Synopsis:
Lumax Auto Technologies is in focus with its bold plan to hit Rs 11,000 crore revenue by FY31, driven by a strong push into the clean mobility space, aiming to grow this segment from 6% to 20% of its business, and also expand its EBITDA margin and ROCE to 20%
The shares of this leading auto component manufacturer are in focus following the company’s unveiling of bold future growth plans. Backed by a strong clientele that includes M&M, Tata, and Maruti Suzuki, the stock has captured investor attention with its aggressive push into clean mobility and a target to achieve Rs 11,000 crore in revenue by FY31.
With a market capitalization of Rs 7,055 crore, the shares of Lumax Auto Technologies Ltd are currently trading at Rs 1,035 crore, representing an 16 percent drop from its 52-week high of Rs 1,231.90 per share. Over the past five years, the stock has delivered a robust return of 980 percent.
Q1 Highlights
Lumax Auto’s revenue for Q1 FY26 came in at Rs 1,026 crore, registering a 36 percent growth from Rs 756 crore in the same quarter last year. However, on a sequential basis, revenue declined by 9.4 percent from Rs 1,133 crore in Q4 FY25.
EBITDA grew by 29 percent to reach Rs 136 crore in Q1 FY26 as compared to Rs 105 crore in Q1 FY25. However, its EBITDA margin shrank by 80 bps and stands currently at 13.2 percent.
Coming to its profitability, the company reported a net profit growth of 29 percent to Rs 54 crore in Q1 FY26 as compared to Rs 42 crore in Q1 FY25. However, on a QoQ basis, it decreased by 32.5 percent from Rs 80 crore.
Segment and Other Highlights
In Q1 FY26, it derived 55 percent of its revenue from the Passenger Vehicle (PV) Segment, followed by 2-3 wheeler with 21 percent, After Market sales with 10 percent, Commercial Vehicles (CV) with 11 percent, and others with 3 percent.
It is worth noting that more than half of the revenue of the company comes from its three main customers alone. Mahindra & Mahindra accounts for 31 percent of the revenue, followed by Maruti Suzuki India with 13 percent and Tata with 10 percent.
It has an order book of Rs 1,500 crore, of which Advance Plastics accounts for Rs 910 crore (61 percent), Mechatronics with Rs 250 crore (17 percent), Alternate Fuels with Rs 200 crore (13 percent), and Structures & Control Systems with Rs 140 crore (9 percent).
Future Outlook
The company is targeting Rs 11,000 crore revenue by FY31, with organic growth (from existing operations) aiming for Rs 8,500 crore at a 15 percent CAGR, and combined growth (organic + inorganic acquisitions) projected at 20 percent CAGR over the period.
Additionally, it wants to expand its EBITDA margin to 20 percent from 14 percent, and also expects to deliver an ROCE of 20 percent from 18 percent (currently) by FY31.
At present, the company is focusing on expanding its footprint in the clean mobility space as part of its long-term growth strategy. It has set a clear goal to increase the contribution of its Future & Clean Mobility segment from the current 6 percent to 20 percent by FY31.
Lumax Auto Technologies Ltd., through its subsidiaries, has been a manufacturer of a wide range of products (Advance Plastics, 2/3-wheeler Lighting, Chassis, Gear Shifter, Shift Towers, Emission Systems, Seat Frames, Oxygen Sensors, On-board antennas, Electric devices & components, Wiring Harness, Vehicle Interior Components & CNG delivery systems).
The company is the market leader in the Design, Testing, and Manufacturing of Gear Shifters & Interior Solutions in India. The Company has a robust pan-India distribution network with 30 manufacturing plants across 7 Indian states.
Written by Satyajeet Mukherjee
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