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Key Conference Call Highlights

Industry update & performance:

* Management highlighted that FY26 was a landmark year for Lumax Auto Technologies, with the company delivering its highest-ever revenue, EBITDA and profitability, supported by strong automotive production growth, successful integration of acquired businesses, increasing content-per-vehicle and strong execution across all business verticals

* The Indian automotive industry remained resilient during FY26, aided by improving consumer sentiment, GST-related reforms, infrastructure spending and strong festive demand. During Q4FY26, PV production grew 11% YoY to 1.57 Mn units, 2W production increased 21% YoY to 7.05 Mn units, 3W production rose 32% YoY and CV production grew 20% YoY

* Revenue mix remained well diversified with Passenger Vehicles contributing 53%, Two- and Three-Wheelers 24%, Aftermarket 10% and Commercial Vehicles 9% of FY26 revenue

* Management stated that the company continued to outperform industry growth, aided by wallet-share gains, increasing localisation, premiumisation trends and higher content-per-vehicle across key product categories

Order book, technology & growth drivers:

* The company reported a robust order book of INR 14,500 Mn, providing strong visibility through FY29. Management expects approximately 25% of the order book to be executed in FY27, 54% in FY28 and the balance 21% in FY29

* Advanced Plastics remains the largest contributor to the order book at ~INR 7,000 Mn, followed by Mechatronics (~INR 4,000 Mn), Structure & Control Systems (~INR 1,700 Mn) and Greenfuel (~INR 1,800 Mn)

* Advanced Plastics revenue increased 25% YoY to INR 25,660 Mn during FY26, benefiting from OEM programs focused on lightweighting, design enhancement and premium interiors

* Mechatronics emerged as the fastest-growing segment, recording nearly 150% YoY growth to INR 2,810 Mn. Management highlighted increasing adoption of automatic transmissions, shift-by-wire systems and intelligent mobility solutions as key growth drivers

Technology, strategic initiatives & capacity expansion:

* During FY26, the company completed the merger of IAC India and Lumax Ancillary into Lumax Auto Technologies, simplifying the corporate structure and improving operational synergies

* The company approved the acquisition of the remaining 15.97% stake in Lumax FAE Technologies, making it a wholly-owned subsidiary, while simultaneously deciding to exit Lumax Yuzawa Allied Technologies to focus on scalable and profitable business opportunities

* FY26 capex stood at INR 2,330 Mn, including strategic land acquisitions of INR 450 Mn and nearly INR 1,000 Mn towards capacity expansion at IAC and Lumax Alps Alpine facilities

* FY27 capex is expected in the range of INR 2,750–3,000 Mn, primarily towards new capacity, localisation initiatives, technology investments and upcoming customer programs

Outlook & management commentary:

* Management remains confident of outperforming industry growth in FY27, with certain businesses expected to grow 2–3x industry growth rates, supported by strong order wins, content-per-vehicle expansion and customer additions.

* Despite near-term pressure from commodity inflation, energy costs and wage increases, management expects margins to remain resilient and improve by nearly 30 bps through operating leverage, pricing pass-through mechanisms and a richer product mix.

* Under its medium-term strategy, the company continues to target ~20% revenue CAGR, supported by premiumisation, localisation, electronics content growth, alternate-fuel opportunities, intelligent mobility solutions and continued expansion from both organic and inorganic growth initiatives.

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