News

Lumax Auto Technologies Ltd consolidated results

• Revenue for the quarter grew 33% y-o-y to Rs1,364 crores led by s strong growth across segments, increasing wallet share with existing OEMs and premiumisation trend across industry.
• EBITDA grew by 52% y-o-y to Rs 190 crores vs Rs. 125 crores in Q1FY26, led by cost efficiency, better product mix and operational excellence. EBITDA margins grew 178 bps y-o-y to 13.9% (vs our estimate of 13.5%). Company continues to expand towards its long-term growth guidance of 20% EBITDA margin by FY31.
• PAT grew 83% y-o-y and 2% q-o-q to Rs. 99 crore led by a strong technological advancement and improving asset utilisations. PAT margin grew 197 bps y-o-y and 41bps q-o-q to 7.2% suggesting a stable return pattern.
• With multiple factors like strong industry demand, robust orderbook, disciplined operational excellence, strategic partnerships, etc. we believe Lumax Auto is well-placed to capitalise on resilient demand aided by new products despite commodity headwinds. While margins growth could be stressed, price hikes could ease off pressure. We have factored in a revenue/EBITDA/PAT CAGR growth of 17%/25%/28% respectively over FY26-FY28E. We value the company at 13x its FY28E EBITDA to arrive at a price target of Rs. 2,130. 

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