Lumax Industries Limited (LUMAXIND) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q2 and H1 FY27 Earnings Conference Call of Lumex Industries Ltd. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict. As a reminder, all participants' line will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Deepak Jain, Chairman and Managing Director. Thank you and over to you, sir.

Thank you. A very good morning to everyone. I hope everyone is doing well. Along with me on this call, I have Mr. Anmol Jain, the Managing Director of the company, Mr. Sanjay Mehta, the Group Chief Financial Officer, Mr. Raju Kedkale, the Chief Executive Officer of the company, Mr. Ravi Telthia, the CF of the company, Mr. Naval Khanna, the Corporate Head of Taxation, and Mr. Surbhi Chandna, the Group Head of Investor Relations and Value Creation, along with the Investor Relations Advisors. We have updated our financial results and earnings presentation on stock exchanges and the company's website and I hope everybody has had an opportunity to go through the same. The global economy continues to face a very challenging environment with the conflict in the Middle East keeping markets uncertain. It has inflated energy and commodity prices, strained shipping lanes and supply chains and raised logistics costs for businesses adding to inflation and being down on global growth. How long the conflict lasts and how it affects energy supplies and global trade will shape the outlook from here. India has not been insulated from these developments with high energy costs feeding into prices. That said, the domestic economy has stayed resilient, supported by a healthy consumption, sustained public investments in infrastructure, and steady private investment activity. Despite the external uncertainty, the strength of domestic demand gives us confidence in India's growth trajectory. Turning to the automotive industry, the sector sustained its growth momentum in Q2 FY27. This was supported by better affordability after GS 2.0, resilient demand in both rural and urban markets, strong freight activity, infrastructure led growth, and a gradual pickup in the replacement cycle. However, on the cost side, crude link polymer prices, freight, rupee depreciation remains a key monitorable, putting the industry margins under pressure. Cyan production data The data for Q2FI27 shows year-on-year growth across every vehicle segment partly helped by a low base in the previous year. Overall, the Indian auto production stood at 106 lakh units up 19% year-on-year. Passenger vehicle production rose 25% year-on-year to about 17 lakh units aided by better affordability after GST 2.0 and multiple new model launches. The two wheeler production rose 17% to around 81 lakh units led by scooters and the three wheeler production was up 25% at about 4.5 lakh units with electric three wheelers and last mile mobility needs driving the growth. The commercial vehicle production also rose 34% to around 3.5 lakh units on the back of infrastructure spending and strong freight movement. For H2 FY27, we expect the growth rates to ease as the industry moves beyond the low base of the first half and the GST rate cuts are fully reflected in the demand. How this festive season demand plays out will be a key indicator of whether the current momentum holds or not. Now, coming to the key updates for the company during the quarter. The Q2 F527 revenue stood at Rs. 1342 crores, up 33% year-on-year, and 10% quarter-on-quarter, outpacing broader industry trends. For H1 F527, the revenue stood at Rs. 2565 crores, up 33% year-on-year. This growth was driven by new program launches, sustained growth with a leading OEM customer, and a rapid scale-up with smaller customers, and a rising share of LED lighting, which has reached 63% of revenue in H1FI27, up 200 BIPs, YOI. Our order book is at rupees 2580 crores and LED lighting accounts for approximately 80% of the order book, while ED program accounts for approximately 11%. By segment, the passenger car vehicles account for 63% and the two three wheelers for 37%. The key launches during the quarter were in the passenger vehicle segment. The Tata Motors Aries, where we are supplying the tail lamps, both for high and base versions, and Mahindra Mahindra Tha Refresh, where we are supplying the headlamp, fog lamp, and the cornying lamp, and also the side of the wheeler lamp. We are also now gaining share of business with OEMs such as TBS, Suzuki two-wheelers, Yamaha motors, as well as Toyota, which is an important step in our customer-based expansion. During the quarter, we have received the following recognitions. Launch Excellence Award at the Tata Motor Passenger Vehicle Annual Supply Conference. For the Chakan 2 plant, we have the CI National Award for the best environment practices, and for Bangalore plant, we have the UPS Forum Award for best practices in sustainability. To conclude, in the near term we remain watchful of the geopolitical development and energy prices, which could further put pressure on input costs and beyond margins. We continue to work with our customers on cost recovery, while staying focused on cost discipline and operational efficiency. Beyond these near term challenges, the long term story remains intact. Thank you, sir.

