Ladies and gentlemen, good day, and welcome to the Lumax Auto Technologies Limited Q3 and Nine Months FY 2026 Earnings Conference Call. 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 involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines 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 the 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. Anmol Jain, Managing Director of Lumax Auto Technologies Limited. Thank you, and over to you, sir.
Thank you. A very good afternoon, everyone, and thank you for joining us for Lumax Auto Technologies Limited Q3 and nine-month FY 2026 earnings conference call. It's a pleasure to welcome you all today. I'm joined by our leadership team, including Mr. Sanjay Mehta, Director and Group CFO, Mr. Vikas Marwah, CEO of the company, Mr. Ankit Thakral, CFO of the company, Mr. Sunil Koparkar, Managing Director, IAC India, Mr. Akshay Kashyap, Managing Director, Greenfuel Energy, Mr. Naval Khanna, Head of Corporate Taxation, Ms. Priyanka Sharma, Head of Corporate Communications, and I would also like to introduce Ms. Surabhi Chandna, Group Head of Investor Relations and Value Creation. We are also supported by our Investor Relations Partners at Adfactors PR.
Together, the leadership team looks forward to sharing an overview of the company's operational and financial performance for Q3 and nine months FY 2026, along with the key business developments during the period. The results and investor presentations have been already submitted to the stock exchanges and are available on the company's website, and we trust you've had the opportunity to review them. On the industry performance, India's macroeconomic environment during Q3 FY 2026 remained supportive for the automotive sector, with growth visible across all major segments. As per SIAM production data for Q3 FY 2026, Passenger Vehicle production was up by 19% year-on-year, 2-Wheelers were up by 15% year-on-year, 3-Wheelers at roughly INR 3.4 lakh units were up by 35% year-on-year, and Commercial Vehicles also saw a positive upward trend of 18% year-on-year.
This broad-based expansion underscores the strong momentum across the industry, with overall robust performance of OEMs during the quarter. Importantly, domestic Passenger Vehicle sales grew by an impressive 21% year-on-year in Q3 FY 2026, compared to the same quarter last year. Demand was further aided by the benefits of recent GST rationalization, a buoyant festive and marriage season, and continued premiumization trends across different categories. In addition, cumulative RBI rate cuts have helped ease financing costs and improved affordability, particularly for the mass market consumers. These factors have supported higher volumes, better product mix, and healthier retail sentiment across urban, semi-urban, and rural markets, trends that are clearly visible across the sector. Finally, the recent Union Budget's continued thrust on infrastructure spending, manufacturing, and supply chain development is expected to provide further structural support to the auto ecosystem.
In parallel, recent developments on the trade front, including the U.S. trade agreement and progress on the E.U. FTA, should be positive for the industry over the medium term by improving market access and competitiveness. Overall, the macro and industry environment remains constructive, with strong momentum across segments and improved visibility for sustained growth. Speaking on the company's performance, in Q3 FY 2026, we delivered our highest ever revenue, with revenues growing by 40% year-on-year. For the nine months ended FY 2026, revenue increased by 38% year-on-year, reflecting sustained momentum across our businesses, supported by healthy demand, successful product launches, and a continued shift towards premium offerings. Driven by this momentum, we would like to revise our revenue growth guidance from earlier 25% to now 30%, and we remain firmly on track with our growth objectives under our North Star.
On the profitability front, EBITDA margins reached 15% for the first time during Q3 FY 2026, and thus remained aligned with our strategic direction of improving EBITDA margins progressively. A quick update on mergers. The merger of Greenfuel Energy Solutions Private Limited with the SPV company, Lumax Resources Private Limited, has been approved by the Honorable NCLT, Chandigarh, with effect from February 3, 2026. The merger of IAC India with Lumax Auto Technologies is also gaining progress, with the first motion already completed. We continue to evaluate capital allocations in all our partnerships to create sustainable growth for the company. This reflects a focused effort to simplify the corporate structure, enhance our capital efficiency, and sharpen the alignment with future-ready mobility platforms.
On new launches, during the quarter, we continued to strengthen our product portfolio with several new launches across both Passenger Vehicles as well as 2-Wheelers segments. On the Passenger Vehicle side, we commence supplies for Maruti Suzuki's Celerio model for the ferruleless tubes and fittings for the CNG version, which is an industry first localized solution, as well as interior parts for Maruti Suzuki's Victoris platform. We also added interior components for Mahindra's XUV 7XO XEV 9e models, and emission-related parts for Tata's iconic Sierra. In the 2-Wheelers segment, we began supplying plastic parts for TVS's export model and frames for Bajaj's Triumph platform. These wins underscore our strong OEM relationships and our ability to participate across multiple platforms and product categories.
