Lloyds Engineering Works Approves Joint Venture with Techno Industries for Government Elevator Tenders

Lloyds Engineering Works Limited (LEWL) has taken a significant step to strengthen its position in the elevator and escalator market for government projects. The company's Board of Directors has approved a draft joint venture agreement with its subsidiary, Techno Industries Private Limited (TIPL), to form a new entity called "Techno – Lloyds".

Strategic Collaboration

The proposed joint venture aims to leverage TIPL's 35-year specialized expertise in electrical works for vertical transportation alongside LEWL's extensive work experience. This collaboration is specifically designed to jointly bid for and execute government tenders for elevators and escalators.

Conditional Formation

It's important to note that the joint venture's formation is contingent upon receiving a Letter of Intent from government authorities. The company has stated that the agreement will be executed once this condition is met.

Financial Performance Context

LEWL has reported financial performance for the second quarter and first half of fiscal year 2026:

Metric	Q2 FY26	YoY Change	H1 FY26	YoY Change
Revenue	₹243.95 cr	14.99%	₹418.40 cr	20.38%
EBITDA	₹45.25 cr	20.38%	₹78.21 cr	21.11%
EBITDA Margin	18.55%	83 bps	18.69%	11 bps
PBT	₹38.05 cr	12.54%	₹67.57 cr	17.57%

The company's consolidated order book stands at ₹1,580.99 crore as of September 30, 2025.

Market Opportunity

The joint venture appears to be strategically positioned to capitalize on the demand for elevators and escalators in government infrastructure projects, including metro and rail developments across India.

Investor Implications

For investors, this joint venture represents LEWL's commitment to expanding its presence in the vertical transportation segment of government contracts. The collaboration may potentially lead to increased order inflows and revenue streams in this sector, leveraging the combined strengths of both entities.

As the joint venture's formation is subject to government approval, stakeholders should monitor future announcements for updates on the project's progress and its potential impact on LEWL's business outlook.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.22%	-0.25%	-3.82%	+10.75%	-13.28%	+9,688.33%

Lloyds Engineering Works Limited (LEWL) has reported strong financial results for the first half of fiscal year 2026, marked by robust revenue growth and strategic expansion plans.

Revenue Surge

The company achieved a 20% year-on-year revenue growth to ₹418.00 crores in H1FY26. This significant increase demonstrates LEWL's strong market position and effective growth strategies.

Profitability Metrics

LEWL maintained a healthy EBITDA margin of 18.00% during this period, indicating the company's ability to manage costs effectively while driving growth.

Operational Highlights and Strategic Expansion

LEWL is expanding into defense and industrial automation sectors through strategic partnerships.
The company has formed partnerships with FlyFocus (Poland) and Cemi to facilitate this expansion.
The order book is diversifying across steel, infrastructure, and energy segments, indicating a broad-based growth strategy.

Subsidiary Performance

LEWL's subsidiaries have shown strong margin performance:

Subsidiary	EBITDA Margin
Metalfab	21.60%
Licl	16.20%

These strong performances from subsidiaries contribute to the overall robust financial health of the company.

Future Outlook

LEWL is focusing on several key areas for future growth:

Targeting margin growth across its operations
Scaling up export operations to expand its global footprint
Continuing to diversify its order book across various sectors

The company's strategic expansion into defense and industrial automation, coupled with its strong financial performance and diversified order book, positions Lloyds Engineering Works well for sustained growth in the coming years.