Good morning, everyone. Let me take you through the key highlights of our financials and operational performance for the quarter. As the chairman mentioned, Q2 FY27, Consolidated Consolidated revenue stood at INR 1342 crore, up 33% YOY. Manufacturing revenue grew 33% YOY to INR 1300 crore. Consolidated EBITDA for the quarter stood at INR 1100 crore, up 21% YOY, with a margin of 8.2% compared with 9% in Q2 FY26. Material cost impact continued in Q2 FY27 due to West Asia conflict and elevated prices for electronic components. We are constantly engaging with our customers for recovery. However, typically these come with a lag. There is a across 100 to 120 BIP impact in H1 FY27 due to the material cost increases. We continue to maintain our full year margin trajectory Also, on the top line, we are revising our guidance from earlier 20% plus to 25% plus for the full year. Profit after tax, including share of SSH, stood at INR 52 crore, up 46% YOY, with fat margin at 3.9% up 40% YOY. The effective tax rate for the quarter was 25.3%. On the operational side, LED lighting continued to delayed overgrowth, contributing 63% of revenue in H1 FY27, compared with 61% in H1 FY26. Around 88% of our current order book is LED-based. On Apex, our projects are progressing as planned. Our Apex guidance for FY27 remains at INR 200 to 250 crores. Our net long-term debt as on 30th September 2026 stood at INR 188 crores compared with INR 291 crore as on 31st March 2025 and our net debt to EBITDA has improved to 2.2 as on 30th September 2026 versus Thank you very much.

We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment. While the question queue assembles. The first question is from the line of C.A. Garvit Goyal from Serene Alpha. Please go ahead.

Hello, I'm all.

Yes, sir.

Hi, good morning and congrats for the group set of numbers. The question is on the martin. While one place we are speaking about the challenges that we are facing, particularly in the terms of the rising cost of electronics that we are using. At the same time, we have provided the intact margin guidance for full year. So, what is giving you the confidence? Like, you also mentioned there will be some lag in passing only these goals. So, what exactly is giving you the confidence of the better margins H2 that your full year margins is a double digit? So, that's our third question.

Hi, this is Anmol Jain. So clearly the H1 margins are a bit subdued primarily because of the raw material escalations. And there are two parts to it. One is the recovery of the escalations which came into effect in quarter one, which also have not yet been fully recovered in quarter two. There is still a remaining part pertaining to Q1 to be recovered. Second, over and above the Q1 escalations, there have been further escalations impacting the Q2. These will get into the P&L perhaps in quarter three. We do not anticipate significant price increases Further to what the current base is already established in H2, and once we are able to recover the Q1 and Q2 impact, they will definitely improve our margins specifically for H2, and hence the guidance which Ravi had mentioned for the full year is still intact to deliver a double-digit EBITDA margin.

Got it, sir. And secondly, are you expecting any slowdown in the relative growth? You could be higher days post this festive season, which may, like, because the kind of growth we are currently witnessing, on that pace, what kind of growth you people are internally targeting, maybe in about 28 and onwards? If you can put some color, not that good numbers, but if you can put some direction on that.

So for FY27H2, the revenue guidance on a quarter-on-quarter basis will continue to be better than what was reported in, let us say, Q2 as an absolute amount. However, because of the higher base in H2 of FY26, the growth rate for H2 will be relatively lower than what the company has reported in H1, which is about 35 odd percent. So for H2, we will not be definitely looking at a 35% growth, but for the full year, I do believe that the guidance earlier of about 20% growth is now revised to slightly upwards towards more of a 25% growth for the full year. That's for FY27. For FY28, we continue to remain quite bullish, because if I look at the order book, almost 60% of the order book gets delivered in FY28, which is almost close to 1,500 crore rupees revenue.