Speaking on the order book, we are pleased to report a robust order book of INR 1,450 crores, which provides healthy visibility for the business going forward. Of this order book, approximately 33% is expected to be executed in the next financial year, FY 2027, 44% in FY 2028, and the remaining 23% in FY 2029. The order book continues to reflect healthy traction across all our product verticals, with advanced plastics contributing the largest share, followed by mechatronics, alternate fuels, and structures and control systems. In closing, Q3 and nine months FY 2026 represent an important milestone in Lumax Auto Technologies' journey as we continue to execute our strategy with clarity and confidence under our North Star and the BRIDGE midterm plan.
We are building a stronger, much more diversified and future-ready organization, anchored by our focus on premiumization, electronics, and software-led solutions and sustainable mobility. With a robust order book, strengthening capabilities through initiatives like Shift, our tech center, growing momentum in businesses such as IAC, mechatronics, Green fuel, and improving industry tailwinds, we believe we are well positioned to consistently deliver profitable growth and create long-term value for all our stakeholders in an evolving automotive landscape. With this, I would like to now hand over the call to Mr. Ankit Thakral, CFO of the company.
Thank you, sir. Good afternoon, everyone, and thank you for joining us today. The first nine months of FY 2026 have reflected strong execution across businesses, sustained growth, momentum, and continued progress on our strategic priorities. Q3 FY 2026 builds on the strong foundation laid in the first half, with successful transformation of our strategic alignment into strong revenue gains and EBITDA expansion, further solidifying the strength of our diverse and well-balanced portfolio. Let me walk you through the consolidated financial and operational highlights for the quarter and nine months ending December 31st, 2025. The consolidated revenues reached INR 1,271 crores for Q3 FY 2026, which is historic high for the company, and INR 3,453 crores for nine months FY 2026, registering a growth of 40% and 38% year-on-year for quarter three and nine months, respectively.
This reflects a consistent scale-up across core product lines, steady traction with OEMs, and continued strong momentum of the aftermarket portfolio. On the profitability front, EBITDA for Q3 stood at INR 191 crores, while for nine months FY 2026, it stood at INR 497 crores. This translated into margins of 15% for Q3, which is an improvement of 100 basis points from Q3 of last year. The same was 14.4% for nine months FY 2026. PBT, before exceptional item for Q3 FY 2026, stood at INR 116 crores, while for nine months it stood at INR 295 crores. There is a slight increase in depreciation cost in Q3 of FY 2026.
Part of it is due to the capitalization, but majorly on account of amortization on account of Right- of-U se assets because of start of lease on a couple of new facilities. It is because of this only, the finance cost is also slightly increased in the current quarter. The impact of change in wage codes notified by the Government of India on 21st November 2025, amounting to INR 14.95 crores, has been shown as an exceptional item for the quarter three and nine months ending FY 2026. Profit after tax, before minority interest for Q3 and nine months FY 2026, stood at INR 108 crore and INR 240 crore, respectively, registering an impressive year-on-year growth of 90% and 60%, respectively.
In tax expense, there was a one-time impact in Q3 FY 2026 on account of reversal of deferred tax as a result of the merger of Green fuel with the SPV company. Excluding the same, effective tax rate comes out nearer to 26%, both for quarter three and nine months FY 2026, and we expect it to hold at similar levels way forward, too. The share of minority, excluding the same deferred tax impact for the Q3 FY 2026, stood at 16%, which is again expected to be in the similar range going forward. With respect to the division-wide breakup, beginning with the Advanced Plastics division, this segment recorded a year-on-year growth of 28% in nine months, with revenues increasing from INR 1,420 crore- INR 1,811 crores.
This performance reflects our strategic alignment with OEM priority programs that prioritize design, durability, and lightweighting. The order book remains strong at INR 745 crores, providing solid future visibility. The Mechatronics segment sustained its upwards momentum, delivering a year-on-year increase of almost 200% in nine months FY 2026, from INR 67 crores - INR 198 crores, with a healthy order book of INR 345 crores. It remains a highly technical business due to its high engineering intensity and relevance in the shift towards intelligent mobility systems. Turning to the Structure and Control Systems vertical, it reported a year-on-year growth of 15% in nine months, from INR 512 crores - INR 588 crores. With an order book of INR 180 crores, it strengthens our position as a trusted technology partner in the evolving mobility ecosystem.
The Aftermarket segment showed a strong growth of 15% from nine months of last year, reflecting strong customer traction and product acceptance. We are very, very much hopeful of sustaining this strong growth for the full year FY 2026. The Green fuel Energy Solutions, acquired in November last year, FY 2025, contributed INR 270 crore in nine months, backed by an order book of INR 180 crore, and with margins expected to be accretive to the group average over the medium term. The segment is positioned to grow in alignment with the national shift towards alternate fuel platforms and rising OEM adoption. Over the year, there has been a notable shift in our revenue composition, leading to a well-diversified and balanced mix across mobility platforms.
