LG Balakrishnan & Bros Ltd

Financials (Standalone Q1 FY2026-27)

• Revenue from operations: 70,712.40 Lakhs; YoY growth about 19%.
• Total income: 72,258.04 Lakhs; YoY growth about 19%.
• PBT (standalone): 8,682.13 Lakhs; segment PBT: Transmission 7,327.72; Metal Forming 1,609.80.
• Total comprehensive income attributable to owners: 9,430.17 Lakhs.
• Auditors' opinion: Standalone and Consolidated results unmodified.

Strategic developments & JVs

• JV with Singatac Engineering Pte Ltd forms SLGB Energy Solutions Private Limited; LG holds 51%.
• Initial paid-up capital: INR 1,00,000; 1,000 equity shares of INR 100 each.
• Purpose: precision manufacturing of subsea components for global OEMs and EPCs.
• Vietnam subsidiary to be incorporated; 100% held; aggregate investment up to INR 10 crore.
• Joint Development with Brigade Enterprises for Mysore land; total cost INR 120 crore.
• LG to hold 29%, Brigade 71% in the JV; ROFR and arm's length terms apply.

Notes & scope

• Consolidated results include subsidiaries: LGB-USA, GFM Acquisition LLC, GFM LLC, LGB Mexico, LGB Steel Private Limited.
• Standalone and consolidated results audited; independent auditor reports issued.
• Quarter ended 30 June 2026; results reviewed by the Audit Committee.

AGM & AR notice

• 70th AGM on 26 August 2026 at 10:00 AM via VC/OAVM.
• Annual Report 2025-26 will be available online.
• Web-link and exact AR path to be shared with non-registered-email holders.
• Cut-off date for unregistered emails: 19 August 2026.

KYC and shareholder communications

• Letters sent to shareholders without registered emails include AR web link.
• RTA: Cameo Corporate Services Limited handles share transfers and KYC updates.
• SEBI circular requires updating PAN, address, mobile, bank details, and nomination.
• Physical holders must dematerialize; electronic payments allowed from 1 April 2024.

AGM date and dividend timetable

• 70th AGM scheduled for Aug 26, 2026 via VC/OAVM.
• Record date for dividend entitlement is Aug 19, 2026.
• Dividend, if approved, payable on or before Sep 18, 2026.

AGM Details

• 70th AGM on 26 August 2026 at 10:00 AM IST via VC/OAVM.
• Deemed venue: Registered Office, Coimbatore.
• Members' Register closure: Aug 20–26, 2026.
• Dividend record date: Aug 19, 2026.
• Dividend payment by Sep 18, 2026.

Ordinary Business

• Adopt audited financial statements for FY 2025-26.
• Declare dividend of ₹22 per equity share.
• Re-appoint Sri B. Vijayakumar (retiring by rotation).
• Re-appoint Smt. Rajsri Vijayakumar (retiring by rotation).

Special Business

• Continuation of Sri S. Sivakumar as Non-Executive Non-Independent Director beyond 75 (Special Resolution).
• Ratification of Cost Auditor remuneration for 2026-27; ₹3,00,000 plus taxes.

Financial performance

• Consolidated total income: 3,14,403.77 Lakhs; up 19.39% YoY.
• Standalone total income: 2,83,217.65 Lakhs; up 15.82% YoY.
• Consolidated PAT: 31,874.29 Lakhs; +5.51% YoY growth.
• Standalone PAT: 30,634.24 Lakhs; +5.39% YoY growth.
• Gross margin 58.17%; EBITDA margin 16.91%; Operating margin 19.12%.
• PBT margin 14.90%; PAT margin 11.05% for FY2025-26.
• Diluted EPS (Standalone) 96.05; earnings per share detail disclosed in notes.
• Standalone net worth Rs 2,10,532.02 Lakhs; Consolidated net worth Rs 2,15,623.69 Lakhs.
• Dividend recommended: 22 per equity share for FY2025-26; record date 19 Aug 2026.
• Net cash from operating activities: Consolidated Rs 33,170.61 Lakhs (FY26).
• Capital expenditure: Consolidated Rs 36,487.43 Lakhs; India Rs 36,233.77 Lakhs; abroad Rs 253.66 Lakhs.
• Debt metrics: Consolidated net debt to equity negative (-9.70%).
• Income tax expense: Rs 10,704.78 Lakhs (consolidated).
• Capex and growth funded from a mix of equity, cash from operations, and borrowings.

