Q1 2027 Lumax Industries Ltd Earnings Call

August 11, 2026

Speaker #1: Ladies and gentlemen, good day, and welcome to the Q1 FY27 earnings conference call for Lumax Industries Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation.

Operator 2: Ladies and gentlemen, good day and welcome to the Q1 FY27 Earnings Conference Call of Lumax Industries Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Before we begin, a brief disclaimer, this conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as of 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. I would now like to hand the conference over to Mr. Deepak Jain, Chairman and Managing Director of Lumax Industries Limited.

Operator: Ladies and gentlemen, good day and welcome to the Q1 FY 2027 Earnings Conference Call of Lumax Industries Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.

Speaker #1: Should you need assistance during this conference, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: Before we begin, a brief disclaimer: This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call.

Operator: Before we begin, a brief disclaimer, this conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as of 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. I would now like to hand the conference over to Mr. Deepak Jain, Chairman and Managing Director of Lumax Industries Limited. Thank you, and over to you, sir.

Speaker #1: These statements are not guarantees of future performance and may involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Mr. Deepak Jain, Chairman and Managing Director of Lumax Industries Limited.

Speaker #1: Thank you, and over to you, sir.

Operator 2: Thank you, and over to you, sir.

Speaker #2: A very good morning, everyone. I hope everyone is doing well, along with me. On this call today, we have Mr. Anmol Jain, the Joint Managing Director of the company; Mr. Sanjay Mehta, Group Chief Financial Officer; Mr. Ravi Telthiya, CFO of the company; Mr. Naval Khanna, Corporate Head of Taxation; and Ms. Surabhi Chandna, Group Head of Investor Relations and Value Creation, along with the Investor Relations Advisor, SGA.

Deepak Jain: A very good morning, everyone. I hope everyone is doing well. Along with me on this call today is Mr. Anmol Jain, the Joint Managing Director of the company; Mr. Sanjay Mehta, Group Chief Financial Officer; Mr. Ravi Teltia, the CFO of the company; Mr. Naval Khanna, the Corporate Head of Taxation; and Ms. Surbhi Changna, the Group Head of Investor Relations and Value Creation, along with the investor relation advisor, SGA. We updated our financial results and earnings presentation on the stock exchange and the company's website. I hope everybody has had an opportunity to go through the same. The economic environment during Q1 FY27 was influenced significantly by the ongoing crisis in West Asia. Its effects were felt across multiple parts of the Indian economy, from high crude oil prices to disruptions in shipping and trade movement, to periods of rupee volatility.

Deepak Jain: A very good morning, everyone. I hope everyone is doing well. Along with me on this call today is Mr. Anmol Jain, the Joint Managing Director of the company; Mr. Sanjay Mehta, Group Chief Financial Officer; Mr. Ravi Teltia, the CFO of the company; Mr. Naval Khanna, the Corporate Head of Taxation; and Ms. Surbhi Changna, the Group Head of Investor Relations and Value Creation, along with the investor relation advisor, SGA. We updated our financial results and earnings presentation on the stock exchange and the company's website. I hope everybody has had an opportunity to go through the same. The economic environment during Q1 FY 2027 was influenced significantly by the ongoing crisis in West Asia. Its effects were felt across multiple parts of the Indian economy, from high crude oil prices to disruptions in shipping and trade movement, to periods of rupee volatility.

Speaker #2: The updated financial results and earnings presentation are on the stock exchange and the company's website. I hope everybody has had an opportunity to go through them. Q1 FY27 was influenced significantly by the ongoing crisis in West Asia.

Speaker #2: Its effects were felt across multiple parts of the Indian economy, from high crude oil prices to disruptions in shipping and freight movement, to periods of rupee volatility.

Speaker #2: Despite these headwinds, FY27 began on a strong note for the Indian automotive industry, with demand remaining resilient across vehicle segments. Costs and availability pressures on key imported inputs did not meaningfully disrupt production for the Indian automotive sector through the quarter, a testament to the underlying strength of domestic demand and supply chain discipline across the ecosystem.

Deepak Jain: Despite these headwinds, FY27 began on a strong note on the Indian automotive industry, with demand remaining resilient across vehicle segments. Costs and availability pressures on key imported inputs did not meaningfully disrupt production for the Indian automotive sector through the quarter, a testament to the underlying strength of the domestic demand and supply chain discipline across the ecosystem. According to SIAM, during the first quarter, overall, the Indian auto industry production stood at 93.6 lakh units, up 22.2% year on year. The passenger vehicle production grew by 17% year on year to 14.5 lakh units, driven by sustained demand for utility vehicles, premiumization trends, and continued new model launches. The two-wheeler production increased by 23% to 72.5 lakh units, supported by improving rural demand and easier retail financing.

