Lumax Auto Technologies Limited — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Lumax Auto Technologies reported a strong Q1 FY26 with consolidated revenue up 36% YoY to INR1,026 crores and EBITDA up 29% to INR136 crores. Growth was driven by key segments like Advanced Plastics and Mechatronics, and the consolidation of Greenfuel. While margins saw a slight dip due to deferred price corrections, the company maintains a robust order book of INR1,500 crores, with 40% in future and clean mobility solutions, and is investing in new technology centers and capabilities for long-term growth.

Highlights

  • Consolidated revenue grew 36% YoY to INR1,026 crores, driven by core business strength and newer verticals.

  • EBITDA increased 29% YoY to INR136 crores, maintaining a 13.2% margin despite Q1 price correction deferrals.

  • Aftermarket business delivered strong 16% YoY growth, aligning with midterm strategy.

  • Advanced Plastics division saw 25% YoY revenue growth to INR525 crores, with a robust order book of INR940 crores.

  • Mechatronics segment doubled revenue YoY to INR54 crores, reflecting high engineering intensity and relevance to intelligent mobility systems.

Concerns

  • Q1 margins saw a slight dip compared to Q1 FY25 due to price corrections from customers not being realized in the quarter, though expected in Q2.

  • Consolidated revenue declined 9% QoQ from Q4 FY25 due to higher tooling revenue (INR90-100 crores) in Q4 FY25.

  • Order book execution for INR300 crores anticipated in FY26 has been revised to INR115 crores, with some delays due to a delayed Maruti Suzuki EV model and interim production hiccups for Bajaj EV due to rare earth supply.

Key financials

  1. Consolidated Revenue ₹1,026 Cr +36%YoY
  2. EBITDA ₹136 Cr +29%YoY
  3. EBITDA Margin 13.2%
  4. PAT before Minority Interest ₹54 Cr +30%YoY
  5. Effective Tax Rate 27%
  6. Minority Share 22% -27%QoQ

What they filed

Q1 FY27: revenue up 32.9%, net profit up 83.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue842 906 1,133 1,026 1,156 +37%1,271 +40%1,417 +25%1,364 +33%
EBITDA102 118 157 125 155 +52%176 +49%203 +29%190 +52%
Net profit52 56 80 54 78 +50%108 +93%98 +23%99 +83%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Advanced Plastics
    ₹525 Cr Revenue25% YoY Growth₹940 Cr Order Book
  • Mechatronics
    ₹54 Cr Revenue1% YoY Growth₹250 Cr Order Book
  • Structure and Control Systems
    ₹180 Cr Revenue10% YoY Growth₹110 Cr Order Book
  • Aftermarket
    16% YoY Growth10% Share of Total Revenue
  • Greenfuel Energy Solutions
    ₹95 Cr Revenue₹200 Cr Order Book18% EBITDA Margin
  • IAC India
    ₹317 Cr Revenue45% YoY Growth15% EBITDA Margin (reported)17% EBITDA Margin (normalized)
  • Lumax Alps Alpine
    ₹25 Cr Revenue1.5% YoY Growth
  • Lumax FAE
    ₹55 Cr FY26 Revenue Expectation
  • Lumax Yokowo
    ₹50 Cr FY26 Revenue Expectation
  • Revenue Composition (Passenger Vehicle)
    55% Share of Total Revenue
  • Revenue Composition (2- and 3-wheeler)
    21% Share of Total Revenue
  • Revenue Composition (Commercial Vehicle)
    11% Share of Total Revenue

Order book

high confidence

Total value

₹1,500 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹325 Cr

Execution

across next 3 fiscal years

Composition

Mix 4 fiscal year materializations
  • Current Fiscal Year (FY26) 8%
  • FY27 40%
  • FY28 40%
  • FY29 10%

Share of order book by fiscal year materialization

Cancellations & deferrals

  • deferred: INR300 crores anticipated from order book for FY26 reduced to INR115 crores due to some orders going into SOP and delays from customer (Maruti Suzuki EV, Bajaj EV production hiccups).
The order book continues to evolve, with new orders generated this quarter, and a significant portion is in future and clean mobility, which is less capital intensive and higher content per vehicle.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹73 Cr this quarter · ₹180 Cr (FY26) planned largely met through internal free cash accruals
    • Strategic investment in Gujarat land ₹31 Cr

    Previously planned ₹180 Cr

    Capex for the quarter stood at INR73 crores, which includes a strategic investment in Gujarat land of INR31 crores. These investments are aimed at unlocking medium- term revenue growth and supporting localization efforts across key platforms. The full year guidance for the capex remains at around INR180 crores to INR200 crores.
  • Debt Gross ₹600 Cr · 0.6× EBITDA
    • New borrowing Increased by INR150 crores for the purchase consideration of the remaining 25% of IAC India ₹150 Cr
    Following the payout for the 100% acquisition of IAC, our long-term debt stood around INR600 crores, resulting in a conservative debt-equity ratio of 0.63, which is within our internal comfort thresholds.
  • M&A IAC India Acquisition · Closed

    Completed acquisition of remaining 25% stake, making it a 100% subsidiary, effective for profit attributable from May 22nd.

