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Lumax Auto Technologies Limited — Q4 FY25 earnings call

Call held 4 Jun 2025

Management summary

Lumax Auto Technologies delivered a strong Q4 and FY25, achieving record revenues and EBITDA, driven by robust market demand and strategic acquisitions like Greenfuel Energy Solutions and full ownership of IAC India. The company reported significant growth across its segments and a healthy order book, while also declaring a substantial dividend. Despite minor margin pressures in one segment due to product mix and one-off acquisition costs, management expressed confidence in continued growth through organic expansion and future mobility solutions.

Highlights

FY25 Revenue of INR 3,637 crore, up 29% YoY, driven by strong demand across segments and OEM engagement.
FY25 EBITDA of INR 516 crore, up 25% YoY, first time exceeding INR 500 crore, reflecting improved efficiencies and cost management.
Q4 FY25 Revenue of INR 1,133 crore, up 50% YoY, marking the first time crossing INR 1,000 crore in a single quarter.
FY25 PAT before minority interest grew 37% YoY to INR 229 crore.
Robust order book of INR 1,300 crore with strong visibility across the next 3 fiscal years, with 40% from BEV platforms.
Successful acquisition of Greenfuel Energy Solutions, marking strategic entry into the alternate fuel segment, contributing INR 110 crore in FY25.
Acquired remaining 25% stake in IAC India, making it a wholly-owned subsidiary and securing full control of its largest revenue-contributing division.

Concerns

Lumax Mannoh's EBITDA margin declined by 3% YoY due to a product mix shift towards lower-value manual transmission shifters (85% MT vs 15% AT in FY25, from 75% MT vs 25% AT previously).
Q4 standalone EBITDA margin was impacted by one-off expenses (2-2.2% of standalone revenues) related to the Greenfuel acquisition and consultancy costs.

Key financials

2 periods

Q4 FY25

Revenue
₹1,133 Cr
YoY +50%
EBITDA
₹166 Cr
YoY +51%
EBITDA Margin
14.6%

FY25

Revenue
₹3,637 Cr
YoY +29%
EBITDA
₹516 Cr
YoY +25%
EBITDA Margin
14.2%
PAT before Minority Interest
₹229 Cr
YoY +37%
Tax Rate
25.6%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	842	906	1,133	1,026	1,156 +37%	1,271 +40%	1,417 +25%	1,364 +33%
Expenses	740	788	976	901	1,002	1,095	1,214	1,173
EBITDA	102	118	157	125	155 +52%	176 +49%	203 +29%	190 +52%
Margin	12%	13%	14%	12%	13%	14%	14%	14%
Other income	15	9	9	11	16	0	5	15
Interest	19	20	21	23	24	27	31	25
Depreciation	29	33	37	38	41	48	52	49
Profit before tax	70	74	108	74	104 +49%	101 +36%	126 +17%	132 +78%
Tax rate	26%	25%	26%	27%	26%	-7%	23%	25%
Net profit	52	56	80	54	78 +50%	108 +93%	98 +23%	99 +83%
EPS	6.29	6.58	8.57	6.08	9.81	12.10	12.93	12.71

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

Segment	YoY Growth (Q4 FY25)	YoY Growth (FY25)	Order Book
Advanced Plastics	53%	27%	₹750 Cr
Mechatronics	87%	80%	₹210 Cr
Structure and Control Systems	5%	8%	₹190 Cr
Green Energy Solutions	—	—	₹150 Cr
Aftermarket	10%	5%	—
Revenue Mix (FY25)	—	—	—

Order book

high confidence

Total value

₹1,300 Cr

as of 2025-03-31 quantified

Execution

executable over next 3 fiscal years

Composition

Mix 3 fiscal years

FY26 26%
FY27 42%
FY28 32%

Share of order book by fiscal year

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

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹200 Cr
- SOPs for new product platforms within IAC and Lumax Health
- Purchase of land bank at Kharkhoda, Haryana ₹30 Cr
Previously planned ₹175 Cr

capex for the year stood at INR 177 crore primarily towards SOPs for new product platforms within IAC and Lumax Health. It also includes INR30 crore for purchase of land bank at Kharkhoda, Haryana. The capex plan for the consolidated entity would be anywhere around a similar number as FY25, around INR 175 crore to INR 200 crore around that vicinity.
Debt 0.5× EBITDA

