LG Balakrishnan Q4 Results: Profit drops 17%; margin under pressure

L.G. Balakrishnan & Bros Q4FY26 profit falls to ₹70 crore as margins shrink, revenue and EBITDA rise, FY26 profit improves, cost pressures seen worsening, dividend set at ₹22 per share.

By Gareema Bangad

L.G. Balakrishnan & Bros Ltd. on Monday, May 4, reported a 17% year-on-year fall in its net profit to ₹70 crore in Q4FY26, compared with ₹84 crore in the year-ago period. Revenue rose 21.8% to ₹815 crore from ₹669.2 crore, driven by growth across segments.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 13.2% YoY to ₹115.5 crore from ₹102 crore, but operating margin contracted to 14.17% from 15.25% a year ago.

For FY26, the company reported consolidated revenue of ₹3,075 crore, up from ₹2,578 crore in FY25, while net profit rose to ₹319 crore from ₹302 crore in the previous year, reflecting steady business momentum.

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Segment-wise, the transmission business remained the key contributor, generating revenue of over ₹2,309 crore during the year, while the metal forming segment contributed ₹463 crore, indicating broad-based growth across core operations.

The company also announced a dividend of ₹22 per equity share for FY26, subject to shareholder approval.

Commenting on the outlook, Chairman and Managing Director B. Vijayakumar said cost pressures have intensified across key inputs such as LPG, petrochemicals, plastics, packaging and logistics, and are yet to stabilise.

“The costs have gone up, but this is only an indication of what is going to come… the real hit is going to be in the second quarter,” he said, adding that margin pressures are expected to deepen if geopolitical tensions persist.

He noted that while the company expects to manage the June quarter, cost escalation could intensify in the following quarter, with a potential 2% impact on margins currently, which may rise to over 3% if input costs continue to climb. “It hasn't reached a plateau yet… we will wait till the second quarter before making any clear prediction,” he said.

Despite near-term headwinds, the company expects revenue growth of around 17–18% in FY27, broadly in line with recent performance. Vijayakumar said sustained investments are supporting growth, with the company continuing to deploy around ₹450 crore annually towards capacity expansion and new product development.

On capacity utilisation, he said plants are currently operating at 80–85% levels and are expected to maintain similar utilisation as capacities expand. The company’s industrial chain facility, which has a revenue potential of ₹200 crore, has so far achieved around ₹30 crore in revenue.

Exports continue to contribute about 10% of total revenue, or roughly ₹300 crore, with the company maintaining steady growth in overseas markets despite global uncertainties.

Shares of L.G. Balakrishnan & Bros Ltd. ended 4.81% lower at ₹1,675 on Monday, ahead of the Q4 results. The stock has gained 33.32% over the last month.