LUMAXTECH - Lumax Auto Technologies Ltd. Share Price

Management Outlook and Major Points:

1. Revenue Growth & Industry Position:

• Q3 FY25 revenue reached a record Rs.906 crores (24% YoY), with 9-month revenue at Rs.2,504 crores (21% YoY). Management expects to continue outperforming industry growth (15-20% annual guidance), driven by OEM partnerships, JV synergies, and technological expertise.

2. Segment Outlook:

• Passenger Vehicles (PV): Muted growth expected near-term, but EV adoption (40% of order book) to rise with new OEM launches (e.g., Mahindra, Maruti).
• 2-Wheelers: Double-digit growth anticipated, supported by rural demand, EV launches, and export recovery.
• Commercial Vehicles (CV): Flat in FY25 due to weak capex but recovery expected in FY26.
• Aftermarket: Growth revival in Q4 FY25 and FY26, targeting double-digit expansion via exports and liquidity easing.

3. Strategic Initiatives:

• Greenfuel Energy Integration: Acquired for CNG/clean mobility solutions, adding Rs.200 crore order book. Enhances EV/CNG portfolio with Rs.7,000"“10,000 content per vehicle.
• Mechatronics & JVs: 75% growth in mechatronics (telematics, sensors); Alps Alpine JV launching throttle sensors and infotainment systems.
• Order Book: Rs.1,350 crores (90% new business), 40% EV-linked. Execution phased: 30% in FY26, 40% in FY27, 30% in FY28.

4. Margins & Financial Health:

• EBITDA margins at 14% (targeting 14.5"“15% in FY26). Capex guidance: Rs.130"“140 crores for FY25. Healthy cash position (Rs.315 crores) and manageable debt (debt-equity: 0.53).

5. Key Growth Drivers:

• Premiumization trends, new model launches, and government policies (tax cuts, EV push).
• Focus on software/integration in EVs to avoid commoditization.
• OBD2 norms boosting oxygen sensor demand (Rs.60"“70 crore revenue potential).

6. Risks & Mitigation:

• Raw material inflation to be offset via OEM pass-through. Aftermarket recovery pending liquidity ease.

Overall: Management remains bullish on sustained growth via EV/CNG expansion, premiumization, and JV-led innovation, targeting Rs.5,000 crore revenue by FY27.

Question 1 (Apurva Mehta):
Sir, just wanted your broad outlook on where the 4-wheeler industry and the 2-wheeler industry is moving on the basis that a lot of new EV launches are happening? And where do we see ourself in this EV launches?
Answer:
The 4-wheeler industry is expected to see muted growth (3-5% in FY26), with rising EV penetration driven by new OEM launches. The 2-wheeler segment will outperform, targeting pre-FY19 production levels (24.5M units) in FY26, aided by EV adoption and legacy OEMs dominating EV models. Lumax has a strong presence in EV components for both segments, leveraging partnerships and new technologies like throttle sensors and infotainment systems.

Question 2 (Apurva Mehta):
Where we are placed today if we want to penetrate more into the EV side of the thing? Are we finding any new products focusing on EV?
Answer:
Lumax is evaluating software and integration opportunities in EVs to avoid commoditized hardware. Recent EV-focused products include throttle position sensors and in-vehicle infotainment systems for 2-wheelers. The company aims to expand its EV portfolio in FY26, targeting higher per-vehicle content through CNG solutions and cross-selling across OEMs.

Question 3 (Hitesh Goel):
Can you explain the performance and order book of subsidiaries like IAC, Lumax Mannoh, and Cornaglia?
Answer:
IAC India grew 20% YoY (9M revenue: INR800 crore) with a strong order book (INR550 crore) from Mahindra and new OEM engagements. Lumax Mannoh saw muted growth (1% YoY) due to a shift to manual transmissions but expects recovery in FY26. Lumax Cornaglia grew 5% despite anchor customer challenges and is diversifying into E3-wheeler rooftops and cabins.

Question 4 (Amit Hiranandani):
How sustainable are standalone EBITDA margins (10%) despite muted aftermarket growth?
Answer:
Standalone margins improved due to price hikes, raw material cost savings, and growth from key customers (Bajaj, HMSI). Margins are sustainable with stable input costs and operational efficiency. Aftermarket growth is expected to rebound in Q4 and FY26, aiding margin stability.

Question 5 (Amit Hiranandani):
What is the margin outlook for FY25"“27?
Answer:
FY25 consolidated EBITDA margins are projected at 14"“14.5%, aligning with FY24 (excluding acquisitions). FY26 targets 14.5"“15% margins, driven by higher-margin Aftermarket recovery, JV turnarounds, and EV/CNG product scaling.

Question 6 (Pritesh Chheda):
What is Greenfuel Energy's contribution and margin?
Answer:
Greenfuel (60% stake) contributed INR23 crore in Q3 (35 days) and is expected to add INR75"“80 crore in Q4. Annual revenue is ~INR225 crore (15"“20% growth) with margins of 17"“19%. Integration synergies include CNG kit exports and OEM collaborations.

Question 7 (Shashank Kanodia):
How does the INR1,350 crore order book break down?
Answer:
30% of the order book (90% new business, 40% EV-linked) will mature in FY26, 40% in FY27, and 30% in FY28. Key drivers include Alps Alpine (mechatronics), CNG solutions, and EV components. Content per vehicle rose to ~INR70,000"“75,000 (PVs) due to CNG and new JV products.

Question 8 (Sanket Kelaskar):
How will OBD2 norms impact revenue?
Answer:
OBD2 mandates (April 2025) will boost Lumax FAE's oxygen sensor sales, adding INR60"“70 crore in FY26 (40% capacity utilization). Content per 2-wheeler rises by ~INR800, with a second OEM expected in FY27 to further scale utilization.

Question 9 (Ganesh Shah):
How is Advanced Plastics expanding wallet share?
Answer:
Advanced Plastics (55% of revenue) grows via premiumization (soft-touch interiors, ambient lighting) and cross-selling. IAC leads with Mahindra, while Bajaj/HMSI focus on high-value parts. Order book: INR660 crore, driven by EV/ICE model launches.

Question 10 (Hitesh Goel):
What is Bajaj's contribution to standalone growth?
Answer:
Bajaj (standalone) drove 20% growth via EV (Chetak) and premium ICE models. Discussions ongoing for Pulsar component supplies. Exports revival supports growth, with domestic/export mix remaining balanced.