Lloyds Engineering Works Reports 20% Revenue Growth to ₹418 Crores with Strategic Expansion Plans

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.77%	-1.45%	-2.72%	+2.66%	-6.13%	+9,546.67%

Lloyds Engineering Works Limited has reported no deviation in the utilization of funds raised through its rights issue for the quarter ended September 30, 2025, while also granting employee stock options (ESOPs) under its Employee Stock Option Plan-2021.

Rights Issue Fund Utilization

The company filed its quarterly statement for the period ending September 30, 2025, confirming that there was no deviation in the use of funds raised through its rights issue. Key details include:

Funds were raised on June 5, 2025, through allotment of 30,85,17,476 partly paid-up equity shares at Rs. 32 per share.
The original allocation was Rs. 493.62 crores, later modified to Rs. 487.59 crores.
No funds were utilized during the quarter.
India Ratings Research Private Limited, serving as the monitoring agency, confirmed no deviation from stated objectives.
The company's audit committee provided no comments on the fund utilization.
The balance amount on the partly paid shares is payable in calls to be completed by March 31, 2026.

ESOP Grant Details

In a separate development, Lloyds Engineering Works has announced an ESOP grant under its Employee Stock Option Plan-2021, demonstrating a commitment to align employee interests with the company's long-term growth.

Detail	Value
Total Options Granted	4,25,784 ESOPs
Beneficiaries	Employees of two subsidiary companies
	- Techno Industries Private Limited: 3,20,000 ESOPs
	- Lloyds Infrastructure and Construction Limited: 1,05,784 ESOPs
Exercise Price	Rs 9.50 per share for both allocations
Vesting Period	Options will vest after 1 year but within 7 years from the grant date
Exercise Period	Within 3 years from the respective vesting date
Conversion Ratio	Each option converts to one equity share upon exercise

Regulatory Compliance and Approvals

The company has secured in-principle approval from both the BSE Limited and National Stock Exchange of India Limited for the ESOP grants. This adherence to regulatory requirements underscores Lloyds Engineering Works' commitment to transparency and corporate governance.

Financial Impact

The company has stated that the diluted earnings per share impact from these options is expected to be negligible, suggesting that the ESOP grant is not anticipated to significantly affect the company's financial metrics in the near term.

Strategic Implications

This ESOP grant to subsidiary employees indicates Lloyds Engineering Works' strategy to:

Enhance talent retention across its group companies
Align subsidiary employee interests with the parent company's performance
Foster a sense of ownership and long-term commitment among key personnel

Market Context

Employee stock options have become an increasingly popular tool for companies to attract, retain, and motivate talent, especially in competitive industries. By extending these benefits to subsidiary employees, Lloyds Engineering Works is positioning itself as an attractive employer within the engineering and infrastructure sectors.

The move comes at a time when companies are focusing on employee engagement and retention strategies in a competitive job market. It also aligns with the broader trend of Indian companies adopting more employee-friendly policies to drive growth and innovation.