Manufacturing companies often receive attention during IPOs because they operate in industries with long-term demand and global customers. However, investors should understand exactly what the company manufactures before evaluating its financial performance.
The Lohia Corp IPO brings one of the world’s leading manufacturers of machinery used to produce woven plastic sacks and industrial fabrics to the public markets.
Unlike packaging companies that manufacture sacks, Lohia Corp builds the machines that produce them. These machines are used by manufacturers of cement bags, fertiliser sacks, food grain packaging, chemical packaging and industrial woven fabrics.
The company has reported strong revenue growth, significantly higher profitability, improving operating cash flow and lower debt during FY26. At the same time, investors should examine risks related to its overseas subsidiary, related-party transactions and the IPO structure before making an investment decision.
This review explains Lohia Corp’s business model, financial performance, IPO details and key risks in simple language.
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Lohia Corp IPO: Key Takeaways
Before reviewing the company in detail, here are the major highlights.
- Lohia Corp is India’s largest manufacturer of woven plastic packaging machinery.
- The company holds approximately 41% market share in India and around 15% globally.
- FY26 revenue increased 25% to Rs. 1,717 crore.
- Profit after tax grew 64% to Rs. 193 crore.
- Operating cash flow more than doubled during FY26.
- Total borrowings declined during the year.
- The IPO is entirely an Offer for Sale.
What Does Lohia Corp Do?
Lohia Corp manufactures specialised industrial machinery used to produce woven plastic sacks and technical woven fabrics.
The company does not manufacture packaging bags.
Instead, it supplies the machines that other manufacturers use to produce products such as:
- Cement bags
- Fertiliser sacks
- Food grain packaging
- Chemical packaging
- Industrial protective covers
- Construction fabrics
These products are widely used across infrastructure, agriculture, logistics and industrial sectors.
Because packaging demand generally grows alongside industrial activity, manufacturers often invest in new machinery to improve production capacity and efficiency.
Where Does Lohia Corp Operate?
Lohia Corp has built a significant global manufacturing footprint over several decades.
The company currently operates six manufacturing facilities located across:
- India (4)
- United States (1)
- Italy (1)
Its machines are supplied to customers across domestic as well as international markets.
According to the information provided, Lohia Corp commands approximately:
- 41% share of India’s woven packaging machinery market
- Around 15% share of the global market
This positions the company among the leading manufacturers in its specialised industry.
How Does Lohia Corp Earn Revenue?
Lohia Corp primarily earns revenue by manufacturing and selling industrial machinery.
Unlike companies that manufacture packaging materials continuously, machinery manufacturers generally receive revenue when customers purchase equipment.
Demand often depends on:
- Capacity expansion by packaging manufacturers
- Replacement of older machinery
- Industrial investment cycles
- Export demand
One useful indicator for machinery businesses is the order book.
The order book represents confirmed customer orders that are yet to be delivered.
A growing order book can provide visibility into future revenue, although execution remains important.
According to the information provided, Lohia Corp’s order book nearly doubled during FY26 to approximately Rs. 1,359 crore.
How Strong Are Lohia Corp’s FY26 Financials?
The company reported healthy growth across revenue, profitability and operating cash flow during FY26.
Financial Snapshot
| Particulars | FY26 |
| Revenue | Rs. 1,717 crore |
| Profit After Tax | Rs. 193 crore |
| PAT Margin | 11.1% |
| Operating Cash Flow | Rs. 325 crore |
| Total Borrowings | Rs. 153 crore |
Revenue increased approximately 25% over FY25.
Profit after tax grew much faster at approximately 64%, allowing profit margins to improve from 8.5% to 11.1%.
Higher profitability alongside revenue growth suggests the company generated stronger operating efficiency during FY26.
Why Did Operating Cash Flow Increase So Much?
Operating cash flow more than doubled during FY26.
