the Q2 margin of 12.97% was lower than both Q1-FY27 and Q2-FY26.

The next items to watch are the execution of the FY27 high-tension motor-line plan at Techno Industries, the Ahmedabad expansion from 10,000 to 60,000 square metres, and subsequent movement in Techno Industries' loss and consolidated costs. The disclosed order books as of 30 September 2026 provide pipeline context, but the presentation gives no revenue or profitability target for their conversion.