Metrics raised 2
- FY27 capex guidance raised to ₹200-250 crores (from ₹100-150 crores previously)
- FY27 mould sales target raised to ₹250-300 crores (from ~₹180-185 crores in FY26)
Event Participants
Executives
5 Deepak Jain (Chairman & Managing Director), Anmol Jain (Joint Managing Director), Ravi Teltia (CFO), Naval Khanna (Corporate Head of Taxation), Surabhi Chandna (Group Head of IR & Value Creation)
Analysts
9 Aditya Kondawar (Complete Circle Capital), Anubhav Mukherjee (Prescient Capital), Apurva Mehta (AM Investments), Jyoti Singh (Haitong Investments), Radha Agarwalla (Motilal Oswal Financial Services), Sanjay Shah (KSA Shares & Securities), Saurabh Jain (Sunidhi Securities), Utkarsh Somaiya (Eiko Quantum Solutions), Viraj Kacharia (SiMPL / e Securities Investment Management)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹1,223 crores | +32.6% YoY, driven by robust manufacturing business growth of +36.8% YoY to ₹1,160 crores |
| EBITDA | ₹113 crores | +34% YoY (from ₹85 crores in Q1 FY26); margin 9.2%, flat YoY despite ~120-130 bps commodity cost impact |
| PAT (incl. associates) | ₹51 crores | +41.2% YoY (from ₹36 crores in Q1 FY26); PAT margin 4.2%, +30 bps YoY |
| Effective Tax Rate | 20.3% | Reported for the quarter |
| LED Lighting Revenue Share | 63% of revenue | Up from 61% YoY; ~90% of current order book LED-based |
| Segment Mix (Revenue) | PV 64% / 2-3W 31% / CV & Others 5% | Diversified mix across segments; CV grew 30-35% YoY, in line with total revenue growth |
| Product Mix (Revenue) | Front lighting 68% / Rear 23% / Other 9% | Consistent with prior trends |
| Customer Growth (Maruti) | +43% YoY | Driven by multiple new model SOPs; wallet share to rise from <30% to 35-40% |
| Customer Growth (Tata Motors) | +68% YoY | Strong growth from new model SOPs |
| Order Book | ~₹2,500 crores | ~90% LED composition; ~60% (₹1,500 crores) to enter SOP in FY28 |
| Net Long-term Debt | ₹209 crores | As on June 30, 2026 |
| Capex Guidance (FY27) | ₹200-250 crores | Revised up from ₹100-150 crores due to new order wins; maintenance Capex ₹40-50 crores |
| Mould Sales (FY27 Target) | ₹250-300 crores | Up from ~₹180-185 crores in FY26; majority revenue in H2 (Q3-Q4) |
Geographic & Segment Commentary
Passenger Vehicles (64% of revenue): Strong production growth of 17% YoY in industry PV volumes to 14.5 lakh units, driven by utility vehicle demand and premiumization. Lumax secured headlamp supply for Tata Tiago and rear lamps for Volkswagen (Chakan 3 facility drove 133% growth in "other" customer category). Maruti and Tata revenues grew 43% and 68% YoY respectively. M&M revenue flattish due to product mix (not present on XUV700 EV platform), though wallet share remains 40-50%; expected to align with M&M growth on full-year basis.
Two & Three-Wheelers (31% of revenue): Industry two-wheeler production grew 23% YoY to 72.5 lakh units on improving rural demand and easier financing; three-wheelers grew 39% to 3.6 lakh units. Lumax won order for Suzuki Bergman Street front turn signal lamps; HMSI wallet share on tail lamps expected to increase 2-3x in FY28. New growth expected from HMSI, TVS and SMIPL (Suzuki Motorcycle India). Company covers ~85% of two-wheeler OEMs.
Commercial Vehicles & Others (5% of revenue): Industry CV production grew 16% YoY to 3 lakh units on infrastructure spending. Lumax CV business grew 30-35% YoY, well above industry. Won Force Motors Traveler 2 headlamp order. Technology still standardized in CV lighting; company in discussions on new platforms where advanced lighting tech will create value opportunities.
LED Lighting: Accounted for 63% of total revenue (up from 61% YoY); order book now ~90% LED-based. Front lighting 68% and rear lighting 23% of product mix. LED penetration approaching hygiene, with next phase being dynamic/projector lighting and higher electronic content per vehicle.
Company-Specific & Strategic Commentary
Dual-Track Product Strategy: Lumax combines standard module supplier collaboration for rapid-to-market programs with development of proprietary "Lumax standard lighting modules" engineered for Indian market conditions, balancing global technology benchmarks with localization and cost competitiveness.
Capacity Expansion: Bangalore plant expansion to support Maruti and Toyota upcoming models progressing satisfactorily, commissioning expected from Q4 FY27. Brownfield projects underway at Sanand and Bawal to support new order wins.
