Is Lohia Corp IPO Good or Bad – Detailed Review

Lohia Corp Limited’s IPO is set to open its initial public offering from July 23, 2026, to July 27, 2026. When considering applying for this IPO, potential investors might have questions about whether the Lohia Corp IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive analysis of Lohia Corp's IPO, covering its business operations and a fundamental analysis of its RHP to help you make an informed investment decision.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Lohia Corp IPO Review

Lohia Corp Limited IPO is open for subscription from July 23, 2026, to July 27, 2026, with listing expected on July 30, 2026, on NSE and BSE.

The company operates an advanced machine manufacturing setup consisting of six manufacturing facilities (four in India across Kanpur and Bengaluru, one in Burlington, USA, and one in Como, Italy) and one live experience centre in Kanpur. The operations originally commenced under the demerged business in 1981.

The company provides a comprehensive range of custom machinery, spare parts, and associated services. Through its subsidiaries, Leesona Corp (USA) and Sundarlam Industries (Bengaluru), and its joint venture OMGM (Italy), it has expanded its product offerings into high-performance fibers and monofilament extrusion lines, serving a diverse global B2B clientele.

As of the fiscal year ended March 31, 2026, the company reported a consolidated revenue from operations of Rs 1,716.99 crore, driven by its global and domestic market leadership with an aggregate extrusion capacity of 8.59 million MT sold by the company.

The company’s operations are well diversified globally, though domestic sales within India accounted for 57.82% of its total revenue from operations in FY26 (with exports to around 100 countries accounting for the remaining 42.18%.

Its revenue from operations stood at Rs 1,165.81 crore in FY24 (combined and carved-out figures of the demerged business), grew to Rs 1,376.87 crore in FY25 (consolidated), and reached Rs 1,716.99 crore in FY26 (consolidated).

For the year ended March 31, 2026, the company reported a Profit After Tax (PAT) of Rs 193.45 crore. This follows a net profit of Rs 117.84 crore in FY25 and Rs 29.76 crore in FY24 (Demerged Business), representing solid profitability growth.

The company maintains a strong consolidated EBITDA margin of 19.53% in FY26, 16.49% in FY25 and 9.03% in FY24.

Key strengths include its end-to-end integrated "concept to commissioning" solutions portfolio, in-house technology infrastructure, and extensive R&D focus driven by the Hargovind Bajaj R&D Centre, a robust outstanding order book of Rs  1,358.52  crore providing strong mid-term revenue visibility, and a robust Return on Net Worth (RoNW) profile of 72.95% in FY26, 106.11% in FY25).

Primary risks include product segment concentration (woven raffia machinery market contributed 88.16% of operational revenues in FY26), raw material price volatility due to sourcing key components on a short-term purchase order basis, foreign exchange rate risk with 42.18% of operational revenue denominated in foreign currencies, and potential liabilities from outstanding direct/indirect tax litigations.

The book-built issue consists solely of an Offer for Sale of up to 2,59,31,407 equity shares worth Rs 1,101 crore received by the Selling Shareholders. The Company will not receive any proceeds from the Offer.

Shares are priced in the Lohia Corp IPO price band of Rs 404 to Rs 425 per share, with a minimum lot size of 35 shares.

Company Overview of Lohia Corp IPO

Lohia Corp builds the large, heavy-duty industrial machinery that other companies buy to equip their factories. 

They do not manufacture or sell any actual plastic bags themselves.

Instead, they design and deliver entire integrated machinery lines. To optimize production, Lohia Corp builds advanced automation and smart digital controls directly into their equipment. 

Their clients simply put raw materials into these setups, and the automated system completely handles the processing steps to output finished, heavy-duty industrial shipping bags.

These packaging companies then use Lohia’s automated machines to supply bulk sacks to the cement, fertilizer, agriculture, and chemical industries worldwide. Ultimately, those heavy-duty bags are used to package and transport bulk cargo safely across the globe.

