Lumax Auto, a towering force in the automotive components space, has firmly cemented its leadership as the go-to manufacturer of gear shifters and interior solutions. With a commanding 80% market share among passenger vehicle customers, the company has become synonymous with precision engineering and trusted partnerships. But what truly has the market abuzz is not just its current dominance — it’s the bold vision that Lumax is steering towards.
Stock Soars as Investors Embrace the Vision
In just a few months, Lumax’s stock price has skyrocketed by 120%, vaulting from ₹509 on 2 May to ₹1,113 by early July 2025. This remarkable rally reflects investor faith in the company’s ambitious growth blueprint, aptly named the ‘20-20-20-20 NorthStar’ strategy.
The plan is both straightforward and daring: deliver 20% annual revenue growth, achieve 20% Ebitda margins, reach a 20% return on capital employed (RoCE), and secure over 20% of revenue from clean mobility solutions. If this vision unfolds as planned, Lumax’s revenue could soar from ₹3,637 crore in FY25 to a striking ₹11,000 crore by FY31.
FY25: A Breakout Year Anchored by Broad-Based Strength
FY25 marked Lumax’s best-ever financial performance. Revenue surged 29% year-on-year to ₹3,637 crore, while Ebitda crossed ₹500 crore for the first time, landing at ₹516 crore (up 25%). Net profit followed suit, rising 37% to ₹229 crore.
Passenger vehicles remained the main revenue driver, contributing 53%, followed by two- and three-wheelers at 22%, aftermarket sales at 11%, and commercial vehicles at 8%. Importantly, customer diversification minimized concentration risks — no single client dominated the pie. Mahindra & Mahindra contributed 27%, with Bajaj, Maruti Suzuki, Hyundai, Tata Motors, and others rounding out a well-spread portfolio.
Perhaps most telling of Lumax’s strategy is the rise in “content per vehicle.” For passenger vehicles, content per vehicle has quintupled over five years to ₹70,000–₹75,000, while for two-wheelers, it has nearly quadrupled to ₹15,000–₹18,000. This showcases deeper integration and stronger value capture per unit.
Strong Segments Fueling the Engine
Lumax’s core segments — advanced plastics, structures and control systems, aftermarket, mechatronics, and alternative fuels — all contributed to its momentum. Advanced plastics, the largest contributor (56% of FY25 revenue), grew by 27% to ₹2,037 crore, powered by premium vehicle launches and higher client penetration.
Structures and control systems rose 8% to ₹727 crore, while aftermarket revenue grew 5% to ₹403 crore, supported by stronger retail reach and a broadened product range. Mechatronics saw an impressive 80% growth, underpinned by the increased adoption of telematics and smart actuators.
A pivotal move was the acquisition of GreenFuel Energy in November 2024, which marked Lumax’s aggressive entry into clean mobility. GreenFuel’s high-margin business model (22% margin versus Lumax’s 14.2%) and leadership in CNG, hydrogen, and EV battery systems instantly enriched the portfolio.
Clean Mobility: The New Frontier
Lumax’s clean mobility push is central to its growth story. GreenFuel alone is expected to contribute ₹300–₹350 crore to FY26 revenue. Beyond OEM supply, GreenFuel’s strong aftermarket presence and patented technologies open new growth avenues.
Lumax’s vision for future mobility also includes ramping up subsidiaries like Lumax Alps, expected to grow tenfold from ₹50 crore to ₹500 crore over 4–5 years through a major product rollout. The ‘SHIFT’ initiative (Smart Hub for Innovation & Future Trends) positions Lumax at the cutting edge of software-defined vehicles, with pilots already underway in advanced driver assistance systems (ADAS).
The company’s order book underscores this direction, with around 40% linked to battery electric vehicle (BEV) platforms. By FY31, Lumax aims for future and clean mobility solutions to account for over 20% of revenue — a significant jump from just 6% in FY25.
IAC: A Strategic Jewel
In May 2025, Lumax completed the acquisition of the remaining stake in International Automotive Component Group (IAC), making it a wholly owned subsidiary. IAC’s close relationship with Mahindra — commanding a 90-95% wallet share for premium EV interior components — positions it as a key revenue pillar.
IAC clocked ₹1,200 crore revenue in FY25, up 35-40%, and expects steady 10-15% annual growth driven by increased content per vehicle and expanding OEM partnerships with Tata Motors and Maruti Suzuki. New BEV models from Mahindra are set to further accelerate IAC’s momentum.
A Look Ahead: Execution Is the Final Gear
Lumax’s goals are nothing short of ambitious. From ₹3,637 crore today to ₹11,000 crore in FY31, from ₹516 crore Ebitda to a projected ₹1,000 crore by FY28, and an envisioned 20% margin and RoCE — these milestones paint a transformative picture.
However, after the recent stock surge, Lumax’s valuation now sits at a lofty price-to-earnings ratio of 43, much higher than its five-year median of 24. While growth optimism is largely priced in, the real challenge lies in seamless execution.
With strong segment fundamentals, deep client integration, a robust push into clean mobility, and a focus on next-gen software solutions, Lumax has laid down a bold, multi-lane highway for future growth. If the company can deliver on its NorthStar vision, it won’t just remain a dominant tier-1 supplier — it will emerge as an integrated systems leader, setting benchmarks for India’s auto component industry.
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Disclaimer
This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.