Lloyds Engineering Works Ltd. has expanded beyond equipment manufacturing through acquisitions, mergers and defence partnerships, seeking to build an integrated engineering and infrastructure solutions business. Its standalone engineering revenue rose from Rs 50.1 crore in FY22 to Rs 1,052.2 crore in FY26, while its share price gained 94% over six months. The next phase of growth will depend on integrating the acquired businesses, converting its order pipeline into revenue and reducing its dependence on group company Lloyds Metals & Energy.
The company is also targeting annual revenue of more than Rs 10,000 crore by FY30. Its expanded portfolio spans mining and metals, structural steel fabrication, electrical engineering, defence equipment, industrial boilers and oil and gas process equipment. However, the scale of the opportunity must be weighed against execution risks, the need to secure more orders from external customers and its valuation.
Acquisition Strategy
Lloyds Engineering, backed by Lloyds Enterprises and the Gupta family, regained control in 2021 and revived dormant business lines while expanding capacity. It subsequently acquired SISCOL, Metalfab Hightech and Techno Industries to broaden its manufacturing capabilities and build an integrated project execution platform.
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The board has also approved the merger of Lloyds Infrastructure Construction, Metalfab and Techno Industries into Lloyds Engineering. The combined business would bring engineering design, manufacturing, electrical systems and site execution under one entity, potentially enabling the company to bid for larger projects and capture a greater share of customer capital expenditure.
SISCOL, one of India’s three largest structural steel fabricators, operates six manufacturing units with a capacity of 100,000 metric tonnes per annum (MTPA). Its order backlog stood at Rs 1,197.4 crore. Metalfab adds a heavy steel fabrication facility in Nagpur with a capacity of 24,000 MTPA.
The combined fabrication capacity is targeted to reach 200,000 MTPA from 124,000 MTPA.
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Techno Industries manufactures elevators, escalators, industrial motors, car lifts and automated parking systems. It has an estimated 16% share of Gujarat’s elevator market and holds Research Designs and Standards Organisation approvals for Indian Railways and metro infrastructure.
Its installed base includes more than 21,000 elevators, 800,000 induction motors and 11.5 million pumps. Its order backlog stood at Rs 197.5 crore.
Management and independent valuations indicate that the proposed merger is expected to increase earnings per share despite 34.2% share dilution. The benefit will depend on how successfully the company integrates the businesses and executes projects.
Core Business
Mining and metals remains Lloyds Engineering’s largest business, contributing 64% of standalone revenue in FY26. The company designs and builds heavy equipment for mining, mineral processing and steel manufacturing plants. Its mining-to-metals segment had an order backlog of Rs 1,078 crore as of June 30, 2026.
India plans to increase steelmaking capacity from 200 million tonnes to 300 million tonnes by FY31. This expansion could support demand for industrial machinery and related engineering services.
Lloyds Metals & Energy, a group company, plans to invest Rs 42,000 crore by FY30. The combined engineering platform could address an estimated 20% to 30% of the total expenditure on a typical 1-million-tonne steel plant through equipment supply, fabrication and project execution.
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Its external customers include Jindal Steel & Power, ArcelorMittal Nippon Steel, Steel Authority of India Ltd., SMS Group and FLSmidth.
However, dependence on Lloyds Metals & Energy remains a key risk. Management aims to reduce the group’s contribution to revenue from the current 65% to 70% to around 40% to 50% over time by winning more orders from customers outside the group.
Defence Push
Lloyds Engineering has more than 35 years of marine engineering experience and has supplied equipment to more than 116 Indian Navy vessels, as well as Coast Guard platforms. Its traditional products include steering gear systems and fin stabilisers, with an estimated addressable value of Rs 8 crore to Rs 10 crore per ship. The company is one of only three domestic suppliers of this specialised equipment.
Its partnership with Italy’s Fincantieri expands its portfolio to controllable pitch propeller systems, shafting systems and thrusters. These products could increase the addressable equipment value to Rs 40 crore to Rs 50 crore per ship. Initial orders under the partnership have already exceeded Rs 127 crore.
The company has also partnered with Poland’s FlyFocus for military drones, Italy’s Virtuallabs for radar and surveillance, and Poland’s Kliver Polska for underwater systems. These partnerships extend its presence across naval equipment, aerospace and strategic technologies.
India’s defence indigenisation programme and plans to expand its naval fleet offer a potential source of long-term demand. Lloyds Engineering’s naval division has sales visibility of Rs 1,900 crore over two years, while its Aerospace & Strategic Systems division has visibility of Rs 6,000 crore over three years.
Key customers include the Indian Navy, Indian Coast Guard, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers and Goa Shipyard. The long operating life of naval vessels also creates opportunities to supply servicing, spares and refurbishment.
The key test will be converting this sales visibility into firm orders and recognised revenue.
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New Verticals
Lloyds Engineering is rebuilding its capabilities in industrial boilers and oil and gas process equipment. These businesses had a cumulative order book of Rs 633 crore as of June 30, 2026.
Management aims to position the company among India’s three largest specialised boiler engineering solutions providers. Growth in these businesses will depend on new order wins, timely project execution and the ability to maintain margins.
Financials
The combined platform’s pro forma financials show a significant increase in scale. Revenue stood at Rs 3,342 crore in FY26, compared with Lloyds Engineering’s reported standalone revenue of Rs 1,301 crore.
In Q1FY27, pro forma total income rose 80% year on year to Rs 1,181 crore. Ebitda increased 46% to Rs 172.6 crore, with a margin of 14.6%. Net profit rose 50% to Rs 109.4 crore.
The merged platform had a cumulative order backlog of Rs 8,856.9 crore, rising to Rs 9,500 crore when SISCOL’s backlog is included.
Management aims to exceed Rs 10,000 crore in annual revenue by FY30. It expects Ebitda margins of 14% to 16%, with a long-term consolidated margin target of 17% to 20% as higher-margin technologies and defence orders scale up.
The company has also reduced its debt-to-equity ratio to 0.01 times in FY26. Cash and cash equivalents stood at Rs 397 crore. Return on equity was 9.2%, while return on capital employed was 17.3%. The return ratios have declined partly because of equity dilution.
Valuation
At Rs 94.4 per share, Lloyds Engineering trades at 65.5 times earnings based on the unmerged entity’s profit. The valuation could be lower on a pro forma basis, given the higher earnings of the combined business.
Equirus has set a target price of Rs 125 using a sum-of-the-parts valuation approach and a one-year forward price-to-earnings multiple of 37 times.
The company’s ability to sustain its share-price rally will depend on whether its expanded business translates into consistent earnings growth. Successful integration of acquisitions, improved margins, conversion of defence sales visibility into firm orders and lower dependence on group business will be central to that outcome.
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