Lohia Corp Business Segments

The company serves its B2B clients primarily through circular looms and tape extrusion lines, supplemented by other downstream equipment and spare parts:

Company’s Management

The company is led by technically qualified promoters with extensive industry experience.

The Board is headed by Raj Kumar Lohia (Chairman and Managing Director), supported by Whole-time Directors: Gaurav Lohia (Whole-time Director and Chief Operating Officer) and Rajendra Kumar Arya.

The financial and administrative operations are overseen by Anupam Agarwal (Chief Financial Officer) and Shikha Srivastava (Company Secretary and Compliance Officer).

Industry Overview of Lohia Corp IPO

Lohia Corp Limited operates within the global and Indian technical textiles and machinery manufacturing industries.

This sector is witnessing strong growth driven by rising domestic agricultural and industrial consumption, rapid urbanization, supportive government policies (such as the National Technical Textiles Mission, PLI schemes, and mandatory BIS standards), and the ongoing diversification of global supply chains.

Despite this potential, the industry faces persistent structural challenges, including raw material price volatility, high capital expenditure costs for advanced automation, and stringent environmental regulations on plastic waste and recycling.

Industry statistics are sourced from the Lohia Corp Limited Red Herring Prospectus (RHP) dated July 17, 2026.

Financial Overview of Lohia Corp IPO

Note: Calculated on a restated and consolidated basis (FY25 and FY26 figures are consolidated, and FY24 figures represent the combined and carved-out financial statements of the Demerged Business of LTS Holdings Private Limited).

• Revenue from Operations: This is the total money the company earned from its core business of manufacturing and supplying plant and machinery for the technical textile (woven fabric and sacks) industry. Consolidated revenue grew significantly by 24.70% from Rs 1,376.87 crore in FY25 to Rs 1,716.99 crore in FY26, driven by higher production volumes of circular looms and tape extrusion lines.

• EBITDA Margin: This measures core operating profitability. It stood at a strong 19.53% in FY26, 16.49% in FY25, and 9.03% in FY24, supported by robust manufacturing asset utilization, cost-efficient in-house backward integration of parts, and an optimized product mix.

• Profit After Tax (PAT): The company's bottom-line net profit grew exceptionally, rising by 64.16% to Rs 193.45 crore in FY26 from Rs 117.84 crore in FY25, indicating strong scalability.

• Return on Net Worth (RoNW): Reflecting high capital efficiency, RoNW stood at 72.95% in FY26 and 106.11% in FY25, supported by steady profit generation on a growing capital base.

• Return on Capital Employed (RoCE): This indicates how efficiently the company utilizes its total debt and equity. It stood at 40.92% in FY26 and 30.45% in FY25, highlighting healthy returns on the group’s capital investments.

• Net Debt to Equity Ratio: Measures the company's financial leverage by comparing its net debt to shareholders' equity. The ratio stood at a highly comfortable 0.23x in FY26, down from 0.47x in FY25, reflecting strong internal cash generation and a reduction in total borrowing.

Financial figures are sourced from the Lohia Corp Limited Red Herring Prospectus (RHP) dated July 17, 2026.

Strengths and Risks of Lohia Corp IPO

Let's examine the strengths and weaknesses to determine whether the Lohia Corp IPO is good or bad for investors.

Strengths

• End-to-End Integrated Model: Offering a complete "concept to commissioning" solution across the entire lifecycle of raffia production (extrusion, winding, weaving, coating, printing, and bag conversion) minimizes coordination friction for global B2B clients.

• Domestic and Global Market Moat: Undisputed market leadership with a dominant 40.7% market share by value in India (Fiscal 2025) and a substantial 15.4% share of the global woven raffia machinery market (2024).

• Robust Order Book: Outstanding order book of Rs 1,358.52 crore as of March 31, 2026, providing strong mid-term revenue visibility and stability.

• Comprehensive Backward Integration: In-house capability to assemble electronic controllers, inverters, and high-precision parts using advanced CNC machining shops, optimizing cost margins and reducing dependency on third-party suppliers.

• Experienced Promoter Group: Promoters possess over 20 to 43 years of specialized experience in the technical textiles and manufacturing sectors.