Understood. And lastly, only on the export front, particularly after the FTA is taking in and looking at the global scenario where the de-risking is, geographical de-risking is happening, are we people, I'm just trying to understand from you, are we looking to export as a driver going forward in any of our areas or any of our product portfolio?

So, for the lighting, again, we are engaged with some of the IPO, the International Purchasing Offices in India of the OEMs. These typically take a couple of years to proctify into something meaningful. Again, having said that, largely the priority and the focus of the company remains to deliver the growth of the Indian market and see how we can expand our wallet share with respect to cross OEMs. And I'm happy that based on the current order book, we will actually be expanding our wallet share in almost four to five OEMs over the next two years. So, the focus and priority is the domestic market. However, export engagements are continuing, and probably in the next two to three years, we can see some export revenue to come in, but again, it will be a minuscule number compared to the domestic.

Thank you very much, sir, and for the next presentation. Thank you.

Thank you. Thank you. The next question is from the line of Radha from Motilal Oswal Financial Services Limited. Please go ahead.

Hello, sir. Thank you for the opportunity. My question was that in the adaptive driving beam system, typically it combines of the front camera, ADD modules, lighting control modules, etc. And OEMs are increasingly preferring suppliers who can deliver more of an integrated system. In this scenario, there are global companies such as Hela, Valio, Mareli that can combine the lighting along with the ADAS sensors and electronics and provide it as a solution to the OEMs. So, as ADB and other ADAS-linked lighting said in the Indian cars over the next few years, what is our try to win against global players who can provide individual solutions? And is there a roadmap where we can draw on further technology from Stanley, all the in-house capabilities in the electronics, All partnerships with other ADAS suppliers and supply more of an integrated solution.

The technology of ADB, you know, it's an intelligent headlamp system, which is largely talking about getting into higher pixel resolution and a smarter beam control. As of now, we do not have any camera integration on the ADB lamp technology. Having said that, again, we are proud to say that we were actually the first company in Indian automotive lighting landscape which introduced the ADD, despite these global giants and the global lighting makers which you mentioned having presence in India. In terms of a technology roadmap, I think there is a very clear two-pronged approach. Number one, Stanley, which is the world leader for lighting technologies, continues to have a very deep presence and support to Indian market. And again, there is a very clear roadmap how Stanley will be able to enhance the technology for the Indian market by more and more localized solutions. And second, the company has its own Czech and Taiwan advanced engineering centers. And this is where all the advanced technologies are being developed. A lot of the engagement is also there from the Czech and Taiwan offices with OEMs. And some of the technologies which are more on projection technologies and more on, let us say, the OLEDs and surface illumination technologies on the rare lighting. And also, you know, things like DLP, multi-pixel LEDs, laser-based lighting. These are all technologies which are being currently developed at Czech Advanced Lighting Center and with the help of Stanley. So, we have the access to technology, which is both the European technology as well as more of the Japanese technologies, and they do differ.

Secondly, sir, what is the penetration of this ADV in two wheelers and four wheelers currently, and where do you see the penetration in the next three years? Also, do you expect the penetration to happen only in the EVs or across the power chain?

Are you talking about penetration of ADD? I didn't understand that. Yes, sir. So the penetration of ADD is very right now limited to just about a couple of models. However, please do note that for any new technology to become mass market and to drive the price down with the volumes going up, it usually takes about five years for that time. And again, if I were to go back five to seven years, the LED penetration was a mere close to 30%. And today, it is sitting at 65% for the company. And again, it's a sizable number for the lighting industry at large. So, we do believe that ADD as a technology, perhaps over the next three to five years, will gain traction. However, currently, it remains limited to a couple of models. But we do see a lot more interest from the OEMs to evaluate this technology for their future needs. However, as of now, largely, it is driven by passenger vehicle segment. We do have some conversations with two-wheeler OEMs. But it probably will be a faster adoption in the passenger vehicle space.

And so, is it specific to only EVs or across powertrains?

It is powertrain agnostic. It can go on any vehicle, run on any powertrain.

