LG Balakrishnan & Bros Limited announced its audited financial results for the quarter and nine months ended December 31, 2025, showcasing strong operational performance across key business segments. The Board of Directors approved these results at their meeting held on February 07, 2026, pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company delivered impressive growth in Q3FY26 with significant improvements in both revenue and profitability metrics. The transmission and metal forming segments contributed to the overall strong performance during the quarter.

Nine-Month Performance

For the nine months ended December 31, 2025, the company maintained its growth trajectory with consistent performance improvements across all major financial parameters.

Segment-wise Performance

The company operates through two primary business segments - Transmission and Metal Forming, both showing positive growth during the quarter.

Transmission Segment

The transmission segment remained the primary revenue driver, contributing ₹62,190.62 lakhs in Q3FY26 compared to ₹52,842.99 lakhs in Q3FY25, representing an 17.7% increase. For the nine-month period, transmission segment revenue reached ₹1,70,346.06 lakhs versus ₹1,48,325.36 lakhs in the previous year.

Metal Forming Segment

The metal forming division generated revenue of ₹11,222.95 lakhs in Q3FY26, up from ₹9,485.96 lakhs in Q3FY25, marking an 18.3% growth. Nine-month revenue for this segment stood at ₹33,755.99 lakhs compared to ₹30,169.71 lakhs in the corresponding period last year.

Consolidated Results

On a consolidated basis, the company reported revenue of ₹81,655.94 lakhs in Q3FY26 versus ₹67,689.61 lakhs in Q3FY25. Consolidated net profit attributable to owners increased to ₹8,843.35 lakhs from ₹7,529.89 lakhs in the previous year quarter.

Board Decisions

The Board of Directors approved the reappointment of Dr. Vinay Balaji Naidu as Non-Executive Independent Director for a second consecutive term of five years commencing August 04, 2026. This appointment is subject to shareholder approval through postal ballot.

Exceptional Items Impact

The company reported exceptional items totaling ₹(737.33) lakhs in Q3FY26, primarily due to the statutory impact of new Labour Codes implemented by the Government of India effective November 21, 2025. This resulted in a one-time increase in employee benefit provisions of ₹1,161.61 lakhs, partially offset by subsidy received of ₹424.28 lakhs.

Regulatory Compliance and Publication

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February 07, 2026. The Statutory Auditors have expressed an unmodified opinion on both standalone and consolidated audited financial results. The Board meeting commenced at 2:30 PM (IST) and concluded at 5:35 PM (IST).

Pursuant to Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audited financial results were published in Financial Express (English - All India Edition) and Maalai Malar (Tamil - Tamilnadu) on February 8, 2026. The results are also available on the company's website at www.lgb.co.in in compliance with Regulation 46 of SEBI LODR.

LG Balakrishnan & Bros has received a maintained Overweight rating from global brokerage firm Morgan Stanley, with analysts setting a target price of ₹1,864 per share. The rating reflects the brokerage's continued confidence in the auto ancillary company's business prospects.

Brokerage Recommendation Details

Morgan Stanley's decision to maintain its Overweight rating indicates the firm's positive outlook on LG Balakrishnan & Bros' performance potential. The Overweight rating typically suggests that analysts expect the stock to outperform relative to other stocks in their coverage universe.

Company Profile

LG Balakrishnan & Bros operates in the auto ancillaries sector, which plays a crucial role in India's automotive ecosystem. The company is classified as a Mid Cap stock with significant market presence in its segment.

Investment Implications

The maintained Overweight rating from Morgan Stanley suggests that the brokerage continues to view LG Balakrishnan & Bros favorably despite market conditions. The target price of ₹1,864 provides investors with the analyst's valuation benchmark for the stock's potential performance.