Union Budget 2026: How Key Allocations & Reforms Impact LMW Ltd's Growth Trajectory

LMW Limited, a prominent manufacturer of textile machinery, CNC machine tools, and castings, is strategically positioned to benefit from several key announcements in the Union Budget 2026. With a dominant 70% domestic market share in textile machinery and a robust order book of ₹2700 crore, the company's growth trajectory is closely tied to government policy and capital expenditure. The budget, presented by Finance Minister Nirmala Sitharaman, emphasizes sustained economic growth, 'Atmanirbharata' (self-reliance), and a significant push for manufacturing and infrastructure, creating a favorable environment for LMW.

Infrastructure and Capital Expenditure Surge

The Union Budget 2026 proposes a substantial increase in public capital expenditure, rising from ₹11.2 lakh crore in BE 2025-26 to ₹12.2 lakh crore for FY 2026-27. This 10% increase in capital outlay is a direct tailwind for LMW's CNC machine tools and castings divisions. Large-scale infrastructure projects, including highways, railways, airports, and urban utilities, necessitate advanced machinery and precision components, areas where LMW holds significant expertise. The government's commitment to developing infrastructure in Tier 2 and Tier 3 cities, which are expanding as growth centers, further amplifies demand for capital goods.

Additionally, the budget's focus on strengthening capital goods capability, including the establishment of high-tech tool rooms by central public sector enterprises, will drive demand for high-precision components. LMW's role in supplying advanced machine tools and castings positions it as a key beneficiary of this national push for manufacturing excellence and infrastructure development.

Boost for the Textile Manufacturing Sector

LMW's core business in textile machinery stands to gain significantly from the integrated program proposed for the labor-intensive textile sector. This program includes five sub-parts, notably the