Lohia Corp IPO

Lohia Corp is the clear leader in its industry, holding a 40.7% market share in India (FY25) and a 15.4% share globally (2024). This strong position makes it difficult for both domestic and international competitors to catch up, giving the company a lasting competitive advantage.

The company's restated net profit (profit after required accounting adjustments) jumped 64.16% to ₹193.45 crore in FY26 from ₹117.84 crore a year earlier. Its EBITDA margin (operating profit before interest, taxes, depreciation, and amortisation) also improved from 16.49% to 19.53%, showing that the business has become more efficient at turning revenue into profit.

Lohia Corp has sharply reduced its debt over the past few years. Its net debt-to-equity ratio fell from 1.06 times in FY24 to just 0.23 times in FY26, while total borrowings declined to ₹152.78 crore. A lower debt burden strengthens the company's balance sheet and gives it greater financial flexibility.

The company designs and manufactures important components such as motors, inverters, and customised controllers in-house, supported by 109 CNC (computer-controlled precision machining) machines. This reduces dependence on outside suppliers, helps maintain consistent quality, and keeps production costs under control.

Lohia Corp has served more than 2,000 customers across nearly 100 countries, so its business is not dependent on a handful of clients. In FY26, its largest customer contributed only 2.08% of total revenue, or ₹35.67 crore, reducing the risk of relying too heavily on any single customer.

The company delivered a Return on Equity (ROE, profit generated from shareholders' money) of 36.80% and a Return on Capital Employed (ROCE, profit earned from all the capital used in the business) of 40.92% in FY26. These strong numbers show that Lohia Corp is using its capital efficiently to generate healthy profits.

Lohia Corp generates a large part of its business from woven raffia machinery. In FY26, this segment contributed 88.16% of its operating revenue, or ₹1,513.70 crore. This means any slowdown in demand or a shift to newer packaging technologies could have a significant impact on the company's business.

In FY26, imported raw materials accounted for 16.06% of its raw material costs, or ₹155.14 crore. Since these materials are sourced mainly from countries such as Switzerland, the US, and Singapore, global supply chain disruptions or higher import costs could affect production and profitability.

Exports contributed 42.18% of the company's total revenue, or ₹724.26 crore, in FY26. At the same time, it had an unhedged (not protected against exchange rate movements) foreign currency net outflow exposure of ₹11.70 crore. As a result, sharp currency movements could hurt its profits.

Some of Lohia Corp's key manufacturing facilities, including those in Panki and Bengaluru, operate on leased land. The Bengaluru facilities have relatively short lease terms of just three years. If these leases are not renewed or suitable alternatives are unavailable, the company could face disruptions to its manufacturing operations.

Lohia Corp's machines are designed to process petroleum-based plastic polymers. If governments introduce stricter plastic regulations or expand policies such as requiring at least 20% of sugar to be packaged in jute-based material, demand for synthetic plastic packaging machinery could decline over time.

The business requires a significant amount of money to keep its day-to-day operations running. In FY26, its net working capital days stood at 84, mainly because it carried inventory worth ₹396.48 crore. This means a large amount of capital remains tied up in stock before the company receives payments from customers.