While fluctuating energy prices and supply chain constraints have pressured the broader automotive landscape, Lumax Auto Technologies Limited (LATL) is doubling down on its alternate fuel strategy, reporting significant revenue momentum from its recently integrated Greenfuel business.
According to management during the company’s FY 2025-26 post-result analyst call, the Greenfuel energy vertical contributed Rs 383 crore to the top line for the full fiscal year. This performance comes as Indian OEMs increasingly pivot toward CNG and other green fuel platforms to meet evolving regulatory standards and consumer demand for lower-cost operating alternatives to petrol and diesel.
Despite recent price escalations in the CNG sector, LATL leadership remains bullish on the segment’s long-term trajectory. Deepak Jain, Vice Chairman of Lumax Auto, noted that the "strong pull in the market" for CNG remains intact, even as global energy volatility impacts domestic pricing.
"As far as customers who have a large portfolio of CNG, they will continue to basically not just strengthen it but grow the CNG portfolio," Jain told analysts, adding that Greenfuel currently has good growth plans to capitalise on this sustained demand.
The Greenfuel segment is currently supported by a dedicated order book of Rs 180 crore. While the business saw a slight increase in depreciation costs this quarter—primarily due to the reclassification of intangible assets following the merger of Greenfuel with its special purpose vehicle (SPV)—the vertical is expected to be margin-accretive to the group average over the medium term.