In nine months, FY 2026, the Passenger Vehicle segment accounted for 53% of total revenues, with 2-Wheelers and 3-Wheelers segment contributing 24%, followed by aftermarket at 10% and CVs at 9%. CapEx for nine months stood at INR 172 crores, which includes strategic investment in land in Gujarat and Khargone regions of INR 44 crores. It also includes INR 50 crores and INR 20 crores on the capacity expansion in IAC and Lumax Health, respectively. These investments are aimed at unlocking medium-term revenue growth and supporting localization efforts across key platforms. The guidance for the full year is close to INR 240 crores, which is slight increase from the earlier outlook given of around 220 crores. As of December 2025, we continue to maintain a strong balance sheet and a healthy liquidity position.
Free cash reserves stood at INR 421 crore, providing us with the financial flexibility to support ongoing investments and navigate market cycles confidently. The long-term debt stood at INR 574 crore, resulting in a conservative debt-to-equity ratio of 0.50, which is within our internal comfort thresholds. With this, we conclude the operational and financial overview, while we now open the floor for questions.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Also, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit the questions to two per participant. Should you have a follow-up question, please rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Amit Hiranandani from Phillip Capital. Please go ahead.
Yeah, thanks for the opportunity. And, first of all, congratulations to the team for one more exceptional set of performance, especially at the operational front. And, it's good to hear that, the FY 2026 outlook is revised upwards for the second time in this fiscal. So, team, are you also looking stronger FY 2027 as well, and can beat the original guidance of 15% organic growth? Also, if you can, help us understand the, you know, the quantum of growth, the subsidiary-wise, is just to understand general subsidiaries will, you know, still continue to see higher growth momentum in the next fiscal as well.
Sure. So thank you, Amit, for your comments on the great set of performance. I think on the revenue growth aspect, the buoyancy across segments continues to be fueled by key customers. As you know, Maruti Suzuki, sorry, Mahindra & Mahindra, Bajaj Auto, and Maruti Suzuki are among our top five customers. All of them are showing very positive trends for Q4. So I think for the most part of FY 2027, we do believe that we will still be able to maintain, and in due course, we will look at if we need to revise upwards the guidance. But I think we are on track in our North Star of delivering about a 20% CAGR over the next three to four years.
And as I said before, this is a culmination of both organic and inorganic opportunities, which the company will evaluate in due course.
...In terms of your question on subsidiaries, I think, yes, the subsidiaries have had a significant growth, some of them again, coming out of a low base. But I'll let Ankit handle in terms of the growth in subsidiaries for next year.
So yes, subsidiaries for the nine months, mainly, Amit, IAC, and of course, the Mechatronics division, they have led the growth for the subsidiaries. I think IAC for the new nine months grew closer to 40-odd% with respect to the nine months of last year. Of course, Mechatronics as a whole entity, considering the entities like Lumax Alps Alpine and Lumax FAE, they grew by, I think closer to INR 200 crore, 200% from last year, although on a very low base.
Yeah. So the subsidiary question was basically for FY 2027, like, which one subsidiaries will still continue to see higher growth momentum?
So of course, apart from the Mechatronics, since, and especially the Lumax Alps, will continue to have a strong trajectory going forward because the SOPs, which, some of the SOPs which have happened in the middle of the financial year, the full year impact of those will come. And as a matter of fact, some, some of the new business wins which have happened in this particular financial year, couple of them, they will also start somewhere in maybe closer to H2 of the next financial year. And of course, as you must have read the capacity announcement of Mahindra and their increase in capacity expansion, IAC will still continue to, benefit from that, and they have a couple of new models lined up for SOP in the next financial year.
However, with respect to any exact or specific number with respect to FY 2027, we will be able to provide you some clarity, maybe, maybe by the end of March or so.
No, no, thanks. My second question pertains to margins. So how confident is the company to attain this guided 16% EBITDA margin target by FY 2028? There are three parts question, and basically, first, is there any risk which can, you know, probably restrict this upward journey? And second, what all steps the company is taking to achieve this aim of 16%. And lastly, which subsidiaries will mostly be going to contribute positively in attaining this thing?
So, Amit, I'll take this first. I think if you look at our performance from Q1 onwards, we've progressively expanded our EBITDA margins, which were sitting at around 13%, and then inching towards 14.5%, and then for Q3, we've done 15%. I think we're reasonably confident to maintain a similar EBITDA margin going forward for the quarter four and in FY 2027 as well. We should be able to expand further by about 50 basis points or so. I think the confidence comes from, again, as I mentioned, a very, you know, different diversified reasons. One, of course, certain subsidiaries like IAC or Green fuel, will have a stronger growth compared to the 15%-20% guidance which we've given. Both of these sit at a higher margin business.