Deepak Jain: Despite these headwinds, FY 2027 began on a strong note on the Indian automotive industry, with demand remaining resilient across vehicle segments. Costs and availability pressures on key imported inputs did not meaningfully disrupt production for the Indian automotive sector through the quarter, a testament to the underlying strength of the domestic demand and supply chain discipline across the ecosystem. According to SIAM, during the first quarter, overall, the Indian auto industry production stood at 93.6 lakh units, up 22.2% year on year. The passenger vehicle production grew by 17% year on year to 14.5 lakh units, driven by sustained demand for utility vehicles, premiumization trends, and continued new model launches. The two-wheeler production increased by 23% to 72.5 lakh units, supported by improving rural demand and easier retail financing.

Speaker #2: According to SIAM, during the first quarter, overall, the Indian auto industry production stood at 9.36 million units, up 22.2% year-on-year. Passenger vehicle production grew by 17% year-on-year to 1.45 million units, driven by sustained demand for utility vehicles, premiumization trends, and continued new model launches.

Speaker #2: The two-wheeler production increased by 23% to 7.25 lakh units, supported by improving rural demand and easier retail financing. The three-wheeler production recorded a strong growth of 39%, reaching 3.6 lakh units, led by healthy replacement demand, growth in last-mile mobility, and improving urban transportation activity.

Deepak Jain: The three-wheeler production recorded the strongest growth of 39%, reaching 3.6 lakh units, led by healthy replacement demand, growth in last mile mobility, and improving urban transportation activity. The commercial vehicle production also remained robust, growing 16% to 3 lakh units, supported by continued infrastructure spending, construction activity, and healthy freight movement. The strong production growth across all segments underscores the resilience of the Indian automotive industry. The lower GST rates, improved financing availability, resilient customer confidence, and continued export momentum supported demand during the quarter. OEMs have adopted a calibrated approach towards passing the cost increases to customers. Encouraged by strong order visibility and a favorable midterm outlook, several OEMs have also announced capacity expansion plans across vehicle segments.

Speaker #2: The commercial vehicle production also remained robust, growing 16% to 300,000 units, supported by continued infrastructure spending, construction activity, and healthy freight movement.

Speaker #2: The strong production growth across all segments underscores the resilience of the Indian automotive industry. The lower GST rates, improved financing availability, resilient customer confidence, and continued export momentum supported demand during the quarter.

Speaker #2: OEMs have adopted a calibrated approach towards passing the cost increases to customers. Encouraged by strong order visibility and a favorable mid-term outlook, several OEMs have also announced capacity expansion plans across vehicle segments.

Speaker #2: This not only reinforces confidence in the long-term growth trajectory of the industry, but also creates significant opportunities for auto component manufacturers like us to deepen our partnerships, expand product offerings, and increase content per vehicle through technology-led and value-added solutions.

Deepak Jain: This not only reinforces the confidence in the long-term growth trajectory of the industry, but also creates significant opportunities for auto component manufacturers like us to deepen our partnerships, expand product offerings, and increase content per vehicle through technology-led and value-added solutions. Speaking on automotive lighting, the nature of the customer demand is evolving. OEMs in India are seeking increasingly advanced lighting solutions while maintaining a sharp emphasis on cost efficiency and local value creation. The key priorities we hear from them today include evolving safety compliance, improved energy efficiency, stronger styling differentiation, deep integration with ADAS and vehicle software, and faster development cycles. While cost competitiveness remains important, the conversation has evolved beyond being purely cost-driven. At Lumax, we are responding to the shift through a dual-track approach, where program requirements demand rapid-to-time market or aggressive cost targets. We actively collaborate with leading standard module suppliers.

Speaker #2: Speaking of automotive lighting, the nature of customer demand is evolving. OEMs in India are seeking increasingly advanced lighting solutions, while maintaining a sharp emphasis on cost efficiency and local value creation.

Speaker #2: The key priorities we hear from them today include evolving safety compliance, improved energy efficiency, stronger styling differentiation, deep integration with ADAS and vehicle software, and faster development cycles.

Speaker #2: While cost competitiveness remains important, the conversation has evolved beyond being purely cost-driven. At Lumax, we're responding to this shift through a dual-track approach. Where program requirements demand rapid time-to-market or aggressive cost targets, we actively collaborate with leading standard module suppliers.

Speaker #2: Simultaneously, we are investing in the development of proprietary Lumax standard lighting modules, which our engineers have specifically validated for the Indian market requirements and local operating conditions, and are manufactured in India.

Deepak Jain: Simultaneously, we are investing in the development of proprietary Lumax standard lighting modules, which are engineered specifically for the Indian market requirements, validated for local operating conditions, and manufactured in India. This approach will enable us to balance global technology benchmarks with localization, cost competitiveness, and long-term value creation for OEM partners. Now coming to key updates for the company during the quarter. Our consolidated revenue stood at INR 1,223 crores, making a healthy 32.6% year-on-year growth. EBITDA for the quarter came in at INR 113 crores, up 34% year-on-year, and EBITDA margins of 9.2%. During the quarter, we have won orders for multiple products from one of the key two-wheeler OEMs. Thus, order book stands around at INR 2,500 crores with LED lighting composition of approximately 90%.

