Lumax Auto's profit jumps, but operating margin slips for a third quarter
Year-on-year margin was broadly stable as revenue growth kept pace with costs, while sequential cost growth outpaced revenue and diluted margins.
Filed 24 Oct 2026, 16:42 IST · after market close · Lumax Auto Technologies Ltd (LUMAXTECH)
Key takeaways
- Consolidated revenue grew 34.52% year on year, while operating margin improved only 0.11 percentage points to 13.47%.
- Sequentially, expenses grew faster than revenue, narrowing operating margin by 0.48 percentage points to 13.47%.
- Net profit rose 50.43% year on year, helped by a 1.31-percentage-point fall in the tax rate and other income equal to 12.13% of pre-tax profit.
Price around the results
Revenue growth outpaced the prior-year quarter
Lumax Auto Technologies reported consolidated revenue growth of 34.52% year on year and 14.07% sequentially in Q2FY27. Year-on-year expenses rose slightly slower than revenue at 34.35%, allowing operating margin to improve by 0.11 percentage points. The company reported operating profit growth of 35.58% year on year, but sequential operating profit growth was lower at 10.14%.
Sequential cost pressure reversed the margin direction
Quarter on quarter, expenses increased 14.71% against a 14.07% rise in revenue, which narrowed operating margin by 0.48 percentage points. This extended the decline from 14.34% in Q4FY26 to 13.95% in Q1FY27 and 13.47% in Q2FY27, marking three consecutive quarters of margin contraction. Interest fell 1.90% sequentially, but other income still represented 12.13% of pre-tax profit, making reported profit quality worth tracking.
Lower tax rate supported the profit increase
Net profit grew 50.43% year on year, faster than operating profit, as the tax rate fell by 1.31 percentage points and interest declined 1.02%. Sequentially, net profit increased 18.28%, while the tax rate fell by 0.94 percentage points. The 13.47% operating margin was 0.38 percentage points above the 13.09% median among 129 Consumer Discretionary peers that had reported the quarter.
Management highlighted expansion and future mobility plans
Management said its North Star targets a 20% revenue CAGR from FY25 to FY31e and EBITDA margin expansion from 14% to 20%. The company said it estimates FY27 capex at Rs 300 cr, compared with Rs 233 cr in FY26, and reported an order book of Rs 1,879 cr scheduled for execution through FY29. Management also said its long-term vision is for future and clean mobility to contribute more than 20% of revenue.
The market reaction was positive but below the stock's usual move
The stock rose 2.26% on the first reaction day and was up 5.68% by the following session. That was a positive response, consistent with the stock's record of five rises and three declines after its last eight results, but the initial move was below the 6.18% median absolute move over that history.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,556 cr | ₹1,364 cr | +14.07% | +34.52% |
| Other income | ₹19 cr | ₹15 cr | +23.42% | +20.09% |
| Expenses | ₹1,346 cr | ₹1,173 cr | +14.71% | +34.35% |
| Operating profit | ₹209 cr | ₹190 cr | +10.14% | +35.58% |
| Operating margin (%) | 13.47% | 13.95% | — | — |
| Interest | ₹24 cr | ₹25 cr | -1.90% | -1.02% |
| Depreciation | ₹50 cr | ₹49 cr | +2.30% | +20.47% |
| Profit before tax | ₹154 cr | ₹132 cr | +16.80% | +47.84% |
| Tax | ₹38 cr | ₹33 cr | +12.45% | +40.29% |
| Net profit | ₹117 cr | ₹99 cr | +18.28% | +50.43% |
| EPS (₹) | ₹15.48 | ₹12.71 | +21.79% | +57.80% |
Operating margin of 13.47% compares with a Consumer Discretionary sector median of 13.09% across 129 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.26% | +1.58% |
| Next session | +5.68% | — |
Volume on the results session was 3.39× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company’s North Star targets a 20% revenue CAGR from FY25 to FY31e.
- The company targets EBITDA margin expansion from 14% to 20%.
- The company targets revenue from future and clean mobility of more than 20% in the long-term vision.
Expansion
- The company estimates FY27 capex of INR 300 Cr, compared with FY26 capex of INR 233 Cr.
New orders
- The company reports an INR 1,879 Cr total order book scheduled for execution through FY29.
What to watch
- Whether operating margin recovers from 13.47% after three consecutive quarterly declines.
- Whether other income remains near 12.13% of pre-tax profit or becomes a smaller contributor to earnings.
- Whether FY27 capex moves toward management's Rs 300 cr estimate, versus Rs 233 cr in FY26.