Our long-term debt stood at INR 458 crore following the acquisition-related payout for Greenfuel Energy. The long-term debt-to-equity ratio remains healthy at 0.49x. So however, considering your next part of that, so we anywhere look around below, say, 0.7 to 0.8:1, internally, we consider it as a comfortable position on account of long-term debt to equity.
Dividend ₹5.5/share (final)

We were also pleased to declare a dividend of INR5.50 per share, a 275% of the face value, reaffirming our commitment to value creation.
M&A Greenfuel Energy Solutions Acquisition · Integrated

Strategic entry into the alternate fuel segment, aligning with long-term vision of sustainable and innovation-led growth.
Consolidated for 4 months in FY25, full 12 months consolidation in FY26.

a defining highlight of the year was the successful acquisition of Greenfuel Energy Solutions, marking Lumax' strategic entry into the alternate fuel segment. This move aligns with our long-term vision of sustainable and innovation-led growth, offering strong synergies with our core business and expanding our capabilities in clean mobility solutions. So Greenfuel was consolidated for 4 months for the FY25 and for the FY26, full 12 months consolidation will be there.
M&A IAC India Acquisition · Closed

Securing full control of its largest revenue contributing business division, with intent to boost free cash and better leverage for future inorganic steps.
Already consolidated 100% of revenues in FY25, impact primarily on PAT after minority interest. EBITDA margins closer to 17-17.5% for IAC.

On 22nd May 2025, Lumax Technologies acquired the remaining 25% stake in IAC India, making it a wholly owned subsidiary and securing full control of its largest revenue contributing business division, with the intent to boost free cash, better leverage, which will enable Lumax Technologies to go for future inorganic steps. IAC has grown by almost 35% to 40% for this financial year, and it has closed at INR 1,200-odd crore with EBITDA margins closer to 17% to 17.5%. So number one, there is no change from the 75% to 100% acquisition in our revenue. We continue to consolidate 100% of revenues of IAC even last year. So there is no change. Yes. So from a top line, no change, but yes, at a PAT after minority interest, that's correct.
Liquidity Cash ₹322 Cr Company maintained a strong liquidity position with free cash reserves.

As of 31st March '25, the company maintained a strong liquidity position with free cash reserves of INR322 crore.

Guidance & targets

Revenue Growth

Consolidated Revenue CAGR Revenue Growth · long-term · High confidence minimum 20%

So that's correct. So we continue to maintain an outlook of, again, 20% to 25% growth on the consolidated revenues, in line with our 20.20.20.20 theme of growing at a minimum 20% CAGR.

— Anmol Jain
IAC India CAGR Revenue Growth · mid-term · Medium confidence 10-15%

we expect IAC growth to be more in the vicinity of around 10% to 15% CAGR.

— Anmol Jain
Aftermarket Division Growth Revenue Growth · FY26 · High confidence upwards of 15%

we should be able to again come back and deliver a very handsome growth, maybe upwards of 15% odd for aftermarket division.

— Anmol Jain

Profitability

EBITDA Margin Profitability · long-term aspiration · Low confidence nearing 20%

I think as a part of the investor presentation also, we say that the 20% EBITDA margin is a NorthStar where we wish to inch closer towards those margin levels. It is not time specific to 6 years.

— Anmol Jain
EBITDA Profitability · by FY28 · High confidence INR 1,000 crore

From INR 500 crore (FY25) today

we should be able to double our EBITDA from the last year's upwards of INR 500 crore to possibly crossing the INR 1,000 crore mark by FY28.

— Anmol Jain
EBITDA Margin Expansion Profitability · near-term · Medium confidence 100-200 bps

And if we are able to do that, I think you will start seeing EBITDA margins expand by about close to 100-200 bps.

— Anmol Jain

Revenue

Greenfuel Revenue Revenue · FY26 · High confidence INR 300-350 crore

So the guidance for FY '26 of Greenfuel would be continuing to be similar between INR 300 crore to INR 350 crore.

— Anmol Jain
Alps Alpine Revenue Revenue · FY26 · High confidence INR 120 crore

From INR 50 crore (FY25) today

Alps Alpine registered a revenue of around INR 50 crore in FY25. It is expected to deliver INR 120 crore in FY26.

— Vikas Marwah
Alps Alpine Revenue Revenue · next 4 to 5 years · Medium confidence INR 500 crore plus

And very clearly, we are set for a INR 500 crore plus journey over the next 4 to 5 years.

— Vikas Marwah

Product Development

Alps Alpine Product Rollout Product Development · by FY29 · High confidence 22 products fully functional

there is a 22 product rollout, which will be fully functional from Alps Alpine global portfolio by FY '29 itself.

