Lakshmi Machine Works is investing 10 crore to increase its textile machinery production capacity by 125 units per month by December 2026. This expansion follows a strong second quarter, where the company reported a net profit of 71 crore and revenue of 1,132 crore.
Coimbatore-based Lakshmi Machine Works (LMW) has announced plans to scale up its manufacturing capabilities. The company is set to invest 10 crore to increase its production capacity by 125 units per month, with the expansion expected to be operational by December 2026. This move comes as the company manages high demand, with its current facilities running at a 90 percent utilization rate. By adding this capacity, management aims to address supply chain pressures and shorten delivery wait times for customers.
The capital for this expansion will be funded through the company's internal cash flow. This approach allows LMW to grow its operations without the need for additional borrowing, which helps maintain a stable debt position on the balance sheet.
This expansion follows a period of robust financial performance. For the second quarter ending September 30, 2026, LMW reported a net profit of 71 crore, a significant increase from the 41 crore recorded in the same period last year. Revenue also saw a strong rise, climbing to 1,132 crore compared to 822 crore in the previous year.
For investors, the textile machinery sector is often tied to the capital spending cycles of spinning mills and textile manufacturers. While the company's current performance is strong, the sector is cyclical. If there is a slowdown in the textile industry, it can lead to lower demand for new machinery. Additionally, the company faces exposure to raw material price fluctuations, specifically in steel and metals, which can impact profit margins.
The key monitorables for shareholders moving forward will be the timeline for the new capacity commissioning and whether the company can maintain its current revenue growth momentum. Investors may also watch for updates on the company's order book, as sustained demand from textile manufacturers will be essential for the company to utilize its expanded capacity effectively.