Risks

• High Segment Concentration: Heavy dependence on the performance of the woven raffia machinery market, which contributed 88.16% of operational revenues in FY26, exposing the business to cyclical downturns in end-use packaging industries.

• Absence of Long-term Agreements: Sourcing of key raw materials, components, and metals on a short-term purchase order basis exposes the company to pricing and supply volatility.

• High Geographic and FX Concentration: Geo-diversified but exposed to foreign exchange risk as 42.18% of operational revenues in FY26 were denominated in foreign currencies (primarily USD and Euro).

• Loss-Making Subsidiaries: Key subsidiaries, such as Leesona Corp. (which reported a net loss of Rs 24.34 crore in FY26) and Sundarlam Industries, have historically experienced losses, which could drag down consolidated profitability.

• Raw Material Price Volatility: Sourcing of key components and metals on a short-term basis exposes the company to severe price fluctuations.

Strategies of Lohia Corp IPO

• Global Expansion: Focus on targeted geographical expansion and export enhancement across high-potential technical textile markets in key global corridors.

• Strengthening Downstream Segment: Penetrate downstream processing and bag-conversion segments using established brand equity to broaden our addressable share in the conversion machinery space.

• High-Performance Growth: Build out product competencies in advanced winding and extrusion technologies, leveraging strategic acquisitions like Leesona Corp and joint ventures such as OMGM.

• Focusing on Sustainability: Capture high-growth opportunities in material circularity by expanding specialized polymer recycling offerings for both post-industrial and post-consumer waste.

• Operational Efficiency: Leverage technology, in-house automation, and process optimization frameworks (such as ZEEP) to enhance manufacturing throughput and minimize overhead costs.

• Strategic Acquisitions: Drive inorganic growth by identifying and integrating financially stable, technically competent assets that complement our integrated solutions ecosystem.

Lohia Corp IPO vs. Peers

The RHP provides a comparative framework of Lohia Corp against the listed Indian peers:

The listed peer groups are: 

Rajoo Engineers, LMW, Mamata Machinery, Jyoti CNC Automation, and Windsor Machines.

The following securities mentioned are for comparative purposes only and do not constitute a recommendation to buy or sell.

• Revenue from Operations: While LMW Limited (Rs 3,207.42 crore) and Jyoti CNC Automation Limited (Rs 2,093.13 crore) operate at a larger scale, Lohia Corp (Rs 1,716.99 crore in FY26) represents a highly focused leader in the niche technical textile machinery space.

• Operating EBITDA Margins: Lohia Corp exhibits superior operational profitability, with an Operating EBITDA margin of 19.53% in FY26, outperforming LMW Limited (8.61%), Mamata Machinery (9.11%), and Windsor Machines (6.14%), while closely matching Rajoo Engineers (20.02%).

• Return on Net Worth (RoNW): Backed by efficient asset and capacity utilization, Lohia Corp recorded a robust Return on Net Worth of 72.95% in FY26, which is significantly higher than Rajoo Engineers 14.16%, LMW Limited 4.56%, Mamata Machinery's 8.13%, and Jyoti CNC 16.79%.

Objectives of Lohia Corp IPO

The entire Rs 1,100 crore issue consists solely of an offer for sale, with all proceeds going to the selling shareholders.

Lohia Corp IPO Details

IPO Dates

Lohia Corp IPO will be open for subscription from July 23, 2026, to July 27, 2026. The allotment of shares to investors will take place on July 28, 2026, and the company is expected to be listed on the NSE and BSE on July 30, 2026.

IPO Issue Price

Lohia Corp is offering its shares in the price band of Rs 404 to Rs 425 per share. This means you would require an investment of Rs 14,875 per lot (35 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Lohia Corp is launching a total issue consisting of an offer for sale of Rs 1,101 crore.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on July 28, 2026, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or through their stockbroker platform.

IPO Listing Date

The shares of Lohia Corp are expected to be listed on the NSE and BSE on July 30, 2026.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

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