Also, the aftermarket, which sits at a higher margin business, will continue to also deliver accelerated growth. Once again, with the premium offerings, our value content per vehicle will also continuously change, thereby pulling the margins further.
Right. So, there are no risks you see, right, for this upward journey?
I mean, most of the risks we are, seem to be mitigated, but of course, if something unforeseen comes, then, you know, we'll cross that BRIDGE when we get there. But as of now, we seem to be on track to maintain the current margins achieved and expand it further as we go forward in FY 2027 to achieve closer to 16% or so in FY 2028.
This is good to hear, sir. So just last one question, especially on the standalone side. So we are in the process of doing some restructuring and appointed an external consultant as well. So wanted to know what is the status, progress, and benefits expected on margins, and any internal aim for, you know, margin improvement, especially on the standalone side. And lastly, similarly, standalone is a big portion of your consolidated business now. So, so from where the growth is expected to come for the next two fiscal, and in case you want to highlight any new wins so far for the standalone?
So I think I'll answer in serial order. So with respect to whatever the external help we sought, so I think that margins, or I would say that impact of that particular cost has reflected on the standalone financials for this particular financial year. But the full impact of that particular expense you can see in the consolidated profitability because some of the various, I would say, cost cutting or maybe the fixed cost reduction savings impact has been reflected in the consolidated financials. Apart from whatever the strategic input they gave on the aftermarket or maybe the couple of other subsidiaries also.
So if you exclude that one-time impact in this particular fiscal year, even for the standalone financials, the profitability, including the other income, will come in the region of maybe closer to 11- odd %, which, say, in the last maybe two to three years, we have seen slight improvement from the maybe 8%-9% that was there in couple of years back of the standalone financial....
And, where the growth, aspect for this-
Sorry to interrupt you, sir, but if you have a follow-up question, please rejoin the queue. There are a couple of participants waiting. Thank you. Our next question comes from the line of Vijay Kumar Pandey from Nuvama. Please go ahead.
Hi, sir. Thank you for taking my questions, and congratulations for a good set of numbers. Sir, first of all, wanted to check about the midterm FY 2028 margin target of 16%. So we are already at 15%, 14.8%. What is the risk of not meeting that target? And is there possibility or in other ways, can you... Is it okay to assume that we can cross 16% margin in FY 2027 or early part of FY 2028?
Well, Mr. Pandey, I think, you know, we've given an ambitious goal for us to move closer to a 20% EBITDA over the next five to seven years. I think we would appreciate that the margin in this fiscal year, where we were starting in quarter one, has almost gone up by 180 basis points in the nine months. I think we are reasonably confident, as I mentioned before, that the EBITDA margins between 15%-15.5% will continue to be maintained on an accelerated top-line growth of maybe 20%, 25%. So in real absolute amounts, yes, we will have a significantly higher profit growth in FY 2027. But I think for now, I would still continue to maintain a guidance of getting close to a 16% EBITDA in FY 2028.
There are always risks associated with this journey, but I think the management team is quite confident, given the diverse set of products and systems we do, and also the whole premium offerings, which we are trying to, you know, get towards as a part of our long-term strategy. I think we are fairly confident to achieving and sustaining those margins.
Thank you, sir. Thank you. And, sir, secondly, on the subsidiary side, I wanted to check about the loss-making subsidiary. So, we said that JOPP will be again like it turned, it was as EBITDA positive in second half, but at PBT level, it will be negative. So if you can help us on JOPP, Ituran, helping and FAE, the profitability and the growth aspect in these subsidiaries, that will be pretty helpful. And also, sir, just wanted to check about the deferred tax. What will take back in the third quarter?
So I'll answer on the profitability part of JOPP, specifically, and the deferred tax. Then, I will let Mr. Vikas Marwah to come in and speak about the growth aspects of all these subsidiaries. So firstly, just to answer, so, with respect to maybe the earlier discussion, Vijay, this was specifically for Lumax Yokowo that we mentioned that it will be EBITDA positive for the H2 of the financial, current financial year. And just to let you know that quarter three was the first full quarter for the Lumax Yokowo, in which it became EBITDA positive and also maybe PBT positive also for some part of the quarter. But Lumax Yokowo still will continue to have the negative EBITDA for the rest of the financial year also.
With respect to your deferred tax query, so as I mentioned in my opening speech, it was a one-off. It was nothing but a notional entry on account of the reversal of the deferred tax liability, which we accrue when we acquire the Green fuel Energy through our SPV. Now, the merger of that Green fuel has happened with the SPV. That is why the reversal of deferred tax has come in this particular quarter. However, if we exclude that impact, the ETR is at 26% odd and will continue to remain at a similar percentage way forward also, considering the existing structure. Now I will request Mr. Vikas Marwah to come in and comment on the growth of these subsidiaries.