Understood. Thirdly, on localization, you are targeting over 50% LED localization from 30-35% today, led by LED driver mobiles. So, as you localize these modules, will they be made in-house or sourced from other domestic suppliers, possibly a group company, Lumax, Autotech, electronics facility?

As of now, the first and foremost emphasis is on to try and localize parts of the LED system. And again, I'm not getting too technical, but first is the LED light source itself. And then thereafter, there are these intelligent modules, which is like the light control module, etc., which control the lamp and the brightness and the LED performance. So we will have localization plans on both. As of now, it's too premature to state whether we will be making them in-house or we will be making them in certain other group companies, or maybe we start with an outsourcing activity. So, again, those are things which are still in the discussion phases, but we would like to be the first one in India to localize some of these technologies.

And this is, and for the LED trips are likely to stay inserted across the country.

Sorry to interrupt you, Radha. Can you please rejoin for a follow-up question? We have a long queue.

Yes, sure. All the best.

Thank you. The next question is from the line of Viraj Kajarya from Simple. Please go ahead.

Yeah, I'm Arun.

Go ahead. Yes, sir.

I said in the call earlier that given the order book we have, especially among the four or five OEMs over the next two years, we expect a considerable share increase. So can you give some color which are those OEMs we are talking about and what will be our share now? And based on the order book we have, how do you see this evolving over the next two years?

Sure. So some of the notable, I mean, we've got a strong order book across pretty much all OEMs. But again, I will talk about just the four or five names, which notably the wallet share will increase. Let's say we'll start with Maruti Suzuki, which is the largest pie of our order book. Currently, the wallet share at Maruti Suzuki on a headlamp, tail lamp put together is anywhere between 25% to 30%. And this wallet share will be increasing to anywhere between 35% to 40% over the next two to three years. Also, Honda Motorcycle and Scooters India, we've got a significant order win. Specifically, on the tail lamps, where the current wallet share was less than 20%, and we are expected to increase our wallet share near to 50% on the tail lamps. Toyota Kildosker, traditionally, the company had never been engaged to deliver the front lighting system for Toyota Kildosker. We were only present on the rear lighting. The order book has been attained for the headlamp business for one of the forthcoming models. And with that, we should be about close to 15% to 20% of the front lighting share. Apart from these, Suzuki Two-Wheelers India, we've also gained some strong traction both on headlamp and tail lamp. Wallet share is likely to go up by almost double from 15% to 20% currently to upwards of 30%. And Volkswagen India or Shkoda India, where currently we are at about 30% of the tail lamp wallet share. This is likely to go up to close to about 70% or so over the next two to three years. So these are some of the three, four, five notable names. REST, there has not been any wallet share contraction in any other OEMs.

Okay, just on HFMI, you know, when you say some sub-20% to 50% on tail lamps, whom would we be gaining share from? And in terms of headlamps, whether the content is much higher, how would our share have been evolved there?

The headlamp share in HMSI remains unchanged, which is quite high, between 60% to 70%. The tail lamp wallet share largely would be on account of one particular competition. I would not like to name the competition, but again, there are only two or three lighting makers of HMSI for tail lamps, but one of the major other lighting players, we've been Okay, just one more question I have.

See, if I look at a group company, they just announced that they are setting up body control modules under mechatronics, right? And I think even in the last quarter, I was just trying to understand because Stanley globally is also have this mobility electronics initiative, you know, where they are going really big, you know, in terms of body electronics and other So, in terms of the opportunity landscape, when I look at LUMAX Industries per se, what is really, you know, what are the factors you would look internally to capitalize on this opportunity? Or you think between the two entities, the larger part of the opportunity will be rooted through LUMAX Auto Technology?

Fundamentally, Lumex Industries continues to remain focused on automotive lighting solutions. We will expand our relationship with Stanley in whatever way possible to bring more and more competitiveness for Lumex Industries in the Indian market with future technologies, maybe with, you know, automotive lighting, electronic technologies, and more and more localization as we go ahead in the future. The other company, which is not part of the call today, however, is a wider canvas. And again, you talk specifically about body control module, it's a very, very different product and a very different technology compared to a light control module. So light control module, should we get into that domain for the future, will still be within the Lumax Stanley relationship.

