Lumax Auto Technologies Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Lumax Auto Technologies delivered strong Q2 and H1 FY26 results, with consolidated revenue growing 37% YoY and EBITDA margins maintained at 14-14.7%. The company reported a robust order book of INR1,357 crore and made strategic progress with the full integration of IAC India and the establishment of new innovation centers. While standalone margins saw a temporary dip due to one-time costs, management expressed confidence in future recovery and sustained growth across key segments.

Highlights

  • Consolidated revenue reached INR1,156 crore for Q2 FY26, a historic high, and INR2,183 crore for H1 FY26, both up 37% YoY.

  • EBITDA for Q2 FY26 was INR170 crore (14.7% margin) and H1 FY26 was INR306 crore (14.0% margin), aligning with the 14-15% FY guidance.

  • PAT before minority interest grew 50% YoY to INR78 crore for Q2 and 41% YoY to INR132 crore for H1.

  • Robust order book of INR1,357 crore with strong visibility over the next 3 fiscal years, with 7% materializing in FY26, 35% in FY27, 48% in FY28, and 10% in FY29.

  • Advanced plastics division grew 25% YoY in H1 FY26 to INR1,138 crore, and the mechatronics segment grew 165% YoY to INR122 crore in H1 FY26.

Concerns

  • Standalone operations saw a margin dip of approximately 100 basis points in H1 due to one-time deal expenses for the IAC acquisition and external consultant costs.

  • Commercial vehicles revenue declined YoY in Q2 FY26, partly attributed to the Greenfuel business shifting the overall revenue pie.

  • Greenfuel revenue declined from INR95 crore in Q1 to INR75 crore in Q2, primarily due to cyclical demand for safety products used in school buses.

Key financials

3 periods

Headline

  • Consolidated Revenue
    ₹1,156 Cr
    YoY +37%
  • Consolidated H1 Revenue
    ₹2,183 Cr
    YoY +37%
  • Consolidated EBITDA
    ₹170 Cr
  • Consolidated EBITDA Margin
    14.7%
  • Consolidated H1 EBITDA
    ₹306 Cr
  • Consolidated H1 EBITDA Margin
    14%
  • PAT before Minority Interest
    ₹78 Cr
    YoY +50%

Q2

  • Minority Share
    14%

H1

  • PAT before Minority Interest
    ₹132 Cr
    YoY +41%
  • Effective Tax Rate
    25%

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 (H1 FY26)
    ₹1,138 Cr Revenue25% Growth
  • Mechatronics (H1 FY26)
    ₹122 Cr Revenue165% Growth
  • Structure and Control Systems (H1 FY26)
    ₹382 Cr Revenue13% Growth
  • Aftermarket (H1 FY26)
    15% Growth
  • Greenfuel Energy Solutions (H1 FY26)
    ₹170 Cr Contribution
  • IAC India (Q2 FY26)
    ₹378 Cr Revenue
  • IAC India (H1 FY26)
    ₹694 Cr Revenue40% Growth17.5% Margin
  • Greenfuel (Q1 FY26)
    ₹95 Cr Revenue
  • Greenfuel (Q2 FY26)
    ₹75 Cr Revenue
  • HMSI (Q2 FY26)
    ₹63 Cr Revenue
  • Lumax Industries (Q2 FY26)
    ₹92 Cr Revenue

Order book

high confidence

Total value

₹1,357 Cr

as of 2025-09-30 quantified

Execution

materialized over next 3 fiscal years

Composition

Mix 4 products
  • Advanced Plastics ₹680 Cr 50.1%
  • Mechatronics ₹360 Cr 26.5%
  • Structure and Control Systems ₹116 Cr 8.6%
  • Greenfuel Energy Solutions ₹200 Cr 14.7%

Share of order book by product, derived from disclosed amounts

The order book reflects healthy traction across all product verticals with advanced plastics contributing the largest share, followed by mechatronics, alternate fuels and structures and control systems.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹200 Cr
    • Land ₹38 Cr
    • IAC business ₹42 Cr
    Capex for the first half of year stood at INR133 crore, which includes investment in land of around INR 38 crore and INR 42 crore in IAC business. These investments are aimed at unlocking medium-term revenue growth and supporting localization efforts across key platforms. The guidance for the full year remains at around INR 200 - 220 crore.
  • Debt 0.6× EBITDA
    Following the payout for the 100% acquisition of IAC, our long-term debt stood at INR 606 crore, resulting in a conservative debt-to-equity ratio of 0.57, which is within our internal comfort thresholds.
  • M&A IAC India Acquisition · Integrated

    First quarter wherein the entire profit after tax of IAC India is attributable to Lumax Auto Technologies following the acquisition of the remaining minority stake in Q1 FY '26.

