Lumax Auto Q2 Profit Jumps 58% on Strong Growth

a leading automotive component manufacturer, reported strong Q2 FY27 results, with consolidated net profit attributable to shareholders rising 57.5% YoY to ₹105.5 crore from ₹67 crore. Revenue increased 34.5% to ₹1,555.5 crore from ₹1,156.4 crore. EBITDA, including other income, grew 34% YoY to ₹228 crore, while EBITDA margin remained stable at 14.7%. Profit before tax increased 48% to ₹154 crore, reflecting improving operational performance. The company also announced a ₹150 crore investment to establish a new mechatronics manufacturing facility in Manesar, Haryana. The plant will manufacture electronic components, including Body Control Modules, for leading automobile manufacturers. The facility is expected to begin commissioning in phases from Q3 FY28, with a targeted annual turnover of approximately ₹500 crore at peak capacity. For H1 FY27, consolidated revenue grew 34% to ₹2,919 crore, while profit after tax before minority interest increased 64% to ₹215 crore. From a research perspective, strong revenue growth and expansion into advanced automotive electronics indicate improving business momentum. The new facility could strengthen Lumax's presence in higher-value automotive components. However, rising raw material costs, electronic component prices and capital expenditure requirements remain important risks. Investors should monitor EBITDA margins, debt levels, capacity utilisation and execution of the Manesar expansion. Learning Takeaway: Capacity expansion creates future revenue opportunities, but investors should evaluate capital expenditure, project timelines and return on capital before estimating its earnings contribution. Disclosure: This post is for educational purposes only and does not constitute investment advice. Any holdings or conflicts of interest should be disclosed separately.