L. T. Elevators: Can they lift investors

[rk1771]

L.T. Elevators Limited
Sector: Industrial Manufacturing (Elevators)
Exchange: BSE SME
Basic Details
• Market Cap: ₹ 416 crores [As on 28.12.2025]
• Issue Price: ₹ 78 [16.09.2025]
• Current Price: ₹217 [28.12.2025]
• Listing Date: 19.09.2025
Promoters holding is almost 63%.
Invicta Continuum Fund [AIF] is holding around 6% of shares.
Financial Highlights
The company works through two entities. Parent LT is in lift and elevators, whereas 100% subsidiary Park Smart Solutions limited is in Mechanical car parking system. The consolidated result includes subsidiary financials w.e.f. Q4, 2024-25.

Financials- standalone

The company’s topline (standalone) is growing at a steady pace, almost @20%. Margin is going up due to better capacity utilization, and due to increasing share of service revenue. The parent company had 62% capacity utilization in FY 2025, which may go up to almost 80% in current financial year.

Standalone numbers of Park solutions was 10.3 Cr revenue & 82 Lakhs PAT in H1’FY25. In H1 2025-26, they have done almost 16 crores topline with 3 crores PBT. The subsidiary was working on 71% capacity in FY 2025, with almost 50% growth they shall be working on 100% capacity in FY 2026. The company has informed that the subsidiary has brought industrial land nearby, it appears that they have expansion plan for the subsidiary.

The contribution of subsidiary is likely to grow in the company. The consolidated order book of the company stood at 22 Crs as of Aug 2025, with the parent company accounting for 11.4 Crs and the subsidiary contributing 10.7 Crs.

Current Year estimate:

From these information, I estimate (pure guesswork) for FY 2025-26 a consolidated topline of almost 105 crores [70 crores for parent and 35 crores for subsidiary] with PAT of almost 16 crores if present margin can be sustained in H2- 2025-26.

Business Overview
L.T. Elevator is by far one of the elevator manufacturers across the nation. With well-established assembly lines, the company has an integrated production line with the help of hi-tech German technology. They are India’s only indigenous elevator company with latest modern German machinery and hi-tech infrastructure. They claim to optimize and customize operations for maximum efficiency, immense product quality, improved customer experience, reduced risks and lower capital expenditure. They have an in-house design team of 25+ engineers for mechanical, electrical, embedded systems and robotics. L.T. Elevator manufactures following products at its manufacturing plant: Modern Escalators, High-Speed Apartment Lifts, Bungalow Lifts. Hospital lifts, Goods lift. Specialty Elevators. Mechanical Car Parking System is being manufactured by their 100% subsidiary.

They have 20 branch offices in India with a trained maintenance team of around 250 persons. They claim to provide in-person maintenance support within 60 minutes for breakdowns. They have over 8,000 installations under service contract including elevators, escalators and car parking.

Elevators (Parent): Installed 800 units p.a.; utilization: 62% utilisation in FY25 vs 49% in FY24. b) Parking Systems (Subsidiary): Installed 1600 units p.a.; with a 71% utilisation in FY25.

The company is concentrated in east India. They have a mix of clients consisting of public sector clients (including Railways), private corporates, real estate developers, and standalone projects, largely on a made-to-order basis.

Management Quality
Nothing is known much about the management. However, in my view a person who can create a business of almost 400 crores market cap from scratch has some management acumen.
The promoter is a long term investor in some decent listed companies like Chennai Ferrous, Gita Renewables, Roto Pumps. Roto Pump holding is significant.
Investment Thesis

1. It is the only pure play elevator company in listed space.
2. Elevator business has decent maintenance and spare business. The company claims 8000 installations, which is likely to grow in course of time.
3. The company has expansions plans, and looks like that the company’s products are well accepted in the market.
4. Home elevator space is growing at a decent pace. The company has recently reported successful delivery of 3 state-of-the-art single phase home elevators at a prestigious duplex project in Kolkata, marking our strong entry into the ~₹2000 Cr niche B2C home elevator market that is ripe for disruption with innovative, elegant, and aesthetic solutions.
5. The company expects India’s elevator and parking markets growing at 15-20% CAGR through 2030. Parking market growth can be higher. Sharing the press release of the company.
   LT press release 11.11.2025 UPLOAD.pdf (111.4 KB)

Concerns:

1. Investing is micro-cap companies are risky, one can lose 100% of the capital.
2. There are some red flags in the balance sheet like some disputes with tax departments, non payment of some money to governments, MSMEs etc.
3. Promoter directors salary appears to be on higher side.
4. Inventory/receivables appears on higher side. Cash flow from operating activity is negative.
   Valuation
   The company has equity base of 19 crores, and at present market price [Rs. 217], the company is valued at almost 416 crores. Based on current year’s earning estimates, it is trading at 26 times earning. Not cheap.
   Growth Catalysts
   -The elevator market is growing at 15-20% CAGR as per the management view.
   -Parking subsidiary shall be working at almost 100% capacity in the current financials. They have already taken land for the subsidiary and I guess that they will start another unit next year.
   -Though it may not be possible to them to compete against Otis/Kone, in home elevator market they can do well which is growing at a decent pace.
   -Presently their spares and service business is around 7% which is likely to grow going forward in future.
   Red Flags to Watch
   There are some red flags in the balance sheet like some disputes with tax departments, non payment of some money to governments, MSMEs etc. Promoter directors salary appears to be on higher side.
   Disclosures:
   Invested. No relationship with promoter/company.

Disclaimer
SME stocks carry higher risks due to their smaller size, limited operating history, and relaxed regulatory requirements. This analysis is for educational purposes only and should not be considered as investment advice. Always conduct your own research or consult with sebi registered financial advisors before making investment decisions.

[rk1771]

The company has announced strategic Merger of Ricardo Elevators to Accelerate Entry into Premium D2C Home Elevator Market. Access to Ricardo’s pan-India retail footprint and premium D2C brand enables cross-selling opportunities and stronger customer recall across residential segments.
Ricardo’s currently outsourced manufacturing will be progressively integrated into L.T. Elevator’s in-house, engineering-led manufacturing platform, enabling better cost control, quality consistency, and operating leverage as volumes scale. The Company expects the integration to contribute meaningfully to revenue momentum, with Ricardo already generating order inflows of ₹6 crore per month, with a 3-6 month delivery cycle, positioning the combined entity for significant growth in the upcoming financial cycles.
LT Elevators, with capacity of 800 elevators is largely a manufacturer and doing B2B projects. Richardo will give B2C business to LT [monthly revenue of Richardo is 6 cr. per annum]. Further, LT is strong in east India, Richardo is located in central-west India [Nagpur]. Looks like a good synergy. B2C market will improve the cash flow situation of the LT. The “Home Elevator” segment typically commands 30%+ EBITDA margins because it is a B2C luxury product, unlike the lower-margin government tenders L.T. usually handles.
The financials of the merger is not known. L.T. Elevator has historically had Negative Operating Cash Flow (-₹7.44 Cr in FY25) because government clients pay slowly. Ricardo is a “cash-rich” model (customers pay in advance). The Key Question: Will L.T. use Ricardo’s incoming cash to fix its own balance sheet, or will it drain LT resources?
L.T. Elevators.pdf (788.5 KB)

[Sameer_Naik]

@rk1771
I am surprised how a 22 cr. order book as of Aug 2025 reached 244 cr. by Jan 2026? Also, I didn’t see any disclosures of any major order wins to the exchanges. Am I missing something?

[rk1771]

Rs. 244 crores looks like a mistake. Actual figure ought to be 24.4 crores.
Financials are not known, but looks like it is through share swap agreement. Neeraj Hemnani (Founder & CEO of Ricardo) will join the L.T. Elevator leadership team to head the newly formed Home Elevator Division.

[radhakishandamani]

The promoter seems to be saying “Order book of 200+ crores” in this video uploaded on September 2025. May I ask where the order book is mentioned as 24 crores ? Need to check and reconcile this.

[Sameer_Naik]

RHP:

[radhakishandamani]

Very odd indeed. The same DRHP on page 52 says the standalone order book is 100 crores.

[rk1771]

The company has come out with excellent results. On stand alone basis, topline has gone up by 60 percent and net profit has gone up by more than 100%. On a consolidated basis, topline is 111 crores with net profit at 17 crores.

LTQ4.pdf (2.8 MB)

Cash flow from operating activity is still negative, which is natural for supply to government of projects.

The important development is Richardo merger. The accounts do not incorporate the Richardo numbers, which as per the january communication, 6 crores per month. It is not known if the manufacturing work of Richardo elevators have shifted to L T Manufacturing or not. There has been slight improvement in margins in H2 as compared to H1, reasons of which are not known.

Merger of Richardo is likely to improve the margins of L T manufactuirng. It is also likely to improve the cash flow. Let us see what the management says as and when they meet investors.