— Vikas Marwah

Capex

Consolidated Capex Capex · FY26 · High confidence INR 175-200 crore

The capex plan for the consolidated entity would be anywhere around a similar number as FY25, around INR 175 crore to INR 200 crore around that vicinity.

— Anmol Jain

Realization

Content per vehicle (4-wheeler) increase Realization · FY26 · Medium confidence 8-10%

maybe an increase of around 8% to 10%, owing to mainly the increase with respect to the Greenfuel numbers, which will come as a 12-month consolidated revenues.

— Ankit Thakral

What to watch in Q1 FY26

Aftermarket segment growth

FY26

Current 5% (FY25), 10% (Q4 FY25)

Target Upwards of 15% (FY26)

Why it matters

Management is implementing strategic shifts and new product launches to accelerate growth in this segment, making its performance a key indicator of execution.

we should be able to again come back and deliver a very handsome growth, maybe upwards of 15% odd for aftermarket division.

Risks & concerns

Unforeseen black swan event in the industry
medium

While acknowledged, management believes the company is fairly de-risked due to diversity of products, companies, and OEMs.

Management acknowledged
Lumax Mannoh EBITDA margin decline due to product mix
low

Margin declined due to shift from automatic to manual transmission shifters, impacting value per unit.

Analyst acknowledged
One-off expenses impacting Q4 standalone EBITDA margin
low

Q4 margin was affected by Greenfuel acquisition-related costs and consultancy expenses, amounting to 2-2.2% of standalone revenues.

Analyst acknowledged

Q&A highlights

8 direct

Organic CAGR target for Vision FY31 and associated risks Direct

This growth largely would be coming from across different businesses, but your understanding is correct. Some of the subsidiaries and joint ventures will be having a much faster accelerated growth, although on a smaller base... I think with the given diversity of products, companies as well as OEMs, we are fairly derisked from this kind of growth opportunity.

Clarifies the drivers of the long-term organic growth target and management's view on mitigating risks through diversification.

Asked by Amit Hiranandani

Timeline and strategy for achieving 20% EBITDA margin Direct

We have not anywhere said that we want to achieve 20% in the next 6 years. I think as a part of the investor presentation also, we say that the 20% EBITDA margin is a NorthStar where we wish to inch closer towards those margin levels. It is not time specific to 6 years. It could possibly be even beyond those 6 years.

Corrects a misunderstanding, clarifying that 20% EBITDA margin is a long-term aspiration rather than a fixed 6-year target, providing a more realistic expectation.

Asked by Amit Hiranandani

Interpretation of order book execution timeline and revenue flow Direct

Yes. So the total order book as on date stands at INR 1,300 crore. Out of that 26% or INR 333 crore will get into the P&L of FY26. And the remaining will come in F27 and FY28 in that much proportion.

Confirms the specific revenue recognition schedule from the current order book for the upcoming fiscal years.

Asked by Pritesh Chheda

Impact of IAC India becoming wholly-owned and Greenfuel consolidation on FY26 financials Direct

So number one, there is no change from the 75% to 100% acquisition in our revenue. We continue to consolidate 100% of revenues of IAC even last year. So there is no change... So Greenfuel was consolidated for 4 months for the FY25 and for the FY26, full 12 months consolidation will be there.

Clarifies the accounting treatment of recent acquisitions, particularly that IAC's revenue consolidation remains unchanged, but Greenfuel will contribute for a full year in FY26.

Asked by Pritesh Chheda

IAC India's future growth strategy, expansion to other OEMs, and competitive edge Direct

I think we continue to maintain that, of course, IAC would perhaps not be growing at the same rate as it has over the last few years. As a part of our next midterm plan, we expect IAC growth to be more in the vicinity of around 10% to 15% CAGR... we are also in discussions with Tata Motors for their forthcoming models.

Provides insight into IAC's growth drivers, including sustained wallet share with M&M and active engagement with other major OEMs for future models.

Asked by Ganeshram

Lumax Mannoh's EBITDA margin decline and improvement initiatives Direct

So of course, this is owning to some product mix relating to the automatic shifter and manual transmission shifter, which was there somewhere closer to 75-25 in favor of MT last year. So that has reduced to, say, 85% of MT and 15% of AT. So that has impacted the revenue when it comes to the value part of it.

Explains the specific reason for margin pressure in the Lumax Mannoh segment, attributing it to a shift in product mix towards lower-value manual shifters.

