LUMAXINDNSEQ1 FY 2025-26August 08, 2025

Lumax Industries Limited

5,823words

75turns

10analyst exchanges

6executives

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Management on call

Anmol Jain

JOINT MANAGING DIRECTOR – LUMAX INDUSTRIES LIMITED

Raju Ketkale

CHIEF EXECUTIVE OFFICER – LUMAX INDUSTRIES LIMITED

Sanjay Mehta

GROUP CHIEF FINANCIAL

Ravi Teltia

CHIEF FINANCIAL OFFICER – LUMAX INDUSTRIES LIMITED

Naval Khanna

CORPORATE HEAD, TAXATION

Priyanka Sharma

HEAD CORPORATE

Key numbers — 40 extracted

6.5%

world today. To put things in perspective, for FY'24-25, India's real GDP growth is estimated at 6.5% and the Reserve Bank of India expects this robust pace to continue into FY '25-26. What's particu

90%

availability of Rare Earth magnets, critical components for the EVs. China, which processes over 90% of the world supply, imposed export restrictions in April, creating a significant supply bottlene

1 million

the industry performance for the quarter. According to SIAM, passenger vehicle sales crossed the 1 million mark in Q1 FY '26, reaching 1.01 million units. However, this represents a slight decline of nega

1.01 million

ter. According to SIAM, passenger vehicle sales crossed the 1 million mark in Q1 FY '26, reaching 1.01 million units. However, this represents a slight decline of negative 1.4% compared to the same period las

1.4%

in Q1 FY '26, reaching 1.01 million units. However, this represents a slight decline of negative 1.4% compared to the same period last year. Interestingly, utility vehicles now account for a dominant

66%

compared to the same period last year. Interestingly, utility vehicles now account for a dominant 66% share of the overall passenger vehicle segment, reflecting a clear shift in consumer preference.

2.04 lakh

muted, exports have provided a bright spot. The industry recorded its highest ever Q1 exports of 2.04 lakh units, marking a strong growth of 13.2% over Q1 FY '25. This export momentum was supported by ste

13.2%

he industry recorded its highest ever Q1 exports of 2.04 lakh units, marking a strong growth of 13.2% over Q1 FY '25. This export momentum was supported by steady demand across global markets, especi

4.67 million

, further boosted this segment's performance. Turning to the 2-wheeler segment. Q1 sales stood at 4.67 million units, reflecting a year-on-year decline of negative 6.2%, largely due to inventory corrections a

6.2%

eler segment. Q1 sales stood at 4.67 million units, reflecting a year-on-year decline of negative 6.2%, largely due to inventory corrections across the industry. On the export front, however, 2-wheele

1.14 million

ections across the industry. On the export front, however, 2-wheelers showed robust recovery with 1.14 million units shipped. Exports grew by 23.2% over the same period last year, still below the FY '22-23 pe

23.2%

ront, however, 2-wheelers showed robust recovery with 1.14 million units shipped. Exports grew by 23.2% over the same period last year, still below the FY '22-23 peak, but a strong sign of resurgence d

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Guidance — 20 items

Rehan Saiyyed

“So, could you clarify the expected quantum of this correction in quarter 2 and whether there will be benefits -- could you please just put more light on -- more on this?”

Rehan Saiyyed

“Could you clarify the expected quantum of this correction in quarter 2 and whether there will be some details just could you please put more light on this?”

Anmol Jain

“And again, this is a recurring phenomenon in the subsequent quarters also, we continue to perhaps expect certain realizations.”

Anmol Jain

“And going forward, we are trying to rationalize the optimum synergies at a group level because usually ambient lighting also becomes an integral part of the interior systems.”

Anmol Jain

“And again, keeping that in mind, we do not expect any significant change to our overall segmental pie.”

Mihir Vora

“So is it that ambient Lighting production can also go to the Lumax Auto or it will be in Lumax Industries?”

Mihir Vora

“But going ahead, do we expect this kind of performance from SL Lumax to continue because around 60% of your PAT is derived from this share of associates.”

Anmol Jain

“But I don't see any reason why the performance would going forward change.”

Anmol Jain

“And that's why we do expect that going forward, we should be able to maintain our raw material consumption between 64% to 65.5% or so.”

Hrishit Jhaveri

“And how do we plan to have that double-digit growth trajectory going ahead?”

Risks & concerns — 8 flagged

However, this represents a slight decline of negative 1.4% compared to the same period last year.

— Anmol Jain

Q1 sales stood at 4.67 million units, reflecting a year-on-year decline of negative 6.2%, largely due to inventory corrections across the industry.

— Anmol Jain

As for commercial vehicles, the segment reported a marginal decline of 0.6% with Q1 sales totalling to 2.23 lakh units.

— Anmol Jain

And are you seeing any pressure in terms of realization?

— Viraj

And that's, again, what the bigger challenge would be.

