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LGBBROSLTD - L G Balakrishnan

📊 NSE: LGBBROSLTD 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 9:08

📢 Recent Corporate Announcements

LG Balakrishnan & Bros Seeks Re-appointment of Independent Director for 5-Year Term

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 18 Feb 2026, 03:54 PM

LG Balakrishnan & Bros Limited has issued a postal ballot notice for the re-appointment of Dr. Vinay Balaji Naidu as a Non-Executive Independent Director. The proposed second term is for five consecutive years, starting from August 4, 2026, through August 3, 2031. Shareholders are required to vote via a special resolution during the e-voting period from February 19 to March 20, 2026. This is a standard governance procedure to ensure board stability and compliance with SEBI regulations.

Re-appointment of Dr. Vinay Balaji Naidu for a second 5-year term starting August 4, 2026
Approval sought via Special Resolution through a remote e-voting process
E-voting window opens on February 19, 2026, and concludes on March 20, 2026
Cut-off date for determining shareholder eligibility was February 13, 2026

💡 This is a routine governance matter with no direct impact on financial performance. Shareholders should review the notice and cast their votes by the March 20 deadline.

LG Balakrishnan & Bros Q3 Consolidated Net Profit Rises 17.5% YoY to Rs 88.45 Cr

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 07 Feb 2026, 06:02 PM

LG Balakrishnan & Bros reported a strong Q3 FY26 with consolidated revenue growing 20.6% YoY to Rs 816.56 crore. Consolidated net profit increased by 17.5% YoY to Rs 88.45 crore, even after accounting for a one-time exceptional expense of Rs 11.62 crore related to the New Labour Codes. The core Transmission segment continues to drive growth, contributing over 76% of total revenue. Additionally, the board approved the re-appointment of Dr. Vinay Balaji Naidu as an Independent Director for a second five-year term.

Consolidated revenue from operations increased to Rs 81,655.94 Lakhs in Q3 FY26 from Rs 67,689.61 Lakhs YoY.
Consolidated net profit for the quarter stood at Rs 8,845.06 Lakhs vs Rs 7,527.19 Lakhs in the previous year's quarter.
Recognized a one-time exceptional cost of Rs 1,161.61 Lakhs due to statutory impacts of New Labour Codes on employee benefits.
Transmission segment revenue grew 17.7% YoY to Rs 62,190.62 Lakhs.
Dr. Vinay Balaji Naidu re-appointed as Non-Executive Independent Director for a second term of 5 years effective August 2026.

💡 The company shows robust operational performance with strong revenue growth across segments; investors should consider the profit growth as particularly healthy given the one-time labor code provision. Maintain a positive outlook while monitoring the impact of the new labor framework on future margins.

LG Balakrishnan Q3 Net Profit Rises 17% to ₹88.4 Cr; Revenue Up 21% YoY

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 07 Feb 2026, 05:59 PM

LG Balakrishnan & Bros reported a strong performance for the quarter ended December 31, 2025, with consolidated revenue growing 20.6% YoY to ₹816.56 crore. Net profit for the quarter increased by 17.4% to ₹88.43 crore, despite a one-time exceptional hit of ₹11.62 crore related to new statutory labor codes. The Transmission segment remains the primary growth driver, contributing over 76% of total revenue. The board also recommended the re-appointment of Dr. Vinay Balaji Naidu as an Independent Director for a second five-year term.

Consolidated Revenue from operations grew 20.6% YoY to ₹81,655.94 Lakhs in Q3 FY26.
Net Profit attributable to owners rose 17.4% YoY to ₹8,843.35 Lakhs for the quarter.
Transmission segment revenue increased significantly to ₹62,190.62 Lakhs from ₹52,842.99 Lakhs YoY.
Company recorded a one-time exceptional expense of ₹1,161.61 Lakhs due to new Labour Code provisions.
9M FY26 consolidated EPS stands at ₹78.08 compared to ₹68.38 in the previous year's 9M period.

💡 Investors should view the consistent double-digit growth in both revenue and profit as a sign of operational strength. The one-time labor code impact is non-recurring, making the underlying profit growth even more robust than the reported figures suggest.

