Lohia Corp's order book doubles, but margins slip

Lohia Corp Limited (LCL) reported 42% year on year revenue growth to ₹594.3 crore in Q2 FY27. Net profit increased 48.2% to ₹77.7 crore. But the more interesting number is its order book. As of September 30, 2026, Lohia Corp's order book stood at ₹1,993.6 crore, compared with ₹1,030.7 crore a year ago. That is an increase of approximately 93%. The company manufactures machinery used to produce woven polypropylene and HDPE packaging materials. Its equipment is supplied to customers across multiple countries. There are three developments worth watching. 1. Strong machinery demand: Machinery revenue increased approximately 44% to ₹480.8 crore. Aftermarket revenue, including spares and services, grew 16% to ₹54 crore. 2. Export opportunity: The company secured its first order from South Korea during the quarter. It also reported an all-time high export order book. 3. Margin pressure: Despite revenue growth, EBITDA margin declined to 19.4% from 20.7% a year ago. Management attributed the decline to higher material costs. This is the part I would not ignore. A growing order book provides revenue visibility, but profitability depends on the cost of executing those orders. If input costs remain elevated, higher sales may not translate into proportionate profit growth. My view: Lohia Corp has strong demand visibility and an expanding international opportunity. However, I want to see margins stabilise before becoming more constructive. The next triggers are order execution, export revenue growth and recovery in material margins. My stance: The order book is encouraging, but the quality of that order book will ultimately be measured by profitable execution, not just its size.