Fresh investment proposals are emerging, aided by textile incentive schemes announced by States such as Gujarat, Odisha and Madhya Pradesh
LMW Ltd (formerly Lakshmi Machine Works Ltd), the Coimbatore-based textile machinery, CNC machine tools, precision castings and aerospace component manufacturer, expects a gradual recovery in demand for textile machinery, supported by new State policies, improving spinning mill economics and implementation of free trade agreements (FTAs). The company also flagged rising manufacturing costs.Speaking during the company’s post-results analyst call, Chief Financial Officer V Senthil said the textile machinery division (TMD) has a healthy order book of ₹3,200 crore, of which ₹2,400 crore comprises active orders backed by customer advances.“The order book is secure because we consider only orders backed by a 10 per cent advance. While the market has not returned to the strong investment cycle seen two to three years ago, we are witnessing encouraging signs of recovery,” he said.Investment proposalsFresh investment proposals are emerging, aided by textile incentive schemes announced by States such as Gujarat, Odisha and Madhya Pradesh. The Gujarat policy, in particular, has extended incentives to spinning units, which the company believes will stimulate new investments.“The recovery may not be sharp, but we expect a gradual increase in spindle installations. Textile companies cannot continue operating with low investments for several years. Modernisation will eventually become necessary to remain cost competitive,” he said.Senthil also said that higher raw material, logistics and energy costs have increased manufacturing expenses by around 3-3.5 per cent, driven by higher prices for imported components, fuel and industrial gases.The company is mitigating the impact through localisation, cost optimisation and selective price revisions, he said.Net profitLMW reported a five-fold increase in consolidated net profit for the first quarter ended June 30, 2026. Net profit rose to ₹55 crore from ₹11 crore in the corresponding quarter last year, while revenue increased 24 per cent to ₹861 crore, compared with ₹694 crore a year earlier.On LMW’s earlier disclosed plans to foray in to sectors like EVs, renewables, robotics and pharma sectors, the CFO clarified that the proposal to amend the objects clause of its Memorandum of Association to enter multiple new sectors is only an enabling resolution and does not indicate any immediate diversification plans.Responding to analysts’ questions on the rationale for including businesses such as pharmaceuticals and speciality chemicals, Senthil reiterated that the amendment is intended to provide legal flexibility to evaluate future opportunities. As of now, it is an enabling resolution through which they are looking at multiple options.If any proposal becomes significant, it will be announced and disclosed to shareholders, he further added.Published on July 29, 2026
