Smallcap stock jumps 8% after signing agreement with Italian firm for radar tech development

Synopsis:
The shares of this industry products company were in the news today following the announcement of its agreement with an Italian firm to develop radar technology. 

This company, which is primarily engaged in the design, manufacturing, and commissioning of heavy equipment, machinery & systems for the hydrocarbon sector, oil & gas, steel plants, power plants, nuclear plant boilers, and turnkey projects, had its shares in the spotlight following the agreement it made with Virtualabs S.r.l., Italy.

With a market cap of Rs 6,181 crore, the shares of Lloyds Engineering Works Ltd gained 8.38 per cent, reaching a high of Rs 54.34 in today’s trading session when compared to its previous day’s closing price of Rs 50.15. The shares are trading at a PE of 53.2, whereas the industry PE is 34. 

About the Agreement with Virtualabs S.r.l., Italy. 

Lloyds Engineering Works has signed an agreement with Virtualabs S.r.l., Italy, to work together on developing radar technology for both defence and civil applications. This move reflects the company’s interest in stepping into more advanced engineering areas where the demand for specialised radar systems is growing.

The agreement is simple and clean: Lloyds does not hold any shareholding in Virtualabs, and the partnership does not create any liabilities, restrictions, or changes in management or control for the company. It is purely a technology collaboration, focused on building capability rather than involving financial or structural commitments.

By tapping into Virtualabs’ radar expertise, Lloyds is positioning itself to participate in both defence and civilian radar opportunities. This collaboration strengthens its engineering depth and could open up new, higher-value business avenues without taking on additional risk or altering the company’s existing structure.

Financials and more. 

The revenue from operations stands at Rs 317 crore in Q2 FY26 and Rs 217 crore in Q1 FY26, showcasing a QoQ increase of 46%. Along with the sales, the profits also grew from Rs 30 crore in Q1 FY26 to Rs 54 crore in Q2 FY26, increasing 80% QoQ. 

The company’s order book stands at Rs 6,139.79 crore, which includes Rs 1,303.81 crore from LEWL, Rs 124.54 crore from Techno Industries, Rs 4,558.8 crore from LICL and Rs 152.64 crore from Metalfab. 

Lloyds Engineering Works has built a remarkably diverse and trusted client base across India’s biggest industries, showing how strongly the company is positioned in the market. Its customers range from major oil and gas names like IndianOil, HPCL, BPCL, GAIL, NRL, HMEL and CPCL to global energy players such as Total and Petrofac. 

It also works closely with industrial and engineering leaders like L&T, Thyssenkrupp, EIL, and SMS Group, along with large conglomerates including Reliance Industries, Tata Projects, and the Aditya Birla Group. On top of that, the company serves important fertiliser, chemical, and steel companies such as IFFCO, RCF, Jindal Steel & Power, and AM/NS India. This wide mix of well-known clients highlights the trust Lloyds enjoys across sectors and reflects its ability to deliver complex, high-quality engineering solutions consistently.

The engineering industry Lloyds operates in is all about creating heavy-duty equipment, machinery, and systems that can handle the toughest industrial needs. Whether it’s the hydrocarbons sector, oil and gas companies, steel plants, power plants, or even nuclear facilities, these industries rely on highly precise, reliable solutions to keep operations running safely and efficiently. Engineering businesses in this space don’t just build individual machines; they also handle large, end-to-end turnkey projects, giving clients everything they need from design to final installation. It’s a field that demands deep technical expertise and the ability to deliver customised solutions for a wide range of complex applications.

Written by Leon Mendonca

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