LG Balakrishnan & Bros Reports Q2 Revenue of ₹950 Crore and Net Profit of ₹94 Crore

Market snapshot: LG Balakrishnan & Bros Ltd reported a 20.25% year-on-year growth in consolidated Q2 revenue to ₹950 crore compared to ₹790 crore in the same quarter last year. Consolidated net profit remained flat at ₹94 crore versus ₹93.60 crore YoY, as operating margins compressed by 192 basis points to 15.43%.

Data Snapshot

• Consolidated Q2 revenue grew 20.25% YoY to ₹950 crore from ₹790 crore.
• Consolidated Q2 net profit stood at ₹94 crore compared to ₹93.60 crore in the year-ago period.
• Consolidated Q2 EBITDA rose 6.57% YoY to ₹146 crore from ₹137 crore.
• Consolidated Q2 EBITDA margin contracted by 192 basis points YoY to 15.43% from 17.35%.

What's Changed

• Q2 consolidated revenue expanded by ₹160 crore YoY (derived: ₹950 crore vs ₹790 crore).
• Q2 EBITDA margin contracted by 192 basis points YoY (derived: 15.43% vs 17.35%).

Key Takeaways

• Robust sales growth led to a 20.25% expansion in top-line revenue to ₹950 crore.
• Margin compression of 192 bps limited operating profit pass-through to net income.
• Net profit remained virtually unchanged at ₹94 crore compared to ₹93.60 crore YoY.

SAHI Perspective

LG Balakrishnan & Bros demonstrated strong sales momentum during the quarter, bringing revenue up to ₹950 crore. However, cost inflation or product mix changes absorbed much of the top-line gain, resulting in margin contraction to 15.43% and keeping bottom-line profit growth restricted to 0.43% YoY. Operational stabilization will be critical to converting future volume growth into net earnings.

Market Implications

The healthy top-line gain points to robust OEM demand in auto transmission components. However, near-term stock reaction may reflect caution around margin pressure until input costs align with pricing adjustments.

Trading Signals

Market Bias: Neutral

Strong top-line growth of 20.25% YoY to ₹950 crore is offset by a 192 bps EBITDA margin contraction to 15.43%, keeping net profit flat at ₹94 crore.

Overweight: Auto Components, Transmission Chains

Underweight: High Input Cost Ancillaries

Trigger Factors:

• Raw material cost trend reversal
• EBITDA margin recovery toward 17%
• Automotive OEM quarterly production numbers

Time Horizon: Near-term (0-3 months)

Industry Context

Indian auto ancillary suppliers are experiencing healthy volume demand from two-wheeler and commercial vehicle manufacturers. However, fluctuations in raw material costs and operational overhead continue to impact margin sustainability across the component supply chain.

Key Risks to Watch

• Continued pressure on operating margins from raw material price inflation.
• Potential demand slowdown in domestic automotive assembly lines.

Recent Developments

LG Balakrishnan & Bros notified exchanges of its Q2 Board Meeting schedule and completed mandatory quarterly shareholding disclosure filings with NSE India during October 2026.

Closing Insight

While top-line growth indicates solid market share retention in automotive chains and precision components, restoring operating margins to historical levels will be essential for sustained net profit expansion.

High Performance Trading with SAHI.