Thank you, Ankit. So as far as the subsidiaries are concerned, the question is very relevant. But, let me assure you that even in the subsidiaries also, the management continues to focus on the subsidiaries which have got huge scalability and a larger traction. I will begin with Alps. Alps is set to exceed a revenue mark of INR 500 crore by FY 2031, and also, target somewhere close to a 15% kind of an EBITDA margin in very technologically intensive products. Yokowo, as already mentioned by Ankit, has reached a full quarter of profitability as far as the EBITDA margins are concerned, and is now approaching market leadership position with at least two major OEMs and going to a revenue scale. So we have no concerns on that, also on scalability and, potential to improve the profitability.
Ituran continues to be profitable. Yes, the telematics vertical as such is not yet completely mature in India. It is still in nascent stage. So we are, we have matured our business offerings with India's premium customer, Daimler India, where our products are already successfully validated, and we are waiting for the next business opportunities. FAE already went into successful SOP and is profitable and has got a dominant market share at two 2-Wheelers companies, which is Mahindra Motorcycles and Royal Enfield, and continues to look at the third opportunity very soon. JOPP, of course, was an entry into a product line, which was a second source when we came in.
Primarily, the products being shift towers, and currently, even though the order book is parked for future scalability, we continue to have active discussions with the OEMs in terms of how to integrate this better within our transmission division. Lumax Mannoh and Lumax Cornaglia continue to be high revenue, highly profitable entities. So there you go on all these subsidiaries, including, of course, today, Greenfuel and IAC, which are much more profitable than all of them.
Just, sir, on the telematics part, so, do you see any increase in the business coming? Because ADAS is being meant, it will become mandatory in the Commercial Vehicles from next year onwards. So do you expect to see some-
So the telematics offerings from Ituran right now are primarily in the TCU space, which is the Telematics Control Unit, which is an advanced version of track and trace. We have now gone into the eCAN, solutions, which are there for the EV vehicles. The FY 2027 focus for telematics will be very strongly on the aftermarket of telematics. That's a new vertical that we are opening up, and we hope to double our telematics revenue in the next 12-18 months riding on these things. Besides, of course, waiting for these full-blown ADAS opportunities to open up.
Okay. Okay, sir. Thank you, and all the best for upcoming quarters.
Thank you.
Thank you. Our next question comes from the line of Dhaval Shah from Girik Capital. Please go ahead.
Yeah. Hi, team. Great set of performance and great to see guidance upgrade since last two, three quarters. So a couple of questions on the balance sheet front. So our debt seems to be, you know, as per the guidance, and so considering the CapEx, you'll be doing around INR 220 crore-INR 240 crores this year, how should we think about the CapEx number for the next two years? And will we see an absolute increase in the debt on the balance sheet? Also, we have some inorganic plans also on the cards. So can you just guide us on that front?
A related question is, does this, the finance cost for this quarter of INR 27 crore, become a base now, for the future quarters? How should we think of it? Because this has come as a bit of surprise. So, and also the depreciation figure is also quite high. So, if you know, if Thakral can throw some light on that as well. Thanks. Yeah.
So, yeah, so answering your last observation first. So as I mentioned in the opening speech, which I think you maybe, you may must have missed. So regarding the depreciation and finance costs, so it was mainly due to on account of amortization of the Right of Use assets because of start of our lease on couple of new, I would say, facilities. Of course, some part of it is because of capitalization, but majorly because as per accounting now, when you capitalize as a ROU, it comes under depreciation and the lease finance cost. However, considering the way forward for finance cost, you can, as per the existing term loan, you can take a quarterly figure of anywhere between around INR 25 crore-INR 26 crore for way forward per quarter. And of course-
So that will be like the actual, actual cost you are saying? Yeah.
Yes. Yeah. Yes.
The actual interest what you are going to pay.
Yes.
Okay.
So it was similar figure, which was there in, I would say, Q2 of the financial year. And of course, answering to your loan, basically the debt position or, of course-
Sir, so this INR 27 crore figure, which we had, so, so there was what? INR 3 crore of this Ind AS impact?
INR 1.5- crore-INR 2- odd crore of Ind AS in finance cost, and maybe closer to INR 2.5 crore-INR 3 crore in depreciation. With respect to your debt query, so considering the existing structure, of course, whatever the yearly repayment is there of the existing term loans, which are majorly on account of acquisition financing also. I think in the next three years, it is getting repaid in full. As far as, say, any new organic, so as of now, nothing is concrete, and as in when if something materializes, we will definitely communicate in due course of time.
That's correct, yeah.
To the last point, yes, with respect to CapEx, I would-
The CapEx. The CapEx, yeah.