Thank you.

Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Anubhav Mukherjee from Present Capital. Please go ahead.

Hello, am I audible, sir? Yes, here. From that, it's a great set of numbers. Sir, in your investor presentation, it was mentioned that we have achieved 70% PCB localization at one of our plants. So, could you give some more color on what does that mean? Like, does it mean 70% of surface mounting on PCBs we do or something else? That will be helpful, yeah.

Yeah, hi Anubhav, Ravi, this side. So as we explained in our previous calls also, typically electronics is having four key areas to look at. One is the bare PCB, that is you are right, the bare PCB is localized around 60 to 70 percent. SMT, which is our own in-house captive unit is 100 percent localized. And there are two other things which are very important. One is about the connectors. This is roughly around 30-35% localization at this stage. And the LED module, which MD also talk about, are the some specific projectors are only can be localized at this moment. And in next two to three years, the ecosystem in India, how the things will evolve, we'll see this. So the reference which Okay,

so 70% their PCBs they are manufacturing in houses, that is like the right interpretation?

No, localization means the supplies are happening from the local suppliers, SMT over in-house Absolutely.

And you also mentioned about PLI incentives. So, is my understanding correct that you are already approved for PLI benefits for advanced lighting and the target is to achieve 50% localization, so that we start receiving the benefits. Is that the correct understanding?

So, Anubha, this is Sanjay Mehta, so lighting is not in CLI scheme.

Okay, but some advanced lighting is under like a boost or not?

No, it is not lighting what we are manufacturing, auto lighting is not in CLI scheme. A lot of other schemes, maybe other electric part, but it is not, we are not covered in that.

Mr. Mukherjee, sorry to interrupt you, but can you please rejoin for a follow-up question? There is a long queue. Thank you. The next question is from the line of Adid Sethi from EcoQuantum Solutions. Please go ahead.

Yeah, thank you for the opportunity. So, Hyundai Motor Group has announced a $15.5 billion investment in India over the next seven years to expand their manufacturing and strengthen its local supply chain. Since SL Lumax has significant exposure to Hyundai and Kia, how do you see this investment creating new order opportunities and drive revenue growth for the company over the next few years?

Well, Hyundai account is managed from the associate company SL Lumax. Hence, per se, for Lumax Industries Limited, as of now, there is no direct impact in terms of investments or the revenue growth because of Hyundai Motors' actions. Of course, there is a little bit of a pack consolidation of the associate company. However, the company is engaging with Hyundai Motor directly to see, based on the future capacity expansions, if there could be any possibilities for us to also serve Hyundai as a customer directly as a part of de-risking of the supply chain. So, that's the only opportunity which we are currently working on from Lumax Industries' perspective. However, to service the expansions of Hyundai India currently, the associate company will continue to deliver on that.

Thank you. This is Utkash Somaya from Ico Quantum Solutions. I had a question on your margins. If you were to do double-digit margins in FY27, so let's assume a minimum of 10%, that would imply an 11.4% margin in H2 since H1 is approximately 8.6. So, can you please confirm that is possible, one, and two, you were to do 100% EBITDA margin expansion every year. So, for F528, can we assume 100%? Yes, and if yes, then on what base? On the base of H1, H2, or all of F527? Thank you.

So the margins, first and foremost, your understanding is correct that for H2 specifically, we would be expecting a margin of, let's say, anywhere between 10.5% to 11% for H2. And again, it might be lower for Q3 and a higher number for Q4. However, for the full year, we are still optimistic that we should be able to deliver a double-digit EBITDA margin. Now, the reason for that is purely, as I mentioned, that some of the price escalations which have happened, we do expect to recover most of them in H2. And despite the continued growth momentum, the operational efficiencies and leverage will also start kicking in. And however, there is a caveat that I am hoping that there is no significant further volatility based on the ongoing West Asia crisis. If these were to continue, then I would probably have to relook at the guidance. But as of whatever visibility we have as of today, this should definitely be doable and achievable for each two.

