LUMAXTECH Q2 FY27 Earnings Call: Guides 20-25% Revenue Growth, Record Quarter Tops Rs. 1,500 Cr

LUMAXTECH held its Q2 FY27 earnings call on October 24, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter Above Rs.1,500 Cr; PAT Outpaces Revenue

• Q2 FY27 revenue of Rs.1,556 crore — first-ever quarter above the Rs.1,500 crore mark, up 35% YoY and 14% QoQ; H1 FY27 revenue at Rs.2,919 crore, up 34% YoY, driven by scale-up across four product lines and premiumization-led value enhancement.
• Q2 EBITDA of Rs.228 crore (+34% YoY) at a 14.7% margin, broadly stable YoY; marginal QoQ margin decline attributed to rising input costs with matching recoveries from OEMs, diluting the denominator.
• Q2 PAT of Rs.117 crore (+50% YoY); H1 FY27 PAT before minority interest at Rs.215 crore (+64% YoY) and PBT at Rs.286 crore (+60% YoY, 9.8% margin).
• H1 FY27 EBITDA of Rs.434 crore (+42% YoY) with 90bps margin expansion to 14.9% vs H1 FY26.
• Effective tax rate ~25% expected to hold at similar levels going forward (period unspecified); minority interest at 11% of H1 FY27 expected to remain in a similar range (period unspecified).
• Balance sheet as of September 2026 — free cash reserves of Rs.400 crore, long-term debt of Rs.442 crore, and a conservative debt-to-equity ratio of 0.26, within internal comfort thresholds.

Rs.1,879 Cr Order Book; SIAM Data Shows 19% Production Growth

• Order book of Rs.1,879 crore at end-Q2 FY27 (vs Rs.1,600 crore at end-Q1 FY27); ~14% expected to be executed in FY27, 59% in FY28 and 27% in FY29; ~85% is new business.
• Order book mix — Advanced Plastics 44%, Mechatronics 27%, alternate fuels 20%, structures & control systems 8%; EV+CNG together 29% (CNG 20%, pure EV ~9%); new future technologies 22% of total.
• SIAM Q2 FY27 production data — overall auto production grew 19% YoY to 106 lakh units: passenger vehicles +25% to ~17.17 lakh, two-wheelers +17% to 81 lakh, three-wheelers +25% to ~4.5 lakh, commercial vehicles +34% to 3.5 lakh; growth aided by GST 2.0 affordability, resilient rural/urban demand and a lower prior-year base.
• IMF October 2026 outlook cited by management — global GDP growth of 3.1% for 2026 and global inflation rising to 4.7% in 2026; the Middle East conflict is pushing up energy/commodity prices and disrupting shipping routes and supply chains, while India's domestic economy remains resilient on consumption, government infrastructure spending and investment activity.
• H2 FY27 moderation expected — management expects industry growth to moderate as the lower H1 base laps and full GST rate-cut benefits reflect in demand; festive demand sustenance and OEMs' ability to pass on rising input costs (crude-linked polymers, electronic parts, freight, rupee depreciation) are key monitorables.

Advanced Plastics and Mechatronics Lead at +45%; Aftermarket Lags

• Advanced Plastics +45% YoY in H1 FY27 (Rs.1,138 → Rs.1,655 crore; IAC ~60% of division; order book Rs.834 crore); Mechatronics +45% YoY (Rs.122 → Rs.177 crore; order book Rs.512 crore).
• Structure & Control Systems +24% YoY (Rs.380 → Rs.476 crore; order book ~Rs.150 crore); Alternate Fuel +30% YoY (Rs.170 → Rs.220 crore; order book Rs.379 crore).
• Aftermarket grew only 9% YoY in H1 FY27 (Rs.216 → Rs.234 crore) and ~11% in Q2 FY27, mainly due to a dip in the non-lighting product category on rising input costs; management is optimistic to deliver 15-20% growth (period unspecified) supported by secondary demand generation and new product-line penetration over a 3-5 year horizon.
• PV content per vehicle playbook of Rs.70,000-75,000 (as of Q2 FY27) — ~50% rests in the IAC vertical, green fuel contributes ~Rs.5,000-8,000 per vehicle, remainder split across control systems, transmission and mechatronics; two-wheeler CPV is Rs.20,000-22,000.
• PV CPV may rise ~10% over the next 2-3 years (by ~FY 2028-2029 to FY 2029-2030) per MD Anmol Jain, with mechatronics the fastest CPV driver as high-electronic-content products like body control modules are added; management separately expects to enhance PV CPV by 10-15% from the current Rs.7,000-Rs.10,000 level via the new electronics/mechatronics basket (period unspecified).
• Mechatronics currently ~20% of PV CPV per CFO Ankit Thakral (as of Q2 FY27), revising an analyst's 15% assumption upward; the vertical rests on five global partnerships — Alpine, Yoko (connectivity), Ituran (telematics), Nidec (body control modules) and FAE (oxygen sensors).
• Tier-0.5 aggregation — Vice Chairman Deepak Jain said the journey toward tier-0.5 alongside IAC cockpit solutions would be "eminently possible" but requires vehicle-level endorsement, and OEMs evaluating aggregated parts would expect cost benefits where volume-scale-cost dynamics kick in.