Asked by Aryan Goyal

Aftermarket segment growth plans and new product categories Direct

We are changing the fundamental strategic focus area. From this year onwards, we're going to be actually spending a lot of resources and a lot of strategic focus on generating demand across different districts and also going to the last mile in terms of the connect with the retail and the mechanics... we should be able to again come back and deliver a very handsome growth, maybe upwards of 15% odd for aftermarket division.

Details the strategic initiatives and new product launches (CDI, starter motors, suspension systems) aimed at significantly boosting Aftermarket growth in FY26.

Asked by Apurva Mehta

Alps Alpine plans, new products, and long-term revenue targets Direct

Alps Alpine registered a revenue of around INR 50 crore in FY25. It is expected to deliver INR 120 crore in FY26. And very clearly, we are set for a INR 500 crore plus journey over the next 4 to 5 years... there is a 22 product rollout, which will be fully functional from Alps Alpine global portfolio by FY '29 itself.

Outlines the aggressive growth trajectory and product development roadmap for the Alps Alpine JV, focusing on HMI and ADAS systems as key future drivers.

Asked by Apurva Mehta

3 min read 6 chapters

Detailed narrative

Record Financial Performance in FY25

Lumax Auto Technologies achieved an all-time high revenue of INR 3,637 crore in FY25, marking a 29% year-on-year growth. This performance was underpinned by strong demand across all segments and deepening engagement with OEM partners. EBITDA also reached a record INR 516 crore, a 25% increase over the previous year, crossing the INR 500 crore mark for the first time, reflecting improved efficiencies and prudent cost management. For Q4 FY25, consolidated revenue grew 50% YoY to INR 1,133 crore, and EBITDA increased 51% YoY to INR 166 crore, with margins holding strong at 14.6%.

Strategic Acquisitions Driving Future Growth

A defining highlight of the year was the successful acquisition of Greenfuel Energy Solutions, marking Lumax's strategic entry into the alternate fuel segment, which contributed INR 110 crore in revenue in FY25 from November onwards. Additionally, Lumax Technologies acquired the remaining 25% stake in IAC India on May 22, 2025, making it a wholly-owned subsidiary. This move secures full control of its largest revenue-contributing business division, with IAC India having grown 35-40% in FY25 to INR 1,200 crore with EBITDA margins of 17-17.5%.

Segmental Performance and Product Innovation

The Advanced Plastics segment delivered a healthy 53% YoY growth in Q4 FY25 to INR 626 crore, and 27% for the full year, supported by deeper penetration in premium vehicles. The Mechatronics segment continued to outperform, recording 87% YoY growth in Q4 to INR 48 crore and 80% for the full year. Lumax successfully rolled out cockpit assemblies for Mahindra's Thar ROXX and BEV models, and introduced AT/MT gear shifters for Honda Amaze, expanding its product portfolio and OEM engagement.

Robust Order Book and Long-term Vision

The company reported a robust order book of INR 1,300 crore with strong visibility across the next three fiscal years. Of this, approximately 26% (INR 333 crore) is projected to materialize in FY26, 42% in FY27, and 32% in FY28. The order book reflects healthy traction across all product verticals, with advanced plastics contributing the largest share. Lumax is guided by its 'NorthStar' framework, aiming for a minimum 20% revenue CAGR and aspiring to reach a 20% EBITDA margin, with a target to double EBITDA to INR 1,000 crore by FY28.

Capital Allocation and Shareholder Returns

Capex for FY25 stood at INR 177 crore, primarily directed towards SOPs for new product platforms within IAC and Lumax Health, including INR 30 crore for land bank at Kharkhoda, Haryana. The company maintains a strong liquidity position with free cash reserves of INR 322 crore as of March 31, 2025. Long-term debt stood at INR 458 crore, resulting in a healthy long-term debt-to-equity ratio of 0.49x. Lumax declared a dividend of INR 5.50 per share, representing 275% of the face value, reaffirming its commitment to value creation.

Aftermarket and Subsidiary Growth Initiatives

The Aftermarket segment witnessed a meaningful recovery in Q4 FY25, registering 10% YoY growth, and 5% for the full year. Management expects upwards of 15% growth in FY26, driven by strategic shifts and new product lines like CDI, starter motors, and suspension systems. Lumax Alps Alpine, a joint venture, is expected to deliver INR 120 crore in FY26, growing to over INR 500 crore in the next 4-5 years, with 22 products planned to be fully functional by FY29, focusing on HMI and ADAS systems.

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

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