Increase in Q1 FY26 revenue for Lumax Auto by 20%, driven by robust performance across all categories
Lumax Auto Sees Strong Growth in Q1 FY26
Lumax Auto, a leading automotive component manufacturer, has announced its Q1 results for the financial year 2025-26 (FY26), showcasing a robust performance across various segments.
The company introduced products for several Original Equipment Manufacturers (OEMs) in Q1 FY26, including a shark fin antenna for Mahindra's Scorpio N, feeder assemblies for Honda City export models, and accessory parts for models from Mahindra and Toyota. Lumax Auto is also planning to carry forward this growth momentum in segments such as Electric Vehicle (EV) interiors, alternative fuels, and new technology centers.
Advanced plastics remained the biggest category, accounting for 51% of Lumax Auto's revenue in Q1 FY26. Structures and control systems followed closely, contributing 18% to the total revenue.
One of the key factors contributing to the Year-on-Year (YoY) increase in EBITDA for Lumax Auto in Q1 FY25, despite a marginal decrease in margins, was strong revenue growth. The consolidated revenue grew by 36% YoY to INR 1,026 crore, driven by the core business strength and momentum from new verticals, including the aftermarket business which grew by 16% YoY.
Operational efficiency and product mix also played a significant role. Even with a slight decline in margin (from around 14% to 13.2%), EBITDA increased by 29% YoY to INR 136 crore due to higher absolute revenue. The margin dip was attributed to temporary factors such as tooling revenue impact (which is cyclical) and deferred customer price corrections that affected profitability in Q1 but are expected to reverse.
Price corrections from customers were not realized fully in Q1, causing margin pressure; however, these were expected to positively impact Q2, aligning EBITDA margins with a strategic target of 14-15%.
Strategic acquisitions and product expansion also contributed to the growth. The 100% acquisition of IAC International Automotive India enhanced Lumax’s presence in the EV interiors segment and platform integration, supporting longer-term growth and profitability.
Stable cost management was another factor that allowed EBITDA growth while managing margin compression caused mainly by external and cyclical factors.
In addition to these, two new wholly owned subsidiaries, Lumax Autocomp Private Limited and Lumax Auto Solutions Private Limited, were set up by Lumax Auto during Q1 FY26 to explore emerging opportunities in the automotive sector. The alternate fuels segment, making its first appearance in the revenue mix, accounted for 9% of Lumax Auto's revenue in Q1 FY26.
The aftermarket segment grew by 16% YoY in Q1 FY26, while the OEM business grew by 5% YoY. Subsidiaries excluding recently acquired Greenfuel reported 36% growth in Q1 FY26, which rose to 59% when Greenfuel’s performance was included.
The contribution from two- and three-wheelers fell to 21% from 26%, while the commercial vehicle segment improved to 11% from 7%.
The board of Lumax Auto also approved the establishment of a branch office in China and a new technology center-SHIFT (Smart Hub for Innovation and Future Trends)-in Bengaluru during Q1 FY26.
In summary, a substantial rise in revenue driven by core and new businesses alongside temporary margin headwinds due to tooling cycle and pricing lag led to a significant increase in EBITDA despite a marginal margin decline in Q1 FY25. The benefits of these price corrections are expected to be seen in Q2 performance.
In the growth trajectory of Lumax Auto, technology is expected to play a pivotal role as the company plans to expand its Electric Vehicle (EV) interiors and establish a new technology center, SHIFT, in Bengaluru.
In addition to the aftermarket and OEM businesses, the company is venturing into the sports sector by exploring opportunities in the alternative fuels segment, such as two- and three-wheelers, which accounted for 9% of its revenue in Q1 FY26.