BCM SOP Achieved; Manesar Capex Approved; CNG Wins at M&M and Maruti

• BCM achieved SOP in July 2026 (Q2 FY27) — in scale-up on a "built to print" basis using technology from a large Japanese auto component maker (name undisclosed) via a technology tie-up, not a JV; the program carries a Rs.250 crore order book (as of Q2 FY27) underpinning the new mechatronics plant, and management remains "hopeful of probably doubling" BCM revenue by 2031.
• Manesar capex (board-approved 24 October 2026) — new mechatronics facility in Manesar, Haryana with ~Rs.150 crore outlay funded via debt and internal accruals; to manufacture advanced electronic components such as body control modules; commissioning in two phases starting Q3 FY28 with peak annual turnover of ~Rs.500 crore post-commissioning.
• Mechatronics targeted at ~Rs.1,000 crore revenue by 2031 (from a small base), expected to be the fastest-growing vertical and inching towards ~Rs.800 crore of the ~Rs.11,000 crore FY31 revenue vision; CEO Vikas Marwah cited an internal target over a 3-4 year outlook (through ~FY 2030-2031) of 25% of mechatronics revenue from in-house technology and 75% from JV partner design/IP, with the Lumax Electronic Division scaling from 6 product categories currently to ~10 by 2030-31.
• Mechatronics margins in line with company levels per CFO Ankit Thakral (analyst's reference of ~14.5-15% EBITDA), with the vertical still scaling toward critical mass and a Rs.500 crore order book as of Q2 FY27.
• Ferrous tubes localization — MD Anmol Jain stated Lumax was and is the first company to localize manufacturing of ferrous tubes and fittings in India; as industry-wide context, every CNG vehicle carries 3, 4 or 6 tubes/fittings depending on layout.
• CNG customer wins — full CNG system supply (tubes, fittings, receptacles) has commenced to Mahindra and Mahindra, and firm order wins secured with Maruti Suzuki; management expects significant capacity utilization across these two customers over the next 2 years (through ~FY 2028-2029) before assessing expansion to other OEMs; Hyundai engagement remains exploratory only, with no order commitment stated.
• Nashik facility of Lumax Green Fuel Energy Solutions commenced production in Q3 FY27 (the ongoing quarter), supplying tubes, fittings and receptacles to Mahindra and Mahindra.

Pass-Through Lag Dilutes Q2 by 30-40bps; FY27 Capex Held at Rs.300 Cr

• ~30-40bps EBITDA margin dilution in Q2 FY27 from cost pass-through mechanics — raw material increases are mostly 100% recovered from OEMs with a maximum lag of a single quarter, flowing into revenue with an equal cost increase and zero profitability addition; most recovery for price lags given in both quarters has already occurred (CFO Ankit Thakral).
• Management confident that almost all inflationary costs should be passed through to OEMs and recovered in subsequent quarters (MD Anmol Jain).
• FY27 margin guidance unchanged — current ~15-16% EBITDA margins expected to sustain for the remainder of FY 2026-2027 and the full year despite volatility; management aspires to add 100-200bps over the next few years (period unspecified), inching toward 17-18%.
• FY27 capex guidance maintained at ~Rs.300 crore; Rs.60 crore capitalized in Q1 FY27; includes greenfield expansion in mechatronics, advanced plastics and alternate fuel divisions with SOP expected in H2 FY27, aimed at unlocking medium-term revenue growth and supporting localization.
• Chakan Plant 4 in SOP phase — product launch expected towards December-January (FY 2026-2027) per Sunil Koparkar (CEO – Intelligent Ambient Comfort Division); efficiency gains from the "center of competence" alignment will be quantified only after launch; the plant is still under commissioning, so no specifics yet.

FY27 Guidance Raised to ~20-25%; FY28 EBITDA of Rs.1,000 Cr Affirmed

• FY27 revenue guidance raised — initial guidance was 12-14% growth (derived from the North Star framework of ~20% combined FY26+FY27 growth); factoring in H1 FY27 industry and company performance, the CFO now expects ~20% or higher for FY27, with MD Anmol Jain guiding 20-25% YoY — implying FY27 revenue of close to Rs.6,000 crore.
• H2 FY27 growth expected at 15-20% YoY, moderating from H1 due to a higher FY26 base (Anmol Jain); FY26 (FY 2025-2026) had delivered 35-36% growth per CFO Ankit Thakral.
• FY28 EBITDA target affirmed — management remains confident of delivering absolute EBITDA guidance of about Rs.1,000 crore in FY28 (FY 2027-2028).
• 20% revenue CAGR from the FY25 base until FY31 reaffirmed — revenue likely to double to ~Rs.11,000 crore in FY31, achievable through organic growth alone ("should be achievable" if industry momentum holds), with inorganic positions potentially taking growth above 20%; management does not expect the industry to sustain 12-15% growth over FY25-FY31 as the base keeps rising.
• EBITDA margin North Star — management is aiming to inch closer to a 20% EBITDA margin over the next 5-7 years.
• EV strategy narrowed to 3-5 products — technology sourcing and exploratory inorganic measures aimed at active SOPs during 2028-2030; near-term EV content remains largely commodity-based purchasing where OEMs retain control, limiting supplier scope outside battery-related solutions; the company is approaching ~15% EBITDA on a Q2 FY27 run-rate under its "20-20-20" North Star vision.
• Partnership base stable — CEO Vikas Marwah noted the Lumax Industries partnership with a world leader is approaching 50 years and all JV partners are global market leaders with no financial distress; one JV with Yop of Germany was dissolved by mutual consent in Q2 FY27 as an amicable separation, due to the partner's technology portfolio and both partners' scalability ambitions not aligning; management's singular focus "for now" is capitalizing opportunities within the automotive landscape.