Lumax Auto Technologies Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Lumax Auto Technologies delivered a strong Q3 FY26, achieving its highest-ever revenue of ₹1,271 crores, a 40% YoY increase, and an EBITDA margin of 15%, up 100 bps YoY. This performance led to a significant 93% YoY growth in PAT before minority interest. The company revised its FY26 revenue growth guidance to 30% and reported a robust order book of ₹1,450 crores, driven by strong performance across Advanced Plastics, Mechatronics, and Greenfuel Energy.

Highlights

  • Highest ever Q3 FY26 revenue of ₹1,271 crores, up 40% YoY.

  • 9M FY26 revenue of ₹3,453 crores, up 38% YoY.

  • EBITDA margin reached 15% in Q3 FY26, an improvement of 100 basis points YoY.

  • PAT before minority interest for Q3 FY26 stood at ₹108 crores, registering a 93% YoY growth.

  • Robust order book of ₹1,450 crores, providing healthy visibility.

  • Revenue growth guidance revised upwards from 25% to 30% for FY26.

Concerns

  • Exceptional item of ₹14.95 crores in Q3 FY26 due to change in wage codes.

  • Slight increase in depreciation and finance costs in Q3 FY26 due to capitalization and amortization of right-of-use assets for new facilities.

  • Lumax Yokowo, while EBITDA positive in Q3, is expected to have negative EBITDA for the full financial year.

Key financials

2 periods

Headline

  • Revenue
    ₹1,271 Cr
    YoY +40%
  • EBITDA
    ₹191 Cr
  • EBITDA Margin
    15%
  • PBT before exceptional item
    ₹116 Cr
  • PAT before minority interest
    ₹108 Cr
    YoY +93%

9M FY26

  • Revenue
    ₹3,453 Cr
    YoY +38%
  • EBITDA
    ₹497 Cr
  • EBITDA Margin
    14.4%
  • PBT before exceptional item
    ₹295 Cr
  • PAT before minority interest
    ₹240 Cr
    YoY +60%

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
    ₹1,811 Cr Revenue (9M FY26)28% Growth (9M FY26)
  • Mechatronics
    ₹198 Cr Revenue (9M FY26)200% Growth (9M FY26)
  • Structure & Control Systems
    ₹588 Cr Revenue (9M FY26)15% Growth (9M FY26)
  • Aftermarket
    15% Growth (9M FY26)
  • Greenfuel Energy
    ₹270 Cr Revenue (9M FY26)
  • Passenger Vehicle (Revenue Mix 9M FY26)
    53% Share of Total Revenue
  • 2- and 3-Wheeler (Revenue Mix 9M FY26)
    24% Share of Total Revenue
  • Aftermarket (Revenue Mix 9M FY26)
    10% Share of Total Revenue
  • EVs (Revenue Mix 9M FY26)
    9% Share of Total Revenue

Order book

high confidence

Total value

₹1,450 Cr

as of 2025-12-31 quantified

Execution

Approximately 33% in FY27, 44% in FY28, 23% in FY29

Composition

Mix 4 products
  • Advanced Plastics ₹745 Cr 51.4%
  • Mechatronics ₹345 Cr 23.8%
  • Alternate Fuels ₹180 Cr 12.4%
  • Structures & Control Systems ₹180 Cr 12.4%

Share of order book by product, derived from disclosed amounts

Robust order book providing healthy visibility for the business going forward.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹240 Cr Raised — unlocking medium-term revenue growth and supporting localization efforts
    • Strategic investment in land in Gujarat and Kharkhoda regions ₹44 Cr
    • Capacity expansion in IAC ₹50 Cr
    • Capacity expansion in Lumax Alps ₹20 Cr

    Previously planned ₹220 Cr

    Capex for 9M stood at INR172 crore, which includes strategic investment in land in Gujarat and Kharkhoda regions of INR44 crore. It also includes INR50 crore and INR20 crore on the capacity expansion in IAC and Lumax Alps, respectively. These investments are aimed at unlocking medium-term revenue growth and supporting localization efforts across key platforms. The guidance for the full year is close to INR240 crore, which is a slight increase from the earlier outlook given of around INR220 crore.
  • Debt Debt disclosed
    The long-term debt stood at INR574 crore, resulting in a conservative debt-to-equity ratio of 0.50, which is within our internal comfort thresholds.
  • M&A Greenfuel Energy Solutions Private Limited Merger · Closed

    Simplify corporate structure, enhance capital efficiency, sharpen alignment with future-ready mobility platform.