    The deal expenses for the remaining 25% acquisition of IAC impacted EBITDA by around 100 to 120 bps in H1.

    This quarter marks the first quarter wherein the entire profit after tax of IAC India is attributable to Lumax Auto Technologies following the acquisition of the remaining minority stake in Q1 FY '26. Additionally, the Board has approved the merger of IAC India with the standalone company, a move aimed at simplifying the corporate structure and enhancing operational synergies.
  • M&A IAC India Merger · Announced

    Aimed at simplifying the corporate structure and enhancing operational synergies.

    Additionally, the Board has approved the merger of IAC India with the standalone company, a move aimed at simplifying the corporate structure and enhancing operational synergies.
  • Liquidity Cash ₹391 Cr Provides financial flexibility to support ongoing investments and navigate market cycle confidently.
    As of September 30, 2025, we continue to maintain a strong balance sheet and a healthy liquidity position. Free cash reserves on a consolidated basis stood at INR391 crore, providing us with the financial flexibility to support ongoing investments and navigate market cycle confidently.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 25%

    Previously 20% → 25%

    Post the GST rate rationalization, for the full year of FY '26, we would like to revise our revenue growth guidance from earlier 20% to now 25%, well in line with our 20% CAGR goal.

    — Anmol Jain

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 14-15%
    We continue to maintain the guidance of 14% to 15% EBITDA margin for the full year FY '26.

    — Anmol Jain

Capex

  • Capex Capex · FY26 · High confidence INR200-220 crore
    The guidance for the full year remains at around INR 200 - 220 crore.

    — Ankit Thakral

Segment Growth

  • Aftermarket Growth Segment Growth · H2 FY26 · Medium confidence 15-20%
    Going forward, I think we are hopeful that at least by quarter four, we should be between 15% to 20%, anywhere maybe closer to 20% at a run rate of growth for aftermarket.

    — Anmol Jain

  • IAC Growth Segment Growth · FY26 · Medium confidence 20%
    So I think right now, the visibility for a full year basis, I would say that probably close to a 20% growth for IAC.

    — Anmol Jain

Segment Revenue

  • Greenfuel Revenue Segment Revenue · FY26 · Medium confidence INR350-400 crore
    I think the revenue guidance for full year for Greenfuel is between INR350 crore to INR400 crore.

    — Anmol Jain

  • IAC Product Revenue Growth Segment Revenue · FY26 · Medium confidence 25-27%
    But considering the higher tooling revenues last year, so that's why the reported number for the full year, we are estimating a growth of around 20%, maybe closer to INR1,450 crore for the full year. ... with respect to the product revenue, it will be overall growth of 25% to 27%.

    — Ankit Thakral

  • Alps Alpine Revenue Segment Revenue · FY30 · Medium confidence >INR500 crore
    Alps Alpine is focusing on having at least 11 product lines running up to 2028, which will be driving significant growth for this particular joint venture, targeting more than INR500 crore plus of revenue by FY '30.

    — Vikas Marwah

  • Mechatronics Revenue Segment Revenue · FY30 · Medium confidence INR800-1,000 crore
    So our target should be anywhere between INR800 crore to INR1,000 crore.

    — Vikas Marwah

  • Mechatronics Revenue Segment Revenue · FY28 · Medium confidence INR500 crore
    So FY '26 run rate is about INR264 crore for mechatronics currently. And FY '28, we are targeting INR500 crore plus.

    — Vikas Marwah

Segment Profitability

  • Lumax Yokowo EBITDA Margin Segment Profitability · FY27 · Medium confidence 13-15%
    And our target is that by FY '27, we should be able to stabilize it anywhere between 13% to 15% kind of an EBITDA margin.

    — Vikas Marwah

What to watch in Q3 FY26

Standalone Business Margin Recovery

Next 12 months
Current ~100bps dip in H1 FY26 due to one-time costs
Target Recovery to double-digit margins

Why it matters

Indicates the effectiveness of cost optimization efforts and the true underlying profitability of standalone operations.

