Lohia Corp (LCL) is among the leading global manufacturers of machinery and equipment for technical textiles in terms of revenue in 2024, with a strong focus on solutions for producing polypropylene (PP) and high-density polyethylene (HDPE) woven fabric and sacks (Raffia). It manufactures a comprehensive and diverse suite of machinery such as tape extrusion lines, circular loom, coating and lamination lines, printing machines, conversion machines, multifilament yarn machines, twister winders, monofilament extrusion lines and recycling machines, amongst others, as well as spare parts.

LCL was incorporated on June 5, 2023. Lohia Trade Services Limited (formerly known as Lohia Corp Limited) had demerged its technical textile machinery business undertaking, including its investment in five subsidiaries, and vested that into LCL. The Scheme was approved by the NCLT through its order dated April 16, 2024, with the appointed date of the Scheme being April 1, 2024. The NCLT order sanctioning the Scheme was filed with the Registrar of Companies, Uttar Pradesh at Kanpur on May 1, 2024, being the effective date of the Scheme.

LCL provides end-to-end solutions for the entire ecosystem of woven fabric, offering services from ‘concept to commissioning‘, throughout the complete production lifecycle required for the Raffia industry. It manufactures winders and rewinders for high performance fibres and has also ventured into extrusion lines to produce technical monofilaments with diversified applications such as textiles, agriculture and sports.

The company is a market leader, commanding 15.4% share of the global woven raffia machinery market by value and a dominant 40.7% share of the Indian woven Raffia machines market by value in FY25. In terms of product the revenue mix in FY26 is 33.28% from circular looms; 20.30% from tape extrusion lines; 8.95% from tape winders, 17.03% from other machines & equipments; 11.34% from spare parts for machines; 7.29% from other sales; 0.27% from sale of services and 1.54% from other operating revenue.

The company supplies machinery and equipment to around 100 counties across the globe through an exclusive global sales network. As per the restated financial information for FY26 and FY25, about 42.18%/58.18% of revenue from operations is from overseas markets and balance 57.82%/41.82% is from domestic market. Further,the 42.18% of overseas revenue from operations is made up by 2.72% Saudi Arabia, 2.24% USA, 2.17% Bangladesh, 2.08% Brazil, 1.87% Thailand and balance from other countries.

The company own and operate six machine manufacturing facilities, with four in India (2 each in Kanpur& Bengaluru) and one each in USA and Italy, along with one live experience centre in India. Its manufacturing facility in USA is in Burlington, North Carolina, and the manufacturing facility in Italy is in Como, Italy. As of March 31, 2026, the company‘s manufacturing facilities had an installed capacity to produce 240 tapelines, 13,800 circular looms and 108,000 tape winders annually.

The machines manufactured by it enable its customers to deliver solutions across a diverse spectrum of end-user industries, catering to varied applications. Woven fabric machines are used in a wide range of packaging applications across various industries, including the packaging of cement, fertilizer, chemicals, polymer, food grain and minerals, as well as in the production of shopping bags, leno bags, flexible intermediate bulk containers (FIBC) and container liners; they are also utilized in a variety of non-packaging applications, such as wrapping fabric, roof underlayment, lumber wrap, pond liner, tarpaulin, geotextile, geogrid, ground cover, carpet backing, ropes and twines.

Have developed in-house capabilities to deliver evolving technologies. It has been granted 71 patents in India and 56 patents outside India and has eight design registrations in India. The company with its subsidiaries and the demerged company has registered 54 trademarks as on the date of RHP and have applied for 24 trademark registrations and 19 patents in India, which are currently pending.

Indian woven Raffia market in FY25 stood at USD 8.4 billion (or 29.8%) of the total technical textile market in India that is USD 28.5 billion. Technical textiles are high-performance fabrics engineered for functional applications across industries including automotive, healthcare, construction, and agricultural industries. Increasing usage of Raffia bags across different user segments (food grains, chemicals, fertilizers, agriculture) supports the machinery market growth. In India, the technical textiles market is expected to grow at a CAGR of 10.5% between FY 25 and FY30. The demand for products manufactured by the company has been witnessing steady growth globally and in India.

The issue, object of the offer

The offer consists only of offer for sale of 25,931,407 equity shares of Rs 1 face value by promoters and other selling shareholders.

