Lumax Auto Technologies Limited

Financial Performance Highlights

Consolidated FY26 Performance:

  • Revenue: ₹4,870 crore (all-time high), representing 34% YoY growth
  • EBITDA: ₹705 crore with margin of 14.5%
  • PBT before exceptional items: ₹420 crore
  • PAT before minority interest: ₹337 crore, representing 47% YoY growth
  • Effective tax rate: 26% (excluding one-time deferred tax reversal in Q3 FY26)
  • Minority interest share: 17% for FY26

Q4 FY26 Performance:

  • Revenue: ₹1,417 crore (historic high), representing 25% YoY growth
  • EBITDA: ₹208 crore with margin of 14.7%
  • PBT before exceptional items: ₹126 crore
  • PAT before minority interest: ₹98 crore, representing 22% YoY growth
  • Minority interest share: 10% for Q4 (due to reclassification of intangible assets from Greenfuel acquisition)

Business Segment Performance

Advanced Plastics Division:

  • FY26 Revenue: ₹2,566 crore (25% YoY growth from ₹2,045 crore)
  • Order Book: ₹700 crore

Mechatronics Segment:

  • FY26 Revenue: ₹281 crore (150% YoY growth from ₹115 crore)
  • Order Book: ₹400 crore

Structures & Control Systems:

  • FY26 Revenue: ₹816 crore (17% YoY growth from ₹693 crore)
  • Order Book: ₹170 crore

Aftermarket Business:

  • FY26 Growth: 15% YoY
  • Revenue Contribution: 10% of total revenues

Greenfuel Energy Business:

  • Acquired in November 2025
  • FY26 Revenue: ₹383 crore
  • Order Book: ₹180 crore
  • Margins expected to be accretive to Group average over medium term

Revenue Mix by Vehicle Segment

  • Passenger Vehicles: 53%
  • Two-Wheeler & Three-Wheeler: 24%
  • Aftermarket: 10%
  • Commercial Vehicles: 9%

Strategic Corporate Actions

Portfolio Optimization:

  • Merger of IAC India Private Limited with Lumax Auto Technologies Limited completed
  • Merger of Lumax Ancillary Limited with Lumax Auto Technologies Limited completed
  • Board approved sale of entire 50% equity stake in Lumax JOPP Allied Technologies Private Limited to JOPP Holding Germany
  • Board approved acquisition of remaining 15.97% stake in Lumax FAE Technologies Private Limited to make it wholly owned subsidiary

Order Book and Visibility

  • Total Order Book: ₹1,450 crore
  • Execution Timeline: 25% in FY27, 54% in FY28, 21% in FY29
  • Product Vertical Mix: Advanced plastics (largest share), Mechatronics, alternate fuels, Structures & Control Systems

Capital Expenditure and Investments

  • FY26 Capex: ₹233 crore
  • Strategic investments include land in Gujarat and Kharkhoda Region (₹45 crore)
  • Capacity expansions in IAC and Lumax Alps Alpine (approximately ₹100 crore)
  • FY27 Capex Guidance: ₹275-300 crore

Balance Sheet and Financial Position

  • Free Cash Reserves: ₹396 crore
  • Long-term Debt: ₹553 crore
  • Total Debt: ₹1,000 crore (including short-term debt)
  • Debt-to-Equity Ratio: 0.46
  • CRISIL credit rating upgraded from AA- to AA

Management Guidance and Outlook

  • Mid-term strategy: 20% CAGR over next 3-5 years
  • Expect to outperform industry growth by 2-3x
  • Margin sustainability expected despite input cost pressures
  • Effective tax rate expected to remain around 26%
  • Minority interest share expected around 15-17%

Operational Updates

R&D Center (SHIFT - Smart Hub for Innovation and Future Trends):

  • Located in Bangalore
  • Focus on software innovation for electronics
  • Supporting Body Control Modules (BCM) entering SOP in 45-60 days
  • 20 engineers currently, annual expense: ₹5-7 crore
  • Working on Proof Of Concepts for new product entries

China Operations:

  • Office opened in December 2025
  • Current staff: 8 people, planned expansion to 15 people
  • Focus on technology agreements with Chinese companies for Indian market

Customer Recognitions

  • Lumax Alps Alpine received localization of design and development capability award from Maruti Suzuki
  • IAC division received part development award from Maruti Suzuki
  • IAC received Mahindra Supplier Excellence Award for execution excellence
  • Bengaluru plant received Excellence in Quality Management Award from Honda Motorcycle and Scooter India

Q&A Session Highlights

Growth Outlook: Management confident about outperforming industry growth despite macroeconomic uncertainties. Expect 2-3x industry growth rates across different business verticals.

Margin Pressures: Acknowledged input cost pressures from raw materials (polypropylene), manpower cost increases due to minimum wage hikes, and energy price volatility. Have back-to-back understanding with OEMs with 3-6 month realization lag. Expect margins to sustain or improve by 30 bps.

Capacity Constraints: Varies across business verticals - some operating at 20-30% spare capacity, others requiring expansion. Mechatronics business putting up new facility investments.

Lumax JOPP Exit Rationale: Small base business with negative bottom line impact. Strategic decision to focus resources on scalable businesses with margin expansion potential.

IAC Business: 90%+ order book from Mahindra & Mahindra. Advanced discussions with other OEMs but expects significant new orders from alternative OEMs only by FY28/FY29.

CNG Business (Greenfuel): Strong market pull continues despite price escalations. No significant demand disruption expected.

Labor Shortages: Acknowledged marginal impact in April/May due to elections and other conditions, but situation easing with minimal production impact.

Dividend Policy: Maintain minimum 35% payout ratio. FY26 dividend based on standalone profit before mergers.

Debt Management: Majority of debt from acquisition financing. Repayment starting from FY27, expected to be repaid over 3-4 years using internal cash flows.