Pricing Recovery Mechanism: Monthly amendments for commodity cost pass-through not agreed by most OEMs (only aluminum). Quarterly/6-monthly amendments remain; ~150 bps margin reduction in Q1 due to recoveries not yet realized. Realizations expected in Q2, which would bring margins to ~10.5-11%.
Localization Program: Electronics localization key focus - SMT already 100% localized; bare PCB at 40-50% currently, expected to reach 70-80% in 2-3 years; connectors at ~20%, seen reaching 40-50%. Expected 70-90 bps margin benefit from localization and import substitution over 2-3 years.
China Sourcing & Group Expansion: Group recently opened office in China as global resource center for competitive sourcing; engineering drawings now evaluate alternatives to China, though cost competitiveness of Chinese sourcing remains key.
Industry Awards & Certification: Recognized as "Most Preferred Workplace '26-'27" by Marksman Daily; GreenPro Ecolabel Certification received for 5 products each from Bawal, Dharuhera, Haridwar, Pantnagar and Sanand plants.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth (FY27) | 15-20% full-year growth | Above industry growth rates; Q1 at 32.6% but high base from H2 FY26 (post GST rationalization) will moderate; 30%+ quarterly growth not sustainable |
| EBITDA Margin (FY27) | 10.5-11% full-year | Q1 at 9.2% with 120-150 bps commodity impact; Q1 recoveries to flow in Q2; quarterly amendments not agreed - depend on OEM discussions |
| Long-term Revenue (FY30-31) | ~₹9,000 crores+ | From current ~₹4,500-5,000 crore base; 15-20% CAGR driven by volume + technology-led content growth |
| Long-term EBITDA Margin (3-4 years) | ~13% | ~100 bps annual improvement through localization gains, product mix, operational efficiencies |
| FY28 Capex | ₹150-200 crores (initial) | Premature to finalize; depends on business wins; current year revised up to ₹200-250 crores on strong order book |
| Content per Vehicle (4-5 years) | ₹22,000-25,000 | From current ₹15,000-20,000 average; driven by new lighting technologies (dynamic, projector, ADAS-linked) |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity & Input Cost Inflation | West Asia crisis driving high crude, electronics and commodity prices; ~120-150 bps EBITDA impact in Q1. Monthly pricing amendments not agreed by most OEMs - only quarterly/6-monthly recoveries, delaying margin realization. If recoveries slip further, FY27 margin guidance of 10.5-11% at risk. |
| Pricing Pass-Through Delays | OEMs taking calibrated approach to cost increases; monthly amendment mechanism not adopted industry-wide, only aluminum (immaterial to Lumax). Q1 recoveries expected in Q2 but timing depends on ongoing OEM discussions. |
| Chinese Supply Chain Dependence | Significant sourcing from China, including tooling and electronic components. Laminates for PCBs in acute shortage globally. Company opened China office to manage sourcing but remains exposed to geopolitical/regulatory risk. |
| Localization Challenges | Indian electronics ecosystem still premature; OSATs developing; PCB technology shifting to 7-9 layer boards re-creating import dependency despite localization drive. Tooling localization limited by Indian ecosystem gaps. |
| Higher Base Effect on Growth | FY26 H2 benefited from GST rationalization; Q1 FY27 growth rates (20-35% across segments) will normalize to 15-20% in H2, potentially affecting investor expectations. |
| Honda HVAC Underperformance | HVAC revenue from Honda (~₹18-20 crores annualized) below peak estimate of ₹35-40 crores; Honda volumes not in line with estimates. HVAC unlikely to be materially significant near-term. |
| Competition Intensity | Global lighting players (Hella, Marelli, OP Mobility, FORVIA) and Asian players increasing focus on India; as market scales to #3 globally, new entrants expected. Lumax's concentration strategy with top 4-5 OEMs per segment is key mitigation. |
Q&A Highlights
Revenue Mix & Customer Details
- Question: Which customers drove the 133% growth in "other" category? (Anubhav Mukherjee, Prescient Capital)
- Answer: Skoda Volkswagen business from Chakan 3 facility is the key customer in "other" category along with multiple smaller customers. (Ravi Teltia, CFO)
- Question: Which two-wheeler customers beyond HMSI and Hero are driving growth? (Anubhav Mukherjee)
- Answer: Company caters to nearly all two-wheeler manufacturers - Suzuki, Yamaha, TVS along with HMSI and Hero. Significant growth expected from HMSI going forward, reflected in order book. (Anmol Jain, JMD)
Margin Strategy & Pricing Recoveries
