Loyal Equipments Ltd (539227)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Loyal Equipments' revenue was ₹18.8 Cr (+66.4% year on year, -38.2% on the previous quarter), and net profit ₹1.4 Cr (+36.3% year on year); the operating margin was 14.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹18.8 | +66.4% | -38.2% |
| Operating profit | ₹2.8 | +72.5% | -47.3% |
| Net profit | ₹1.4 | +36.3% | -52.0% |
| EPS (₹) | 1.28 | +36.2% | -51.9% |
| Operating margin | 14.7% | — | — |
📢 Recent Corporate Announcements
Loyal Equipments Limited submitted the voting results and scrutinizer's report for its 19th Annual General Meeting held on September 29, 2026. All proposed ordinary and special resolutions were passed with 100% approval (8,038,275 votes in favor, 1 vote against). Key agenda items approved include the reappointment of Whole-Time Director Hemaben Patel, appointment of M/s. Mittal V. Kothari & Associates as secretarial auditor for FY 2026-27, and approval for loans or guarantees under Section 185.
- 19th Annual General Meeting concluded via video conferencing on September 29, 2026
- Appointment of M/s. Mittal V. Kothari & Associates as secretarial auditor approved for 1 year (FY 2026-27)
- Re-appointment of Whole-Time Director Hemaben Patel approved with 8,038,275 votes in favour (100%)
- Special resolution passed approving loans or guarantees under Section 185 of the Companies Act, 2013
Loyal Equipments reported a strong year-on-year performance for the quarter ended June 30, 2026, with revenue from operations rising 66.3% to ₹18.85 Cr compared to ₹11.33 Cr in the same period last year. Net profit increased by 35.8% YoY to ₹1.38 Cr, resulting in an EPS of ₹1.28. However, on a sequential basis, revenue and profit declined from the March 2026 quarter (₹30.49 Cr and ₹2.87 Cr respectively), which is typical for cyclical industrial product cycles. The company maintained a positive bottom line, continuing its recovery from previous fiscal losses.
- Revenue from operations reached ₹18.85 Cr, a 66.3% increase over the ₹11.33 Cr reported in June 2025.
- Net profit for the quarter stood at ₹1.38 Cr, up from ₹1.01 Cr in the corresponding quarter of the previous year.
- Total expenses rose to ₹17.26 Cr, with raw material consumption accounting for ₹8.94 Cr.
- Finance costs increased to ₹37.97 Lakhs from ₹25.98 Lakhs YoY, reflecting higher working capital or debt requirements.
- Earnings Per Share (EPS) improved to ₹1.28 from ₹0.94 in the year-ago period.
Loyal Equipments reported a strong start to FY27 with revenue from operations growing 66.3% YoY to ₹18.85 Cr. Net profit increased by 35.8% to ₹1.38 Cr, up from ₹1.01 Cr in the corresponding quarter of the previous year. The company maintained a positive EPS of ₹1.28 for the quarter. While expenses rose significantly to ₹17.26 Cr, the scale-up in revenue suggests improved capacity utilization following recent manufacturing expansions.
- Revenue from operations increased to ₹18.85 Cr in Q1 FY27 from ₹11.33 Cr in Q1 FY26.
- Net Profit for the quarter stood at ₹1.38 Cr, a 35.8% increase over the ₹1.01 Cr reported YoY.
- Total expenses rose to ₹17.26 Cr, with raw material consumption accounting for ₹8.94 Cr.
- Basic and Diluted EPS improved to ₹1.28 from ₹0.94 in the previous year's first quarter.
- The company reported a Profit Before Tax (PBT) of ₹1.71 Cr for the quarter ended June 30, 2026.
Loyal Equipments Ltd has scheduled a board meeting for August 06, 2026, to consider and approve the unaudited standalone financial results for the quarter ended June 30, 2026. This follows a challenging TTM period where the company reported a net loss of Rs 2 Cr on a revenue of Rs 29 Cr. The trading window for insiders has been closed since July 01, 2026, and will remain so until 48 hours after the results are declared. Investors will be looking for signs of recovery given the current negative ROCE of -10.2%.
- Board meeting scheduled for August 06, 2026, to review Q1 FY2027 performance.
- Trading window for insiders closed from July 01, 2026, until 48 hours post-result declaration.
- Results will cover the three-month period ending June 30, 2026.
- Company currently operates with a TTM revenue of Rs 29 Cr and a net loss of Rs 2 Cr.
Financial Performance
Revenue Growth by Segment
Total standalone revenue grew 6.32% YoY to INR 7,530.01 Lakhs in FY 2024-25 from INR 7,081.99 Lakhs. Growth was driven by increased demand in the capital goods sector, specifically for process equipment in oil, gas, and power industries.
Geographic Revenue Split
Not explicitly split by percentage, but the company serves major Indian PSUs (ONGC, GAIL, BPCL) and international clients such as Texas Southpiller-USA, indicating a mix of domestic and export revenue streams.
Profitability Margins
Operating Profit Margin improved to 22.32% in FY 2024-25 from 18.21% in FY 2023-24 (a 22.60% increase). Net Profit Margin rose to 14.16% from 10.01% (a 41.48% increase), driven by better resource utilization and operational efficiencies.
