Lumax Auto Tech.

Lumax Auto Technologies reported a robust start to FY26 with consolidated revenue growing 36% YoY to INR1,026 crores. This growth was supported by strong performance in key segments, including a 25% YoY increase in Advanced Plastics revenue to INR525 crores and an almost 100% YoY surge in Mechatronics revenue to INR54 crores. The aftermarket business also contributed significantly with a 16% YoY growth. The company's diversified portfolio across passenger vehicles (55% of revenue), 2- and 3-wheelers (21%), and commercial vehicles (11%) helped cushion the impact of a mixed domestic automotive market.

EBITDA for Q1 FY26 stood at INR136 crores, marking a 29% YoY increase, with a margin of 13.2%. While this represented a slight dip compared to Q1 FY25, management clarified that this was primarily due to certain price corrections from customers, particularly for Mahindra's BEV models, not being realized in Q1. These INR7 crores in corrections are expected to be received and reflected in Q2 FY26. The company maintains an H1 FY26 EBITDA margin guidance of 14-15% and aims for closer to 16% by FY28 through strategic product mix and operational efficiencies.

Lumax reported a strong order book of INR1,500 crores with visibility across the next three fiscal years. Notably, 40% of this order book is dedicated to future and clean mobility solutions, aligning with the company's midterm strategy. While INR325 crores in new orders were generated this quarter, the anticipated execution from the order book for FY26 was revised from INR300 crores to INR115 crores due to delays in a Maruti Suzuki EV model and production hiccups for Bajaj EV vehicles. However, management expects the impact of these orders to be visible by Q2/Q3 FY26.

The company completed the acquisition of the remaining 25% stake in IAC India in May, making it a 100% subsidiary. IAC India reported INR317 crores in revenue for Q1 FY26, up 45-50% YoY. Lumax also incorporated two new wholly-owned subsidiaries, Lumax Auto Comp Private Limited and Lumax Auto Solutions Private Limited, in July to capture emerging growth opportunities. Furthermore, strategic investments include INR31 crores in Gujarat land as part of the INR73 crores Q1 capex, and plans to establish a local engineering capability in China and a technology center (SHIFT Smart Hub) in Bengaluru, both expected to be commercialized by Q3 FY26.

Capex for Q1 FY26 was INR73 crores, with a full-year guidance of INR180-200 crores. The long-term debt stood at INR600 crores as of June 30, 2025, resulting in a debt-equity ratio of 0.63, which is within internal comfort thresholds. The debt increased by INR150 crores due to the IAC acquisition. Management expects the debt-equity ratio to settle between 0.45-0.5 by the end of FY26. Free cash reserves stood at INR359 crores, providing financial flexibility. The company anticipates funding its ambitious FY31 revenue target of INR10,000 crores (from INR3,500 crores in FY25) primarily through internal accruals and debt, without needing equity raising.

The aftermarket segment is projected to grow at a 20-25% CAGR in the midterm, driven by aggressive product expansion and a shift towards demand generation at the retail/mechanic end. Greenfuel Energy Solutions, which contributed INR95 crores in Q1 and has an order book of INR200 crores, is expected to grow at a 15-20% CAGR. Management highlighted a new confirmed order for localizing tubes and fittings for green fuel, marking a first for any Indian company and positioning Lumax to secure significant market share in this product.