Thank you. Thank you.

The next question is from the line of Richa Agrawal from Equity Master. Please go ahead.

Sir, thank you for the opportunity in Congress and a good set of numbers. My question is related to industry. I just wanted to get a sense of what kind of LED penetration is there in PV as well as two wheelers in the domestic auto industry as of now.

Yeah, so Richard, let's say our estimate is that as we are close to 63-65% of LED penetration collectively and out of that, our PV is close to 55-60 and two-wheeler, three-wheeler is in the range of 75-80. And the market is also close to 50-55%. That's the estimate we have and that's the way the market is moving towards there.

Okay. And, sir, going forward, you know, like, there used to be a differential between LED and halogen, but are you seeing it compressing, and, you know, the margin expansion will basically come from, you know, incremental penetration, but also is expected to come down on LED, like, is that a valid assumption?

So I think the content per vehicle, which will continue to increase based on the lighting technology's evolution, and it's not specific to an LED, but, you know, post-localization, some of the price points will change. But also, as we talked about adaptive driving beam and certain digital projection technologies going forward, I think the content per vehicle will continue to enhance. With the new content per vehicle at a raw material consumption percentage, we may see the slight further increase. However, at the EBITDA margin, we will be able to still grow it based on the rationalization of the top line growing significantly higher than some of the other direct or indirect expenses. So, we do believe that content per vehicle extension will be one of the key margin growth drivers going forward.

Okay, that's helpful. And so lastly, could you just give some guidance on the capex for this year and you know coming years?

Yeah, so Richa, as I mentioned in my opening remarks, this year we are seeing the maintaining 200 to 250 crore of capex. Out of that in H1, we have already done around 80 crore of capex and the remaining will happen for the project which we are progressing in the H2.

Okay, okay. Thank you.

The next question is from the line of Sanjay Shah from KSA Securities Private Limited. Please go ahead.

Yeah, thanks for the opportunity, sir. Congratulations, and most of my questions have been answered.

Thank you. The next question is from the line of Aryan Doshi from Devithya Investments. Please go ahead.

Yeah, can you hear me?

Yes, sir.

Yeah, I wanted to ask about the import cost. Now, about 25-30% of the materials are imported, right, and mostly LED chips and electronics. So, is there a plan to, you know, make it in India by FY29 or FY28? Does the government electronic component scheme help us here? Because, you know, rupees falling and part in pressure.

So currently, we are, as I mentioned earlier, we are engaged in discussions with Stanley in terms of how soon can we try and localize some of these technologies to serve the growing Indian market needs. However, any such localization would also need scale, and not just for Lumax Industries' captive needs, but we will also have to service the other ecosystem of the lighting in India. So again, there are conversations, but I do not have a firm plan. But clearly, the endeavor of the company is that over the next three years, we should be able to enhance our localization on account of the whole LED and certain electronic devices like the light control module and other devices for the automotive lighting needs in India.

Okay, understood. And I'm sorry if you just asked this before, but I also want to ask that lighting value per car is rising with the full LED and light bus and EVs. So my question is, how much higher is your lamp value in a new launch rather than an older model? And with the Unominda and Marely expanding in India, is your share in the new models from your top customers going up or down?

So, there are two questions that you asked. Number one, I don't think the content per vehicle has anything to do with a new model versus old model. It really depends on the kind of technology the new model is coming with. If the new model is launched with an older technology, the content per vehicle will remain essentially the same or lower than the present level and vice versa if the new technologies These were to be brought in in a facelift or a full model change. However, we do see that the more and more trend is towards a higher technology level. And at least most of the models today which are coming and being launched, there is a vertical, you know, difference in the variants the offering has. The lower end of the variant still probably has a halogen technology and maybe a non-LED technology. And the same model on a higher end variant will have a LED or maybe a projector technology. So it's very difficult to ascertain on a model basis. But again, LAMP being very, very specific, it differs hugely with respect to new models and present models. The second part of your question with respect to other, some of the lighting names, I think I substantiated this before, that despite the intense and hyper competition in the Indian automotive lighting market, the company continues to enjoy a leadership position, and the order book clearly demonstrates that in the four or five OEMs I mentioned earlier, the wallet share is significantly going to get enhanced over the next two years.

