LG Balakrishnan & Bros Limited Earnings Summary — Q4 FY2026

• Revenue grew 22% year-on-year to ₹815 Cr, reflecting sustained demand in the automotive transmission segment.
• Operating Profit Margin (OPM) contracted to 14%, down from 15% in the previous quarter and 15% in Mar 2025.
• Net Profit declined to ₹70 Cr from ₹84 Cr in the same quarter last year, a 16.7% YoY decrease.
• The company faced seasonal margin pressure as expenses outpaced revenue growth in the final quarter.
• Depreciation costs have risen significantly to ₹32 Cr, up 28% YoY, following a period of heavy capital expenditure.
• Despite margin pressure, the company maintains a high-quality balance sheet with very low debt levels.
• Transmission segment remains the primary revenue driver, contributing approximately 85% of total turnover.
• Tax expense for the quarter was notably higher at 33% compared to the historical average of ~25%.

Management maintains a conservative stance, prioritizing balance sheet strength and focusing on domestic aftermarket leadership while incubating metal forming as a secondary growth vertical.

Deteriorating

While revenue growth is robust, the sharp contraction in operating margins and the double-digit decline in net profit suggest rising cost pressures or transition costs.

The outlook remains positive for long-term compounding given the dominant market share in 2W transmission, though short-term focus shifts to margin recovery and the integration of heavy capex investments into productive capacity.