Speaker #2: This approach will enable us to balance global technology benchmarks with localization, cost-comparativeness, and long-term value creation for OEM partners. Now, coming to key updates for the company during the quarter—our consolidated revenue stood at ₹1,223 crore, marking a healthy 32.6% year-on-year growth.

Speaker #2: EBITDA for the quarter came in at ₹113 crore, up 34% year-on-year, with EBITDA margins of 9.2%. During the quarter, we have won orders for multiple products from one of the key two-wheeler OEMs.

Speaker #2: Thus, our order book stands at around ₹2,500 crore, with LED lighting comprising approximately 90%. The key launches during the quarter have been in the passenger vehicle segment: the Tata Motors Tiago, where we are supplying headlamps, and the Volkswagen Tiguan, where we are supplying the rear lamps.

Deepak Jain: The key launches during the quarter have been in the passenger vehicle segment, the Tata Motors Tiago, where we are supplying headlamps, and the Volkswagen Taigun, where we are supplying the rear lamps. In the two-wheeler segment, we have also won an order for Suzuki Motors for Burgman Street for supplying front turn signal lamps. In commercial vehicles, we have won orders from Force Motors to supply headlamps for Traveller too. Q1 board recognition from industry bodies and sustainable certifiers across dimensions from allied operations. The notable awards included the Lumax Group recognized as a most preferred workplace 2026-2027 by Marksman Daily, and five products, each from Bawal, Dharuhera, Haridwar, Pantnagar, and Sanand plants, have been awarded the GreenPro Ecolabel certification.

Speaker #2: In the two-wheeler segment, we have also won an order from Suzuki Motors for the Burgman Street, supplying front-on signal lamps. And in commercial vehicles, we have won orders from Force Motors to supply headlamps for the Traveller 2.

Speaker #2: Q1 bought recognition from industry bodies and sustainable certifiers across dimensions from LIL operations. The notable awards included the Lumax Group being recognized as a Most Preferred Workplace 2026-2027 by Marksman Daily, and five products each from Bawal, Dharuhera, Haridwar, Pantnagar, and Sun & Plants have been awarded the GreenPro Eco Label certification.

Speaker #2: From a capacity point of view, our Bangalore plant expansion to support Maruti and Toyota's upcoming models is progressing satisfactorily and is expected to be commissioned from Q4 of FY27.

Deepak Jain: From a capacity point of view, our Bangalore plant expansion to support Maruti and Toyota's upcoming models is progressing satisfactorily and is expected to be commissioned from Q4 of FY27. We also have a brownfield project underway at Sanand and Bawal to support new order wins with customers at respective locations. Coming to the outlook of the year. As we move into the festive season, demand is expected to remain healthy, although the industry continues to closely monitor commodity prices, input cost inflation, and geopolitical developments. Now I will hand over to our CFO, Mr. Ravi Teltia, for updates on operational and financial performance.

Deepak Jain: From a capacity point of view, our Bangalore plant expansion to support Maruti and Toyota's upcoming models is progressing satisfactorily and is expected to be commissioned from Q4 of FY 2027. We also have a brownfield project underway at Sanand and Bawal to support new order wins with customers at respective locations. Coming to the outlook of the year. As we move into the festive season, demand is expected to remain healthy, although the industry continues to closely monitor commodity prices, input cost inflation, and geopolitical developments. Now I will hand over to our CFO, Mr. Ravi Teltia, for updates on operational and financial performance.

Speaker #2: We also have a brownfield project underway at Sanand and Bavel to support new order wins with customers at respective locations. Coming to the outlook for the year, as we move into the festive season, demand is expected to remain healthy, although the industry continues to closely monitor commodity prices, input cost inflation, and geopolitical developments.

Speaker #2: Now, I will hand over to our CFO, Mr. Ravi Theltiya, for updates on operational and financial performance.

Speaker #3: Thank you, sir. Good morning, everyone. Let me take you through the key highlights of our operational and financial performance for the quarter. Starting with the financials, as TMD mentioned, we delivered strong top-line growth.

Ravi Teltia: Thank you, sir. Good morning, everyone. Let me take you through the key highlights of our operational and financial performance for the quarter. Starting with the financials, as CMD mentioned, we delivered strong top-line growth this quarter yet again. Our consolidated revenue stood at INR 1,223 crore, making a healthy 32.6% year-on-year growth. This growth was primarily driven by robust performance in our manufacturing business, where the revenue growth was 36.8% year-on-year to INR 1,160 crore. EBITDA for the quarter came in at INR 113 crore, up from INR 85 crore in Q1 FY26, reflecting a growth of 34%. EBITDA margin stands at 9.2%, in line with Q1 FY26, despite external headwinds. There is approximately 120 to 130 basis points net impact of commodity and other costs in Q1 FY27. This is a result of continued focus on cost discipline, operational efficiencies, and growing contribution from our premium product portfolio.

