LG Balakrishnan & Bros Limited Earnings Summary — Q4 FY2026
LG Balakrishnan & Bros Reports Revenue Growth Amid Margin Compression in Q4 FY2026
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 2.0% sequentially in Q1 FY2027.
- Revenue of ₹799 Cr is 21.6% higher year-on-year.
- Revenue has compounded at 13.0% annualised over the last 10 quarters.
- Net profit of ₹67 Cr is 0.1% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -0.6% annualised across the period.
- Operating margin stands at 13.3% in Q1 FY2027.
- Operating margin compressed by 150 bps year-on-year.
- Over the last two years operating margin has contracted by 233 bps.
- PBT margin is 11.1%.
- Expenses grew 23.7% against revenue growth of 21.6%.
- Operating profit of ₹106 Cr is 9.2% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 65/100 (Healthy) on the latest 10 quarters.
- Business momentum is broadly stable quarter to quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 799 | 815 | 817 | 787 | 657 | 669 | 677 | 661 | 571 | 607 |
| Expenses | Improving | 693 | 699 | 682 | 650 | 560 | 567 | 563 | 551 | 482 | 506 |
| Operating Profit | Stable | 106 | 116 | 135 | 137 | 97 | 102 | 114 | 110 | 89 | 101 |
| Operating Margin | Stable | 13.3% | 14.2% | 16.5% | 17.4% | 14.8% | 15.3% | 16.8% | 16.6% | 15.6% | 16.6% |
| Other Income | Volatile | 21 | 24 | 9 | 15 | 24 | 28 | 12 | 17 | 21 | 16 |
| Interest | Improving | 5 | 4 | 4 | 4 | 3 | 3 | 2 | 2 | 2 | 3 |
| Depreciation | Improving | 33 | 32 | 30 | 28 | 26 | 25 | 24 | 22 | 21 | 21 |
| Profit Before Tax | Stable | 89 | 103 | 110 | 120 | 91 | 102 | 99 | 103 | 87 | 93 |
| Tax | Stable | 22 | 34 | 21 | 27 | 24 | 18 | 24 | 25 | 22 | 25 |
| Net Profit | Stable | 67 | 70 | 88 | 94 | 67 | 84 | 75 | 78 | 65 | 68 |
| Net Margin | Stable | 8.4% | 8.6% | 10.8% | 11.9% | 10.2% | 12.6% | 11.1% | 11.7% | 11.4% | 11.2% |
Key Takeaways
- 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 Guidance
Management maintains a conservative stance, prioritizing balance sheet strength and focusing on domestic aftermarket leadership while incubating metal forming as a secondary growth vertical.
Sentiment Shift
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.
Outlook
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.
From the Annual Report (Key Quotes)
“LGBB is a dominant player in the automotive chain and sprocket segment, commanding a significant market share.”
“Management is perceived as conservative and 'old-school,' prioritizing balance sheet strength over aggressive guidance.”
“The vision appears focused on becoming a global supplier, though domestic aftermarket remains the primary profit pool.”
Official Quarterly Documents
This summary is AI-generated from LG Balakrishnan & Bros Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.