Lumax Auto Tech.

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.

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.

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 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.

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.

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.