LG Balakrishnan & Bros Limited (LGBBROSLTD)
🎯 Key Takeaways
- LG Balakrishnan & Bros is in a mature growth phase with consistent profitability and strong cash generation, supported by stable margins and recurring dividend policy. The company has demonstrated steady financial performance over multiple quarters, with revenue and profit growth observed from FY23 to FY26, and maintains a conservative capital structure.
- Revenue grew 2.4% QoQ to ₹677 in Q3FY25.
- ⚠️ Regulatory compliance costs, particularly related to the new Labour Code, resulted in a one-time provision of ₹1,242.62 lakhs, which may affect future
📖 The Story
LG Balakrishnan & Bros is in a mature growth phase with consistent profitability and strong cash generation, supported by stable margins and recurring dividend policy. The company has demonstrated steady financial performance over multiple quarters, with revenue and profit growth observed from FY23 to FY26, and maintains a conservative capital structure. Management continues to prioritize shareholder returns while ensuring compliance and operational discipline.
📰 What's Happening
In FY26, the company reported consolidated revenue of ₹26,335 crores and net profit of ₹29,066 lakhs, up from prior periods, reflecting sustained growth momentum. The Board reappointed Sri S. Sivakumar as Non-Executive Director beyond age 75 pending shareholder approval and accepted the resignation of Senior Management Personnel Mr. Suresh Sivalingam effective January 31, 2026. The 70th AGM, scheduled for August 26, 2026, will focus on approving audited FY25-26 financials, declaring a dividend of ₹22 per share (220% of face value), and ratifying the cost auditor's remuneration of ₹3 lakh. Shareholders are required to update PAN and bank details by August 19, 2026, to receive the dividend, with remote e-voting available from August 23 to 25, 2026.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q4FY23 | Q1FY24 | Q2FY24 | Q3FY24 | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 523 | 539 | 600 | 600 | 607 | 571 | 661 | 677 |
| Operating Profit | 106 | 94 | 121 | 118 | 117 | 111 | 127 | 125 |
| OPM % | 17.1% | 16.3% | 17.3% | 17.7% | 16.6% | 15.6% | 16.6% | 16.8% |
| Net Profit | 55 | 55 | 75 | 73 | 68 | 65 | 78 | 75 |
| EPS | ₹17.33 | ₹17.66 | ₹24.05 | ₹23.11 | ₹21.62 | ₹20.78 | ₹24.31 | ₹23.61 |
The company has shown consistent top-line and bottom-line growth over the past eight quarters, with revenue rising from ₹523 lakhs in Q4FY23 to ₹677 lakhs in Q3FY25 and net profit increasing from ₹55 lakhs to ₹75 lakhs in the same period. Operating margins have remained stable between 15.6% and 17.7%, indicating effective cost management. Despite fluctuations in quarterly revenue, the underlying trend reflects resilience and scalability, supported by strong operating cash flow of ₹33,897.39 lakhs in FY26, which funded both investing and financing activities while maintaining financial flexibility.
🔮 Management Outlook & What's Next
Management has expressed confidence in future performance through its consistent dividend policy, proposing ₹22 per share for FY26 (220% of face value), continuing a trend of high payouts. The reappointment of key leadership, including S. Sivakumar beyond age 75, signals stability in governance. Management has not provided forward-looking guidance beyond operational updates, but the focus remains on sustaining financial discipline, capital efficiency, and compliance with regulatory changes such as the new Labour Code, which prompted a one-time provision of ₹1,242.62 lakhs.
Extracted from official company announcements. Not StockFin.ai's opinion.
⚖️ Peer Comparison — Auto Components
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| Samvardhana Motherson International Limited | 1.37 L Cr | 30.6 | — | — | — |
| Bosch Limited | 1.11 L Cr | 55.0 | — | — | — |
| Bharat Forge Limited | 91,463 | 99.6 | — | — | — |
| UNO Minda Limited | 64,785 | 66.7 | — | — | — |
| Schaeffler India Limited | 62,984 | 67.0 | — | — | — |
| Tube Investments of India Limited | 55,168 | 47.4 | — | — | — |
| MRF Limited | 54,558 | 31.1 | — | — | — |
| Balkrishna Industries Limited | 41,530 | 23.4 | — | — | — |
| Endurance Technologies Limited | 35,848 | 44.7 | — | — | — |
| Sona BLW Precision Forgings Limited | 35,667 | 58.5 | — | — | — |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Regulatory compliance costs, particularly related to the new Labour Code, resulted in a one-time provision of ₹1,242.62 lakhs, which may affect future profitability if similar adjustments recur. 2. The company’s reclassification from 'Large Corporate' may impact disclosure requirements and investor perception, potentially reducing transparency expectations. 3. Senior management turnover, including the resignation of Mr. Suresh Sivalingam, could affect operational continuity despite no immediate disruption cited. 4. Dependence on a concentrated customer base or sector-specific demand trends in auto components could expose the company to cyclical industry risks, though not explicitly highlighted in filings.
📋 Recent Filings
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🔴 annual report 30 July 2026LG Balakrishnan & Bros held its 70th Annual General Meeting on August 26, 2026 via video conference, approving the audited FY2025-26 financial stateme...
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🔴 Announcement 28 July 2026ICRA reaffirmed LG Balakrishnan & Bros' short-term and long-term credit ratings at A1+ and AA (Stable) on July 16, 2026, confirming existing limits of...
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Financial Results 25 June 2026LG Balakrishnan & Bros Limited announced the closure of its insider trading window effective July 1, 2026, until 48 hours after the declaration of aud...
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🟡 Board Meeting 4 May 2026LG Balakrishnan & Bros Limited corrected its Q3 FY2026 exceptional item to Rs. **103.71 lakhs** due to subsidy and new labour codes, while reporting a...
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🔴 Financial Results 2 May 2026LG Balakrishnan & Bros Limited announced a dividend of **₹22 per share** (220% of face value) for FY2026, with record date August 19 and payment by Se...
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🟡 Board Meeting 2 May 2026No summary available
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🔴 Corporate Action 2 May 2026LG Balakrishnan & Bros announced a dividend of Rs 22 per share (220% of face value) for FY2026, payable by September 18, 2026, with a record date of A...
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🔴 Corporate Action 2 May 2026LG Balakrishnan & Bros Limited announced a dividend of ₹22 per equity share (220% of face value) for the financial year ending March 31, 2026, with a ...
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🔴 Financial Results 2 May 2026LG Balakrishnan & Bros reported FY2026 consolidated revenue of **₹26,335 crores** and net profit of **₹29,066 lakhs**, with a proposed dividend of **₹...
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🔴 Financial Results 2 May 2026LG Balakrishnan & Bros reported consolidated revenue of ₹2,83,217.65 lakhs and net profit of ₹30,209.07 lakhs for the year ended March 31, 2026, up fr...
🧠 Analyst's Read
LG Balakrishnan & Bros demonstrates consistent financial discipline, strong cash generation, and a shareholder-friendly dividend policy, supported by stable margins and institutional confidence. Investors should monitor the outcome of the 70th AGM, particularly shareholder approval of S. Sivakumar’s reappointment and any updates on capital allocation or regulatory developments. The company’s trajectory remains steady, with near-term focus on dividend payment execution and compliance adherence.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-30.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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