    The merger of Greenfuel Energy Solutions Private Limited with the SPV Company, Lumax Resources Private Limited has been approved by the Honourable NCLT Chandigarh with effect from February 3, 2026.
  • M&A IAC India Merger · Pending regulatory

    Simplify corporate structure, enhance capital efficiency, sharpen alignment with future-ready mobility platform.

    The merger of IAC India with Lumax Auto Technologies is also gaining progress with the first motion already completed.
  • Liquidity Cash ₹421 Cr Maintains a strong balance sheet and healthy liquidity position, providing financial flexibility to support ongoing investments and navigate market cycles.
    As of December 2025, we continue to maintain a strong balance sheet and a healthy liquidity position. Free cash reserves stood at INR421 crore, providing us with the financial flexibility to support ongoing investments and navigate market cycles confidently.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 0.30

    Previously 0.25 → 0.30

    Driven by this momentum, we would like to revise our revenue growth guidance from earlier 25% to now 30%, and we remain firmly on track with our growth objectives under our North Star.

    — Anmol Jain

Profitability

  • EBITDA Margin Profitability · FY28 · Medium confidence 0.16
    I would still continue to maintain a guidance of getting close to ~16% EBITDA in FY 28.

    — Anmol Jain

Aftermarket

  • Growth Aftermarket · next year · High confidence 0.20
    I still continue to give the guidance of a 20% growth in the Aftermarket, will definitely be achieved going forward in the next year.

    — Anmol Jain

Telematics

  • Revenue Growth Telematics · 12-18 months · Medium confidence double
    And we hope to double our Telematics revenue in the next 12 to 18 months riding on these things, besides, of course, waiting for the full-blown ADAS opportunities to open up.

    — Vikas Marwah

Subsidiary Performance

  • Lumax Alps Revenue Subsidiary Performance · FY31 · High confidence 500 crores
    Alps is set to exceed a revenue mark of INR500 crore by FY 31 and also target somewhere close to a 15% kind of an EBITDA margin in very technologically intensive products.

    — Vikas Marwah

  • Lumax Alps EBITDA Margin Subsidiary Performance · FY31 · High confidence 0.15

    — Vikas Marwah

Capex

  • Total Capex Capex · FY26 · High confidence 240 crores

    Previously 220 crores → 240 crores

    The guidance for the full year is close to INR240 crore, which is a slight increase from the earlier outlook given of around INR220 crore.

    — Ankit Thakral

  • Annual Organic Capex Capex · annual · High confidence 150-200 crores
    I think we continue to believe that the annual capex for organic growth should be anywhere between INR150 – 200-odd crore.

    — Anmol Jain

Taxation

  • Effective Tax Rate Taxation · way forward · High confidence 0.26
    Excluding the same, effective tax rate comes out nearer to 26%, both for Q3 and 9M FY 26, and we expect it to hold at similar levels way forward too.

    — Ankit Thakral

What to watch in Q4 FY26

EBITDA Margin Expansion

Next quarter (Q4 FY26) and FY27
Current 15% (Q3 FY26)
Target Further expansion towards 16%

Why it matters

Sustained margin expansion is key to achieving the FY28 target of 16% EBITDA and reflects operational efficiency.

I think we are reasonably confident to maintain a similar EBITDA margin going forward for Q4. And in FY 27 as well, we should be able to expand further by about 50 basis points or so.

Risks & concerns

  • Unforeseen events impacting margin journey

    medium

    Management stated that most risks seem mitigated, but unforeseen events could impact the journey towards 16% EBITDA margin.

    Management acknowledged

  • Telematics business in nascent stage

    medium

    The Telematics vertical is not yet completely mature in India, still in a nascent stage, though the company is maturing its business offering.

