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Key Conference Call Highlights

Performance:

* The management highlighted that FY26 was a record year for Lumax Industries, with the company achieving its highest-ever revenue, profitability and margin, supported by strong automotive industry growth, increasing LED penetration and healthy execution across customer programs

* LUMX reported record FY26 revenue of INR 41,842 Mn, up 23% YoY, while Q4FY26 revenue grew 30% YoY to INR 12,003 Mn. EBITDA increased 42.8% YoY to INR 4,121 Mn in FY26, with EBITDA margin improving 130 bps YoY to 9.8%. Q4FY26 EBITDA margin stood at 10.4%, marking another quarter of double-digit profitability

* FY26 profitability was driven by favourable product mix, operating leverage and increasing LED content, with LED lighting contributing 61% of revenue versus 58% in FY25

* Passenger vehicles contributed 65% of FY26 revenue, while 2W and 3W segments accounted for 29%, highlighting strong diversification across mobility segments. Front lighting remained the largest product category, contributing nearly 69% of revenue

* Revenue from Maruti Suzuki grew nearly 50% YoY during FY26, reinforcing its position as the company’s largest customer and a key beneficiary of increasing premiumisation trends

Order book, technology & growth drivers:

* The company’s order book remains strong at INR 22,000 Mn, providing healthy medium-term revenue visibility. LED-based products account for 88% of the order book, while EV-linked programs contribute 11%. PVs constitute 66% of the order book, with the balance coming from 2W and 3W segments

* During the quarter, the company secured key lighting orders from Mahindra XUV 7XO, Toyota Urban Cruiser, Skoda Kushaq facelift and Royal Enfield’s electric two-wheeler platform, further strengthening its customer portfolio

* Management reiterated that LED adoption remains a major structural growth driver. Current LED penetration stands at ~60% across the overall market, exceeding 80% in two-wheelers and around 60% in passenger vehicles. Nearly 90% of the company’s new order book comprises LED-based programs

* LUMX highlighted that localisation levels continue to improve, with import content currently at around 25–30%, helping mitigate supply-chain and currency-related risks over time

Capacity expansion, capex & balance sheet:

* The company invested ~INR 3,900–4,000 Mn in FY26, primarily towards the Bengaluru greenfield facility, capacity expansion and technology upgrades

* Bengaluru plant commissioning remains on track for Q4FY27 and is expected to support upcoming customer programs and future growth requirements. Additionally, Phase II of the western-region facility has already commenced operations

* Management guided FY27E capex at INR 1,000–1,500 Mn, largely focused on maintenance capex and incremental expansion at existing facilities. Annual maintenance capex is expected at around INR 400–500 Mn

Outlook & management commentary:

* Management remains optimistic on FY27 growth prospects and expects to grow at least 2x the industry growth rate, supported by robust order wins, rising LED adoption, premiumisation and deeper OEM engagement

* EBITDA margin guidance for FY27 stands at 10.5–11.0%, despite near-term pressure from raw material inflation, manpower costs, energy costs and forex volatility. Management remains confident of sustaining double-digit margins through pricing actions, localisation and operational efficiencies

* Over the medium term, the company targets EBITDA margins approaching 13% within the next 3–4 years, driven by richer product mix, advanced lighting technologies and increasing scale benefits

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