But going forward, we are very confident that we will be able to reach the double digit for the 12 months, including the other income part. So this is just a one-off anomaly. But in return, we do expect a significantly much more handsome gains from these expenses going forward in the coming years.

Risks & concerns

  • Standalone Margin Pressure due to One-time Costs

    medium

    One-time costs for external consultants and IAC acquisition deal expenses caused an approximate 100-120bps dip in standalone EBITDA margins in H1 FY26.

    Analyst acknowledged

  • OEM Pricing Pressure on Ancillary Companies

    low

    Historically, OEMs might squeeze ancillary companies during profitability pressure, but management is confident in maintaining IAC and Greenfuel margins due to product mix and price corrections.

    Analyst downplayed

  • Rare Earth Magnet Crisis Impact

    low

    LATL is not significantly impacted by the rare earth magnet crisis as it is powertrain agnostic and not heavily invested in pure BEV products; existing needs are covered, and alternatives are being explored.

    Analyst downplayed

Q&A highlights

8 direct
Standalone operations margin pressure and strategic shift Direct
I think the company has taken certain bold steps in really doing a lot on cost optimization and also accelerating a few business growth drivers. And for that reason, we've engaged certain external consultants. That one-time cost during the H1 has taken a little bit of hit on the margins compared to last year basis, but that's approximately 100 basis points dip.

Analyst questioned margin decline in standalone business; management attributed it to one-time costs for strategic initiatives, expecting future gains.

Asked by Mihir Vora

Greenfuel new product lines and customer acceptance Direct
So yes, we've already got one firm order for one of the new product lines, which we have been engaged with discussions with the customer for quite some time. This is a deeper localization effort, which also gives a significant cost reduction advantage to the OEM. We would be the only one and the first one in India to have localized this product for one of our customers. And I do foresee that once this is productionized, there will be a significant ramp-up in terms of the offtake from other OEMs as well.

Confirmed a new localized product line for Greenfuel with a firm order, indicating progress in product diversification and potential for future OEM adoption.

Asked by Mihir Vora

Diversification of IAC business beyond Mahindra Direct
So I think IAC team continues to engage constructively in discussions across OEMs. We've already got certain firm orders from Maruti Suzuki for their forthcoming models. And that relationship continues to grow stronger, and we will continue to expand our wallet share with Maruti Suzuki. Mahindra, of course, is our key customer, and we continue to enjoy strong order book across various platforms of Mahindra as well. And we are in conversations with other customers like Honda Car, Tata Motors to try and pitch for some of their forthcoming models in the future.

Management confirmed new orders from Maruti Suzuki and ongoing discussions with other OEMs like Honda and Tata, indicating successful diversification efforts for IAC.

Asked by Mihir Vora

IAC India revenue for Q2 and H1 FY26 Direct
For the quarter one, it was INR317 crore. And for quarter two, it is INR378 crore. And for H1, it is showing a growth of 40% from the H1 of last year at INR694 crore with margins at 17.5% for the six months.

Provided specific revenue figures for IAC India, confirming strong growth and healthy margins post-acquisition.

Asked by Vijay Pandey

New subsidiaries (Autocomp, Auto Solutions) and capital infusion in JVs Direct
Well, they're just enabling SPVs for accelerating future inorganic growth for the organization. In the past also, we created such SPVs as it's just enabling to fuel the future inorganic plans. ... So Lumax Yokowo, there is a resolution which we have taken in the Lumax Auto Tech Board is relating to the working capital increase in the working capital facility of Lumax Yokowo and Lumax Yokowo being a subsidiary of Lumax Auto that is why it is just a statutory requirement. So we are not infusing any capital from Lumax Auto.

Clarified that new subsidiaries are SPVs for inorganic growth and capital increase in Lumax Yokowo is for working capital, not new equity infusion, addressing concerns about capital deployment.

Asked by Dhaval Shah

Chinese technology integration and China resource center Direct
I think as I mentioned in my opening, we are already on course to start a China resource center, which should be up and running either by end of calendar year or January 2026. And through this center, we do expect to have technology access to the new emerging trends, specifically in the interior cabin space to begin and thereafter see what other new product expansions and new technologies we could tie up for Lumax Auto Technologies as a whole.

Provided an update on the strategic China resource center, highlighting its role in technology access, scouting, and sourcing optimization for future growth.