- Question: What is the strategy to improve margins toward 10%+ given monthly amendments didn't happen? (Sanjay Shah, KSA Securities)
- Answer: Monthly amendments for commodity pass-through not agreed by most OEMs - only aluminum. Quarterly/6-monthly amendments remain. ~150 bps margin reduction in Q1 from unrealized recoveries. If realizations come through in Q2, margins would be ~10.5-11% total EBITDA, in line with FY27 guidance. (Anmol Jain, JMD)
Future Growth Drivers Beyond LED
- Question: What green shoots exist beyond LED penetration? (Sanjay Shah)
- Answer: Diversified customer mix across segments; two-wheeler recovery strong; lighting value content rising with EV conversion, premiumization, and new technologies (laser, dynamic lighting, comfort lighting). TVS and SMIPL (Suzuki) identified as future growth drivers. Order book of ₹2,500 crores is healthy irrespective of industry growth. (Deepak Jain, CMD)
CV Growth & EV Positioning
- Question: Why has CV traction been slow, and how is Lumax positioned on EV given only ~12% of order book is EV? (Jyoti Singh, Haitong Investments)
- Answer: Lighting is powertrain agnostic - EV, ICE, CNG all need lighting; EVs increase energy efficiency and light-weighting requirements, creating bigger value opportunity. CV lighting is still standardized/low-tech; company in discussions with OEMs on new platforms where technology upgrades will create opportunities. CV business grew 30-35% YoY, well above industry. (Deepak Jain, CMD; Anmol Jain, JMD)
Customer Diversification & Wallet Share
- Question: 56% of revenue from MSIL, M&M, HMSI - what's being done to diversify? Hero share declined. (Jyoti Singh)
- Answer: Quarter-on-quarter revenue changes reflect product mix, not wallet share loss. Maruti wallet share likely to rise from <30% to 35-40% per order book. HMSI tail lamp wallet share to increase 2-3x in FY28. M&M wallet share maintained at 40-50% of lighting requirements. Company covers 92% of pass-car market via Lumax + SL Lumax (Hyundai/Kia), and ~85% of two-wheeler OEMs. Focus on deepening top 4-5 OEM relationships in each segment where industry is concentrated 80-90%. (Deepak Jain, CMD; Anmol Jain, JMD)
Capex Guidance Revision
- Question: Capex was ₹410 crores in FY26 - what's FY27 and FY28 guidance? (Jyoti Singh)
- Answer: FY27 revised up to ₹200-250 crores from ₹100-150 crores due to new business wins in last 4 months. Maintenance Capex ₹40-50 crores; rest for new business. FY28 initial view ₹150-200 crores but premature - depends on business wins. (Ravi Teltia, CFO; Anmol Jain, JMD)
Mould Revenue Trajectory
- Question: Should current quarter mould run-rate continue, and can it go higher? (Saurabh Jain, Sunidhi Securities)
- Answer: FY27 mould sales target ₹250-300 crores vs ₹180-185 crores in FY26. Majority of mould revenue planned for H2, specifically Q3-Q4, depending on customer SOP timelines. (Ravi Teltia, CFO; Anmol Jain, JMD)
Long-term Revenue & Margin Targets
- Question: What is 3-4 year revenue growth and PAT growth guidance? What about new lighting technologies like projectors? (Aditya Kondawar, Complete Circle Capital)
- Answer: Confident of above-industry growth at 15-20% CAGR over next 3-4 years. From current base of ~₹4,500-5,000 crores, targeting ₹9,000+ crores revenue in FY30-31. FY27 EBITDA margin forecast at 10.5-11%; 3-4 year endeavor to hit ~13% EBITDA. Advanced technologies (projectors, ground projection) accessible via Stanley partnership and tech center, but couple of years away from Indian mass-market price points. (Anmol Jain, JMD)
Localization Progress & Margin Impact
- Question: Localization currently at 30-35% - where in next 2 years? (Apurva Mehta, AM Investments)
- Answer: Focus on electronics - LED modules/projectors localizing over 2-3 years; SMT already 100% localized (independent Bawal plant); bare PCB at 40-50% moving to 70-80%; connectors at ~20% moving to 40-50%. Expected 70-90 bps margin gain from localization and import substitution. Localization will be mix of in-house and supplier ecosystem; company insources critical processes (injection, surface treatment, assemblies) but cannot do everything in-house. (Ravi Teltia, CFO; Deepak Jain, CMD)
HVAC Business Status
- Question: Where does HVAC stand - Honda customer, any other OEMs? (Apurva Mehta)
- Answer: ~₹18-20 crores annualized revenue from Honda; peak expected ₹35-40 crores but Honda volumes below estimates. Longish game; focus remains on lighting. Other OEM opportunities distant; HVAC unlikely to be materially significant near-term. (Anmol Jain, JMD)
Q2 Margin Expectation
- Question: Should margins hit 10.5% in Q2 given commodity pass-through? (Utkarsh Somaiya, Eiko Quantum)
