Lumax Auto Technologies (LUMAXTECH) Q2 FY27 Posts Record Revenue as Profit Growth Outpaces Sales
The auto components maker delivered a 35% revenue surge, crossing ₹1,500 crore for the first time, while net profit jumped over 50%.
Lumax Auto Technologies reported strong Q2 FY27 results with revenue crossing ₹1,500 crore. Profit grew faster than sales, driven by broad-based demand and a favorable product mix, though input costs remain a watch.
Lumax Auto Technologies entered the second quarter with momentum from a robust auto market. The company delivered on that promise, posting its highest-ever quarterly revenue as profit growth accelerated even faster.
Revenue for Q2 FY27 rose 34.5% year-on-year to ₹1,555.5 crore, crossing the ₹1,500 crore mark for the first time. Profit grew 50.4% to ₹116.7 crore, indicating the business is gaining operating leverage. The net profit margin expanded 80 basis points to 7.5%.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,555.5YoY +35% | 1,363.6 | 1,156.4 |
| Profit (₹ Cr) | 116.7YoY +50% | 98.6 | 77.6 |
| Net Profit Margin (%) | 7.5YoY +12% | 7.2 | 6.7 |
A Broad-Based Demand Story
Management, quoted by CNBC-TV18, attributed the performance to a scale-up of existing products and deeper penetration of its value-added portfolio. The growth was broad-based, with passenger vehicles and two/three-wheelers contributing over 80% of the business mix in the first half, according to InvestyWise.
This reflects an automotive industry that sustained production growth across all vehicle segments, supported by improved affordability post-GST 2.0. The company is also benefiting from premiumization trends, which increase the value of components per vehicle.
The Margin Tightrope
While the bottom-line margin improved, the path there reveals a squeeze. Materials cost as a percentage of revenue rose to 65.6% from 63.5% a year ago, reports AlphaTribe. This was offset by reductions in employee and other expenses, showcasing cost optimization efforts.
However, one analysis from Stockwatch suggests the EBITDA margin saw a sequential dip from Q1's 15.1%, indicating that cost pressures are real. Management itself flagged rising input costs—from crude-linked polymers to electronic components and freight—as key factors to watch.
Funding the Next Growth Phase
The company is not standing still. It announced a new ₹150 crore mechatronics plant in Manesar, targeting ₹500 crore in peak annual turnover. This is part of a larger ₹300 crore FY27 capex plan, largely funded through internal accruals, to set up seven greenfield plants.
Medium-term revenue visibility is supported by a robust order book. Insights from DSIJ indicate an order book of around ₹1,450-1,600 crore, with about 40% linked to clean mobility, providing a pipeline for the next three years.
Key Points
- Revenue crossed ₹1,500 crore for the first time, growing 34.5% YoY, driven by broad-based demand across vehicle segments.
- Net profit grew even faster at 50.4% YoY, pushing the net profit margin up 80 basis points to 7.5%.
- Input cost inflation remains a headwind, with materials cost consuming a larger share of revenue, though operational efficiencies provided an offset.
- A strong order book and aggressive capex, including a new mechatronics plant, aim to lock in future growth, particularly in clean mobility.
Hexa Perspective
The quarter confirms Lumax Auto is riding a powerful industry upcycle, converting top-line momentum into bottom-line gains through operating leverage. The 80-basis-point margin expansion, achieved despite material cost pressure, is a testament to its execution.
The sustainability of this margin trajectory is the central question. With the company guiding for continued input cost pressures and its own EBITDA margin showing some sequential softness, the next few quarters will test its pricing power and cost control. The heavy capex cycle, while growth-positive, also adds fixed costs that need to be absorbed. Success will depend on the timely ramp-up of new facilities and the conversion of its substantial order book.
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