Ravi Teltia: Thank you, sir. Good morning, everyone. Let me take you through the key highlights of our operational and financial performance for the quarter. Starting with the financials, as CMD mentioned, we delivered strong top-line growth this quarter yet again. Our consolidated revenue stood at INR 1,223 crore, making a healthy 32.6% year-on-year growth. This growth was primarily driven by robust performance in our manufacturing business, where the revenue growth was 36.8% year-on-year to INR 1,160 crore. EBITDA for the quarter came in at INR 113 crore, up from INR 85 crore in Q1 FY26, reflecting a growth of 34%. EBITDA margin stands at 9.2%, in line with Q1 FY26, despite external headwinds. There is approximately 120 to 130 basis points net impact of commodity and other costs in Q1 FY 2027. This is a result of continued focus on cost discipline, operational efficiencies, and growing contribution from our premium product portfolio.

Speaker #3: This quarter, yet again, our consolidated revenue stood at ₹1,223 crores, marking a healthy 32.6% year-on-year growth. This growth was primarily driven by robust performance in our manufacturing business, where revenue grew by 36.8% year-on-year to ₹1,160 crores.

Speaker #3: EBITDA for the quarter came in at INR 1,113 crore, up from INR 85 crore in Q1 FY26, reflecting a growth of 34%. EBITDA margins stand at 9.2%, in line with Q1 FY26, despite external headwinds.

Speaker #3: There are approximately 120 to 130 bps net impact of commodity and other costs in Q1 FY27. This is a result of continued focus on cost discipline, operational efficiencies, and growing contribution from our premium product portfolio.

Speaker #3: Moving to profitability, our consolidated profit after tax, including share of associates, for quarter one FY27 stood at INR 51 crore, compared to INR 36 crore in the same quarter last year.

Ravi Teltia: Moving to the profitability. Our consolidated profit after tax, including share of associates for Q1 FY27, stood at INR 51 crore compared to INR 36 crore in the same quarter last year, registering a growth of 41.2%. PAT margin stood at 4.2%, up 30 basis points year-on-year. The effective tax rate for the quarter stood at 20.3%. Now, turning to the operation side. We are seeing strong traction in the LED lighting segment, which continues to be a key growth driver. In Q1 FY27, LED lighting accounted for 63% of our total revenue, up from 61% in the same quarter last year. Importantly, approximate 90% of our current order book is now LED-based, which gives us strong visibility and confidence in further expanding this segment and increasing our market share in the quarters ahead.

Ravi Teltia: Moving to the profitability. Our consolidated profit after tax, including share of associates for Q1 FY 2027, stood at INR 51 crore compared to INR 36 crore in the same quarter last year, registering a growth of 41.2%. PAT margin stood at 4.2%, up 30 basis points year-on-year. The effective tax rate for the quarter stood at 20.3%. Now, turning to the operation side. We are seeing strong traction in the LED lighting segment, which continues to be a key growth driver. In Q1 FY 2027, LED lighting accounted for 63% of our total revenue, up from 61% in the same quarter last year. Importantly, approximate 90% of our current order book is now LED-based, which gives us strong visibility and confidence in further expanding this segment and increasing our market share in the quarters ahead.

Speaker #3: Registering a growth of 41.2%. PAT margins stood at 4.2%, up 30 basis points year-on-year. The effective tax rate for the quarter stood at 20.3%.

Speaker #3: Now, turning to the operations side, we are seeing strong traction in the LED lighting segment, which continues to be a key growth driver. In Q1 FY27, LED lighting accounted for 63% of our total revenue, up from 61% in the same quarter last year.

Speaker #3: Importantly, approximately 90% of our current order book is now LED-based, which gives us strong visibility and confidence in further expanding this segment and increasing our market share in the quarters ahead.

Speaker #3: Looking at our segment mix for the quarter, revenue contribution stood at 64% from passenger vehicles, 31% from 2- and 3-wheelers, and 5% from commercial vehicles and others.

Ravi Teltia: Looking at our segment mix for the quarter, revenue contribution stood at 64% from passenger vehicles, 31% from two and three-wheelers, and 5% from commercial vehicles and others. This well-diversified mix underscores our solid positioning across multiple segments of the automotive lighting. From a product standpoint, front lighting contributed 68% of total revenue, followed by rear lighting at 23%, with other products making up the remaining 9%. From a customer perspective, revenues from Maruti and Tata Motors witnessed strong growth of 43% and 68% year-on-year respectively, driven by multiple new models SOPs. Our engagement continues to deepen, and we remain in active discussions for upcoming vehicle platforms as well. At the same time, we also witnessed healthy business growth from TVS Motor Company, reflecting focus on customer diversification. Coming to CapEx, as mentioned earlier, our ongoing CapEx plans are progressing well and remain aligned with future growth requirements and customer commitments.

Speaker #3: This well-diversified mix underscores our solid positioning across multiple segments of automotive lighting. From a product standpoint, front lighting contributed 68% of total revenue, followed by rear lighting at 23%, with other products making up the remaining 9%.

Speaker #3: From a customer perspective, revenues from Maruti and Tata Motors witnessed strong growth of 43% and 68% year-over-year, respectively, driven by multiple new model SOPs. Our engagement continues to deepen, and we remain in active discussions for upcoming vehicle platforms as well.