Dividend & capital allocation

• Dividend of Rs 22 per equity share; FY2025-26 dividend payable upon approval.
• Dividend Distribution Policy available on company website.
• General reserve increased by Rs 25,000 Lakhs; retained earnings closed at Rs 20,718.27 Lakhs.
• 5,00,000 share warrants converted to equity; Rs 6,460 Lakhs raised via preferential issue.
• Promoter/promoter group holding about 34.83%; top holders include B. Vijayakumar, Rajsri Vijayakumar, and HDFC funds.

Governance & leadership

• Board comprises 10 directors: 3 Executive, 2 Non-Independent Non-Executive, 5 Independent; 3 women directors.
• Dr. Vinay Balaji Naidu re-appointed Independent Director for a second 5-year term (Aug 2026–Aug 2031).
• Sri S. Sivakumar’s continuation beyond age 75 approved via special resolution.
• Nomination & Remuneration Committee includes GD Rajkumar as Chair; other members include B. Vijayakumar and Kanchana Manavalan.
• Audit Committee has 4 meetings in FY2025-26; Chair Dinesh Kumar (Independent).
• Stakeholders’ Relationship Committee met 19 times; 4 shareholder complaints resolved; no unresolved complaints.

Business & operations

• Two reportable segments: Transmission and Metal Forming.
• Segment revenue: Transmission Rs 2,30,975.23 Lakhs; Metal Forming Rs 76,587.39 Lakhs; total Rs 3,07,562.62.
• Geography: Within India Rs 2,64,677.43 Lakhs; Exports Rs 42,885.19 Lakhs.
• Capital expenditure: Within India Rs 36,233.77 Lakhs; Outside India Rs 253.66 Lakhs; total Rs 36,487.43.
• Group operates across multiple plants in India and abroad; no material business change during FY2025-26.

ESG & environment

• Renewable energy use: 217 lakh units; wind 7.12 MW; solar 15.25 MWp; group captive 12.5 MWp.
• CO2 emissions: Scope 1 12,533.99 tCO2e; Scope 2 66,786.40 tCO2e; intensity 0.00000029 tCO2e/₹ turnover.
• Energy intensity and water metrics disclosed; energy conservation initiatives include LED, wind/solar capacity, and power factor improvements.
• Waste management includes substantial recycling; Zero Liquid Discharge (ZLD) practices; battery waste recycled under buy-back.
• Green credits: Nil; 2% CSR obligations disclosed in BRR.

CSR & social impact

• CSR spend for FY2025-26: Rs 7.19 Crores; ongoing and non-ongoing projects.
• CSR committee met 5 times; policy and project disclosures on company website.
• Beneficiaries: Education, healthcare, sanitation; 611 beneficiaries reported under CSR projects.
• CSR commitments include education, healthcare, women empowerment, and environmental sustainability; impact assessments not applicable for some projects.
• Unspent CSR balances transferred per Section 135(6) rules; details available in annexures.

Audit, risk & internal controls

• Statutory auditors: Suri & Co. (standalone); Secretarial: MDS & Associates LLP; Cost Auditor: Dr. G. L. Sankaran.
• Independent audit reports (standalone and consolidated) with no qualifications reported.
• Cybersecurity incident: September 2025 ransomware attempt; no material impact; strengthened IT security.
• Internal control framework tested; ongoing risk management and whistleblower mechanism in place.

Capital structure & shareholding

• Authorized share capital Rs 47 Crore; issued and paid-up Rs 31.89 Crore; 3,18,92,416 equity shares.
• Promoters/promoter group hold about 34.83%; top holders include B. Vijayakumar (11.46%) and HDFC Small Cap Fund (8.69%).
• Share dematerialisation: NSDL 87.90%; CDSL 11.17%; Physical 0.93% of shares.
• Share warrants: 5,00,000 warrants issued; converted to equity at Rs 10 with premium Rs 1282; proceeds Rs 6,460 Lakhs.
• Earnings per share: Consolidated 99.95; standalone 96.05 for FY26; basic/diluted EPS disclosed in notes.