[satishwe]

LT UPDATED results :

My observations :

• Company updated the results as earlier pdf had glaring errors ( I hope Companies take reporting numbers as seriously as they take the business execution and avoid posting multiple files ).
• For full year the topline grew 100% + and Pat grew ~100% , cash flows are still not great.
• Do not get confused with no growth in yearly EPS, as fy25 eps is calculated on less number of shares held before the ipo.
• Also fy 26 EPS will be ~10.5/- if the # shares are taken into account for each quarter. First 2 quarters # shares would be lower than h2.
• Ricardo numbers are not baked in the results, when its added in fy 27 we should see 50-60 cr( conservative) jump in topline and margins in Ricardo are higher as per managements words.
• Auditor has done a poor job and new pdf also has mistakes though reduced from earlier.( i dont venture into details as this not my area of interest right now, but one can dig and feel disappointed with shoddy work )

PS: Invested and interested in this business as lift businesses have very long annuity due to AMC for decades once lift is sold.

[rk1771]

Yes, the errors were apparent. But we can give some benefits of doubt to SME listed companies.

What is the effect of Richardo numbers? Management said 6 crores per month- thus we can take a topline of 70 crores. On a conservative basis, we can take net profit of 10 crores. How much share dilution will take place- I don’t know. Management has not stated that. I expect 33 percent, i.e. almost 60 lakhs shares will be issued to Richardo owners, increasing the outstanding shares to 2.5 crores.

How will current financial year look like if merger happens during the year? LT business cal grow @50 percent leading to a topline of 170 crores, with 25 crores net profit. Richardo can contribute 100 crores topline with 15 crores net profit. So on a conservative basis I expect 40 crores net profit on 25 crores equity, leading to eps of Rs. 16. With Richardo integration, cash flow position can also improve.

I expect this based on full utilisation of parking facility, integration of Richardo manufacturing facility, increased share of AMC business…. And political change in West Bengal. Let us see how it goes.

[sanketkulkarni1987]

If i read the Jan concall which had announced the Ricardo merger, the management stated that dilution from the perspective of LT shareholders will be around 3%.. they also mentioned that the Ricardo shareholders will have shareholding contribution in high single digits.. so would the new number of shares will be around 2-2.05 crores from the current 1.91 crore shares.. Am i missing something ?

Also, the site states that the promoter (Yash Gupta who seems to be running the business) is a 2014 IIM Ahmedabad passout. Does lend some credibility if this is true (cant figure this out yet since no profile is available on linkedin)

PS: Interested and tracking

[sanketkulkarni1987]

My hunch is that the 107 cr order book is for overall LT elevators and the 11 odd crore order book is for the subsidiary. The DRHP is definitely confusing though. Will be good to get a clarification from the management during the concall. Also, their errors in the results published should definitely be brought to notice. Doesnt do any good to improve investor confidence if there are such glaring errors

[rk1771]

Yesterday they declared 250+ order book as on date, without Richardo. At the time of Merger declaration in Jan, they said 244 crores order book for LT.

Overall elevator market in India is growing @ 10+ percent, with home elevator and parking elevators are growing at higher rate. Orders may not be a great problem, execution is. The company is also saying that the new integrated facility will be functional by Q4 2027, increasing the capacity to 2.5x.

The real issue in the company is cash flow. With AMC, and Richardo integration cash flow can improve. To what extent, we don’t know. Once the management shares Richardo numbers, we can estimate. Let us see what management says on 15th.

[rk1771]

The company has shared transcript of the Investor Call.

The management has clarified that dilution from Ricardo shall be in low single digit. The acquisition looks good- Richardo has given good entry into B2C market, likely to add substantially to topline and the dilution is low. The management further stated that most of the manufacturing of Richardo elevators has shifted to LT.

They also stated that by Q4-2027, new facility of elevator manufacturing will come online and they will shift their elevator manufacturing there. The capacity can generate a revenue of 350-400 crores. The management expects similar growth in 2027, as happened in 2026.

The company is actively pursuing another acquisition. Happy reading.

LT InvestorCall.pdf (235.4 KB)

[satishwe]

Fund raise of 50 cr at 188/-
Good to see institutions taking stake.

[rk1771]

The company has come out with a press release. The company plans to increase its number of experience centre to 40, and expecting 6 crores topline each from these centres.

The company has started exporing to Malasia. They have received regulatory approval in Australia, and export is likely to commence soon. The company is also making endeavours to serve UAE, Oman, Thailand and Indonasia.

LT Press release.pdf (1.2 MB)

[Shubham2]

has anyone tracked how did Ricardo managed to scale from 5.5 cr revenue in FY25 to an order run rate of 6 cr per month as claimed by L.T. elevator management?