Lumax Auto Technologies reported a strong Q2 FY27 with revenue climbing 35% to Rs 1,556 crore and profit rising 50% to Rs 117 crore. The board approved a Rs 150 crore investment for a new mechatronics plant in Manesar to support long-term growth. While the company maintains an ambitious revenue CAGR target of 20% through FY31, investors should note minor margin pressures from input cost lags and below-target growth in the aftermarket segment.
Lumax Auto Technologies Posts 50% Profit Growth in Q2
Q2 Revenue: Rs 1,556 crore (up 35% YoY) | Q2 PAT: Rs 117 crore (up 50% YoY)
Reader Takeaway: Strong revenue momentum and significant capacity expansion support long-term outlook, though raw material cost pass-through remains a monitorable variable.
What just happened
Lumax Auto Technologies reported robust financial results for the second quarter ended September 30. Revenue for the quarter stood at Rs 1,556 crore, reflecting a 35% year-on-year increase. The company's profit after tax (PAT) rose sharply by 50% to Rs 117 crore compared to the same period last year. EBITDA for the quarter reached Rs 228 crore, marking a 34% growth with margins steady at 14.7%.
Why this matters
The company is scaling its infrastructure to meet future demand. The board has approved a Rs 150 crore capital expenditure for a new mechatronics manufacturing facility in Manesar, Haryana. This unit is expected to begin production in phases starting from Q3 FY28. Coupled with a strong order book of Rs 1,879 crore—where 85% is comprised of new business—the expansion reinforces management's commitment to doubling revenue by FY31.
What changes now
Management has reiterated its "North Star" vision of achieving a 20% revenue CAGR from FY25 through FY31. The company expects full-year growth to land in the 20-25% range. Production has also commenced at the new Greenfuel facility in Nashik as of Q3 FY27, which is expected to contribute to future revenue streams.
Risks to watch
Investors should track the potential for margin volatility. Management noted a 30-40 basis point dilution in Q2 margins, attributed to a one-quarter lag in passing on inflationary input costs to original equipment manufacturers (OEMs). Additionally, the Aftermarket segment, which grew 9% in H1, is currently trailing behind the company's long-term 15-20% growth target for that specific business vertical.
What to track next
Key metrics to monitor include the execution timeline for the Manesar mechatronics plant and the successful recovery of raw material cost hikes in upcoming quarters. The order book transition from backlog to revenue realization remains the primary engine for the targeted FY31 revenue goal of Rs 11,000 crore.