    Profit attributable to owners of Lumax Auto Technologies Limited from May 22nd.

    The acquisition of the remaining 25% stake in IAC India was completed in May and as previously communicated, will be effective for profit attributable to the owners of Lumax Auto Technologies Limited from that date.
  • M&A Lumax Auto Comp Private Limited Joint venture · Incorporated

    To capture emerging growth opportunities in the automotive sector.

    we also incorporated 2 new wholly owned subsidiaries, Lumax Auto Comp Private Limited and Lumax Auto Solutions Private Limited in the month of July in New Delhi, aligned with our vision to capture emerging growth opportunities in the automotive sector.
  • M&A Lumax Auto Solutions Private Limited Joint venture · Incorporated

    To capture emerging growth opportunities in the automotive sector.

    we also incorporated 2 new wholly owned subsidiaries, Lumax Auto Comp Private Limited and Lumax Auto Solutions Private Limited in the month of July in New Delhi, aligned with our vision to capture emerging growth opportunities in the automotive sector.
  • Liquidity Cash ₹359 Cr Free cash reserves provide financial flexibility to support ongoing investments and navigate market cycles.
    Free cash reserves stood at INR359 crores, providing us with the financial flexibility to support ongoing investments and navigate market cycles confidently.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · H1 FY26 · High confidence 14-15%
    And for H1, the EBITDA margins will be in alignment with our strategic direction for the current year, which is between 14% to 15% EBITDA margins.

    — Anmol Jain

  • EBITDA Margin Profitability · FY28 · High confidence closer to 16%
    we are quite confident that the EBITDA should move forward perhaps closer to 16-odd percent in FY '28 or so.

    — Anmol Jain

Minority Interest

  • Minority Share Minority Interest · upcoming quarter · High confidence 15-17%
    The minority share for the upcoming quarter is expected to settle between 15% to 17%.

    — Ankit Thakral

Capex

  • Full Year Capex Capex · FY26 · High confidence INR180-200 crores
    The full year guidance for the capex remains at around INR180 crores to INR200 crores.

    — Ankit Thakral

  • Capex Outlay (annualized) Capex · annualized · Medium confidence INR200-250 crores
    we should be looking at a similar capex outlay as the current year of about INR200 to INR250 crores on an annualized basis, which would be largely met, as I said, through our internal free cash accruals.

    — Anmol Jain

Revenue

  • Greenfuel Business Growth Revenue · midterm · High confidence 15-20% CAGR
    anywhere between a 15% to 20% CAGR is what is our estimate for the Greenfuel business to grow. And again, this is in line with our overall 20% CAGR mark.

    — Anmol Jain

  • Aftermarket Business Growth Revenue · midterm (next 2-3 years) · Medium confidence 20-25% CAGR
    But again, in a midterm, over the next 2 to 3 years, the whole idea is to try and bring it towards a 20% plus growth rate.

    — Anmol Jain

  • Mechatronics Vertical Revenue Revenue · next couple of years · Medium confidence upwards of INR500 crores
    I do expect that vertical to be upwards of INR500-odd crores over the next couple of years. So, it will grow at maybe upwards of 30% - 35% CAGR

    — Anmol Jain

  • Total Revenue Revenue · FY31 · Medium confidence INR10,000 crores

    From INR3,500 crores (FY25 base) today

    at a 20% CAGR, perhaps we could be also looking at tripling the revenues from FY '25 of INR3,500 crores or so base to maybe upwards of INR10,000 crores.

    — Anmol Jain

Debt

  • Debt-Equity Ratio Debt · end of this financial year · High confidence 0.45-0.5
    we expect that debt equity ratio to be anyway settle between around 0.45 to 0.5 by the end of this financial year.

    — Ankit Thakral

New Initiatives

  • Commercialization of China engineering capability and Bengaluru technology center New Initiatives · Q3 FY26 · High confidence Commercialized
    Both these strategic initiatives are expected to be commercialized by quarter 3 of the current fiscal year

    — Anmol Jain

What to watch in Q2 FY26

Realization of Q1 price corrections

Q2 FY26
Current INR7 crores deferred from Q1
Target Realization of INR7 crores in Q2

Why it matters

This will confirm the one-time nature of the Q1 margin dip and demonstrate pricing power.

And hence, this impact will come in quarter 2 pertaining to quarter 1.