Understood. Thank you so much for answering this question.

Thank you. Participants who wish to ask a question may press star and 1 at this time. The next question is from the line of Sartak Talekar from Smith & Thompson's Capital Advisory. Please go ahead.

Hi, sir. Can you hear me?

Yes, we can.

So, my question is that as a sales number has improved, what has been the primary reason behind that? Is there a volume increase or a net of sizing? That's my question.

So, there are multiple reasons. Maybe Ravi can throw a little bit more light. Number one, obviously, there is a volume growth. First and foremost, that is one of the key reasons. If you look at the industry, almost all the segments for H1 have, you know, performed remarkably well in terms of the growth numbers as far as volumes go. Number two, with the higher penetration of LEDs and certain new technologies like the ADB coming into SOP, we do see on certain models and certain segments a higher content for vehicle realization. Number three, there is also a huge price increase on account of the raw material cost escalations, which has kicked in in quarter one and some of it in quarter two, which also raises the top line, but it actually has a negative effect on the EBITDA margin because the numerator and denominator is going at the same rate. So, these are primarily the three reasons why you are looking at the top-line growth or what are rather the contributors of the top-line growth.

And just to add it here, in certain OEMs, as we mentioned, we are gaining the wallet share. So, that is also adding a better top-line for us compared to the market growth.

And the second question that I had is, has our current CapEx plan go live by the end of this fiscal year? So, how much is the growth and the margins from management expecting to grow beyond the CAPEX, and is there any future CAPEX plans beyond the Paris one?

On the CAPEX side, as you mentioned, current financial year, we are looking at around 200 to 250 crore of CAPEX. And definitely since our order book is already at 2500 crore plus, which includes the project which we are executing now and will go for SOP somewhere by end of this fiscal year or maybe early next fiscal year. So accordingly, the business will come up and also as we mentioned next financial year, we see around 60% of our order book will go for SOP, so roughly around 1500 crore plus Thank you.

Next, we have a follow-up question from Anubhav Mukherjee from President Capital. Please go ahead.

Hello, am I available?

Yes, sir.

Sir, the leading localization that you mentioned 30-35% for the like other players in the Indian We would

not have the exact information or data, what would be the localization percentage for some of the other lighting makers, and I would refrain from commenting on that. However, I think the industry at large still has a very similar landscape in terms of the localization percentage. Again, if there were certain technologies and certain parts which had been localized, the OEMs would ensure that the full advantage of that localized technology or the localized part would go to all the lighting makers and not just specific to one. So, as I mentioned earlier, I think it is pretty much a similar landscape for all the lighting players in India currently, but we do foresee that with some enhanced localization plans, we would like to be one of the front runners to localize some of these in the future. I think you're on a speaker phone. Can I request you to switch off your speaker and use the handset? I'm not, there's a lot of echo.

Sure. Is this better now?

Yes, maybe.

Yes. Sir, I was asking that the other like the contribution from others is now significant at 12% of your revenue and it has also grown very substantially over here on here. So, Sir, can you give some color on which are the key onions in this other segment and what has given this very like strong growth here?

Yeah, so basically this includes customer like JD, customer like Skoda, Volkswagen, Volkswagen, yeah, also mentioned about that and Thank you.

Actually, he left the queue. Okay. The next question is from the line of Radha from Motilan, Uswal Financial Services Limited. Please go ahead. Hi, sir. Thank you again.

Sir, as lighting becomes more electronic-led and intelligent solutions, so smaller and unorganized players with segmented product offerings may find it harder to keep it up, so which could create opportunity for organized players, like I said, especially in the aftermarket. So how large and unorganized aftermarket opportunity do you see opening up for us, And would LUMAX consider addressing it directly or to Autotech's aftermarket network?