    Management acknowledged

  • Import dependency for safety-critical parts

    low

    Certain safety-critical parts are not produced in India and suppliers are not available, requiring imports, though localization efforts are ongoing.

    Management acknowledged

Q&A highlights

8 direct
FY27 Growth Outlook and Subsidiary Performance Direct
So I think for the most part of FY 27, we do believe that we will still be able to maintain and in due course, we will look at if we need to revise upwards the guidance. But I think we are on track in our North Star of delivering about a 20% CAGR over the next 3 to 4 years.

Analyst asked about FY27 growth and which subsidiaries would drive it, indicating investor focus on sustained growth beyond the current fiscal. Management confirmed confidence in maintaining growth and highlighted IAC and Mechatronics as key drivers.

Asked by Amit Hiranandani

Achieving 16% EBITDA Margin Target by FY28 Direct
I think the confidence comes from, again, as I mentioned, a very different diversified reasons. One, of course, certain subsidiaries like IAC or Greenfuel will have a stronger growth compared to the 15% to 20% guidance, which we've given. Both of these sit at a higher margin business.

Analyst questioned the confidence and risks associated with the 16% EBITDA margin target. Management provided a detailed rationale, emphasizing higher-margin businesses and premium offerings.

Asked by Amit Hiranandani

Standalone Profitability and Subsidiary Profitability Direct
So I think that margins or I would say that, that impact of that particular cost has reflected on the standalone financials for this particular financial year... if you exclude that one-time impact in this particular fiscal year, even for the standalone financials, the profitability, including the other income will come in the region of maybe closer to ~11%...

Analysts probed into the profitability of standalone operations and specific subsidiaries (JOPP, Ituran, Alps Alpine, FAE), which are crucial for understanding the overall margin expansion strategy. Management clarified the impact of one-time costs and provided updates on each subsidiary's progress towards profitability and growth.

Asked by Amit Hiranandani

Finance Cost and Depreciation Increase in Q3 FY26 Direct
So as I mentioned in the opening speech, which I think you may be you must have missed. So regarding that depreciation and finance cost, so it was mainly on account of amortization of the right-of-use (ROU) assets because of start of our lease on a couple of new, I would say, facilities.

Analyst sought clarification on the unexpected increase in finance and depreciation costs, which management attributed to new ROU asset capitalization and lease starts. This provides clarity on one-time impacts vs. recurring costs.

Asked by Dhaval Shah

Aftermarket Growth Trajectory Direct
I still continue to give the guidance of a 20% growth in the Aftermarket, will definitely be achieved going forward in the next year.

Analyst questioned the company's ability to scale Aftermarket growth beyond 20%, a key aspirational target. Management reaffirmed confidence and provided context on past performance and future drivers.

Asked by Apurva Mehta

SHIFT Facility and China Office Role Direct
SHIFT has got two very clearly defined focuses, the results of which are beginning to be visible after two quarters, where they have already lent robustness in terms of the software resilience and in terms of the electronic content into a few of the joint ventures that we are operating in India right now, where rather than leaning on overseas support, we have managed to indigenize it on the India side, inside Lumax.

Analyst inquired about the strategic importance and progress of the SHIFT software center and the China office. Management detailed their roles in enhancing software capabilities, driving new business, and supporting localization.

Asked by Apurva Mehta

Greenfuel Content Per Vehicle and Backward Integration Direct
Today, our content per vehicle is about INR3,200 per vehicle out of INR11,500 as an opportunity... we inaugurated a facility of a localized ferrule-less technology of fittings, which every car uses and is an approximate content of INR3,500 more per vehicle.

Analysts sought details on the expanding content per vehicle for Greenfuel and the strategy for backward integration. Management explained the localization efforts and the significant increase in content per vehicle due to new technologies like ferrule-less tubes.

Asked by Apurva Mehta

IAC India's Engagement with Mahindra's Nagpur Plant and Other OEMs Direct
So obviously, we have been closely working with Mahindra. At this point, I think the decisions are very preliminary stage, I would say. But we are in discussion with Mahindra in terms of what kind of acreage or square footage of building we need in case we have to set up supplier part kind of situation in Nagpur.

