Lumax Auto Raises FY27 Revenue Growth Outlook to 20-25% 

Lumax Auto Technologies has raised its FY27 revenue growth outlook to 20-25% from an earlier expectation of around 12-14%, following stronger-than-expected performance during the first half of the financial year, supported by higher demand and growth across its automotive component businesses.

The revised outlook implies consolidated revenue of approximately ₹5,800-6,100 crore during FY27, compared with ₹4,870 crore in FY26. The company reported revenue growth of 34% year-on-year during the April-September period.

At the beginning of the financial year, management had anticipated growth of around 12-14% for FY27, taking into account the company's strong performance in FY26 and its longer-term revenue growth targets. However, the stronger demand environment and the company's first-half performance have prompted management to revise its expectations.

"For the full year, we should be anywhere between 20-25 percent growth in revenue," Anmol Jain, Managing Director of Lumax Auto Technologies, said during the company's Q2 FY27 earnings call.

Jain, however, expects revenue growth to moderate during the second half because of the higher comparison base in the previous financial year.

"Getting into H2, because of a higher base in FY26, we do expect the growth for H2 to be perhaps somewhere between the 15 to 20 percent mark on a year-on-year basis," he said.

The upward revision follows strong financial performance during the September quarter. Lumax reported consolidated revenue of ₹1,556 crore, an increase of 35% from ₹1,156 crore in the corresponding quarter last year. Revenue increased 14% sequentially.

Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA), including other income, rose 34% year-on-year to ₹228 crore, while profit after tax before minority interest increased 50% to ₹117 crore.

For the first half of FY27, consolidated revenue increased 34% to ₹2,919 crore from ₹2,183 crore a year earlier. EBITDA rose 42% to ₹434 crore, while profit after tax before minority interest increased 64% to ₹215 crore.

Management attributed the growth to higher vehicle production, increasing content per vehicle, premiumisation and the ramp-up of recently commissioned manufacturing facilities.

The company's advanced plastics business, its largest revenue contributor, recorded 45% growth during H1 FY27 to ₹1,655 crore, supported by demand for interior systems and other components. The Intelligent Ambient Comfort business accounted for approximately 60% of the division's revenue.

Mechatronics revenue also increased 45% to ₹177 crore in H1 FY27, while the alternate fuels business grew 30% to ₹220 crore. Structures and Control Systems reported 24% growth to ₹476 crore. The aftermarket business, however, grew at a slower pace of 9% to ₹234 crore as higher prices affected demand for certain non-lighting products.

Lumax's order book increased to ₹1,879 crore at the end of September from ₹1,600 crore at the end of June, an increase of approximately 17%. Around 85% of the order book represents new business, according to management.

Advanced plastics accounted for ₹834 crore of the order book, followed by mechatronics at ₹512 crore, alternate fuels at ₹379 crore and structures and control systems at ₹154 crore.

The company expects to execute approximately 14% of the order book during FY27, followed by 59% in FY28 and the remaining 27% in FY29, providing revenue visibility over the next two financial years.

Orders related to electric vehicles and CNG systems together accounted for 29% of the order book, while new technologies represented 22%, according to its investor presentation.

To support future growth, Lumax has maintained its FY27 capital expenditure guidance at approximately ₹300 crore, including investments in mechatronics, advanced plastics and alternate fuel systems.

The company has announced a ₹150 crore investment in a new mechatronics manufacturing facility at Manesar, Haryana, which will produce advanced electronic components, including body control modules. The plant is scheduled to be commissioned in phases beginning Q3 FY28, with potential annual revenue of approximately ₹500 crore at peak operations.

Lumax has also begun localised production of CNG tubes, fittings and receptacles at its Nashik facility for Mahindra & Mahindra. It has secured orders from Maruti Suzuki for similar components, supporting its expansion in the alternate fuel business.

Despite the stronger revenue outlook, management remains cautious about raw material cost inflation and its impact on profitability. Lumax's consolidated EBITDA margin stood at 14.7% during Q2 FY27, broadly unchanged from a year earlier but lower than 15.1% in the June quarter.

Management attributed the sequential decline partly to higher raw material costs and the accounting impact of passing these increases on to vehicle manufacturers. Such recoveries can raise revenue and expenses by similar amounts without increasing absolute EBITDA, putting pressure on the margin percentage.

"Most of these inflationary costs we have been able to pass through to our OEM," Jain said, adding that recoveries generally involve a lag of around one quarter.
The company nevertheless remains confident of achieving its existing target of approximately ₹1,000 crore in EBITDA during FY28.

Looking beyond the current financial year, Lumax continues to target annual revenue of around ₹11,000 crore by FY31, under its long-term ambition of achieving 20% compound annual revenue growth from FY25.

Management indicated that it is now more confident of achieving its targeted growth through organic expansion, compared with its earlier expectation that acquisitions would contribute part of the increase.

Jain said the company continues to evaluate acquisitions, but believes its existing businesses could deliver stronger growth as newer product categories, higher vehicle content and technology-led offerings gain scale.