Overview

• Standalone BRSR for FY2025-26; main activities are Transmission chains (83.3% of turnover) and Fine Blanking (16.7%).
• Exports account for about 11.6% of turnover, covering around 30 countries.
• Geographic footprint includes 40 domestic plants/offices and 2 international plants/offices; total 80 locations.
• Reporting boundary is standalone for the year April 1, 2025 to March 31, 2026.

Key ESG Risks & Opportunities

• Energy management is an opportunity with climate targets and efficiency gains.
• Water conservation is pursued via water neutrality and quality preservation efforts.
• Workplace health and safety improvements are viewed as cost-saving, morale-boosting opportunities.
• Quality and service delivery drive faster, reliable product supply and customer trust.
• Strong corporate governance seen as a governance opportunity for integrity and compliance.

Governance & Policy Highlights

• BR&S performance reviewed by Executive Chairman, MD and Executive Director.
• Anti-bribery policy in place; policy publicly accessible on the website.
• Whistleblower policy and POSH framework implemented with formal channels.
• Code of Conduct requires annual disclosures of conflicts of interest; approvals prior to related-party transactions.
• Human rights policy integrated; intranet-accessible HR policies; Board oversight on BR policies.

Social Responsibility & Workforce

• Total employees: 3,729; total workers: 10,966; 100% union membership reported.
• Board female representation: 30%; overall workforce female share: 7%.
• Turnover: permanent employees 15% overall; permanent workers 4%.
• Median remuneration: BoD male ₹1.25 lakh; KMP male ₹1.749 crore; employees ₹32,500; workers ₹18,437; female wages 16.53%.
• 100% training coverage for Board, KMPs, employees, and workers; POSH ICC active; accessible grievance mechanism.

Environmental Performance

• Total energy consumption: 458,050 GJ; renewables 75,020 GJ; renewable share ~16.4%.
• Offsite solar captive generation; 22 windmills with 10.5 MW capacity; renewable energy 16.37% of total.
• Scope 1 emissions: 12,534 tCO2e; Scope 2 emissions: 66,786 tCO2e; total 79,320 tCO2e.
• Energy intensity: 2.9e-7 tCO2e per rupee turnover; PPP-adjusted 5.82e-5.
• Water withdrawal: 325,376 kl; groundwater 189,684; third-party 47,296; other 88,396; ZLD implemented with 100% recycled water.
• Waste: total 43,019.83 MT; recycled 39,810.22 MT; hazardous waste 3,338.16 MT; plastic 295.71 MT; battery 8.5 MT.
• Zero Liquid Discharge (ZLD) in operations; STP treated effluent used for gardening/green belts.
• No non-compliances with environmental laws reported; no external assurance sought.

Stakeholder Engagement & Complaints

• Stakeholders include employees, vendors/contractors, regulatory bodies, and customers with periodic/need-based engagement.
• Shareholders: 4 complaints filed in FY2025-26; 0 pending; all addressed; communities: Nil grievances.
• Mechanisms: internal channels, Whistle-blower policy, POSH framework, and CSR outreach with ongoing stakeholder dialogue.

Other Notable Metrics

• Affiliations with 10 trade associations; top bodies include CII, FICCI, FIEO, ICCI, and IMTMA.
• No public-policy positions; disclosures reviewed periodically by the Board.
• Cybersecurity: internal IT policy; periodic awareness and protections; no data breaches reported.
• Product information and safety: packaging includes required safety data; no product recalls reported.
• EPR applicable with waste management aligned to evolving regulations; ZLD and water recycling emphasized.

Rating Action

• Fixed Deposit Rs 40 crore: AA(Stable); reaffirmed
• Long-term Fund Based Cash Credit Rs 200 crore: AA(Stable); reaffirmed
• Short-term Non-Fund Based facilities Rs 100 crore: A1+; reaffirmed
• Outlook: Stable across ratings

Bank Limits Details

• Fund-based limits Rs 200 crore total; rated AA(Stable)
• Non-fund based limits Rs 100 crore total; rated A1+