Analysts asked about IAC's involvement in Mahindra's new greenfield capacity in Nagpur and efforts to expand clientele beyond Mahindra. Management confirmed ongoing discussions for the Nagpur plant and efforts to secure future business with Maruti and other CV manufacturers.

Asked by Sahil Sharma

3 min read 6 chapters

Detailed narrative

Q3 FY26 Strong Financial Performance and Upgraded Guidance

Lumax Auto Technologies reported its highest-ever quarterly revenue in Q3 FY26, reaching ₹1,271 crores, a 40% year-on-year increase. For the nine months ended December 31, 2025, revenue grew by 38% to ₹3,453 crores. This robust performance was accompanied by a significant improvement in profitability, with the EBITDA margin expanding by 100 basis points year-on-year to 15% in Q3 FY26, and PAT before minority interest surging 93% to ₹108 crores. Consequently, the company revised its FY26 revenue growth guidance upwards from 25% to 30%, reflecting strong business momentum and confidence in sustained growth.

Strategic Product Launches and Robust Order Book

The company continued to strengthen its product portfolio with several new launches across both passenger vehicles and 2-wheeler segments. Notable additions include ferrule-less tubes and fittings for Maruti Suzuki's Celerio CNG version, interior parts for Maruti Suzuki's Victoris platform, and emission-related parts for Tata's Sierra. These launches contributed to a robust order book of ₹1,450 crores, providing healthy visibility for future revenues, with 33% expected in FY27, 44% in FY28, and 23% in FY29.

Subsidiary Performance and Corporate Restructuring

Key subsidiaries like Advanced Plastics and Mechatronics demonstrated exceptional growth in 9M FY26, with revenues increasing by 28% to ₹1,811 crores and 200% to ₹198 crores, respectively. Greenfuel Energy Solutions contributed ₹270 crores in 9M, with accretive margins. The merger of Greenfuel Energy with Lumax Resources has been approved, and the merger of IAC India with Lumax Auto Technologies is progressing, aiming to simplify the corporate structure and enhance capital efficiency. Lumax Yokowo achieved EBITDA positivity in Q3 FY26, though it is expected to remain negative for the full year.

Capital Expenditure and Financial Health

Capital expenditure for 9M FY26 stood at ₹172 crores, with the full-year guidance revised to ₹240 crores, up from ₹220 crores. These investments are directed towards strategic areas such as land acquisition (₹44 crores), and capacity expansion in IAC (₹50 crores) and Lumax Alps (₹20 crores). The company maintains a strong balance sheet with ₹421 crores in free cash reserves and a conservative long-term debt of ₹574 crores, resulting in a debt-to-equity ratio of 0.50. Finance costs for Q3 FY26 were ₹27 crores, influenced by new right-of-use assets, with an expected quarterly run rate of ₹25-26 crores.

Innovation and Future Mobility Focus

Lumax is actively investing in future-ready mobility solutions, exemplified by the inauguration of its SHIFT (Smart Hub for Innovation & Future Trends) tech center in October 2025. SHIFT, with 25 software engineers, focuses on enhancing software resilience for existing JVs and driving new revenue streams, including POCs for EV-centric products. The company is also expanding its content per vehicle in the CNG segment, with new localized ferrule-less technology increasing content from ₹3,200 to ₹6,700 per vehicle, and exploring ambient lighting solutions for Maruti Suzuki through its China collaboration.

Market Outlook and Strategic Direction

The automotive sector benefits from a supportive macroeconomic environment, with strong growth across PV (19% YoY), 2-wheelers (15% YoY), 3-wheelers (35% YoY), and CV (18% YoY) production in Q3 FY26. Lumax's diversified revenue composition, with PV accounting for 53%, 2W/3W for 24%, Aftermarket for 10%, and EVs for 9% in 9M FY26, positions it well to capitalize on these trends. The company aims for a 20% CAGR over the next 3-4 years, driven by both organic and inorganic opportunities, and is targeting a 16% EBITDA margin by FY28.

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