Risks & concerns

  • Price corrections not realized in Q1

    medium

    Certain price corrections from customers were not realized in Q1, leading to a slight dip in margins compared to Q1 FY25, but are expected to be realized in Q2.

    Management acknowledged

  • Muted domestic environment and flat demand

    medium

    The automotive industry in Q1 FY26 witnessed mixed performance with flat demand across most segments, though diversification helped cushion the impact.

    Management acknowledged

  • Delays in order book execution

    medium

    Anticipated INR300 crores from the order book for FY26 was revised to INR115 crores due to a delayed Maruti Suzuki EV model and interim production hiccups for Bajaj EV due to rare earth supply.

    Management acknowledged

  • OEMs being cautious in outlook

    low

    Despite some OEMs being cautious, Lumax's diversity across products and customers insulates it from headwinds, and growth is driven by value proposition rather than just volume.

    Analyst downplayed

Q&A highlights

5 direct
Price corrections for Mahindra BEV models Direct
The cumulative impact from the first day of SOP until end of quarter 1 stands at almost close to INR7 crores, which is significant. And all of that was to be realized in quarter 1 but because of certain ongoing understandings with our customer, Mahindra, that would have not been reached and that has only been reached in the current month of July. And hence, this impact will come in quarter 2 pertaining to quarter 1.

Clarified the reason for Q1 margin dip and confirmed the recovery of INR7 crores in Q2, indicating a one-time issue related to new BEV platforms.

Asked by Vijay Pandey

Long-term capital requirements for FY31 revenue target Direct
we should be looking at a similar capex outlay as the current year of about INR200 to INR250 crores on an annualized basis, which would be largely met, as I said, through our internal free cash accruals.

Management confirmed that the ambitious FY31 revenue target of INR10,000 crores can be achieved primarily through internal accruals and debt, without needing equity dilution, due to improving asset turns and less capital-intensive new businesses.

Asked by Dhaval Shah

IAC India revenue and growth drivers Direct
IAC revenue for the quarter 1 '25, '26 stood at INR317 crores, up by almost 45% -50% from Q1 of last year, directly because of the strong growth in the Mahindra & Mahindra PV segment of around 30% to 32%.

Provided specific revenue and growth figures for IAC India, highlighting its significant contribution and dependence on Mahindra's PV segment.

Asked by Sanket Kelaskar

EBITDA margin improvement plan to 16% by FY28 Direct
I think it's a combination of multiple things. I think if I look at the order book, 50% or so of the order book sits in the plastics vertical... aftermarket, which primarily operates at a much higher EBITDA... Greenfuel as it scales up, operating at 18-odd percent EBITDA margin... certain businesses of mechatronics are also sitting on a very high EBITDA margin...

Detailed the multi-pronged strategy for margin expansion, including product mix shift towards higher-margin verticals (plastics, aftermarket, greenfuel, mechatronics) and premiumization.

Asked by Vaibhav Shah

Aftermarket business growth drivers (20-25% CAGR) Direct
primarily two factors... aggressive product expansion where we will go and get into new product offerings. And second is that we are now focusing more significantly on the demand generation at the retail end, right at the mechanic end rather than just being focused on the channel partners.

Explained the strategic shift in the aftermarket business from channel-focused to demand generation and product expansion, justifying the high growth target.

Asked by Vaibhav Shah

Capacity utilization and operating leverage Partial
it would be very difficult to give the capacity utilization for each and every product line... will try to give some flavor in terms of where we stand in terms of capacity utilization across certain key products and how the operating leverage will kick in. But again, if you look at a consolidated basis, we do feel that a lot of the operating leverage is already kicking in with respect to our fixed cost structure. But we'll try and present this over the next quarter.

Management acknowledged the difficulty in providing granular capacity utilization but indicated that operating leverage is already kicking in and promised a more detailed update next quarter, making it a key follow-up item.

Asked by Suvaan Mittal

New customer wins for Lumax Ituran Partial
Lumax Ituran, as of now, we don't have a new customer win. However, we have made very deep discussions with a leading 2- wheeler OEM as well as a passenger vehicle OEM, and those talks currently are undergoing. As and when we have some updates, we will definitely inform all the investors.

While no new wins were announced, the ongoing deep discussions with major OEMs signal potential future growth for the telematics segment.

Asked by Sanket Kelaskar

3 min read 6 chapters

Detailed narrative

Strong Q1 FY26 Performance Driven by Diversification and Key Segments

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 Margins and Price Correction Dynamics

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.

Robust Order Book and Future Mobility Focus

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.

Strategic Investments and Inorganic Growth Initiatives

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.

Capital Allocation and Debt Management

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.

Aftermarket and Greenfuel as Key Growth Drivers

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.

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