So, Radha, the aftermarket for the group is handled by LUMAX Auto Technologies. LUMAX Industries Limited is purely an OEM supplier of lighting solutions, and that will continue to be on an as-is basis. Yes, there are opportunities in the aftermarket, but please be mindful that the aftermarket works on the population of the current vehicles on the road and not necessarily on the new technologies that are being introduced on the new models. For these technologies and parts to have a replacement demand, it will typically take five, seven, eight years, and hence, right now, the aftermarket needs are still being serviced largely based on the older technologies of halogen across different segments. But again, this is being addressed not by Lumax Industries. We are an OEM company, and we would like to stay as is.

And sister, at the same time, some smaller players that were earlier present only in aftermarket have recently started receiving OE accruals in the lighting. So, do you see this leading to greater segmentation in the OEM market, which would disrupt the pricing discipline in the industry, or is this not the right way to look at it?

No, we do not anticipate or foresee any significant changes with respect to some of the new entrants. These could be strategic players only, you know, in one or two customers or one or two models, also maybe for smaller lamps. However, the large part of the market would still be controlled by the top five automotive lighting companies in India, and I don't see any significant change over the next five years in the top five players.

Thank you.

The next question is from the line of Jyoti from Hightong Securities. Please go ahead.

Yeah, thank you for the opportunity. It's a two, three question. Sorry if I'm repeating it. So one is around the Maruti, SMG, M&M, and HMSI, and along with Tata, we are contributing 66% of Q2 sales. So which of these customers dwells with lighting, and what share of their requirement do you currently hold? And another on the Hero Motor Corp side, the sales that has declined almost 2%, from 8% to 6%, but as even revenue has grew. So over there, did you lose share there and to whom? And third question is around which new OEM that you are targeting, and are you competing against global suppliers for them? And fourth question is around the tech side. So currently, I think we are doing the co-development with Stanley versus how much we are doing independent. And also, are we targeting to set up any tech or R&D, I mean, if we are already doing it? So just wanted your understanding around the tech part for the lighting.

So, Jyoti, most of the questions have been answered before, but again, I will just be very quick in responding to each one of them. Number one, mostly all the OEMs presently in India have a dual or a more lighting source. Nobody has a single lighting source. Number two, most of the OEMs which I mentioned, we have either gained wallet share or we have maintained the present wallet share. There has not been any OEM where there has been a wallet shred decline. Number three, specific to Hero, it is just a resultant of a product mix, whereas some of the models where we are not present perhaps were the volume growth drivers vis-a-vis some of the models where we are present. Lastly, on the technology piece, I think I mentioned before, we do get a lot of technology Thank you. In future ready as well.

Okay. Thank you so much.

Thank you. Next, we have a follow up question from the line of Ajit Sethi from EcoQuantum Solutions. Please go ahead.

Thank you for the opportunity again. Given the current geopolitical uncertainties and supply chain disruptions, are we seeing any impact on your customer production plans or order schedules?

Seeing any major pullback on production plans. However, yes, the situation on the supply chain is extremely volatile based on availability on imports and specifically on electronics. And hence, we do see some short term, let's say, disruptions in terms of they're not being able to produce as much as the demand or the expected output, but we do not anticipate any change or pullback on their production schedules for H2 based on the current volatility.

So, what is the current contribution of EV to our total revenue and given the company's existing EV order book and upcoming vehicle launches, how do you expect this EV contribution to change over the next two to three years?

Yeah, currently the contribution of EV in our business is close to 10-12 percent and as we We mentioned since our product is like a technology or the powertrain agnostic, so Pulse, it is not has any significant impact on our business, but any specific model which is dedicatedly for the EV, we are definitely looking at. Just to give a context like Tata's model of Punch and Nikon, they are in post powertrain of Ice and EV.

Thank you.

Thank you. Ladies and gentlemen, due to the time constraints, that was the last question. I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Thank you once again for joining us for the Q2H1 FY27 earnings call and for your continued interest in Lumax Industries. We truly appreciate your time and engagement today. Should you have any further questions or require any additional information, please feel free to reach out

Thank you for joining us and you may now disconnect your lines.