Speaker #3: At the same time, we also witnessed healthy business growth from TVS Motors, reflecting our focus on customer diversification. Coming to capex, as mentioned earlier, our ongoing capex plans are progressing well and remain aligned with future growth requirements and customer commitments.

Speaker #3: For FY27, our capex guidance is updated to INR 200 to 250 crores, mainly due to new order wins. Our net long-term debt as on 30th June 2026 stands at INR 209 crores.

Ravi Teltia: For FY27, our CapEx guidance updated to INR 200 to 250 crore, mainly due to new order wins. Our net long-term debt as on 30 June 2026 stand at INR 209 crore. With that, we now open the floor for questions. Thank you once again.

Ravi Teltia: For FY 2027, our CapEx guidance updated to INR 200 to 250 crore, mainly due to new order wins. Our net long-term debt as on 30 June 2026 stand at INR 209 crore. With that, we now open the floor for questions. Thank you once again.

Speaker #3: With that, we now open the floor for questions. Thank you once again.

Speaker #1: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator 2: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead.

Operator: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead.

Speaker #1: 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.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from Anubha Mukherji from Prescient Capital.

Speaker #1: Please go ahead.

Speaker #4: Hello, am I I audible?

Anubhav Mukherjee: Hello. Am I audible?

Speaker #1: Yes.

Operator 2: Yes.

Operator: Yes.

Anubhav Mukherjee: Congrats on a great set of numbers. Sir, my first question is that, in the revenue mix by customers, the others segments have grown significantly, almost doubled year on year. Sir, can you please share which are the OEMs in this other segment?

Speaker #4: Congrats on a great set of numbers. My first question is that, in the revenue mix by customers, the 'Others' segment has grown significantly—almost doubled year-on-year.

Speaker #4: Can you please share which are the volumes in this other segment?

Speaker #3: Sorry, there was a voice note that was not clear. Can you repeat it, please?

Ravi Teltia: Sorry, there was not clear. Can you repeat, please?

Speaker #2: Ravi, the 'Others' customers, which are classified under the 'Others' category, that year-on-year has grown by 133%. Which are the customers—key customers—which are incorporated into the 'Others' category?

Anmol Jain: Ravi, the others customers which are classified under the others category, that year-on-year has grown by 133%. Which are the key customers which incorporate into the others category?

Speaker #1: Yes, sir. If you can share that, it would be really helpful.

Anubhav Mukherjee: Yes, sir. If you can share that will be

Speaker #3: So mainly, this consists of our Skoda Volkswagen business, which we started from our Chakan 3 facility. So that is the key customer here.

Ravi Teltia: So mainly this is consisting of our Škoda Volkswagen business, which we started from our Chakan 3 facility. So that is the key customer here. Of course, there are many multiple other customers.

Speaker #3: Of course, there are many other customers as well.

Speaker #1: Okay. And sir, in the two-wheeler segment—sorry to interrupt you, Anubha—can you please use your handset? Your voice is quite muffled. Actually, I'm using my handset.

Anubhav Mukherjee: Okay, sir. And sir, in the two-wheeler segment

Operator 2: Sorry to interrupt you, Anubhav. Can you please use your handset? Your voice is quite muffled.

Operator: Sorry to interrupt you, Anubhav. Can you please use your handset? Your voice is quite muffled.

Anubhav Mukherjee: Actually, I am using my handset. Hello. Is this better?

Speaker #1: Hello. Is this better? Yeah, please go ahead with the questions. Yes. Sir, apart from HMSI and Hero, who are our key two-wheeler customers? I'm marking this because the overall growth in two-wheelers seems to be higher than the growth combined from these two OEMs.

Operator 2: Yeah.

Operator: Yeah.

Anubhav Mukherjee: Hello.

Operator 2: Please go ahead with the questions. Yes.

Operator: Please go ahead with the questions. Yes.

Anubhav Mukherjee: Sir, apart from HMSI and Hero, sir, which are our key two-wheeler customers? I am asking this because the overall growth in two-wheeler seems to be higher than the growth combined from these two OEMs.

Speaker #2: So the company is catering to almost all the two-wheeler manufacturers. Apart from HMSI and Hero, which are significant customers, the company also continues to cater to Suzuki Two-Wheelers, Yamaha Motors, as well as TVS.

Anmol Jain: The company is catering to almost all the two-wheeler manufacturers. Apart from HMSI and Hero, which are significant customers, the company also continues to cater to Suzuki two-wheelers, Yamaha Motor, as well as TVS Motor Company, as the entire landscape of two-wheelers. A significant growth is expected to come from HMSI going forward, which is also reflected in our order book.

Speaker #2: As you know, we have visibility across the entire landscape of two-wheelers, but significant growth is expected to come from HMSI going forward, which is also reflected in our order book.

Speaker #1: Yes, sir. Thanks for getting back in the queue. Thank you. A reminder to all participants: if you wish to ask any questions, you may press star and one on your touch-tone phone.

