L.G. Balakrishnan & Bros Limited has released its Annual Report for the financial year ended March 31, 2026, marking its 70th year of operations. The Coimbatore-headquartered company, a leading manufacturer of Automotive and Industrial Chains, Sprockets, Tensioners, Fine Blanking, Forging, Precision Machined Parts, Rubber Parts, Engine Assembly, and Sub-Assemblies, reported strong growth across both standalone and consolidated financials, underpinned by robust operational performance and sustained investments in renewable energy and sustainability.

Financial Performance

On a consolidated basis, the company delivered strong topline and bottomline growth. The following table summarises the key financial highlights:

On a standalone basis, profit before tax stood at ₹41,061.54 lakhs against ₹36,750.76 lakhs in the previous year. The company transferred ₹25,000 lakhs to General Reserves from current year profits.

Segment-Wise Performance

The company operates through two primary business segments. On a consolidated basis, segment revenues were as follows:

On a standalone basis, the Transmission segment contributes 83.30% of turnover, while Metal Forming accounts for 16.70%. Exports contribute approximately 11.58% of total standalone turnover, with products reaching approximately 30 countries.

Dividend and Capital Structure

The Board of Directors has recommended a dividend of ₹22/- per equity share (face value ₹10/- each), representing 220% on the 3,18,92,416 equity shares outstanding, subject to shareholder approval at the 70th Annual General Meeting scheduled for August 26, 2026. The paid-up equity share capital stands at ₹31,89,24,160/-. The record date for dividend eligibility is August 19, 2026, and payment is expected on or before September 18, 2026.

Key Financial Ratios

The following key ratios were reported for the standalone entity:

Foreign Exchange and R&D

The company's foreign exchange earnings rose to ₹32,117.03 lakhs in FY 2025-26 from ₹28,285.69 lakhs in FY 2024-25, while foreign exchange outgo increased to ₹14,775.87 lakhs from ₹8,999.61 lakhs. Total expenditure on Research and Development amounted to ₹1,033.72 lakhs (including capital and recurring expenses).

Environmental Performance

The company demonstrated significant progress in renewable energy adoption. Total renewable energy consumption rose to 75,020 GJ in FY 2025-26 from 43,700 GJ in FY 2024-25, driven by windmill (30,880 GJ) and solar (44,140 GJ) generation. Total renewable energy units for production increased from 130.51 lakh units to 217.00 lakh units. The company operates 22 windmills and solar installations with a combined capacity of 10.50 MW.

Total water withdrawal increased to 3,25,376.33 kiloliters from 2,39,607.3 kiloliters. The company has implemented Zero Liquid Discharge (ZLD) systems across all manufacturing facilities, with total water discharged reported as zero. GHG emissions data is summarised below:

Total waste generated was 43,019.83 metric tonnes in FY 2025-26 compared to 26,078.06 metric tonnes in FY 2024-25, of which 39,818.72 metric tonnes were recovered through recycling or reuse.

Workforce and Governance

As at the end of FY 2025-26, the company's total workforce comprised 3,729 employees and 10,966 workers. The Board of Directors comprises 10 members, of whom 3 (30%) are female. The permanent employee turnover rate declined to 15% from 19% in FY 2024-25. Well-being expenditure as a percentage of total revenue stood at 0.79% in FY 2025-26, compared to 0.11% in FY 2024-25.

The company reported zero monetary and non-monetary fines or penalties with regulators during FY 2025-26. Shareholder complaints received during the year numbered 4, all of which were resolved with zero pending at year-end. No complaints were filed under POSH.

CSR and Subsidiaries

The company's CSR obligation for FY 2025-26 stood at ₹719.30 lakhs, with total CSR spending of ₹243.79 lakhs and ₹475.51 lakhs transferred to the Unspent CSR Account. CSR projects were undertaken across Tamil Nadu, Karnataka, Maharashtra, and Meghalaya, covering education, healthcare, and rural development. A total of 611 persons benefitted from education-related CSR projects, with 100% from vulnerable and marginalized groups. Sourcing from MSMEs and small producers within India accounted for 25% of total procurement by value in FY 2025-26, up from 18% in FY 2024-25.