Of the total share for sale on OFS about 21537437 equity shares are sold by promoters [ Raj Kumar Lohia, Amit Kumar Lohia, Gaurav Lohia and a member of the promoter group – Ritu Lohia] and balance 4393970 equity shares by other selling shareholders [ Alok Kumar Lohia, Anurag Lohia and Anuja Lohia].

The object of the issue is to bring benefits of listing in stock exchanges and offer exit to other selling shareholders.

Strength

Market leader in India and among the leading manufacturers globally of woven raffia machinery in a growing market.

A diverse product portfolio, offering end-to-end solutions for the woven fabric ecosystem.

Strong relationships with a diverse, global customer base through an extensive global sales and distribution network. Overseas revenue is diverse with top 5 countries accountfor only about 11.08% (of the total 42.18%) and 17.98% (of the total 58.18%) of overall overseas revenue from operations in FY26 and FY25.

Order book as end of March 31, 2026, stood at Rs 1358.517 crore (up from Rs 828.457 crore as end of March 31, 2025), which translates into about 0.79 times of the FY26 revenue.

Advanced manufacturing infrastructure with comprehensive backward integration, supported by an in-house training centre.

Technology-driven operations with a strong focus on innovation-led research and development, leading to products that cater to dynamic market requirements.

Weaknesses

The woven raffia machines market may be affected by, among others, changes in government policies on use of plastic for packaging or mandatory use of jute- based packaging material.

Heavily dependent on the performance of the woven raffia machines market (which accounted for 88.16% of FY26 operational revenue) and the demand for it depend on the growth of end use industries such as agro textiles, building textiles, geo textiles and packing textiles. In particular, the agricultural sector is inherently seasonal and is further impacted by factors including agricultural commodity prices, costs of fertilizers and adverse weather conditions.

Significant portion (around 16% in FY26) of its raw materials, parts and components, are sourced from overseas suppliers.

Indian and global woven raffia machines market faces challenges such as environmental regulations, high capital costs for advanced machinery and competition.

Have experienced negative cash flows from operating activities in FY24. It incurred loss amounting to Rs0.009 crore in FY24, when it did not have any income, on account of legal and professional charges and miscellaneous expenses.

Have in the past entered related party transactions and may continue to do so in the future.

Exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials and export of products, which may adversely affect its results of operations, financial condition and cash flows.

Sales and business of the company face risks relating to rapid technological change, the development of new machinery and their rapid obsolescence, evolving industry standards and significant price erosion or depreciation over the life of its machinery.

Joint Statutory Auditors of the company have referred to an emphasis of matter in their examination report on the restated financial information as at and for the year ended March 31, 2025. Further Joint Auditors have included other audit qualification in the annexure to the auditor’s reports issued under the Companies (Auditor’s Report) Order, 2020 (CARO) on the consolidated financial statements for the year ended March 31, 2026, and March 31, 2025.

Any change in policy regarding Export Promotion Capital Goods (EPCG) scheme of the GoI, the benefits of which the company availed in the past, may affect the financials of the company.

Valuation

Revenues of the company for FY26 were higher by 25% to Rs 1717 crore. But with operating profit margin expanding by 270 bps to 18.6%, operating profit grew by 45% to Rs 318.58 crore. After accounting for higher other income, lower interest and higher depreciation, the PBT before EO was up 69% to Rs 274.46 crore. EO Exp was up at Rs 9.46 crore against nil in FY25. Thus, PBT after EO was up 63% to Rs 265.04 crore. Finally, Net profit after MI was higher by 65% to Rs 193.36 crore. Total borrowings as of May 31, 2026, stood at Rs 139.109 crore.

The EPS for FY2026 on expanded equity was Rs 18.9. The PE on upper price band works out to 22.5 times of its FY26 EPS. The P/BV stood at 8.6 times and EV/sales stood at 2.7 times its FY26 sales.

Though not an apple-to-apple comparison, the other industrial machinery manufacturers such as LMW, Rajoo Engineers, Mamata Machinery, Jyoti CNC Machines and Windsor Machines quotes at PE of 122.8 time, 18.9 times, 55.7 times, 54.3 times and 4764.4 times respectively of their FY26 EPS.