Cash generated from operations increased from approximately Rs. 141 crore in FY25 to around Rs. 325 crore in FY26.
A major reason was higher customer advances received against confirmed machinery orders.
As the order book expanded significantly, customers paid larger advances before delivery.
These advance payments improved operating cash flow without requiring additional borrowing.
Why Does Cash Flow Matter?
Accounting profit shows earnings after expenses.
Operating cash flow shows how much cash the business actually generates from day-to-day operations.
Strong cash generation provides additional financial flexibility for:
- Manufacturing operations
- Capacity expansion
- Debt reduction
- Working capital management
However, investors should remember that customer advances can fluctuate depending on future order inflows.
What Does Lower Debt Mean?
The company also reduced its borrowings during FY26.
Total debt declined from approximately Rs. 212 crore to around Rs. 153 crore.
Lower borrowings generally reduce future interest expenses while strengthening the balance sheet.
Combined with higher operating cash flow, this improves financial flexibility.
What Are the Main Risks in the Lohia Corp IPO?
Despite the company’s market leadership and improving financial performance, investors should understand several disclosed risks.
Why Is the US Subsidiary a Risk?
One important disclosure relates to the company’s US subsidiary, Leesona Corp.
According to the information provided:
- Leesona moved from a small profit in FY24 to a loss of approximately Rs. 24 crore in FY26.
- Lohia Corp has provided a bank guarantee of approximately Rs. 41 crore on behalf of the subsidiary.
Why does this matter?
If Leesona faces financial difficulty and cannot meet its obligations, the parent company could become financially responsible under the guarantee.
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Although this does not necessarily mean losses will continue, investors should monitor the subsidiary’s future financial performance.
Why Should Investors Watch Related-Party Transactions?
Another important disclosure involves related-party transactions.
According to the information provided:
- Around one-third of revenue came from related parties during FY25.
- This declined to approximately 12% during FY26.
Related-party transactions are not automatically negative.
However, investors generally prefer such transactions to occur on transparent commercial terms.
The reduction in related-party revenue during FY26 suggests lower dependence compared with the previous year, but investors may continue monitoring this trend after listing.
How Will the IPO Proceeds Be Used?
The Lohia Corp IPO consists entirely of an Offer for Sale (OFS).
Issue Structure
| Component | Amount |
| Fresh Issue | Nil |
| Offer for Sale | Rs. 1,101 crore |
Since there is no fresh issue, Lohia Corp itself will not receive any money from the IPO.
Instead, existing shareholders are selling part of their holdings.
A pure Offer for Sale does not necessarily indicate weakness.
However, investors should understand that the IPO will not add fresh capital for expansion, debt reduction or new manufacturing facilities.
Lohia Corp IPO Details
| Particulars | Details |
| IPO Opening Date | 23 July 2026 |
| IPO Closing Date | 27 July 2026 |
| Price Band | Rs. 404 – Rs. 425 per share |
| Minimum Investment | Rs. 14,875 |
| Issue Size | Rs. 1,101 crore |
| Issue Structure | 100% Offer for Sale |
Unusual Allocation Structure
One notable feature of the IPO is its allocation mix.
At least 75% of the offer is reserved for Qualified Institutional Buyers (QIBs).
Retail investors are allocated only 10% of the issue, compared with the roughly 35% retail allocation commonly seen in many mainboard IPOs.
This allocation structure is unusual and may affect the number of shares available for retail applicants.
How Should Investors Evaluate the Lohia Corp IPO?
Lohia Corp combines several strengths often associated with established manufacturing businesses.
The company has demonstrated:
- Leadership in a specialised global industry.
- Strong domestic market position.
- Diversified international manufacturing facilities.
- Healthy revenue growth.
- Faster profit growth.
- Strong improvement in operating cash flow.
- Lower debt.
However, investors should also evaluate:
- Overseas subsidiary performance.
- Related-party transactions.
- Future order inflows.
- Sustainability of customer advances.
