Lumax Auto Technologies Reports Strong Q2FY27 Performance and Raises Organic Revenue CAGR Target

NEW DELHI: Lumax Auto Technologies Limited (LATL) has posted strong financial results for the second quarter of FY27. The company registered a year-on-year increase of 35 per cent in revenue, 36 per cent in EBITDA, and 58 per cent in PAT. This performance was primarily driven by robust growth in the Advanced Plastics and Alternative Fuels segments.

Key customers for the company included Mahindra & Mahindra (M&M) and Bajaj Auto. During the quarter, both the passenger vehicle (PV) and two-wheeler/three-wheeler (2W/3W) segments recorded growth of approximately 32 per cent and 36 per cent, respectively.

Reflecting confidence in its operational trajectory, the management has raised its FY25-31 organic revenue CAGR target to 20 per cent. This target includes potential additional upside from acquisitions. Furthermore, the company has reiterated its long-term FY31 revenue aspiration of approximately ₹11,000 crore.

To support its expanding operations and upcoming orders, Lumax Auto Technologies has outlined several facility commissioning timelines. The Mega Mechatronics (M1) facility at Manesar is slated for commissioning in Q3FY27. This facility will consolidate four joint ventures—Yokowo, Alps Alpine, Ituran, and FAE—at a single location to enhance operational efficiency. Additionally, the Greenfuel Nashik plant dedicated to M&M is expected to commence operations in Q3FY27.

Looking ahead to Q4FY27, the company plans to commission the IAC Chakan plant to execute new orders from M&M, alongside the Greenfuel Manesar facility which will serve Maruti Suzuki. The board has also approved the Mechatronics (M2) plant at Manesar, which will focus on electronic components including Body Control Modules for leading OEMs, with commissioning targeted for Q4FY28.

Based on factors such as higher content per vehicle, an increasing share of business with M&M and Maruti Suzuki, and new product launches, analysts have maintained a Buy rating on the stock. The valuation is maintained at 40x FY27E EPS, resulting in a target price of ₹2,715, supported by the scope for further margin improvement through a richer product mix and operating leverage.

"Lumax Auto Technologies' strong Q2FY27 performance highlights the importance of strategic consolidation and expanding capabilities in high-demand segments like Advanced Plastics and Alternative Fuels. By scaling up infrastructure through upcoming facilities in Manesar, Nashik, and Chakan, the company is positioning itself well to capture higher content per vehicle for major OEMs. Raising the organic revenue CAGR target to 20 percent demonstrates strong operational clarity and long-term commitment to growth in the Indian automotive component sector." — Dr. Shishir Gupta, Founder & CEO, StartupLanes