Lloyds Engineering Works Limited: LICL up 54%, Techno loss widens

In the first half of financial year 2027 (H1-FY27), Lloyds Engineering Works Limited’s 24.2%-owned associate LICL increased total income 54% year on year to Rs 1,402.3 crore, while wholly owned Techno Industries reported a Rs 16.1 crore profit after tax (PAT) loss, widening from Rs 4.3 crore in H1-FY26.

How did LICL perform in H1-FY27?

LICL increased total income to Rs 1,402.3 crore in H1-FY27 from Rs 911.2 crore in H1-FY26, a 54% increase. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 35% to Rs 200.1 crore from Rs 148 crore. Profit before tax (PBT) increased 20% to Rs 154.6 crore, while PAT rose 15% to Rs 113.8 crore from Rs 99.2 crore.

LICL’s second-quarter growth was faster than its H1 performance on several measures. Q2-FY27 income was Rs 761.5 crore, up 55% from Rs 491.7 crore in Q2-FY26, while EBITDA rose 59% to Rs 106.8 crore. Q2 PAT increased 34% to Rs 59.5 crore from Rs 44.5 crore, exceeding the 15% growth reported for H1 PAT.

LICL’s H1 EBITDA margin was 14.27%, down 197 basis points from 16.24% in H1-FY26 despite higher absolute EBITDA. Its Q2 EBITDA margin was 14.02%, 40 basis points above 13.62% a year earlier. The disclosed quarterly margin therefore improved year on year, whereas the half-year margin remained below the prior-year level.

What order-book visibility does LICL have?

LICL had an order book of about Rs 5,763.7 crore, according to Lloyds Engineering Works’ H1-FY27 presentation. This was the largest disclosed order book among the portfolio entities shown, ahead of SISCOL’s Rs 1,260.1 crore, Techno Industries’ Rs 252.7 crore, Metalfab’s Rs 189.9 crore and Lloyds Advance Defence Systems’ Rs 8.1 crore.

LICL’s disclosed book was more than half of the Rs 10,355.4 crore platform order book reported as at 30 September 2026. Lloyds Engineering Works said the platform book spans engineering, procurement and construction, fabrication, defence and industrial projects. The presentation does not provide LICL’s order book by customer, project category or expected execution period.

LICL is presented as a 24.2% stake associate rather than a consolidated subsidiary. Lloyds Engineering Works recorded Rs 27.5 crore as share of associates in H1-FY27, up from Rs 24 crore in H1-FY26. That 15% increase is the same percentage as LICL’s H1 PAT growth, but the presentation does not provide a LICL-only reconciliation of the share-of-associates line.

Why did Techno Industries’ loss widen in H1-FY27?

The presentation does not state a cause for Techno Industries’ wider loss, but it shows that higher income did not produce a positive operating or net result. Total income increased to Rs 89.9 crore in H1-FY27 from Rs 70.1 crore in H1-FY26, while the EBITDA loss widened to Rs 9.1 crore from Rs 2.4 crore. The PBT loss grew to Rs 15.8 crore from Rs 5.7 crore and the PAT loss increased to Rs 16.1 crore from Rs 4.3 crore.

The deterioration was also evident in Q2-FY27. Techno Industries generated Rs 50.7 crore of income, compared with Rs 37.8 crore in Q2-FY26, but EBITDA moved to a Rs 4.5 crore loss from a Rs 1.2 crore profit. Its Q2 PBT loss was Rs 8.3 crore versus Rs 0.4 crore, and its PAT loss was Rs 9.6 crore compared with Rs 0.1 crore a year earlier.

Techno Industries reported a Rs 252.7 crore order book and said it was receiving orders from Railways and real-estate developers. Lloyds Engineering Works did not disclose Techno Industries’ revenue mix, cost breakdown, margin target or a timetable for returning the business to profitability.

How did other portfolio businesses compare in H1-FY27?

SISCOL, in which Lloyds Engineering Works holds a 51.70% stake, reported H1-FY27 total income of Rs 500.2 crore, EBITDA of Rs 51.1 crore and PAT of Rs 20.3 crore. Its EBITDA margin was 10.22% and its order book stood at Rs 1,260.1 crore. The presentation provides no H1-FY26 comparative data for SISCOL, so no year-on-year movement can be determined from the disclosure.

Metalfab, a 76%-owned business, reported contrasting quarterly and half-year movements. H1-FY27 income rose 134% to Rs 198.2 crore and PAT rose 42% to Rs 21.8 crore, but Q2 income declined 41% to Rs 34 crore and Q2 PAT fell 61% to Rs 4.1 crore. Its H1 EBITDA margin declined 624 basis points to 15.39% from 21.63%, while its reported order book was Rs 189.9 crore.

Lloyds Advance Defence Systems, an 85%-owned business, reported H1-FY27 income of Rs 7.4 crore, EBITDA of Rs 1.2 crore and PAT of Rs 0.9 crore, with a 16.22% EBITDA margin. Its order book was Rs 8.1 crore. The disclosed portfolio therefore includes profitable H1 operations at SISCOL, Metalfab and Lloyds Advance Defence Systems alongside Techno Industries’ Rs 16.1 crore H1 PAT loss.

Conclusion

The portfolio disclosures show different operating outcomes across Lloyds Engineering Works’ holdings. LICL combined Rs 1,402.3 crore of H1 income with Rs 113.8 crore of PAT and a Rs 5,763.7 crore order book, while Techno Industries’ income expansion coincided with wider EBITDA, PBT and PAT losses. Metalfab’s H1 income and PAT increased, but its Q2 results and H1 margin moved lower year on year.

The next results should show whether LICL’s Q2 EBITDA-margin improvement of 40 basis points can extend to the half-year level and whether Techno Industries can translate its Rs 252.7 crore order book into improved operating results. The presentation identifies Railways and real-estate developers as sources of Techno Industries orders but does not disclose an execution schedule or profitability target.