Major Indian textile machinery manufacturer LMW Ltd recorded a five-fold hike in consolidated net profit for the first quarter of fiscal 2027.
For the quarter ended June 30, 2026, net profit rose to Rs 55 crore from Rs 11 crore in the same quarter of last year, while revenue surged 24% year on year to Rs 861 crore.
The company’s finance chief, V Senthil, addressed investors on a call held after quarterly earnings were released, offering details on the health of its textile machinery unit.
He pegged the division’s overall pending orders at Rs 3,200 crore, adding that Rs 2,400 crore of that pool qualifies as verified orders because customers have already paid deposits against those contracts.
According to Senthil, the firm treats a 10% advance payment as the threshold for classifying an order as dependable, which is why it separates that portion out when reporting backlog numbers.
He was candid that spending by textile players still lags behind the peak levels of two to three years prior, though he pointed to a number of positive indicators suggesting the downturn is bottoming out.
A key driver behind this shift, he said, is a wave of state-level incentive programs — citing Gujarat, Odisha, and Madhya Pradesh as examples — that are encouraging manufacturers to consider new capacity investments.
He singled out Gujarat’s policy for now including spinning units within its incentive framework, calling it a likely catalyst for additional orders in that segment.
Senthil tempered expectations by saying the turnaround would likely unfold gradually rather than in a sudden burst, with spindle installation numbers rising incrementally.
He closed by noting that textile firms have a limited runway before deferred capital spending starts hurting their competitiveness, making modernization an inevitable step rather than an optional one.
Image courtesy: Hindu Business Line
