LMW Limited reported stronger momentum in its Machine Tool Division during the third quarter of FY26, with capacity utilisation at around 75 percent, even as its core textile machinery business remained under pressure. The company said demand for machining centres, particularly for electronics and precision manufacturing applications, is emerging as a key growth driver and does not require immediate capacity expansion.
The company is increasingly prioritising machining centres over turning centres as part of its product and market strategy. “We are seeing stronger demand for machining centres, particularly vertical and horizontal machining centres,” said V. Senthil, Chief Financial Officer of LMW Limited. He added that the company is focusing on this segment “because that is where we see higher market share growth.”
The management highlighted growing interest in small drill-tap machining centres used in electronics manufacturing services (EMS) ecosystems. LMW currently offers these under its J1 and J2 models, targeting domestic demand that management estimates at 7,000 to 8,000 machines annually.
The Machine Tool and Foundry Division reported revenue of INR 8.53 billion for the nine-month period ended December 2025, compared with INR 7.28 billion a year earlier. Foundry operations accounted for around 12 percent of the division’s turnover.
In contrast, the Textile Machinery Division continues to face a prolonged downturn. Capacity utilisation in the division has fallen below 50 percent, prompting the company to maintain a five-day working week. “The downturn has been a sustained one and it has extended almost close to two years,” Senthil said. Despite weak investment activity, operating spinning mills are running at high utilisation levels, supporting aftermarket demand. “Spinning mills which continue to operate are running at 90 to 95 percent utilisation,” he said.
LMW’s overall order book stood at INR 26.0 billion, of which around INR 15.0 billion is considered executable. The sales mix during the nine-month period comprised 65 percent domestic sales, 9 percent exports and 26 percent spares. Management noted that order inflows during the current nine-month period were stronger than the previous year, although investment confidence remains muted.
The Advanced Technology Centre (ATC) continued to provide medium-term visibility, with its order book increasing by about 20 percent to approximately INR 3.6 billion, deliverable over the next 18 months. ATC exports account for close to 90 percent of its revenue. “We have continued to invest in ATC during the current year based on new orders received,” Senthil said, while flagging tariff-related uncertainty as a key risk.
Composites manufacturing, originally developed for space programme applications, is beginning to contribute to revenue. Composites account for around 20 percent of ATC turnover, with billing starting over the last few quarters, supporting margins during the period.
To manage costs during the downturn, LMW has focused on productivity-led investments rather than large greenfield projects. “This is the time for us to become lean, improve efficiency and invest in technology,” Senthil said, citing continued spending on shopfloor automation, Internet of Things implementation and new product development. The company has also implemented a limited voluntary retirement scheme to reduce fixed costs.
Export volumes remain subdued at around 9 to 10 percent of total sales, reflecting weak conditions in markets such as Bangladesh and Turkey, while Indonesia and Vietnam have shown relative resilience.
LMW Limited, based in Coimbatore, operates across textile machinery, machine tools, foundry and advanced technology manufacturing, serving domestic and export markets.
