LG Balakrishnan signs MoU with Tamil Nadu govt for infra support, approvals and incentives

LG Balakrishnan & Bros Ltd has signed a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu, securing infrastructural support and regulatory facilitation for future investments,

the company informed exchanges on Wednesday.

The agreement, executed through the state’s nodal agency Guidance, will help the auto-ancillary firm obtain permissions, clearances, allotments and incentives under applicable laws.

LGB said the MoU underscores its continued commitment to expanding operations within Tamil Nadu. Post the announcement, shares of LG Balakrishnan & Bros closed 1.6% higher at ₹1,881 on the NSE.

The company remains on track to deliver its guided 10–14% revenue growth for FY26, backed by steady operational performance across divisions.

Chairman and Managing Director B. Vijayakumar recently said margins have been supported by stronger contributions from new businesses and the steel division acquired earlier, which has “started contributing meaningfully” to profits.

For Q2 FY26, the company reported revenue of ₹787 crore, profit of ₹94 crore, and margins of 17.4%. Vijayakumar expects full-year margins to remain around 17%, with only minor fluctuations depending on global economic conditions.