As of March 31, 2026, the company has five subsidiaries: LGB USA INC (96.64% stake), LGB Steel Private Limited (100% wholly owned), and three step-down subsidiaries — LGB Mexico, GFM Acquisition LLC (98.47%), and GFM LLC (100%). The company holds an ICRA AA (stable) credit rating for its fixed deposit programme. As at March 31, 2026, deposits accepted from public and shareholders aggregated to ₹3,680.50 lakhs.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE337A01034/d3d5dcd5-2218-431c-909f-fa907944e646.pdf

L.G. Balakrishnan & Bros Limited filed revised standalone and consolidated audited financial results for the year ended March 31, 2026, under Regulation 33, following the identification of an inadvertent typographical error in the exceptional item figures reported in the PDF version of the results submitted to the exchanges. The company confirmed that the underlying financial figures remain unchanged, and the revision pertains solely to the correction of the exceptional item breakdown in the notes. The statutory auditors, M/s. Suri & Co., expressed an unmodified audit opinion on the financial results.

Exceptional Item Correction

Upon identification of the error, the company submitted a revised filing dated May 4, 2026, with the corrected exceptional item breakdown. The exceptional item for the quarter and year ended March 31, 2026, is presented as follows:

Effective from November 21, 2025, the Government of India consolidated multiple existing labour laws into four Labour Codes. Under IndAS 19 and ICAI guidance, changes to employee benefit plans arising from legislative amendment require immediate recognition of past service cost in the statement of profit and loss. The New Labour Codes resulted in an estimated one-time increase in provision for employee benefits of Rs. 1,242.62 lakhs as per actuarial valuation, which the company has presented as an exceptional item given its materiality and non-recurring nature.

Financial Performance

The company's financial results for FY26 remain as originally reported. The following table summarises the key financial metrics:

*Not Annualised

Standalone revenue from operations reached Rs. 73,246.35 lakhs, up from Rs. 60,579.35 lakhs in the previous fiscal year. The standalone net profit after tax for FY26 amounted to Rs. 30,634.24 lakhs, compared to Rs. 29,066.21 lakhs in FY25. On a consolidated basis, net profit after tax stood at Rs. 31,874.29 lakhs versus Rs. 30,209.07 lakhs in FY25.

Segment Performance

The company operates through two main business segments: Transmission and Metal Forming. The following table presents segment-wise revenue for the year ended March 31, 2026:

The Transmission segment remained the primary revenue driver across both standalone and consolidated operations.

Cash Flow Highlights

On a standalone basis, net cash generated from operating activities stood at Rs. 33,897.39 lakhs for the year ended March 31, 2026, compared to Rs. 29,611.77 lakhs in the prior year. Net cash used in investing activities amounted to Rs. 28,542.54 lakhs, primarily driven by capital expenditure of Rs. 34,013.78 lakhs. Cash and cash equivalents at the end of the year stood at Rs. 1,513.32 lakhs, up from Rs. 1,214.75 lakhs at the beginning of the year. On a consolidated basis, net cash generated from operating activities was Rs. 33,170.61 lakhs, with capital expenditure of Rs. 37,125.65 lakhs and closing cash and cash equivalents of Rs. 2,148.02 lakhs.

Dividend Announcement

The board of directors recommended a dividend of Rs. 22 per equity share of Rs. 10 each, representing 220% of the face value, for the financial year ended March 31, 2026. The dividend is subject to approval by shareholders at the upcoming Annual General Meeting. The record date for determining eligible shareholders has been fixed as Wednesday, August 19, 2026, and the dividend payment is scheduled to be made on or before September 18, 2026.

Corporate Governance and Management Updates

The board approved the re-appointment of Dr. G.L. Sankaran as Cost Auditor for the financial year 2026-27, subject to ratification by shareholders. Additionally, the board approved the re-appointment of Sri. G. Jawaharlal and M/s. Lathi & Tapdiya, Chartered Accountants, as Internal Auditors for the financial year 2026-27. The board also recommended the continuation of directorship of Sri. S. Sivakumar (DIN: 00016040) as a Non-Executive Non-Independent Director beyond the age of 75 years, subject to approval by shareholders through a special resolution at the ensuing Annual General Meeting. Mr. Suresh Sivalingam, Vice President, Strategic Business Development, tendered his resignation due to personal reasons effective from the close of business hours on January 31, 2026. The board has convened the 70th Annual General Meeting on Wednesday, August 26, 2026, through video conferencing and other audio visual means. The register of members and share transfer books will remain closed from Thursday, August 20, 2026, to Wednesday, August 26, 2026 (both days inclusive) for the purpose of dividend and the Annual General Meeting. The company has confirmed that it does not fulfil the criteria to be classified as a "Large Corporate" for the financial year ended March 31, 2026, as per the applicable SEBI circular.