Lumax Auto Tech. Q2 FY27 Earnings Call — Analysis (NSE: LUMAXTECH)

Lumax Auto Technologies posted strong Q2FY27 performance with revenue up 35% YoY to ₹1,556 Cr, raised full-year FY27 revenue growth guidance to 20-25%, and announced a ₹150 Cr Mechatronics facility at Manesar for Body Control Modules.

3 Nov 2026 · Analysis by Alpha Inflection

Result quality: stable — Steady quarter. Management sentiment: optimistic.

The take

Q2FY27 Consolidated Revenue ₹1,556 Cr ( +35% YoY ) . New guidance — FY 27 annual revenue guidance fy27 ₹~6,000 Cr . New story: Mechatronics as High-Growth Vertical .

Results

Revenue crossed ₹1,500 Cr for the first time at ₹1,556 Cr (+35% YoY), EBITDA rose 34% YoY to ₹228 Cr with a 14.7% margin, and PAT grew 50% YoY to ₹117 Cr.

Financial highlights

Guidance

Management upgraded full-year FY27 revenue growth guidance to 20-25% (~₹6,000 Cr) and reaffirmed its FY28 absolute EBITDA target of ₹1,000 Cr.

What management committed to

• Full-year revenue for FY27 is expected to be approximately INR 6,000 crore, implying a 20-25% year-on-year growth. — INR ~6,000 crore, FY 27
• FY28 EBITDA is expected to reach approximately INR 1,000 crore. — INR ~1,000 crore, FY 28
• Mechatronics segment revenue will reach approximately INR 1,000 crore by FY31 (2031). — INR ~1,000 crore, FY 31
• Body Control Module (BCM) business has an order book of INR 250 crore. — INR 250 crore, Ongoing / FY28+
• The new Mechatronics facility at Manesar will have a peak annual turnover of approximately INR 500 crore post-commissioning. — INR ~500 crore, FY 29+
• Aftermarket business will grow at 15-20% over a 3 to 5 year horizon. — 15-20%, FY 31
• Content per vehicle on a Passenger Vehicle will increase by approximately 10% over the next 2-3 years. — 10% increase, FY 29
• Capital expenditure for FY27 is expected to be around INR 300 crore. — INR ~300 crore, FY 27

Key themes

Mechatronics scale-up, localization, and guidance upgrade

How the narrative shifted

• Input Cost Inflation & Pass-Through: Ongoing raw material cost inflation is pressuring margins, but the company has a well-established mechanism to pass through costs to OEMs within one quarter.
• Mechatronics as High-Growth Vertical: Mechatronics is the fastest-growing division, targeting INR 1,000 crore by FY31, driven by JVs, new products (BCM), and the SHIFT innovation hub.
• Localization (Alternate Fuels / Greenfuel): The localization of ferrule-less tubes and fittings at Nashik has started commercial production, servicing Mahindra & Mahindra and Maruti Suzuki, creating a significant new growth vector.
• 20.20.20.20 North Star Confidence: Management expressed increased confidence that the 20% revenue CAGR target is achievable through organic growth alone, with potential for inorganic acceleration.
• Prudent EV Component Strategy: The company is taking a deliberate approach to EV components, focusing on 3-5 specific products and targeting active production between 2028-2030, rather than competing on commoditized parts.
• Geopolitical & Macro Headwinds: The Middle East conflict is driving uncertainty, higher energy prices, and supply chain disruptions, but India's domestic demand remains resilient, and the company is focused on cost management.
• Content Per Vehicle Upside: Lumax currently addresses INR 70,000-75,000 per PV and INR 20,000-22,000 per 2W, with a target of increasing this by ~10% over 2-3 years driven mainly by Mechatronics.

Operational commentary

• Board approved ₹150 Cr capex for a new Mechatronics facility at Manesar (Haryana) to produce Body Control Modules (BCM), targeted to commission in 2 phases starting Q3FY28 with peak annual turnover of ~₹500 Cr.
• Lumax Greenfuel Nashik facility commenced commercial production in Q3FY27, supplying ferrule-less tubes and fittings and receptacles to Mahindra & Mahindra.
• The new IAC Chakan IV plant is in SOP phase with commercial product dispatches targeted for December 2026 / January 2027.
• Amicable separation completed with JV partner JOPP of Germany in the preceding quarter due to misaligned technology portfolio and scale ambitions.
• Order book composition stands at 44% Advanced Plastics, 27% Mechatronics, 20% Alternate Fuels, and 8% Structures & Control Systems; EV and CNG together account for 29%.

Analyst Q&A

• Q. Whether the Company is revising FY27 revenue growth guidance upward following 34% growth in H1FY27.

  Guided full-year revenue growth to 20-25% (~₹6,000 Cr), with H2FY27 growth expected at 15-20% YoY due to a higher base.

• Q. Status on raw material cost pass-throughs and whether gross margin dilution is due to lag or unrecovered costs.

  Raw material cost increases are 100% backed by OEMs with at most a 1-quarter lag; the margin dilution (30-40 bps) occurs because dollar-for-dollar pass-through inflates the top-line denominator with zero margin mark-up.

• Q. Identification of the technology partner for the new Body Control Module (BCM) project.

  Declined to name the partner specifically, confirming only that it is a large Japanese auto component maker with build-to-print tech tie-up (not a JV).

• Q. Reasons for flat revenue growth in supplies to group company Lumax Industries Limited (LIL) in H1FY27.

  One product line previously supplied to LIL was insourced by LIL at the start of the fiscal year; on a like-for-like basis, underlying wiring division business grew 25-30%.

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