EBITDA Margin
EBITDA (Profit before Depreciation, Interest & Tax) was INR 1,358.78 Lakhs in FY 2024-25, representing an 18.04% margin, compared to INR 950.44 Lakhs (13.42% margin) in the previous year, a YoY growth of 42.96%.
Capital Expenditure
The company added a new manufacturing bay to enhance capacity and modernized machinery. Property, Plant & Equipment stood at INR 1,145.49 Lakhs as of March 31, 2024, with an additional INR 28.48 Lakhs in intangible assets.
Credit Rating & Borrowing
Debt-Equity Ratio improved significantly to 0.20 in FY 2024-25 from 0.45 in FY 2023-24, a 55.54% reduction. Finance costs were INR 133.09 Lakhs in FY 2023-24, showing stable borrowing costs despite increased operations.
Operational Drivers
Raw Materials
Steel and non-ferrous materials are the primary inputs, accounting for INR 3,854.34 Lakhs (54.4% of total revenue) in FY 2023-24.
Import Sources
Not specifically disclosed, but the company maintains long-term relationships with several suppliers to ensure quality and timely delivery.
Key Suppliers
Not disclosed by name, but the company emphasizes long-term contracts and regular analysis of procurement policies to identify bottlenecks.
Capacity Expansion
The company recently added an additional manufacturing bay to enhance production capacity for process equipment. Current fixed assets are valued at INR 11.45 Cr.
Raw Material Costs
Cost of materials consumed was INR 3,854.34 Lakhs in FY 2023-24, up 27.27% from INR 3,028.51 Lakhs in FY 2022-23, reflecting higher production volumes.
Manufacturing Efficiency
The company focuses on 'Optimal Utilization of Resources' by identifying bottlenecks in manufacturing processes to improve efficiency.
Logistics & Distribution
Not disclosed as a separate percentage, but the company provides 'Consignment packaging' as per customer specifications, impacting distribution costs.
Strategic Growth
Expected Growth Rate
5.8%
Growth Strategy
Growth will be achieved through strategic market expansion, including the addition of a new manufacturing bay to increase capacity. The company is targeting the Indian heat exchanger market (5.8% CAGR) and pressure vessel market (4.5% CAGR) by leveraging its ASME 'U' & 'U2' certifications and long-term relationships with PSUs like GAIL and ONGC.
Products & Services
Pressure vessels, Air cooled heat exchangers, Shell & tube heat exchangers, Storage tanks, Pressure receivers, Chimneys, Heavy structural items, Skids, and Base plates.
Brand Portfolio
Loyal Equipments Limited; Loyal Engineer.
New Products/Services
The company specializes in customized product offerings, designing equipment specifically to client specifications for the oil, gas, and fertilizer sectors.
Market Expansion
Expansion is focused on the capital goods industry, specifically targeting the projected USD 62.7 billion Indian pressure vessel market by 2028.
Market Share & Ranking
Not disclosed, but the company is a known reputed SMERA-certified player in the Indian process equipment industry.
Strategic Alliances
The company has long-term working relationships with EIL, GSPC, GAIL, ONGC, Linde, and Siemens Energy.
External Factors
Industry Trends
The Indian pressure vessel market is growing at 4.5% CAGR, while the heat exchanger market is growing at 5.8% CAGR, driven by rising energy demand and industrial activities.
Competitive Landscape
Competition arises from new market players, banks, and multilateral agencies, as well as volatile market conditions affecting capital costs.
Competitive Moat
Durable advantages include ASME 'U' & 'U2' Stamp holdings, SMERA certification, and a long-standing track record with government organizations (EIL, ONGC), which act as high entry barriers.
Macro Economic Sensitivity
Highly sensitive to global economic shocks and government policy shifts; US tariffs are noted as a significant risk to the 2025 outlook.
Consumer Behavior
Industrial demand is shifting toward modular packages and auxiliary skids in the oil and gas sectors to improve site installation efficiency.
Geopolitical Risks
Trade barriers and near-universal US tariffs are identified as major risks that could reorder global policy priorities and impact growth.
Regulatory & Governance
Industry Regulations
Operations are governed by ASME standards, SEBI Listing Regulations, and the Companies Act 2013. Compliance with quality standards is monitored by third-party agencies like Lloyds and TUV.
Environmental Compliance
The company monitors 'material effluent or pollution problems' as part of its corporate governance and internal audit scope.
Taxation Policy Impact
Tax expenses for FY 2023-24 were INR 241.69 Lakhs, compared to INR 27.60 Lakhs in FY 2022-23, reflecting higher taxable profits.
Legal Contingencies
The Board reviews 'Show cause, demand, prosecution notices and penalty notices' that are materially important. Specific case values in INR are not disclosed.
Risk Analysis
Key Uncertainties
Uncertain business environment, fluctuation in Rupee, and likely increase in cost of capital due to volatile market conditions.
Geographic Concentration Risk
While serving international clients, there is a significant concentration in the Indian PSU sector (Oil/Gas/Fertilizers).
Third Party Dependencies
Dependency on third-party inspection agencies (Lloyds, BV, SGS, TUV) for product certification and quality compliance.
Technology Obsolescence Risk
Risk is mitigated by continuous modernization of machinery and adherence to international engineering agreements like the Washington Accord (WA).
Credit & Counterparty Risk
Debtor Turnover Ratio slowed to 4.28 times in FY 2024-25 from 5.77 times (a 25.80% change), indicating a slight increase in the credit cycle or collection period.