I think we continue to believe that the annual CapEx for organic growth should be anywhere between INR 150 crore-INR 200- odd crore. I think, you know, it would vary across subsidiaries, but I think the company is sitting on enough, internal resources and free cash to reinvest into the organic growth of the business. As Ankit mentioned, if there are any inorganic plans which become concrete, in due course, then we will see how to, you know, leverage and balance the debt versus internal accruals, accordingly.
... Got it, got it. And sir, this 16% EBITDA margin, aspiration is including other income or excluding other income? Generally, we give including other income, if I'm not wrong.
Yes, we communicate all our EBITDA numbers, including other income.
Yeah, for FY 2028. Okay, okay. Got it, sir. Okay, thank you.
Yeah. Thank you.
Thank you. Our next question comes from the line of Apurva Mehta from AM Investments. Please go ahead.
Sir, congratulations on great set of numbers. Sir, just only one question. You know, after market, the growth has been always, you know, aspirational to grow beyond 20%, but we are, you know, not able to basically scale up that aftermarket. Can we see that happening in coming year?
So Apurva, thank you very much. I completely agree that the coming quarters, you will start seeing a further accelerated growth in the aftermarket. Having said that, if you were to benchmark the other peers in the auto component industry, actually, most of them are delivering a growth anywhere between 7%-11% for the nine months. So we definitely were in that bracket almost about three, four quarters ago, where our growth was also in single digits. But I think with the external interventions, with completely redefining what and how, you know, looking at the secondary pull in the market, we've been able to have an accelerated growth, and we reported a number of 15% growth in the aftermarket.
I think we are on course to achieve and further enhance growth, as I mentioned. I still continue to give the guidance of a 20% growth in the aftermarket, will definitely be achieved, going forward in the next year.
Okay. That's good to hear. And on the, you know, where we have set up a, you know, software center shift, what kind of - where do we stand currently, and what is the role of that venture? Which, what are we, you know, trying to achieve? Because we have set up various subsidiaries in China and everywhere. Just to, you know, get into that, where are we heading towards for that?
Maybe I request Vikas to just give a quick update on the shift facility, and maybe if, Sunil, if you want to just give a quick download on the China resource center. Thank you.
Thank you, Apurva. So as far as the shift center is concerned, we inaugurated it in October 2025 only, with a bench strength of 25 software engineers, our first entry of Lumax Auto Technologies into such a space, because of the human capital of software being based out of Southern India. Shift has got two very clearly defined focuses, the results of which are beginning to be visible after two quarters, where they have already lent robustness in terms of the software resilience and in terms of the electronic content into a few of the joint ventures that we are operating in India right now, where rather than leaning on the overseas support, we have managed to indigenize it on the India side, inside Lumax.
Second, there is a substantial new business that is getting incubated inside Lumax Auto Technologies, standalone entity right now, the details of which we cannot disclose, and we'll be happy to share it in Q2 of the next financial year when it gets into SOP. It is wholly being driven in terms of the software management by Shift. Thirdly, Shift on its own has initiated for two POCs that would be running on new age, EV-centric products. Now, this is again initiative, which is being led by Shift directly, and that is something which they will be focusing upon. So Shift will have two basic functions.
Number one, to give resilience, to the existing joint ventures and the standalone operations of Lumax Auto Technologies in terms of the electronification and the software content, and second, drive their own revenues. But more about Shift, we will be happy to share with you in terms of the next exciting news that comes. On the China office, I will request, my colleague, Sunil, to please brief you about it.
Thank you, Vikas. Thank you. Good afternoon. I just wanted to update on the China office. The purpose of China office, it remains the same. We have put in the staff primarily to look at the new tooling and development, as well as manufacturing, automation, et cetera. So that is the primary focus will remain, and as a group company, we'll be looking at... We also have signed a couple TAs with a few companies, and that has already turned businesses. Actually, we have one ambient lighting business for Maruti Suzuki, as well as some of the premium cup holders and mechanism parts, which we are developing with Chinese assistance. They have already turned into business and will continue to grow as we bring in more premium segmentation into cars.
So that will, that's brief about China.
... Yeah, we need to hear all these things. One last thing on the greenfield side, the content per vehicle, which going forward was going to expand. Can you throw some light on that also?
So, of course, I would request Mr. Akshay Kashyap to come in and, maybe speak about increase in the content per vehicle.
Yeah. Thank you very much for that question. As you know, the CNG car market continues to grow. Today, our content per vehicle is about INR 3,200 crore per vehicle, out of INR 11,500 crore as an opportunity. As Mr. Anmol had mentioned that, on 18th December, we inaugurated a facility of a localized ferruleless technology of fittings, which every car uses, and is an approximate content of INR 3,500 crore more per vehicle. We believe, and we are the only first company in India to localize this kind of technology, and therefore, we believe, we've already got the order for the Celerio, and as we move forward, we are looking to get more of the schedules and visibility on the other vehicles.