Asked by Dhaval Shah

Mechatronics mega plant development and targets Direct
The mega mechatronics plant is coming up at Manesar. It is currently under commissioning as we speak. There are four joint ventures that will be moving into this facility targeted by March or April 2026. ... So our target should be anywhere between INR800 crore to INR1,000 crore.

Detailed the progress of the mechatronics mega plant, its strategic importance for consolidating JVs, and ambitious revenue targets for the segment.

Asked by Neeraj

Impact of new tech centers on margins Direct
So there will not be really any material impact on the margin. Right now, we are looking at only about 15 to 20 people at the Bengaluru facility and about close to 8 to 10 people in China. So that's an insignificant cost in terms of just the manpower. And as I mentioned earlier, there is no significant capex needed either. So I don't see any impact on margins with respect to setting up these 2 centers.

Management clarified that the new tech centers in Bengaluru and China will have an insignificant impact on margins due to limited initial headcount and no significant capex.

Asked by Mihir Vora

3 min read 7 chapters

Detailed narrative

Strong Q2 & H1 FY26 Performance

Lumax Auto Technologies reported a robust Q2 FY26 with consolidated revenue reaching a historic high of INR1,156 crore, marking a 37% year-on-year growth. For the first half of FY26, revenue stood at INR2,183 crore, also up 37% YoY. Profitability remained strong, with Q2 EBITDA at INR170 crore (14.7% margin) and H1 EBITDA at INR306 crore (14.0% margin), aligning with the full-year guidance of 14-15%. PAT before minority interest for Q2 and H1 grew 50% and 41% YoY, respectively, to INR78 crore and INR132 crore.

Strategic Integration and Corporate Restructuring

The company completed the acquisition of the remaining minority stake in IAC India in Q1 FY26, making it a 100% subsidiary. The Board has approved the merger of IAC India with the standalone company, aiming to simplify the corporate structure and enhance operational synergies. This integration is expected to contribute significantly to future performance, with IAC India reporting INR378 crore revenue in Q2 and INR694 crore in H1, with a 17.5% margin.

Focus on Innovation and Global Expansion

Lumax inaugurated SHIFT, a Smart Hub for Innovation and Future Trends in Bengaluru, to accelerate product innovation, electronics development, and software integration across business verticals. This center aims to strengthen capabilities in embedded electronics and connected systems, transitioning Lumax into a Tier 0.5 systems integrator. Additionally, the company is establishing its first office in China, expected to be operational by January 2026, to serve as a resource center for sourcing, tooling, and technology scouting.

Segmental Growth and Order Book

The advanced plastics division recorded a 25% YoY growth in H1 FY26, with revenues of INR1,138 crore and an order book of INR680 crore. The mechatronics segment showed exceptional growth of 165% YoY in H1 FY26, reaching INR122 crore, backed by an order book of INR360 crore. The company reported a robust total order book of INR1,357 crore, with 7% expected to materialize in FY26, 35% in FY27, 48% in FY28, and 10% in FY29.

Capital Allocation and Financial Health

Capex for H1 FY26 was INR133 crore, including INR38 crore for land and INR42 crore for IAC business, with a full-year guidance of INR200-220 crore. The company maintains a strong balance sheet with free cash reserves of INR391 crore as of September 30, 2025. Long-term debt stood at INR606 crore, resulting in a conservative debt-to-equity ratio of 0.57, well within internal comfort thresholds.

Greenfuel Energy Solutions and Alternate Fuels

The Greenfuel Energy Solutions segment, acquired in November last year, contributed INR170 crore in H1 FY26 and has an order book of INR200 crore. Management confirmed securing a firm order for a localized tubes and fitting product, with an annual revenue potential of INR20 crore for the first model. This segment is strategically positioned to grow with the national shift towards alternate fuel platforms, despite a Q2 revenue dip to INR75 crore from INR95 crore in Q1 due to cyclical demand for safety products used in school buses.

Mechatronics Mega Plant and Future Targets

A mega mechatronics plant is under commissioning in Manesar, with four joint ventures (Lumax Yokowo, Lumax Alps, Lumax Ituran, Lumax FAE) slated to move in by March/April 2026. This plant will integrate PCB SMT captive lines and clean rooms, aiming for significant cost savings and operational efficiencies. The company targets mechatronics revenue of INR800-1,000 crore by FY30, with a run rate of INR264 crore for FY26 and INR500 crore by FY28.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Automobile and Auto Components earnings calls