Lumax Auto Technologies Ltd (LUMAXTECH) Q2 FY27 Results Analysis: PAT Jumps 58%, Margin Slips to Five-Quarter Low

Lumax Auto Technologies Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,555.51 Cr (+34.52% YoY) and PAT growth of +57.82% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Lumax delivered 34.52% revenue growth and 57.82% PAT growth, with H1 EBITDA of Rs.433.56 Cr already covering 51-54% of the FY27 guidance band of Rs.800-850 Cr. Cash conversion (CFO/PAT 1.50x), FCF of Rs.179.43 Cr, and a 9.51% H1 debt reduction confirm execution against stated plans. The key watch item is margin: Q2's 14.67% was the low of the five-quarter band amid an 890 bps YoY jump in the materials cost ratio, and the 15% FY27 margin guide requires H2 to run above every recent quarterly print.

Key Investment Insights

Key Positives

• Consolidated revenue grew 34.52% YoY to Rs.1,555.51 Cr, the highest quarter in the disclosed five-quarter run
• PAT attributable to owners grew 57.82% YoY to Rs.105.51 Cr; EPS rose 57.80% to Rs.15.48
• H1 EBITDA of Rs.433.56 Cr covers 51.0-54.2% of the FY27 guidance band of Rs.800-850 Cr
• H1 CFO/PAT of 1.50x and FCF of Rs.179.43 Cr despite capex of Rs.143.50 Cr
• Total borrowings fell 9.51% in H1 to Rs.905.54 Cr; D/E improved to 0.54x from 0.68x
• Subsidiary contribution to owners' PAT rose to Rs.16.51 Cr from Rs.5.78 Cr YoY
• New Rs.150 Cr Mechatronics facility at Manesar approved with ~Rs.500 Cr peak annualized turnover
• Effective tax rate of 24.36% was below the ~26% guided level

Risk Factors

• Cost of materials consumed grew 43.23% YoY, ~890 bps faster than revenue, lifting the materials ratio to 60.46% from 56.78% YoY
• Q2 EBITDA margin of 14.67% was the low print of the 14.7-15.1% five-quarter band and 97 bps below Q1's 15.06%
• Meeting the 15% FY27 margin guide requires H2 at ~15.1-15.2%, above every recent quarterly print
• Management guided growth rates to moderate in Q3 and Q4 FY27 on base effect
• Five subsidiaries reviewed by other auditors reported H1 net loss of Rs.8.45 Cr on revenue of Rs.197.25 Cr