Anubhav Mukherjee: Get that. Thanks. I will get back in the queue.

Operator 2: Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one on your touchtone phone. Anyone who wishes to ask a question may press star and one. We have our next question from the line of Sanjay Shah from KSA Securities. Please go ahead.

Operator: Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one on your touchtone phone. Anyone who wishes to ask a question may press star and one. We have our next question from the line of Sanjay Shah from KSA Securities. Please go ahead.

Speaker #1: Anyone who wishes to ask a question may press star and one. We have a next question from the line of Sanjay Shah from KSA Securities.

Speaker #1: Please go ahead.

Speaker #3: Yeah, good morning, gentlemen, and thanks for the opportunity. Sir, congratulations on the numbers and the growth we have shown in this Q1. My question is regarding our last call, when you highlighted some strategic shift that is trying to prepone recoveries via monthly amendment.

Sanjay Shah: Good morning, gentlemen, and thanks for the opportunity. Sir, congratulating on the numbers and the growth what we have shown in this Q1. My question was regarding our last call when you highlighted upon some strategic shift that is trying to prepone recoveries via monthly amendment. Can you highlight upon because, still even our penetration on LED is moving higher, our tech-led approach, localization approach, economies of scale, still our margins, we are not that satisfied because we are still below 10%, which we highlighted to grow from here on. What is the strategy ahead, sir, about that?

Speaker #3: Can you highlight, because even though our penetration on LEDs is moving higher—our tech-led approach, localization approach, economies of scale—still our margins are not that satisfying, because we are still below 10%, which we had highlighted to grow year on year.

Speaker #3: So, what is the strategy ahead, sir, regarding that?

Speaker #2: So, let me come in here. I think, number one, when it comes to realizations, we had talked that we are hoping that some of the OEMs, because there was massive volatility, specifically in electronics buying, and the commodity prices went through the roof, we were hoping that monthly amendments are something which the OEMs agree upon.

Anmol Jain: Let me come in here. I think, number one, when it comes to realizations, we had talked that we are hoping that some of the OEMs, because there was a massive volatility on specifically the electronics buying, and the commodity prices went through the roof. We were hoping that monthly amendments is something which the OEMs agree upon. However, that has not happened for most of the industry. I believe only commodities like aluminum was something they were willing to give, which does not affect this company. As of now, we are still looking at quarterly or six-monthly amendments, and as a result of that, as Ravi mentioned, when it comes to the margin, there is almost 150 bps margin reduction in Q1, primarily due to these recoveries not having realized in Q1.

Speaker #2: However, that has not happened for most of the industry. I believe only commodities like aluminum were something they were willing to give, which does not affect this company.

Speaker #2: So as of now, we are still looking at quarterly or six-monthly amendments, and as a result of that, as Ravi mentioned, when it comes to the margin, you know, there is almost a 150 bps margin reduction in Q1, primarily due to these recoveries not having realized in Q1.

Speaker #2: So, we have obviously passed on the price increase to our suppliers, but we are hoping this realization comes in in Q2, and if you look at that, then the margins would be close to about 10.5% to 11% at a total EBITDA level.

Anmol Jain: We have obviously passed on the price increase to our suppliers, but we are hoping this realization comes in in Q2, and if you look at that, then the margins would be close to about 10.5% to 11% at a total EBITDA level, which is in line with our guidance for FY27 in the full year.

Speaker #2: Which is in line with our guidance for FY27 for the full year.

Speaker #3: That's helpful. Sir, my next question was regarding our future green shoots. Deepak sir, I have seen some veterans of this industry, and you know this industry much better.

Sanjay Shah: That's helpful. Sir, my next question was regarding our future green shoots. Deepak sir, as seeing a veteran of this industry, and you know this industry much better. Which are the green shoots we see for our company penetrating over and above LED? Is there a vertical shift, even commercial vehicle penetration or anything else which we need to understand?

Speaker #3: So, which are the green shoots we see for our company penetrating over and above LED? Is there a vertical shift, even commercial vehicle penetration, or anything else which we need to understand?

Speaker #4: No, thank you. Thank you very much for this question. I think, as of right now, we have a very diversified customer mix. We are well-penetrated in the passenger cars segment and, fortunately, the two-wheeler industry, if you see, has started to really recover and grow, especially over the last 12 months.

Deepak Jain: No, thank you. Thank you very much for this question. I think, right now, we have a very diversified customer mix. We are well penetrated in the passenger cars and fortunately, the two-wheeler industry, if you see, has started to really recover and really boost, especially over the last 12 months, and continues to do so. Also, we do feel that lighting will continue to be a very value-added product, where the value creation, particularly when trends are coming towards EV conversion, there will be more basically value content. Because of not just LEDs, but more features which are coming in. Well, it probably would be too premature to preempt, but if I look at global lighting trends, LED has become basically now a hygiene.

Speaker #4: It continues to do so. Also, we do feel that lighting will continue to be a very value-added product, where the value creation, particularly when trends are coming towards EV conversion, there will be more, basically, value content.

