Lohia Corp Ltd IPO Date, Price, GMP, Review, Details

Overview

Lohia Corp Limited is engaged in the manufacturing of machinery and equipment used in the technical textiles industry, primarily catering to the production of polypropylene (PP) and high-density polyethylene (HDPE) woven fabrics and sacks, commonly referred to as Raffia products. The company supplies machinery for manufacturing woven sacks, flexible intermediate bulk containers (FIBCs), tarpaulins, geotextiles, and other industrial packaging products for agricultural, food, chemical, cement, and infrastructure applications. The company commenced operations in its current structure following the demerger of the technical textile machinery business from the erstwhile Lohia Corp Limited in May 2024.

The company’s product portfolio spans the entire woven Raffia production process. It manufactures tape extrusion lines, tape winders, circular looms, coating and lamination machines, printing machines, bag conversion and FIBC conversion machinery, multifilament yarn machines, recycling equipment, monofilament extrusion lines and twister winders. In addition to supplying machinery, the company provides installation, commissioning, modernisation, spare parts and after-sales services throughout the equipment lifecycle, enabling customers to source multiple machinery requirements from a single supplier.

Manufacturing operations are carried out through four facilities located in Kanpur and Bengaluru. As of March 31, 2026, the company had an installed annual production capacity of 240 tape extrusion lines, 13,800 circular looms and 108,000 tape winders. These facilities manufacture both standard and customised machinery depending on customer requirements and application areas.

Lohia Corp serves customers in India and overseas through its subsidiaries and distribution network. The company provides technical support, maintenance services, spare parts and machine upgrades throughout the lifecycle of its equipment. It also operates a Technical Training and Research Centre in Kanpur, where customers receive operator training, technical assistance and product testing support. These services complement the company’s machinery business and facilitate long-term customer engagement.

The company’s business is driven by capital expenditure undertaken by manufacturers of woven packaging products. Demand for its machinery is linked to capacity expansion, technology upgrades and replacement of existing equipment by customers operating in sectors such as industrial packaging, agriculture, chemicals, food processing and infrastructure. In addition to its existing product portfolio, the company is expanding into machinery for adjacent technical-textile applications, including equipment for the production of high-performance fibres and other specialised textile products.

Following the demerger, Lohia Corp operates as a dedicated technical textile machinery business, while the non-core businesses, including real estate and certain strategic investments, remained with the erstwhile entity. The separation allows the company to focus exclusively on manufacturing and supplying technical textile machinery and related engineering solutions, with revenue generated from machinery sales, aftermarket services and customer support across domestic and international markets.

IPO Details

Key Strengths

• Established Presence in the Woven Raffia Machinery Industry
  Lohia Corp has built a longstanding presence in the woven Raffia machinery industry, supplying machinery used in the production of PP and HDPE woven fabrics and sacks across domestic and international markets. As of March 31, 2026, the company had supplied more than 2,447 tape extrusion lines, 502,940 tape winders and 101,452 circular looms, with its installed machinery supporting an aggregate extrusion capacity of 8.59 million MT globally. During FY26, the company supplied its products to customers in around 100 countries, supported by a global sales and service network. Its manufacturing footprint, production scale and established customer base position it to benefit from continued investments in industrial packaging and technical textile manufacturing.

• Integrated Manufacturing Network with In-house Engineering Capabilities
  Lohia Corp operates an integrated manufacturing network comprising four sales offices in India and production units in the United States and Italy, enabling it to manufacture a broad portfolio of technical textile machinery. The company also operates a live experience centre in Kanpur for product demonstrations and FIBC manufacturing. Its infrastructure is supported by a Technical Training and Research Centre (TTRC), a Machinery Technology Training Centre (MTTC), a dedicated research and development centre and a digital innovation centre. This integrated ecosystem supports product development, employee and customer training, manufacturing, testing and after-sales support, while facilitating continuous product improvement and operational efficiency.

• Innovation-led Product Development Supported by In-house R&D
  Lohia Corp has developed in-house engineering and research capabilities focused on product innovation, process improvement and automation. As of March 31, 2026, the company employed 251 personnel in R&D, representing 12.5% of its on-roll workforce, and operated dedicated research facilities, including the Hargovind Bajaj R&D Centre and a Digital Innovation Centre focused on IoT and artificial intelligence applications. Its innovation pipeline has led to the development of advanced machinery for extrusion, weaving, printing, recycling, and multifilament production, as well as IoT-enabled machine-monitoring solutions. The company’s intellectual property portfolio comprises 127 granted patents globally, 54 registered trademarks and multiple design registrations, supporting the commercialisation of proprietary technologies.

Key Risks

• High Dependence on the Woven Raffia Machinery Segment
  Lohia Corp derives a significant portion of its revenue from the woven Raffia machinery segment, which accounted for 88.2% of revenue from operations in FY26. Consequently, its business performance is closely linked to capital expenditure by manufacturers of PP and HDPE woven fabric and sacks. Demand for these machines depends on end-user industries such as agriculture, industrial packaging, construction and geotextiles, making the company susceptible to sector-specific slowdowns and broader economic cycles. Additionally, changes in government regulations related to packaging materials, environmental policies, or restrictions on plastic usage could impact demand for woven Raffia products, thereby affecting machinery orders, revenue growth and profitability.

• Exposure to Raw Material Price Volatility and Supply Chain Disruptions
  Lohia Corp’s manufacturing operations rely on the timely procurement of metals, electrical components, motors, gearboxes, bearings and other critical inputs, with raw material costs accounting for 53.2% of revenue in FY26. Any increase in raw material prices or disruption in the availability of these components could adversely affect production costs and operating margins, particularly if the company is unable to pass on higher costs to customers. Additionally, the company procures most of its raw materials through purchase orders rather than long-term supply agreements, exposing it to price volatility, supplier dependence, logistics disruptions, import duties, and geopolitical uncertainties, which could affect manufacturing schedules and profitability.

• Limited Comparability of Historical Financial Information
  Lohia Corp commenced operations in its current form following the demerger of the technical textile machinery business from the erstwhile Lohia Corp Limited in May 2024. Consequently, its FY24 financial statements and operational data are based on Special Purpose Combined and Carve-Out Financial Statements, which incorporate estimates, assumptions and allocations rather than the results of an independently operated entity. As a result, the historical financial performance may not accurately reflect the company’s standalone operating profile or be directly comparable with FY25 and FY26 performance, limiting investors’ ability to assess historical trends and future earnings potential based solely on past financial information.

Financial Snapshot

Peer Comparison

Conclusion

Lohia Corp operates in a niche segment of the capital goods industry with established manufacturing capabilities, a diversified product portfolio and a growing international presence. While the company has demonstrated improvement in its financial performance and balance sheet metrics, its business remains significantly concentrated in the woven Raffia machinery segment, making earnings susceptible to cyclical capital expenditure, end-market demand and raw material cost volatility. Further, the company’s standalone operating history is limited following the recent demerger, reducing the comparability of historical financial performance. Considering these factors, we recommend investors avoid the issue and monitor the company’s execution and operating performance over the next few quarters before reassessing the investment opportunity.