Lloyds Engineering Works reported a consolidated net profit of ₹68.23 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 127% year-on-year increase from ₹30.03 crore in the corresponding period of FY26. Consolidated revenue from operations surged 143% to ₹527.15 crore. The company’s investor presentation highlighted a proforma income of ₹11,810 crore for the merged platform, driven by significant scale acquisition and execution momentum across its engineering segments.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 6, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors S Y Lodha & Associates issued an unqualified limited review report on the financial statements.

Financial Performance

On a standalone basis, Lloyds Engineering recorded a net profit of ₹43.43 crore, up 147% from ₹17.60 crore in Q1FY26. Standalone revenue from operations grew 104% to ₹355.82 crore. EBITDA on a standalone basis rose 82% to ₹60.03 crore, compared to ₹32.95 crore in the prior year period, while the standalone EBITDA margin stood at 12.74% versus 13.95% in Q1FY26. Profit before tax (PBT) stood at ₹52.14 crore, an increase of 77% from ₹29.51 crore.

Consolidated EBITDA increased 124% to ₹79.23 crore from ₹35.31 crore in Q1FY26. Consolidated PBT rose 132% to ₹68.99 crore. The company's associate, Lloyds Infrastructure and Construction Limited (LICL), contributed ₹13.13 crore to the group's share of profit after tax.

The following table summarises the key financial metrics for the quarter:

Proforma Merged Entity Results

The investor presentation disclosed proforma financials for the merged platform comprising Lloyds Engineering Works Limited, Metalfab Hightech Private Limited, Techno Industries Private Limited, and LICL. For Q1FY27, the proforma total income stood at ₹11,810 crore, up 80% year-on-year from ₹6,554 crore in Q1FY26. Proforma EBITDA was ₹1,726 crore, up 46% YoY, while proforma PAT reached ₹1,094 crore, a 50% increase from ₹729 crore in the previous year.

Segment and Subsidiary Results

The engineering segment generated gross revenue of ₹537.07 crore, compared to ₹199.74 crore in Q1FY25, with a segment result of ₹74.40 crore. The electrical segment reported gross revenue of ₹39.15 crore but incurred a segment loss of ₹6.93 crore, widening from a loss of ₹4.28 crore in the previous year.

Among subsidiaries, Metalfab Hightech Private Limited contributed ₹164.14 crore in revenue and ₹17.75 crore in net profit. Techno Industries Private Limited reported revenue of ₹39.02 crore but posted a net loss of ₹6.44 crore. Lloyds Advance Defence Systems Limited (LADS), whose stake was diluted from 100% to 85% due to a private placement on June 29, 2026, recorded revenue of ₹2.68 crore and a net profit of ₹0.36 crore.

LICL, an associate with a 24.2% stake, reported total income of ₹6,408 crore and PAT of ₹536 crore for Q1FY27. Steel Infra Solutions Company Limited (SISCOL), a proposed subsidiary with a 52.1% stake, reported total income of ₹2,360 crore and EBITDA of ₹243 crore.

Order Book and Corporate Developments

The company's consolidated order book position expanded by 81% to ₹2,817.42 crore as on July 1, 2026, compared to ₹1,554.94 crore a year earlier. The standalone order book rose 82% to ₹2,432.35 crore. The total group order book, including associates and subsidiaries, stands at ₹88,569 crore as on June 30, 2026. This includes ₹48,302 crore from EPC & Infrastructure Solutions, ₹13,936 crore from Fabrication, and significant contributions from Mining to Metal (₹10,780 crore) and Power (₹6,330 crore).

On June 18, 2026, the company entered into agreements with Steel Infra Solutions Company Limited and approved a preferential issue of 7,13,74,554 equity shares at ₹71.25 per share, subject to exchange approvals. Members approved this issue on July 15, 2026. Additionally, the Competition Commission of India (CCI) granted approval for the company's Scheme of Merger on May 12, 2026, with the scheme subsequently filed with the NCLT on June 18, 2026.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE093R01011/7aede970-d92d-4775-9ee6-18255d9f7667.pdf

Lloyds Engineering Works has proposed expanding its employee stock option plan (ESOP) pool from 4.40 crore to 7.35 crore shares, a move that requires shareholder approval via postal ballot. The Nomination and Remuneration Committee, acting as the designated committee under SEBI regulations, recommended the amendment to the "Lloyds Steels Industries Limited – Employee Stock Option Plan – 2021". This expansion aims to enhance the company's ability to attract and retain talent by increasing the available equity incentive pool, though no fresh options are being granted immediately.

The proposal was disclosed in an exchange filing on August 6, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the SEBI Master Circular dated January 30, 2026. The company stated that the increase is subject to the approval of members and appropriate authorities. The filing serves as a formal intimation to the BSE Limited and the National Stock Exchange of India Limited, ensuring transparency in corporate governance practices regarding equity-based compensation.

Key Details of the Proposed ESOP Amendment

The core of the proposal involves amending the applicable ESOP Pool Clause(s) of the existing 2021 scheme. The following table outlines the critical parameters of the proposed change:

The exercise price for future grants will be determined based on the market price of the company's shares, defined as the latest closing price on a recognized stock exchange one day before the committee meeting where the grants are approved. For vested options, the exercise period will remain three years from the date of vesting.

Regulatory Compliance and Next Steps

Lloyds Engineering Works confirmed that the scheme complies with the SEBI (Share Based Employee Benefits) Regulations, 2021. The company will seek shareholder approval for the amendment through a postal ballot process. Until such approval is obtained, the terms of the options remain unchanged, and no variations, cancellations, or exercises have occurred recently that would impact diluted earnings per share. The company secretary, Rahima Shaikh, signed the disclosure, affirming compliance with regulatory requirements.

What the Numbers Show

The proposed increase represents a significant expansion of the equity incentive capacity, adding 2.95 crore shares to the existing pool. While this dilutes existing shareholders' stakes proportionally upon exercise, it aligns with standard corporate practices to maintain competitive compensation structures without immediate cash outflows. The absence of fresh grants indicates that the current focus is on structural readiness for future allocations rather than immediate distribution, allowing the board flexibility in timing subsequent awards based on performance metrics and market conditions.