LG Balakrishnan & Bros Q3 Net Profit Rises 17.5% to ₹88.45 Cr; Revenue Up 20.6% YoY

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 07 Feb 2026, 05:52 PM

LG Balakrishnan & Bros reported a strong performance for the quarter ended December 31, 2025, with consolidated revenue growing 20.6% YoY to ₹816.56 crore. Consolidated net profit increased by 17.5% to ₹88.45 crore, even after accounting for a one-time exceptional expense of ₹11.62 crore related to the implementation of new labor codes. The Transmission segment remains the primary revenue driver, contributing approximately 76% of total income. The company also recommended the re-appointment of Dr. Vinay Balaji Naidu as an Independent Director for a second five-year term.

Consolidated revenue from operations grew 20.6% YoY to ₹81,655.94 Lakhs.
Consolidated Net Profit increased 17.5% YoY to ₹8,845.06 Lakhs from ₹7,527.19 Lakhs.
Transmission segment revenue rose 17.7% YoY to ₹62,190.62 Lakhs.
One-time exceptional cost of ₹1,161.61 Lakhs recognized for statutory impact of new Labour Codes.
9M FY26 consolidated profit reached ₹24,907.52 Lakhs compared to ₹21,806.38 Lakhs in 9M FY25.

💡 The company demonstrates robust growth in its core transmission business and maintains healthy margins despite regulatory cost pressures. Investors should hold the stock while monitoring the long-term impact of labor code provisions on operating expenses.

LG Balakrishnan & Bros Submits Quarterly SEBI Demat Compliance Certificate

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 20 Jan 2026, 01:30 PM

LG Balakrishnan & Bros Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that all securities received for dematerialization during the quarter ended December 31, 2025, were processed within the mandatory 15-day period. The company's Registrar and Share Transfer Agent, Cameo Corporate Services Limited, verified that physical certificates were mutilated and cancelled upon conversion to electronic form. This is a standard regulatory procedure to ensure the accuracy of the company's shareholding records.

Compliance certificate issued for the quarter ended December 31, 2025
Dematerialization requests processed and confirmed within 15 days of receipt
Securities listed on stock exchanges following the demat process
Physical certificates mutilated and cancelled as per SEBI guidelines

💡 No action is required from investors as this is a routine administrative filing confirming regulatory compliance.

LG Balakrishnan & Bros Limited to Close Trading Window from January 1, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 29 Dec 2025, 02:47 PM

LG Balakrishnan & Bros Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting January 1, 2026. This routine regulatory measure is in compliance with SEBI (Prohibition of Insider Trading) Regulations for the upcoming financial results. The closure pertains to the audited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. The trading window will reopen 48 hours after the financial results are officially declared to the stock exchanges.

Trading window closure effective from Thursday, January 1, 2026
Closure relates to financial results for the quarter and nine months ending December 31, 2025
Window to remain closed until 48 hours after the declaration of audited financial results
Board meeting date for result approval to be announced in due course

💡 No action is required as this is a standard regulatory compliance procedure. Investors should await the announcement of the board meeting date to assess the company's quarterly performance.

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💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 9.93% YoY to INR 2,633.52 Cr in FY2025. Standalone revenue grew 7.24% to INR 2,445.28 Cr. The growth is driven by a dominant 60% market share in the domestic 2W chain segment and a 30% revenue contribution from the high-margin aftermarket segment.

Geographic Revenue Split

The company derives over 80% of its revenues from the domestic 2W industry. It is also a net exporter, which provides a natural hedge against INR depreciation, though specific regional percentage splits outside India are not disclosed.

Profitability Margins

Gross Margin improved to 56.90% in FY2025 from 54.76% YoY. Net Profit After Tax (Consolidated) grew 11.27% to INR 302.09 Cr, with a PAT margin of 12.16%. Standalone PAT grew 7.85% to INR 290.66 Cr.

EBITDA Margin

Operating Margin (EBITDA %) stood at 19.26% in FY2025 compared to 19.53% in FY2024. EBITDA margin excluding other income was 16.98%, a slight compression from 17.33% YoY due to higher employee costs (16.12% of revenue vs 14.87%) and other expenditures.

