Lumax Auto Technologies Limited (LATL), part of the DK Jain Group, is a leading Tier-1 supplier in the Indian automotive components industry. The company operates across diverse verticals including advanced plastics, mechatronics, aftermarket solutions, structures & control systems, and alternate fuel technologies. With strong partnerships, diversified OEM relationships, and growing presence in EV and clean mobility, LATL has positioned itself as a key player in India’s evolving mobility ecosystem.
Industry Overview
- The Indian automotive sector in Q1 FY26 witnessed flat demand across most segments.
- Passenger vehicles saw selective growth, led by Mahindra & Mahindra’s UV success and steady tractor demand.
- Premiumization remained a strong driver, improving content per vehicle for OEMs and suppliers.
- Macroeconomic indicators were favorable: controlled inflation, resilient GDP growth, improving rural demand due to monsoon, and urban consumption expected to rise with tax benefits and liquidity support.
- SIAM data for Q1 FY26:
- Two-wheelers: 5.9 million units (+1% YoY)
- Passenger vehicles: 1.25 million units (+3% YoY)
- Three-wheelers: 0.26 million units (+10% YoY)
- Recently imposed U.S. tariffs on auto components are not expected to hurt Indian exports, since India already faces a 25% duty and does not export vehicles directly to the U.S.
Company Performance & Updates
- Revenue & Profitability: Q1 FY26 performance was steady, in line with internal budgets. Margins dipped slightly due to pending price corrections, which were realized in July and will reflect in Q2.
- EBITDA Margins: Target for H1 FY26 remains at 14–15%, consistent with long-term strategy.
- Aftermarket business grew 16% YoY, aligning with the company’s midterm growth plan.
- Incorporated two new subsidiaries – Lumax Auto Comp Pvt. Ltd. & Lumax Auto Solutions Pvt. Ltd. – to capture future growth opportunities.
- Completed 25% stake acquisition in IAC India, making it a fully owned subsidiary from May 2025.
- Chakan facility of IAC India became fully operational, gaining strong traction with OEM customers.
- New technology center in Bengaluru (SHIFT Smart Hub) and China engineering base will be commercialized by Q3 FY26, enhancing capabilities in innovation, benchmarking, and integrated solutions.
- Recognition: Multiple awards from Maruti Suzuki, CNBC-TV18, and Daimler India suppliers meet.
- Order Book: Robust ₹1,500 crore order book with 40% linked to future & clean mobility solutions; execution visibility spread over FY26–FY29.
Segment-wise Performance
1. Advanced Plastics
- Revenue: ₹525 crore (+25% YoY from ₹420 crore).
- Driven by lightweighting, premiumization, and design-focused OEM programs.
- Order book: ₹940 crore, ensuring strong future visibility.
2. Mechatronics
- Revenue: ₹54 crore (+100% YoY from ₹28 crore).
- Order book: ₹250 crore.
- Growth powered by Lumax Alps Alpine and Lumax FAE JVs, supplying sensors and electronic solutions to HMSI and Royal Enfield.
- Positioned strongly for intelligent mobility systems.
3. Structure & Control Systems
- Revenue: ₹180 crore (+10% YoY from ₹165 crore).
- Order book: ₹110 crore.
- Strengthens LATL’s role as a technology partner for next-gen mobility.
4. Aftermarket
- Growth: 16% YoY.
- Strategy: Expanded product portfolio + retail demand generation at mechanic level.
- Expected to sustain 20–25% CAGR growth in midterm with margins at 18–20%.
5. Greenfuel (Alternate Fuels)
- Q1 FY26 Revenue: ₹95 crore, EBITDA margin ~18%.
- Order book: ~₹200 crore.
- Growth driven by adoption of alternate fuel technologies by Tata Motors and Maruti Suzuki.
- Recently secured orders for localization of tubes & fittings, previously imported.
- Expected growth of 15–20% CAGR over next 3 years.
Financial Highlights (Q1 FY26)
- Revenue: ₹1,026 crore (+36% YoY).
- EBITDA: ₹136 crore (+29% YoY), margin at 13.2%.
- PAT: ₹54 crore (+30% YoY).
- Capex: ₹73 crore (including ₹31 crore Gujarat land investment). FY26 guidance: ₹180–200 crore.
- Free Cash Reserves: ₹359 crore.
- Net Debt: ~₹600 crore; Debt-Equity ratio at 0.63x, expected to reduce to 0.45–0.50x by FY26 end.
Question & Answer Session Highlights
Q: High growth in Mahindra & Tata Motors – what drove it?
- Mahindra revenue grew 50%+ YoY, driven by premium content from IAC and strong PV growth (+30–35%).
- Tata Motors’ contribution doubled due to Greenfuel consolidation, which accounts for ~⅓rd of Greenfuel revenues.
Q: How did emerging subsidiaries (Alps Alpine, Ituran, JOPP, FAE) perform?
- Mechatronics revenue doubled YoY.
- Lumax Alps Alpine grew from ₹10 crore to ₹25 crore (throttle sensors for HMSI).
- Lumax FAE expected to clock ₹55–60 crore in FY26 from Royal Enfield SOPs.
- Lumax Yokowo expected to grow from ₹20 crore to ₹50 crore with orders from Mahindra, Maruti, Honda, Toyota.
Q: Export strategy?
- Currently focused on domestic growth.
- Exports via OEMs (indirect).
- Aftermarket exports seen as a big growth opportunity in midterm.
Q: Commercial Vehicle (CV) growth?
- Growth primarily from Tata Motors Greenfuel consolidation in CV segment.
Q: Price corrections impact?
- ₹7 crore margin benefit linked to Mahindra BEV interiors got delayed, realized in Q2.
- Usually, such delays are not frequent; this was a one-off due to BEV platform complexities.
Q: Minority interest outlook?
- Expected at 15–17% due to Greenfuel’s 40% minority stake.
- Down from 27% in FY25 after IAC became wholly owned.
Q: Long-term growth plan (FY31 target)?
- Aim to triple revenue from ~₹3,500 crore in FY25 to ₹10,000+ crore by FY31.
- Strategy: internal accruals + moderate debt, no equity dilution planned.
- Annual Capex: ₹200–250 crore, focusing on clean mobility and premiumization.
Q: IAC India update?
- Q1 FY26 revenue: ₹317 crore (+45–50% YoY).
- Strongly tied to Mahindra PV growth.
- Positioned to win significant orders across 7 new Mahindra models over next 3 years.
Q: EBITDA margin outlook (FY28 target 16%)?
- Driven by:
- Plastics division (15–16% margins).
- Aftermarket (18–20% margins, high CAGR).
- Greenfuel (18% margins, scalable).
- Mechatronics (high-margin, small base but growing fast).
- Clean mobility order book (40%) has higher profitability, supporting margin expansion.
Q: Debt outlook?
- Net Debt: ~₹600 crore (post IAC buyout).
- Debt/Equity expected to decline to 0.45–0.50x by FY26 end with repayments.
- Organic growth will reduce debt; inorganic growth may involve fresh debt at target level.
Q: Order Book & SOP delays?
- Order book rose to ₹1,500 crore (up from ₹1,300 crore).
- New wins worth ₹325 crore in Q1.
- Some SOP delays: Maruti EV and Bajaj EV due to rare earth supply constraints.
Q: Aftermarket growth drivers (20–25% CAGR)?
- Wider product portfolio expansion.
- Shift from channel-led to retail demand generation at mechanic level.
Q: Capacity utilization & operating leverage?
- Hard to quantify due to diverse product portfolio.
- However, operating leverage already visible at group level; more details to be shared next quarter.