— Anmol Jain

And again, while the overall industry volumes seem to be under pressure, there are also certain outliers like, for example, Mahindra & Mahindra, which have actually shown a very robust performance for their quarter 1, and they continue to be very, very buoyant and optimistic for the remaining part of the year.

— Anmol Jain

Especially on SL Lumax in the Q1, there are certain risk in the margin and that is because some of the profit generating models of SL were not picking up.

— Ravi Teltia

With respect to MG Motor, I think, again, MG Motors for us is usually, again,they have themselves seen a massive decline in some of their models.

— Anmol Jain

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Q&A — 10 exchanges

So sir I have only 2 questions. First, you have mentioned before customer price correction was impacting quarter 1 margins. So, could you clarify the expected quantum of this correction in quarter 2 and whether there will be benefits -- could you please just put more light on -- more on this?

Anmol Jain

I'm sorry, you're not audible. Can you -- there is a lot of echo at your end. Could you please repeat the question? Sir you mentioned deferred customer price correction impacting Q1 margins. Could you clarify the expected quantum of this correction in quarter 2 and whether there will be some details just could you please put more light on this? So we've already got price corrections to the tune of almost INR1,3 crores in quarter 1, which was pending from quarter 4. And again, this is a recurring phenomenon in the subsequent quarters also, we continue to perhaps expect certain realizations.

Just a couple of questions. First is, if you see the competitive landscape in 4-wheeler lighting, one of the major players also entered into a JV with Tata AutoComp. So, Valeo Lighting Systems, both Ichikoh and Lumax. So is Tata AutoComp has kind of entered into a JV. So just trying to get a sense how do you see the competitive landscape shaping up? And a related question is you also see a lot of other players targeting the ambient lighting and the interior lighting space. So, any colour you can give how you see competitive landscape within various subsegments in 4-wheeler lighting? And are yo

Anmol Jain

So, thank you. And number one, on the competition landscape, we do not foresee any major change based on the recent announcements of Ichikoh and TACO. Again, Valeo was always here, and they are just acquiring the company. Lighting, as has always maintained, is already having a hypercompetitive scenario in India. Despite that, your company continues to have the majority market share along with its associate company, SL Lumax for India. So, coming to the competitive landscape, I think we are pretty well positioned to competitively continue to maintain our market share and continue to grow our wa

So sir, firstly, the clarification on this ambient lighting front. So, when we say as a group, we'll be providing the solutions to the OEM. So is it that ambient Lighting production can also go to the Lumax Auto or it will be in Lumax Industries?

Anmol Jain

So, it really depends on the customer ask. And again, ambient lighting, there could be a mix that there could be certain customers who could be catered to from Lumax Industries. There could be certain customers who could be catered from Lumax Auto Technologies, subsidiary, IAC India. Again, maybe the engineering would rest in Lumax Industries, but in terms of production and integration with the interior modules could happen at Lumax Auto Technologies. So that's something which again would be more driven from the customers, let's say, ask rather than more of an internal strategy. But I do belie

My first question would be towards our localization efforts. So, sir, if we see the cost of raw materials is shooting up. I think this is due to the high value imports. So, what is the status on our localization efforts?

Anmol Jain

So, number one, I think if you look at our raw material consumption for the manufacturing part, we've actually improved that on a year-on-year basis from 65.1% to 64.3%, and also on a consecutive quarter on qurater from Q4 to Q1, it's gone down from 66.5% to 64.3%. There are multiple reasons for it, one of them being the product mix. But more than that, the localization efforts, which were kickstarted last year, they have now started to come in from Q1 onwards. And that's why we do expect that going forward, we should be able to maintain our raw material consumption between 64% to 65.5% or so.

Congratulations on decent numbers on the top line front. I just wanted to ask that the employee cost Q-on-Q has gone up substantially. Is there any one-off? Or is it that Q4 is always where we take adjustments and that's why that was lower and Q1 is where the price are there?

Anmol Jain

So, I think Q1 usually is from the annual appraisals and annual inflation, usually, there is a higher aspect which kicks into the beginning of the financial year. But again, if I look at it purely from a point of view of percentage to sales compared to Q1 on a year-on-year basis, there is an improvement. I do believe the overall manpower cost dropped from 13.5% to less than 13%; but we do expect this to be within the 12% to 13% range as we go forward as well. Over the period, it should rationalize, I think. Yes, that's correct. I think we are looking at a further growth on every quarter basis

Just one question on the Chakan Phase 2. So, when do we expect commercial operations to begin? And how do we expect the ramp-up in this plant?