Capital Expenditure

The company has planned a significant capex of INR 640 Cr over three years: INR 240 Cr in FY2025, INR 200 Cr in FY2026, and INR 200 Cr in FY2027. This is primarily for product diversification, capacity enhancement, and modernization of the acquired RSAL Steel plant.

Credit Rating & Borrowing

ICRA maintains a strong credit profile with the company remaining net debt negative since FY2021. Interest coverage was robust at 48.8 times in FY2024. Unencumbered cash and bank balances stood at INR 689.5 Cr as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Steel and Cold Rolled Close Annealed (CRCA) strips are the primary raw materials. Steel costs are a significant portion of the 43.1% total expenditure on materials, though specific percentage per material is not disclosed.

Import Sources

Not specifically disclosed, but the company has integrated backward by acquiring RSAL Steel (now LGB Steel Private Limited) in January 2024 to source CRCA strips for captive consumption.

Key Suppliers

Not disclosed in available documents; however, the company utilizes negotiation-based pass-through mechanisms with its OEM clients to manage supplier price volatility.

Capacity Expansion

Current capacity is being expanded through a INR 240 Cr infusion into LGB Steel Private Limited for modernization of equipment and debottlenecking. Fixed assets in plant and machinery increased from INR 490.96 Cr to INR 688.44 Cr in FY2025.

Raw Material Costs

Raw material costs are managed through periodic price pass-throughs to OEMs. While margins are susceptible to commodity price spikes, historical data shows these measures cap margin moderation.

Manufacturing Efficiency

Inventory days improved from 61 to 58 days in FY2025, indicating better stock management. Debtor days remained stable at 44 days.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be achieved through the modernization of the acquired RSAL Steel (LGB Steel) to widen the product portfolio to CRCA strips, re-entering the industrial chains segment to reduce 2W dependence, and leveraging the 'Rolon' brand to grow the high-margin aftermarket segment.

Products & Services

Automotive chains, sprockets, allied components, industrial chains, and Cold Rolled Close Annealed (CRCA) steel strips.

Brand Portfolio

Rolon

New Products/Services

Industrial chains and CRCA strips for external sale following the acquisition of RSAL Steel.

Market Expansion

Expansion into the industrial chain segment and increasing the share of business with existing 2W OEMs where no single client exceeds 15% of revenue.

Market Share & Ranking

Dominant market leader with over 60% market share in the domestic 2W chain segment.

Strategic Alliances

Acquisition of RSAL Steel Pvt Ltd in January 2024 (now LGB Steel Private Limited) for INR 240 Cr capex cycle integration.

🌍 External Factors

Industry Trends

The industry is shifting toward Electric Vehicles (EVs). e-2W penetration is expected to reach 25% by FY2030. The company is positioning itself by diversifying into industrial chains and steel strips to offset potential ICE chain revenue loss.

Competitive Landscape

LGB is the market leader in 2W chains; competitors are not named but the company maintains a healthy share of business across all major 2W OEMs.

Competitive Moat

The moat is built on a 60% market share and the 'Rolon' brand's 30% contribution from the replacement market. This is sustainable due to the large existing fleet of ICE 2Ws requiring replacement parts for the next 10-15 years.

Macro Economic Sensitivity

Highly sensitive to the domestic 2W demand environment, which is influenced by rural income levels and fuel prices.

Consumer Behavior

Shift toward EVs and ridesharing are noted as long-term risks to personal 2W ownership and chain demand.

Geopolitical Risks

Exposure to global supply chain disruptions for specialized machinery, though 80% of revenue is domestic-focused.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI Listing Regulations 17 to 27 and Part D of Schedule V regarding corporate governance. Adherence to tightening environmental regulations regarding manufacturing waste.

Environmental Compliance

The company is exposed to tightening emission norms for its OEM customers and waste/pollution regulations, which may increase operating costs for new capacity.

Taxation Policy Impact

Effective tax rate was 25.57% in FY2025 compared to 25.67% in FY2024.

⚠️ Risk Analysis

Key Uncertainties

EV transition risk (potential high impact on 80% of revenue), commodity price volatility (steel), and industrial relations/skilled manpower retention.