Lohia Corp Q1 FY27 Results: Revenue Jumps 60%, EBITDA Margin Nears 20%; Order Book at ₹1,778 Crore
Lohia Corp Limited has reported a strong start to FY27, with revenue, profitability and order book showing significant year-on-year improvement. In its Q1 FY27 earnings call held on August 20, 2026, the management highlighted strong domestic demand, healthy order inflows, improving operating efficiency, product innovation and opportunities in technical textiles and recycling machinery.
The company, which recently became listed, said its focus remains on technology, manufacturing capabilities, customer service and long-term growth.
Lohia Corp Q1 FY27 Financial Performance
Lohia Corp reported revenue from operations of ₹503 crore in Q1 FY27, compared with ₹315 crore in the corresponding quarter last year. This represents approximately 60% year-on-year growth.
Profitability improved at a significantly faster pace:
- EBITDA: ₹100 crore vs ₹36 crore YoY
- EBITDA growth: 276%
- EBITDA margin: 19.9% vs 11.5%
- PAT: ₹66 crore vs ₹17 crore
- PAT margin: approximately 13%
According to management, higher volumes, operating leverage, improved efficiencies, pricing discipline and procurement strategies supported the improvement in margins.
The company said it has historically operated with EBITDA margins in the 15%-20% range before the COVID period and currently considers around 20% EBITDA margin as the new normal, subject to business and raw-material conditions.
Order Book Rises to Nearly ₹1,800 Crore
One of the key highlights of the earnings call was the company’s strong order book.
Lohia Corp’s machine order book stood at approximately ₹1,778 crore at the end of June 2026, compared with ₹1,358 crore in March 2026 and ₹603 crore in June 2025, according to the management’s commentary.
This means the order book increased by around 30% from March 2026 and approximately 195% compared with June 2025.
Around 20% of the order book is backed by customer advances, providing additional visibility for execution.
Management said the current order book strength is not necessarily indicative of a peak in the company’s cycle. The company believes increasing applications for woven plastic products and capacity expansion by customers can continue to support demand.
Domestic Market Driving Current Order Book
The current order book is more heavily weighted toward the domestic market, reflecting increased investment by Indian customers.
During Q1 FY27, domestic business contributed around 59% of revenue, while exports accounted for approximately 41%.
Management expects exports to recover over time. Historically, exports have accounted for around 45%-55% of revenue, and the company believes export contribution could stabilize at approximately 50% of revenue and order book going forward.
Lohia Corp supplies machinery to customers across developing markets, where demand for packaging and woven plastic products remains significant.
Management Does Not See Order Book at Peak
During the earnings call, management was asked whether the sharp increase in the order book represented the peak of the current capital expenditure cycle.
The company said it does not believe the current order book represents the peak.
Management explained that investment activity had slowed after the COVID period but has picked up over the past two to three years. Increasing applications for woven plastic products, particularly beyond traditional packaging, are creating additional opportunities.
The company also pointed out that its machinery supports products used in applications such as geotextiles, ground covers, tarpaulins and other non-packaging segments.
Revenue Growth Outlook of 20%-25%
Lohia Corp management indicated that it expects to grow its topline in the range of 20%-25%, supported by increasing applications for its products.
The company also indicated that the existing manufacturing capacity could support approximately ₹2,400-₹2,500 crore of annual revenue, with some balancing of equipment and production capacity.
Major capacity expansion is therefore not immediately required. Management said larger capex would become necessary once the company moves beyond this revenue level.
Capacity Utilisation Around 70%-75%
The company’s current capacity utilisation is around 70%-72%, with an ideal capacity utilisation level of approximately 85%.
Management highlighted the flexibility of its manufacturing setup, where several components can be manufactured across different product lines. The company also has an established vendor base, allowing it to balance internal production with outsourced components.
This flexibility could allow Lohia Corp to increase production without immediately undertaking large-scale capital expenditure.
Capex Remains Relatively Light
Lohia Corp described itself as a relatively asset-light and low-capex business.
Management said the company’s asset turnover is in the range of 3-4 times. Once the business reaches the ₹2,400-₹2,500 crore revenue level, additional capex of approximately ₹80-₹100 crore for every ₹500 crore of incremental turnover could be required.
Any major capacity expansion is currently still some distance away.
The company also indicated that a new capacity expansion could potentially be operational within approximately five to six months, given the availability of adjacent land at its Kanpur facility.
6-9 Month Order Execution Cycle
Lohia Corp currently estimates an average 6-9 month execution period for new machine orders.
The actual timeframe can vary depending on the complexity and configuration of the machinery. Established products can be manufactured more quickly, while newer and more complex equipment may require additional time.
The strong order book therefore provides visibility into revenue execution over the coming quarters.
Innovation and New Product Launches
Lohia Corp continued to strengthen its product portfolio during Q1 FY27.
The company launched several products, including:
- Multi-layer coating line
- CoEx 1600 for high-barrier flexible packaging applications
- Nova 6 Plus high-speed six-shuttle circular loom
- 1-loop and 2-loop FIBC cutting bag machine
- Back-cutting machine
The Nova 6 Plus offers maximum weft insertion speeds of up to 1,150 picks per minute, according to the company.
Management said these product launches are aimed at improving productivity, increasing automation and expanding the company’s addressable market.