- IPO valuation.
- Global manufacturing demand.
Imagine Amit, a long-term investor looking to diversify beyond financial and technology companies.
He appreciates that Lohia Corp operates in a niche manufacturing segment with global customers and an expanding order book.
However, before investing, he also evaluates whether future order growth, overseas operations and the IPO valuation justify the investment.
Understanding both the strengths and the risks provides a more balanced assessment.
Understanding Manufacturing IPOs With Professional Guidance
Specialised manufacturing companies require investors to evaluate technology leadership, order books, cash generation, export exposure and financial quality together.
At inXits, SEBI-registered investment advisor help investors analyse manufacturing IPOs within the context of their existing portfolios, financial goals and investment horizon.
If you are evaluating the Lohia Corp IPO, professional guidance can help you assess business quality, valuation and portfolio suitability rather than relying solely on revenue growth or market leadership.
Conclusion
The Lohia Corp IPO offers investors exposure to one of the world’s leading manufacturers of machinery used in woven plastic packaging.
The company has reported healthy revenue growth, significantly higher profitability, improving cash generation and lower debt while maintaining leadership in its niche manufacturing segment.
However, investors should also examine the financial performance of its overseas subsidiary, related-party transactions, future order execution and the fact that the IPO is entirely an Offer for Sale.
As with any IPO, understanding both business quality and valuation is essential before making an investment decision.
Investors seeking greater clarity on whether the Lohia Corp IPO fits their long-term financial goals may benefit from discussing the opportunity with a qualified financial advisor before investing.
Frequently Asked Questions
What is the Lohia Corp IPO?
The Lohia Corp IPO is the public offering of one of the world’s leading manufacturers of machinery used to produce woven plastic sacks and industrial fabrics.
What does Lohia Corp manufacture?
Lohia Corp manufactures industrial machinery used to produce woven plastic packaging, including machines used for cement bags, fertiliser sacks, grain packaging and industrial fabrics.
Does Lohia Corp manufacture packaging bags?
No. The company manufactures the machinery used by other companies to produce woven plastic packaging and technical fabrics.
How strong are Lohia Corp’s FY26 financials?
FY26 revenue increased approximately 25% to Rs. 1,717 crore, while profit after tax grew approximately 64% to Rs. 193 crore.
Why did operating cash flow improve significantly?
Operating cash flow more than doubled because customer advances increased as the company’s order book expanded substantially during FY26.
Is the Lohia Corp IPO entirely an Offer for Sale?
Yes. The IPO consists entirely of an Offer for Sale worth approximately Rs. 1,101 crore. The company will not receive fresh capital from the issue.
What are the biggest risks in the Lohia Corp IPO?
Key risks include losses at the US subsidiary Leesona Corp, the parent company’s guarantee on behalf of the subsidiary, related-party transactions and future order execution.
Why is the order book important?
The order book represents confirmed customer orders awaiting delivery. A larger order book can provide visibility into future revenue, although execution remains important.
What is the minimum investment in the Lohia Corp IPO?
Based on the upper price band of Rs. 425, the minimum investment is approximately Rs. 14,875.
Why is the retail allocation lower than usual?
The IPO reserves at least 75% of shares for Qualified Institutional Buyers (QIBs), while retail investors receive only 10% of the offer, which is lower than the allocation typically seen in many mainboard IPOs.
Disclaimer
Investments in securities markets are subject to market risks. Read all related documents carefully before investing.
inXits is a SEBI-registered Investment Adviser (Registration No. INA000020369). This article is for educational purposes only and does not constitute personalised investment advice.
Registration granted by SEBI, membership of BSE and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Ashish brings a strong foundation in economics, along with CFA Level 3 candidacy and over 2 years of experience across equity research and investment advisory. At inXits, he leads PMS and AIF advisory while overseeing equity product development, turning research-driven insights into practical tools for smarter portfolio decisions.
