L.T. Elevator Limited has announced a proposed merger with Ricardo Elevators Private Limited, representing a strategic move to enter the rapidly expanding home elevator market. The Kolkata-based company, which reported revenue of ₹46.99 crores for H1 FY2026, aims to leverage this acquisition to accelerate growth in the premium residential elevator segment.

Company Overview and Current Operations

L.T. Elevator Limited operates as an ISO 9001:2008 certified company with over 15 years of experience in vertical transportation solutions. The company maintains a comprehensive business model covering the complete elevator lifecycle from design to installation and operations & maintenance.

The company operates across three primary business verticals: passenger and goods elevators, automated parking systems, and direct-to-consumer home elevators. This diversified approach positions L.T. Elevator as an engineering-led manufacturer with in-house capabilities across the vertical transportation spectrum.

Strategic Acquisition of Ricardo Elevators

Ricardo Elevators Private Limited brings significant value to the merger through its established presence in the premium home elevator market. The acquisition targets the growing demand for residential elevators, which represents an estimated ₹2,000 crore market opportunity according to management estimates.

Ricardo Elevators has established itself as a design-led premium brand with Indo-Italian aesthetics, targeting affluent homeowners through a digital-first D2C approach. The company utilizes omnichannel presence combining digital discovery through social media platforms with physical brand outlets across major Indian cities.

Market Opportunity and Growth Drivers

The home elevator segment presents unique structural advantages that differentiate it from traditional elevator markets. Home elevators require approximately 70% less space compared to conventional elevators, eliminate the need for civil work including pits and headrooms, and operate on single-phase power compatible with standard residential electricity supply.

Key market characteristics include:

• True D2C demand profile with individual homeowners placing single-unit orders
• Fragmented competitive landscape with limited organized player presence
• Premiumization trend driven by lifestyle preferences and aging population needs
• Early adoption stage with significant growth runway ahead

Combined Entity Strengths

The merger creates multiple value drivers for the combined organization. L.T. Elevator's engineering-led manufacturing capabilities will support Ricardo's distribution network, while Ricardo's brand recognition and pricing power enhance the overall market position.

Capacity Expansion Plans

To support the expanded operations, L.T. Elevator is developing an integrated manufacturing facility designed to scale production significantly. The new facility will provide 5x the current size and 2.5x the installed capacity, with targeted completion in Q4 FY27.

The company has set an ambitious target to capture 15% market share in the home elevator segment by 2030, leveraging the combined strengths of both organizations. The merger positions the entity to benefit from revenue growth, enhanced manufacturing capabilities, expanded distribution reach, improved pricing power, and operational economies of scale.

This strategic acquisition represents L.T. Elevator's commitment to expanding its market presence in the high-growth residential elevator segment while maintaining its engineering excellence and manufacturing capabilities.

L.T. Elevator Limited has announced a strategic merger with Ricardo Elevators Private Limited, marking a significant expansion into the premium home elevator market. The company's Board of Directors approved the merger on January 9, 2026, during a meeting that commenced at 11:00 AM and concluded at 12:30 PM. A binding term sheet has been executed for the transaction, with Managing Director Arvind Gupta authorized to finalize the agreement.

Strategic Transaction Details

The merger involves the complete integration of Ricardo Elevators' operations and team into L.T. Elevator Limited. As part of the arrangement, Neeraj Hemnani, Founder and CEO of Ricardo Elevators, will continue with the organization and assume leadership of the newly formed Home Elevator Division.

Financial Performance and Market Position

Ricardo Elevators brings substantial revenue momentum to the combined entity, currently generating monthly order inflows of ₹6.00 crore. The company operates with a 3-6 month delivery cycle, providing visibility into future revenue recognition. This acquisition positions L.T. Elevator Limited for significant growth in upcoming financial cycles through immediate access to Ricardo's established order book and execution capabilities.

Strategic Benefits and Integration Plan

The merger is designed to deliver multiple strategic advantages across L.T. Elevator's operations. The company expects faster and sustainable revenue scale-up through immediate addition of Ricardo's order inflows, which will strengthen execution momentum and support materially higher run rates in coming periods.

Manufacturing integration represents a key value creation opportunity, as Ricardo's currently outsourced manufacturing will be progressively integrated into L.T. Elevator's in-house, engineering-led manufacturing platform. This integration is expected to enable:

• Better cost control and quality consistency
• Enhanced operating leverage as volumes scale
• Improved margin profile through manufacturing efficiencies
• Strengthened competitive positioning in premium segments

Market Expansion and Growth Outlook

The transaction provides L.T. Elevator with enhanced market reach and pricing power through access to Ricardo's pan-India retail footprint and premium direct-to-consumer brand. This expanded presence enables cross-selling opportunities and stronger customer recall across residential segments, particularly in the growing home elevator market.

According to company management, the integration is expected to contribute meaningfully to revenue momentum, with the combined entity positioned for significant growth trajectory. Director Yash Gupta commented that the merger "meaningfully strengthens our growth engine" by combining L.T. Elevator's engineering-led manufacturing platform with Ricardo's execution and retail presence.

Investor Communication and Next Steps

L.T. Elevator Limited plans to release a detailed investor presentation outlining the strategic aspects of the transaction. The company has scheduled an investor conference call for January 19, 2025, with specific details to be shared separately. This communication strategy reflects the company's commitment to transparency regarding the merger's strategic rationale and expected benefits for stakeholders.