That will significantly ramp up our content per vehicle, from INR 3,200 crore to almost INR 6,700 crore per vehicle. With the caveat on the models we are in.
Yeah, it's very clear. Yeah. And, and over the period, that content-
Sorry to interrupt you, sir, but... is this Mr. Akshay speaking?
No.
Okay, okay. Sorry to interrupt you, sir, but if you have a follow-up question, please rejoin the queue.
Yes.
Thank you.
Thank you.
Our next question comes from the line of Mihir Vora from Equirus Capital. Please go ahead.
Yeah. Hi, thank you for taking my question. So my question was basically on the IAC part, where we have seen the new launch of XUV 9S and the 7XO. Just trying to understand whether what kind of content value increase will we see in this new model?
I would request Mr. Sunil to come in and maybe explain you about the content per vehicle of these particular two models.
I think the content increase, if you look at between XUV700 and XUV 7XO, the content is not really increased because some of the products which are changed is more like, bringing the bigger screen. It has not affected our portfolio, but we have added some additional premium components to both of these models, so content per vehicle may not increase more than, say, INR 1,500 crore, in terms of that. Because we, even on the 9S, we were already producing these parts XEV 9e, but we have, gotten some additional content, as I said, which will not value more than... But overall, the volume of EV, because of 9S introduction, will go up. Also, there is a forward-looking statement from Mahindra to, boost the capacity of, XUV 7XO.
Okay. But I think previously they mentioned about 700 content is higher than the EVs. Is it something like that, or EVs content is some higher than the 700?
Mihir, with respect to the overall manufacturing and thereby integration of all the other parts, so I think XUV 700 content was slightly maybe on the higher side. But, however, with respect to as and when the more and more the premiumization vehicles are being manufactured by Mahindra, this content per vehicle, surely, but slowly, will definitely increase over a period of maybe 18-24 months. But, yes, for a single particular quarter, that impact may be too low to be visible.
Okay, okay. Secondly, on this, in terms of IAC, are we able to tap into other clientele, like for selling out more products to Maruti or entering into Tata Motors? Anything, any development there?
Again, I would request Sunil Ji to come in and maybe.
Yes, so we have, we have secured some future business for some of the upcoming programs for Maruti Suzuki. We are also looking at expanding our presence in the CV space, besides the Volvo Eicher portfolio we have today. So we are in discussion with some other CV manufacturers to grow the content there as well. Tata, we had, we had received the order. That program is right now on hold, and hopefully it gets kicked off again. But we continue to increase our market share in Maruti and other non-Mahindra customers as well.
Okay. Okay, okay. Just lastly, if I can squeeze in one more. So my last question is on the Greenfuel part, where if we see the balance sheet of Greenfuel, the asset turns seems to be very high for the business. So just wanted to understand whether is it something where we are buying out parts and just assembling it? Is it an assembly kind of a business? So some color on that.
So yes, as we explained at the beginning of the financial year also, so this particular business is an extremely asset-light business, because most of the parts, I would say, are being procured from outside, some of it from as an imported content also, and are getting assembled internally only. However, with respect to this new product line addition, which we have just recently done with respect to this screwless tubes and fittings, so we have made certain capital investment, maybe closer to around INR 8 crore-INR 10 crore for this particular financial year, that has enabled this particular SOP. But with respect to going forward, apart, if you compare with maybe the other business divisions, this particular entity, Greenfuel, continue to be asset light and better than, of course, much better than the company's overall average ADR.
Okay. But do we look at backward integrating some components year ahead in the existing product portfolio also, or we'll continue as it is, how it is going on right now?
Maybe I would request Akshayji to come in and maybe elaborate something about the backward integration of whatever the products.
Yeah. Once again, thank you for that question. In our case, if you look at a few years ago, the import content was almost as high as 65%. We have already brought it down to 35%-40%. As we move forward, we are looking at localizing more products. Having said that, because our products are very safety critical, there are certain parts that are not produced in India at the moment, and suppliers are not available, so those will continue to be imported. But as Mr. Thakral explained, with the localization of this new technology, we will be investing more into you know, expanding that. Therefore, when we look at our overall revenues, the import content will become much lower as we go forward.
Okay. Okay, sir. Thank you.
Thank you.
Thank you. Our next question comes from the line of Sahil Sharma from Dalmas Capital Management. Please go ahead.
Yeah, hi. Thank you for taking my question. So, sir, can you provide some more details on the others revenue segments, segment? This seems to have grown quite a bit, this quarter.
Maybe with respect to the customer-wise, you may be asking about it.
