IPO Note : Lohia Corp Ltd by Geojit Investments Ltd
A Pure-Play Technical Textile Machinery player
Lohia Corp Ltd. (LCL) is a leading global manufacturer of machinery and equipment for the technical textiles industry, specializing in polypropylene (PP) and high-density polyethylene (HDPE) woven fabric and sack (raffia) machinery. The company offers end-to –end solutions across the woven fabric value chain, spanning extrusion, weaving, coating, printing, conversion, yarn processing, and recycling. With a global market share of 15.4% in woven raffia machinery and a dominant 40.7% share in the Indian market, LCL has established a strong international presence, serving customers across nearly 100 countries through its manufacturing facilities in India, the US, and Italy
* The global woven raffia machinery market is projected to grow at a ~10% CAGR during 2025-30, driven by growing demand for PP/HDPE woven packaging, increasing technical textile penetration, and rising adoption of automated, energy-efficient machinery. (Source: Frost & Sullivan Report).
* Lohia Corp’s revenue grew 24.7% YoY to Rs 1,717cr in FY26, aided by Rs993cr domestic revenue and Rs 724cr overseas revenue.
* EBITDA margin expanded to 18.6% in FY26 from 15.9% in FY25, driven by operating leverage, improved product mix and manufacturing efficiencies, while PAT grew 64% YoY to Rs 193.5cr with a PAT margin of 11.3%.
* LCL's order book grew 64% YoY to Rs1,358.5cr as of March 2026, strengthening revenue visibility and underpinning future growth.
* Backed by 6 manufacturing facilities across India, the US, and Italy, Lohia has built significant production capabilities, with annual installed capacity of 240 tape lines, 13,800 circular looms, and 108,000 tape winders as of March 2026, strengthening its ability to meet growing global demand and maintain industry leadership.
* The company's backward-integrated manufacturing setup enables in-house production of key components, including motors, inverters, and machine controllers, enhancing supply chain reliability, ensuring better quality standards, and contributing to improved profitability.
* Expansion into higher value-added conversion and processing machinery could improve revenue per customer, support EBITDA margin expansion, and reduce dependence on core woven raffia machinery over the long term.
* LCL has a ROE of 43% and a ROCE of 40.7% in FY26, with a comfortable debt/ equity of 0.3x.
* At the upper price band of ?425, Lohia Corp is valued at a P/E of 23x FY26 EPS, lower than most listed machinery peers. Considering its leadership in the woven raffia machinery market, strong export franchise, healthy order book and favourable industry outlook, we assign a 'Subscribe' rating to the IPO for investors with a medium- to long-term investment horizon.
Purpose of IPO
The offer consists of an Offer for Sale (OFS) of up to 2,59,31,407 equity shares totalling Rs 1,101cr. The objective of the issue is to achieve the benefits of listing the equity shares on the stock exchanges
Key Risks
• Woven Raffia machines contribute 86–88% of revenue, creating concentration risk.
• Over 40% revenue generated from overseas markets, increasing export dependence.
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SEBI Registration Number: INH20000034