New Opportunities in Recycling Machinery
Lohia Corp is also expanding beyond its traditional woven plastics machinery business.
The company has recently entered the polyolefin recycling machinery segment. At present, recycling is a relatively small contributor to revenue, but management believes it could become a more meaningful business over time.
The company is currently not involved in polyester recycling, although management indicated that it has aspirations to enter that segment in the future.
Other adjacent opportunities under evaluation include shredding and granulating lines, along with other areas of plastic machinery.
Revenue Mix: Machinery Remains the Core Business
Management indicated that approximately:
- 80%-85% of revenue comes from machinery for the plastic woven industry
- 10%-12% comes from spare parts
- Around 5%-6% comes from newer initiatives
The company expects the newer businesses to gradually become more material contributors to revenue.
After-Sales Business Provides Recurring Opportunity
The company’s installed machinery base also creates an opportunity for recurring spare-parts revenue.
Management indicated that for a plant involving approximately ₹100 crore of machinery investment, annual spare-parts requirements could be around 2%-3% of the plant value after commissioning.
Importantly, machinery has a long operating life, meaning spare-parts requirements can continue for many years.
The company said spare-parts gross margins are approximately 2%-3% higher than machinery gross margins, providing an attractive recurring component to the business model.
Export Pricing and Global Competition
Lohia Corp continues to compete with Chinese and European machinery manufacturers.
Management said the company’s selling prices in export markets are generally 10%-15% higher than domestic pricing, although export margins can be affected by freight and agency commissions.
Against Chinese competitors, the company said it commands a premium of approximately 15%-20%, supported by technology, quality and service.
Management identified China as a significant competitive force but highlighted after-sales service as an important differentiator for Lohia Corp.
R&D Investment to Remain Around 3%
Lohia Corp continues to focus on innovation and technology development.
Management said R&D expenditure has been around 3% of revenue and expects this level to remain the average going forward.
The company is working on technologies related to automation and IoT, including potential future products that management described as potentially significant additions to the portfolio.
Specific details were not disclosed because the projects remain under development.
Customer Service and Training Initiatives
Lohia Corp is also strengthening its post-sales capabilities.
During the quarter, the company established a virtual remote assistance centre in Kanpur, allowing technical teams to provide customers with real-time audio and video support.
The initiative is expected to help reduce machine downtime and improve response times.
The company’s Technical Training and Research Centre also introduced a three-month residential training and certification programme for operators of block-bottom bag machines.
This reflects the company’s broader strategy of supporting customers beyond the initial machine sale through technology, training, service and spare parts.
Replacement Cycle Could Become a Larger Opportunity
Currently, only around 3%-5% of the order book comes from replacement demand, with the majority linked to new capacity expansion by customers.
However, management expects replacement demand to increase over time.
Lohia Corp said its machines can have a useful life of around 20-25 years, depending on maintenance. Given the company’s long operating history in India and international markets, management sees a growing opportunity as older machinery reaches replacement age.
This replacement opportunity also exists in international markets, where the company has been exporting since the early 2000s.
Working Capital and Balance Sheet
Lohia Corp’s net working capital cycle stood at approximately 81 days at the end of Q1 FY27, compared with 84 days at the end of FY26.
Management said it continues to focus on inventory, receivables and customer advances to support growth while maintaining financial discipline.
The company also highlighted that it remains net debt-negative, providing financial flexibility for future growth investments.
Key Takeaways from Lohia Corp Q1 FY27 Earnings Call
Lohia Corp’s first earnings call as a listed company highlighted several important factors for investors:
Strong financial growth: Revenue increased 60% YoY to ₹503 crore, while EBITDA rose 276% to ₹100 crore.
Healthy profitability: EBITDA margin improved to 19.9%, with management targeting around 20% going forward.
Strong order visibility: Order book stood at approximately ₹1,778 crore, up sharply from both March and June 2025 levels.
Growth runway: Management expects 20%-25% topline growth and does not believe the current order cycle has peaked.
Capacity headroom: Existing facilities can potentially support ₹2,400-₹2,500 crore of revenue.
Export recovery opportunity: Exports, historically accounting for 45%-55% of revenue, are expected to regain importance.
New growth areas: Recycling machinery, automation, IoT and adjacent plastic machinery categories offer additional opportunities.
Recurring revenue: Spare parts provide an ongoing revenue stream with slightly higher gross margins.
Replacement cycle: A potentially larger replacement opportunity could emerge as the company’s installed machinery base ages.
Outlook
Lohia Corp enters FY27 with a strong order book, improved profitability and significant capacity headroom. The company’s strategy is centered on increasing productivity, expanding its technology portfolio, improving automation, strengthening customer support and entering adjacent markets such as recycling machinery.
The combination of a nearly ₹1,800 crore order book, 20%-25% targeted topline growth, around 20% internal EBITDA margin target and existing capacity of ₹2,400-₹2,500 crore provides a positive operating backdrop.
At the same time, investors will need to monitor commodity prices, currency movements, global competition, export recovery and the cyclical nature of capital expenditure in the technical textile machinery industry.
This article is based on the company’s Q1 FY27 earnings conference call transcript dated August 20, 2026. The management comments and outlook discussed above are subject to business, economic and market risks and should not be considered investment advice.