- Answer: Q2 margins expected to be higher with Q1 realizations flowing through - definitely above 10%, though not certain at exactly 10.5%. Full-year guidance of 10.5-11% maintained. 100 bps annual margin expansion trajectory intact (FY26 was 9.8%, FY27 target 10.5-11%, 3-4 year target ~13%). (Ravi Teltia, CFO; Anmol Jain, JMD)
Growth Sustainability at 30%+
- Question: Can 30% quarterly growth be the new normal? (Utkarsh Somaiya)
- Answer: No - H1 FY26 was a lower base; H2 growth will moderate to ~15-20% full-year due to high base post GST rationalization, not demand slowdown. Full-year revenue forecast of 15-20% growth remains above industry expectations. (Anmol Jain, JMD)
Content per Vehicle & Technology Roadmap
- Question: What is current content per vehicle for lighting, and where does it go in 5 years? (Radha Agarwalla, Motilal Oswal)
- Answer: Current average ₹15,000-20,000 per pass-car vehicle, outliers up to ₹30,000. Expected to rise ~50% over 4-5 year horizon to ₹22,000-25,000, driven by new technologies but with aggressive price reduction pressures. Beyond LED: dynamic lighting, projector lighting, software-defined features. Benchmarking global players like Hella, Marelli, OP Mobility/FORVIA, Stanley, Koito - trend of interior/lighting consolidation (FORVIA-Faurecia-Hella, OP-Plastic Omnium-Viroc). (Deepak Jain, CMD)
Stanley Portfolio Beyond Lighting
- Question: What products beyond lighting (sensors, BMS, UV lighting) will come to Lumax Industries? (Radha Agarwalla)
- Answer: 42-year Stanley relationship covers all lighting products - Stanley's revenue ~75% from automotive lighting. JV agreement allows for all products, but evaluated on Stanley's India guidance. Currently only lighting in this company (HVAC was one-off for Honda). Focus remains on lighting given order book strength and market leadership. Ambient lighting split - simple ambient in Lumax Auto Tech (expertise in interior/cabin design), complex/integrated solutions to be evaluated by this company; current focus on exterior lighting. (Deepak Jain, CMD)
Post-LED Growth Levers
- Question: Once LED penetration approaches 100%, what sustains double-digit growth? (Radha Agarwalla)
- Answer: Focus on cost competitiveness and localization as electronic content rises; India still underpenetrated vs developed markets which have moved beyond LED to dynamic/projector lighting. Group working on software, embedded electronics, POCs; customers evaluating these technologies. Growth will be tech-led beyond simple LED conversion. (Deepak Jain, CMD)
Company Positioning & Product Expansion - 5-7 Year View
- Question: Will Lumax Industries remain primarily lighting-focused or expand to other products like Lumax Auto Tech (ECUs, sensors)? (Viraj Kacharia, SiMPL)
- Answer: Through 2031, growth is primarily lighting-driven. Alternative products evaluated only if customer-driven (HVAC was Honda-specific), with Stanley technology access as enabler. Lighting itself has large growth runway in India. Insourcing electronics will scale with volume and complexity (SMT plant at Bawal example), but no plans for standalone small electronic components for external market in 5-7 years. Global competitive landscape: 2-wheelers dominated by 2-3 players where Lumax gaining share (HMSI, TVS); 4-wheelers dominated by global players with aggressive plans - competition intensity will increase. (Deepak Jain, CMD)
Key Takeaway
Lumax Industries delivered a strong Q1 FY27 with consolidated revenue of ₹1,223 crores (+32.6% YoY), EBITDA of ₹113 crores (+34% YoY) at 9.2% margin, and PAT of ₹51 crores (+41.2% YoY) despite 120-150 bps commodity cost impact from West Asia turmoil. Growth was broad-based across segments - Maruti +43%, Tata +68%, Skoda VW driving 133% "other" growth - with LED lighting at 63% of revenue and order book of ₹2,500 crores (90% LED, 60% entering SOP in FY28) providing strong visibility. Management maintained FY27 guidance of 15-20% revenue growth and 10.5-11% EBITDA margins, with Q1 pricing recoveries expected to flow in Q2; long-term targets of ~₹9,000 crores revenue and ~13% EBITDA by FY30-31 rest on localization gains (70-90 bps), technology-led content per vehicle expansion (₹15-20K to ₹22-25K), and deepening wallet share with top OEMs including Maruti (to 35-40%) and HMSI (2-3x tail lamp share in FY28). Capex guidance raised to ₹200-250 crores for FY27 on new business wins, with Bangalore expansion on track for Q4 FY27 commissioning. Key watch points remain commodity-price pass-through timing with OEMs, European and Chinese sourcing risks amid geopolitical tension, and moderation of growth rates to 15-20% in H2 on higher base.