Speaker #4: Because of not just LEDs, but more features which are coming in. Well, it probably would be too premature to preempt, but if I look at global lighting trends, LED has basically now become a hygiene factor.

Speaker #4: Going forward, there are multiple other technologies on the lighting front, both interiors as well as exteriors, which are into laser, which are into more, basically, dynamic lighting, which are also more towards comfort lighting.

Deepak Jain: Going forward, there are multiple other technologies on the lighting front, both interiors as well as exteriors, which are into laser, which are into more basically dynamic lighting, which are also more towards comfort lighting. The vehicle lighting contribution is going up and up. We are actually in a much more sweet spot. We are seeing that as premiumization is taking place, we will do that. We continue to focus on, right now, certain under-penetrated customers for us. For example, TVS, we do feel that in future will be a big growth driver for the company. We also probably look at SMIPL, which is the Suzuki Motors two-wheelers. We think that also will become growth drivers for the company in the two-wheeler segment. Passenger car, I think we are well entrenched.

Speaker #4: And the vehicle lighting contribution is going up and up. So, we are actually in a much more sweet spot. We are seeing that as premiumization is taking place, we will do that.

Speaker #4: We continue to focus right now on certain under-penetrated customers for us, like, for example, TVS. We do feel that, in the future, this will be a big growth driver for the company.

Speaker #4: We also probably look at SMIPL, which is the Suzuki Motors two-wheelers. We think that also will become a growth driver for the company in the two-wheeler segment.

Speaker #4: Pascar, I think you're well entrenched. And, of course, there is traction now in the commercial vehicle as well as in the tractor segment. So, we are feeling that, going forward—and if you see the order book of the company—I think Ravi mentioned that our order book stood at about ₹2,500 crore.

Deepak Jain: Of course, there is traction now in the commercial vehicle as well in the tractor segment. We are feeling that going forward, and you see the order book of the company, I think Ravi mentioned that order book stood at about INR 2,500 crores. I think that's a very healthy sign for the growth of the company, irrespective of how the industry will grow.

Speaker #4: I think that's a very healthy sign for the growth of the company, irrespective of how the industry will grow.

Speaker #3: That's helpful, sir. I'll come back in the queue for more questions. Thank you very much.

Sanjay Shah: That's helpful, sir. I'll come back in queue for more questions. Thank you very much.

Speaker #4: Thank you.

Deepak Jain: Thank you.

Speaker #1: Thank you. A reminder to all participants: If you wish to ask any questions, you may press star and one. We have the next question from the line of Jyoti Singh from Haitong Investments.

Operator 2: Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one. We have our next question from the line of Jyoti Singh from Hayton Investments. Please go ahead.

Operator: Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one. We have our next question from the line of Jyoti Singh from Hayton Investments. Please go ahead.

Speaker #1: Please go ahead.

Speaker #5: Yeah, thank you for the opportunity. A few questions, ma'am, from my side, sir. Like from the earlier participant, you mentioned CV good traction and tractor good traction.

Jyoti Singh: Yeah, thank you for the opportunity. A few questions from my side, sir. From earlier participant, you mentioned CV, good traction, and tractor, good traction. Along with TVS and Suzuki, you are saying going forward, we will see more growth from there. Just wanted to clarify on this thing, why we are not getting order till now from these customers? Also CV side, we are not seeing industries doing really well comparatively earlier the way it used to. So wanted your view on those side. Another, apart from this, how much our product is powertrain agnostic? Because currently only 12% of the order book is from EV. Given broader industry EV push and Lumax is underweight on EV OEM wins, what is the strategy to grow EV content per vehicle going forward?

Speaker #5: And along with TVS and Suzuki, you will see, going forward, we'll see more growth from there. So, just wanted to clarify on this point.

Speaker #5: Why are we not getting orders till now from these customers? And also, on the CV side, we are not seeing industries doing really well competitively, the way it used to.

Speaker #5: So, wanted your view on those sides, and another thing—apart from this—how much is our product powertrain agnostic? Because currently, only 12% of the order book is from EV.

Speaker #5: Given the broader industry EV push, and Lumax being underweight on EV OEM wins, what’s the strategy to grow EV content per vehicle going forward?

Speaker #4: Okay, thanks, Jyoti. I'll just take this question. So, first and foremost, lighting is powertrain agnostic, right? So irrespective of whether you make EV, ICE, CNG—I mean, the lighting goes in. But in the EV space, as vehicles continue to become more and more electric, be it passenger cars or two-wheelers, they would need more energy efficiency and lightweighting, and hence the value creation on the lighting product on these vehicles has a much bigger opportunity.

Deepak Jain: Okay. Thanks, Jyoti. I will just take this question. First and foremost, lighting is powertrain agnostic, right? So irrespective you make EV, ICE, CNG, sort of lighting goes in. But in the EV space, as vehicles continue to become more and more electric, be it passenger cars or two-wheelers, they would need more energy efficiencies and light weighting. Hence the value creation on the lighting product on the vehicle has a much more bigger opportunity. You can see that on the BEVs, you can see that on also our EV portfolio. Second point you mentioned on the SMIPL, TVS. I think these were already customers. However, now we are seeing a much more higher penetration with their growth, and we are continuously engaged with them for it. So we will continue to do this in terms of all OEM manufacturers within India.

