Don’t Trade in the Dark—Get Your Pre-Market Report Every Day.Join Now
Search stocks
L G Balakrishnan & Bros Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤7th Feb 26

Summary : L.G. Balakrishnan & Bros Limited reported strong financial results with revenue and profit growth, an unmodified audit opinion, and re-appointed an independent director, despite a one-time impact from new labor codes.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed, employee benefits, finance costs, depreciation, other expenses.
  2. Exceptional items include subsidy received and statutory impact of New Labour Codes.
  3. Consolidated Revenue from operations for nine months ended 31.12.2025: Rs. 2,26,062.72 Lakhs (vs Rs. 1,90,911.38 Lakhs previous year).
  4. Standalone Revenue from operations for nine months ended 31.12.2025: Rs. 2,04,102.05 Lakhs (vs Rs. 1,78,495.07 Lakhs previous year).
  5. Segment-wise revenue from Transmission and Metal Forming.
  6. Consolidated Total Assets (31.12.2025): Rs. 2,86,161.14 Lakhs.
  7. Consolidated Total Liabilities (31.12.2025): Rs. 77,150.91 Lakhs.
  8. Equity Share Capital: Rs. 3,189.24 Lakhs.
  9. Both standalone and consolidated financial results are presented.
  10. Consolidated results include subsidiaries: LGB Steel Private Limited, LGB-USA INC, GFM Acquisition LLC, GFM LLC, and LGB Mexico.

Corporate Overview

  1. India (Coimbatore, Tamil Nadu)
  2. USA (LGB-USA INC, GFM Acquisition LLC, GFM LLC)
  3. Mexico (LGB Mexico)
  4. LGB Steel Private Limited (domestic subsidiary)
  5. Estimated one-time increase in provision for employee benefits due to 'New Labour Codes'.
  6. Manufacturing and sales in Transmission and Metal Forming segments.
  7. Formal and factual reporting of board decisions and financial results.
  8. Transmission
  9. Metal Forming

Risk Factors

  1. New Labour Codes impact employee benefits.
  2. Reliance on other auditors for subsidiaries.
  3. Future events may impact going concern.

Key Drivers

  1. Strong revenue growth across segments.
  2. Unmodified audit opinion on financials.
  3. Re-appointment of independent director.
  4. Expanding international subsidiary operations.

Auditor’s Report

  1. Unmodified opinion on Standalone & Consolidated financial results.

Board Commentary

  1. Re-appointment of Dr. Vinay Balaji Naidu as Non-Executive, Independent Director for a second term of 5 consecutive years.
  2. Statutory impact of New Labour Codes leading to increased employee benefit provisions.
  3. Statutory impact of New Labour Codes on employee benefits.

Corporate Governance

  1. Auditors confirmed compliance with ICAI Code of Ethics.
  2. Re-appointment of an Independent Director for a second term.
  3. Auditors confirmed compliance with ethical requirements regarding independence.
  4. Nomination and Remuneration Committee recommended director re-appointment.
  5. Audit Committee reviewed financial results.

Management Discussion & Analysis

Operational Focus Areas

  1. Monitoring finalisation of Central/State Rules and clarifications on Labour Code.

Performance Drivers

  1. Strong revenue growth in both standalone and consolidated results.
  2. Growth in profit before tax for the quarter and nine months.

Risk Control Measures

  1. Providing appropriate accounting effect based on Labour Code developments.

Critical Risks

  1. Statutory impact of New Labour Codes on employee benefits.
L G Balakrishnan & Bros Ltd (LGBBROSLTD) Quarterly Report Analysis & Insights | Dhanarthi