Ravi Teltia

So basically in Chakan Phase 2, as we mentioned, we are expecting that the SOP will start by end of this quarter or early next quarter. That is the focus there. And the peak revenue, which we are expecting in FY '27 is somewhere around INR250 crores to INR300 crores from Phase 2. And primarily, as we mentioned, we are catering to the Skoda and Volkswagen. And just one more question was on the debt side. So, while the finance cost has been constant, I just want to understand how do we expect the debt to move going forward? So, we are maintaining that in the current financial year, we are not lo

Congrats, sir, for a wonderful set of numbers. So, I have a few questions. First to begin with on the split of order book, if you can provide some broader perspective, who are the major customers building up this order book like you had talked about it in the last quarter also.

Anmol Jain

So, from an order book perspective, more than half of the order book is coming from Maruti Suzuki India followed by Tata Motors, Mahindra & Mahindra and Honda Car India almost at an equal proportion to the order book. And in the 2-wheeler space, we have TVS and HMSI as the front runners of the order book. That's just a pie of almost close to 80% coming from these 5- odd customers. After the Maruti Suzuki's order book, we do expect a significant increase in our wallet share within Maruti Suzuki, both front lighting and red lighting as well. And again, from an order book perspective, the entire

Sorry, sir, I got disconnected. Sir, just wanted to ask on the, just wanted to ask that are we maintaining the guidance of mould sales and margin that is around the 12% to 15% kind of thing, which you have told? Are we maintaining that thing?

Anmol Jain

Yes, we are continuously maintaining that, that between a 12% to 15% margin on the tooling is what we expect in the current full year. And again, it would vary quarter-on-quarter. There may be certain quarters where we are low and certain quarters where we are very high because of certain particular models where we have lower or higher margins. But for the full year, yes, that guidance continues between 12% to 15%, which will be significantly higher than our last year's performance on the tooling margins. Sir, when we going to balance sheet, you had mentioned about export potential you have wi

Congratulations on great set of numbers for the quarter and quite reinforcing guidance for the full year FY '26. My question is pertaining to our breakup of sales in terms of customers. particularly TVS and MG. TVS, one of the fastest-growing 2-wheeler brands in the country. Again, there, our sales have either stagnated or have been declining. Any commentary on that? And second one is on MG. I understand that volumes have anyways been declining, but what are our conversations now that we are going to expand their capacity at the Halol plant?

Anmol Jain

So, your question is, again, from a TVS perspective, I think if I look at the full year forecast for the current year compared to our business with them last year, we are almost going to double our revenue with TVS in the current fiscal year. And again, if I look at the Q1 performance, I think Q1 performance has been fairly muted. But again, there are certain new models which are expected to come into the Q2, Q3, Q4. And again, TVS for us is a strategically important customer, and we continue to remain optimistic in terms of the growth going forward. With respect to MG Motor, I think, again, M

Well, I'll take this opportunity to thank everyone for joining into the call. We will keep the investor community posted on a regular basis for updates on the company. I hope we have been able to address all your queries. For any further information, please do get in touch with us or our Strategic Growth Advisors our Investor Relations advisers. Thank you very much and have a great day.

Management

Speaking time

Anmol Jain

Moderator

Apurva Mehta

Saurabh Jain

Ravi Teltia

Viraj

Mihir Vora

Hrishit Jhaveri

Rehan Saiyyed

Heet Vora

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Opening remarks

Anmol Jain

Thank you very much. A very good morning, everyone. I hope everyone is doing well. Along with me on this call today, I have Mr. Raju Ketkale, CEO of the company; Mr. Sanjay Mehta, the Group CFO; Mr. Ravi Teltia, CFO of the company; Mr. Naval Khanna, the Corporate Head, Taxation; and Ms. Priyanka Sharma, Head of Corporate Communications, along with SGA, our Investor Relations Advisor. We have uploaded our earnings presentation on stock exchanges and company's website. I do hope everybody had an opportunity to go through the same. I'll begin by giving an overview of the economy, followed by an overview on the overall automotive industry before we get to the company performance. India's economic journey remains strong, making it the fastest-growing major economy in the world today. To put things in perspective, for FY'24-25, India's real GDP growth is estimated at 6.5% and the Reserve Bank of India expects this robust pace to continue into FY '25-26. What's particularly noteworthy is that

Ravi Teltia

Thank you, sir. Good morning, everyone. Let me take you through the key highlights of our operational and financial performance for the quarter. Starting with the financials. As our JMD mentioned, we delivered strong top line growth this quarter. Our consolidated revenue stood at INR923 crores, making a healthy 20.5% year-on-year growth. EBITDA for the quarter came in at INR84 crores, up from INR70 crores in Q1 FY '25, reflecting a growth of 20.7%. EBITDA margin improved to 9.2%, up 10 basis points year-on-year. This improvement is a result of continued focus on cost discipline, operational efficiencies and a growing contribution from our premium product portfolio. Moving to the bottom line. Our consolidated profit after tax, including share of associates for Q1 FY '26 stood at INR36 crores compared to INR34 crores in the same quarter last year, registering a growth of 6%. PAT margin stood at 3.9%. The effective tax rate for the quarter stood at 25.109% Now turning to the operations si

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