Customer-wise also and product-wise also, it's about INR 110 crore-INR 111 crore this quarter, versus INR 65 crore in Q3 FY 2025. So-
So it was nothing, it was nothing, but maybe around INR 45 crore-INR 50 crore of tooling and design revenue, which was done by the IAC entity in this particular quarter, which was not there in Q1 and Q2. Normally, this tooling sales and whatever, they happen in the H2 of the financial year, so that is why, you are seeing in Q3. But however, if you compare with, of course, the, nine months with respect to the overall financial, overall last financial year, so I think the percentage is more or less in the similar range.
Understood. And, like, what would be the profits from this tooling revenue this quarter?
Almost more or less in a similar region of the overall company's profitability.
Okay. Understood, sir. And on IAC, so M&M has announced a new greenfield capacity in Nagpur. So, you know, are we engaging with them on this? And, you know, are we looking to invest in Nagpur for the same?
I would request Sunilji to come in and maybe elaborate about it.
Yeah. So, again, thank you, Ankit. So obviously, we have been closely working with Mahindra to, at this point, I think the decisions are very preliminary stage, I would say. But, we are in discussion with Mahindra in terms of what kind of acreage or square footage for building we need in case we have to set up supplier part kind of situation in Nagpur. So I would say it's a little too early, but maybe we'll shed some light, maybe next quarter on this. But definitely we are in talks with Mahindra in terms of setting up new plant in Nagpur.
Sure. And if you could just provide some more details on the ambient lighting business with Maruti, I think you mentioned before.
So this particular ambient build light business, we got because of our collaboration with the China partner, and it is for a upcoming program, code named Y2V. And that has really given us a good in way to get into ambient lighting with Maruti.
Okay. Thank you so much.
Thank you. Our next question comes from the line of Dhaval Shah from Girik Capital. Please go ahead.
Yeah, thanks for the opportunity again. So, my question is on the, again, on the finance cost. So last year, our debt was around INR 770 crore, excluding the lease liability part of the borrowings. And today we are at the same number, almost. So, while our finance cost should be around, say, INR 90 crore-INR 95 crore for the year, so what is the interest rate on the debt for us?
So, I think I explained at the beginning of the call. Finance cost for this particular quarter, we are seeing upwards of around INR 2 crore, which is basically on account of the lease financing, which is done on the basis of the right of use accounting. Because nowadays, when you are taking a new facility on lease for a longer period of time, you have to account for that lease liability, and the part of it comes under finance cost, and the remaining portion comes under the depreciation cost. That may be certain retrospective impact has come for this particular quarter. But going forward, this finance cost is considering the existing debt structure and whatever the repayments are being done.
This finance cost is expected to settle anywhere between around INR 25 crore-INR 25.5 crore for a quarter.
So, what should be the interest rate or average interest rate on our borrowings, then?
So again, on the long-term borrowings, it varies because most of the debt has been taken on the acquisition financing, and whenever any debt is on acquisition financing on the purchase of shares, that normally comes at a bit, I would say, higher basis points with respect to the traditional borrowing. So on account of traditional borrowing, the average debt may be closer to around 7%-7.5%. However, with respect to the acquisition financing, it is closer to 9%. And on the short-term working capital, and again, it varies from bank to bank. However, average cost of debt is again closer to maybe 7%-7.25%.
7%-7.25. Okay. Understood. And, yeah, and in terms of taxation, should we be back to the 10.26% tax from next year?
Yes. So there was a one-off again in this-
Yeah
particular quarter, and if we even exclude that one-off, the ETR comes out as 26- odd% only, and which will continue way forward, too.
And also, the minority part was higher than what was discussed in the previous. The previous, last quarter, there was 14% of PAT was minority. This quarter, it is around 24% minority percentage of PAT. And I think on a full year, you had guidance somewhere between 15%, 16%. So, little confused how to understand this minority figure, because it takes out a substantial part of the PAT. So any guidance would you like to share with us?
So again, this thing I explained in my opening speech. So whatever the gain in the deferred tax that has come because of part of it is my reducing the overall minority, I would say, increasing the overall minority percentage, because it is on this reversal is in, is on account of the merger of Greenfuel and SPV, and, Greenfuel being a 60% subsidiary, so that is why the 40% impact does come in the minority interest. However, excluding that one-off, the share of minority, even for this particular quarter, is at 16% only, and we have given the similar guidance going forward also-
Yes.
- for minority, between 15%-17%.
15%-17%. Okay, got it. Thank you.
Thank you.
Thank you. Ladies and gentlemen, in the interest of time, that was the last question. I now hand the conference over to the management for closing comments.
Thank you once again for joining us for the quarter three and nine months earnings call and for your continued interest in Lumax Auto Technologies. We truly appreciate your time and engagement today. Should you have any further questions or require additional information, please feel free to reach out to us or our investor relation advisors at Adfactors PR. We remain committed to keeping the investor community regularly updated on our progress. Thank you, and we wish you all a great day ahead.
Thank you. On behalf of Lumax Auto Technologies Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.