Speaker #4: And you can see that on the BEVs, you can see that also on our EV portfolio. Second point you mentioned on the SMIPL TVS, I think these were already customers.

Speaker #4: However, now we are seeing much higher penetration with their growth, and we are continuously engaged with them for it. So we will continue to do this in terms of all OEM manufacturers within India.

Speaker #4: And we continue to basically seek new opportunities, particularly on CV. You mentioned, you know, why it has not been as heavily growth. Please also do understand that on the CV side, there is a very, very standardized product.

Deepak Jain: We continue to basically seek new opportunities, particularly on CV, you mentioned, why it has not been a heavily growth. Please also do understand that on the CV state, there is a very standardized product, and still the tech on the lighting front, it is not equivalent to basically the passenger car price. So we are basically discussing with various OEMs on their new platforms on CVs and when the technology comes in, we would basically try to create certain values and orders with that.

Speaker #4: And still, the tech on the lighting front is not equivalent to basically the passenger car price. So, we are basically discussing with various OEMs on their new platforms on CVs.

Speaker #4: And when the technology comes in, we would basically try to create certain values in order with that. Thank you. Thank you. Just to add, and...

Jyoti Singh: Thank you, sir.

Deepak Jain: Just to add and supplement to that, Jyoti, I think if you look at our total pie from CV, it has remained unchanged at about 5% of the total revenue pie on a year-on-year Q1. Which also means that CV business for us has also grown by 30% to 35% on an annualized basis, which is much more than what the CV industry has grown.

Anmol Jain: Just to add and supplement to that, Jyoti, I think if you look at our total pie from CV, it has remained unchanged at about 5% of the total revenue pie on a year-on-year Q1. Which also means that CV business for us has also grown by 30% to 35% on an annualized basis, which is much more than what the CV industry has grown.

Speaker #2: To supplement that, Jyoti, I think if you look at our total pie from CV, it has remained unchanged at about 5% of the total revenue pie on a year-on-year Q1 basis, which also means that the CV business for us has also grown by 30% to 35% on an annualized basis.

Speaker #2: Which is much more than what the CV industry has grown.

Speaker #5: Understood, sir. But currently, as per my channel check, what I'm seeing is that CV is not doing very well compared to the two-wheeler and four-wheeler segments.

Jyoti Singh: Understood, sir. But currently, as per my channel check, what I am seeing that CV is not doing very well compared to the two-wheeler and four-wheeler, we are getting the traction. But yeah, understood well. Another, sir, on the revenue mix side, like major revenue, 56% of revenue, we are getting Maruti Suzuki India Limited, Mahindra & Mahindra, and Honda Motorcycle and Scooter India. So what is being done to diversify further and are there any specific new OEM that we are in active discussion or targeting? Hero MotoCorp, again, shares slightly decline year-on-year basis while MG Motor and Toyota has done really well for us. So any read on the underlying customer value dynamic or two-wheeler softness versus TVS Motor Company strength in your portfolio?

Speaker #5: We are getting the traction, but yeah, understood well. And another sir, on the revenue mix side, like major revenue—56% of revenue—we are getting from MSIL, M&M, and HMSI.

Speaker #5: So, what's being done to further diversify? And are there any specific new OEMs that we are in active discussion with or targeting? And HERO, again, shares have slightly declined on a year-on-year basis.

Speaker #5: While MG and Toyota have done really well for us, do you have any insight on the underlying customer value dynamics, or the two-wheeler softness versus the PV strength in your portfolio?

Speaker #4: I think, for me, what is important is our wallet share across the customers. The quarter-on-quarter changes with respect to the revenue are just an outcome of the product mix.

Anmol Jain: I think for me, what is important is our wallet share across the customers. The quarter-on-quarter changes with respect to the revenue are just an outcome of the product mix. It is not that the wallet share has increased. On the contrary, specifically for three or four customers, Maruti Suzuki, our wallet share is likely to go up significantly, which is reflected into the order book from less than 30% today, we are looking at probably a 35% to 40%. Also on the Honda Motorcycle and Scooter India, specifically on the tail lamps, the wallet share is likely to exponentially increase by almost 2 to 3 times in FY28. As a part of the order book, as you mentioned, 60% of our order book will be in SOP in FY28. Again, I do not see any significant shifts across OEMs in terms of business share.

Speaker #4: It is not that the wallet share has increased. On the contrary, specifically for three or four customers—Maruti Suzuki, for example—our wallet share is likely to go up significantly, which is reflected in the order book.

Speaker #4: From less than 30% today, we are looking at probably 35% to 40%. And also, on the HMSI—specifically on the tail lamps—the wallet share is likely to exponentially increase by almost two to three times.

Speaker #4: In FY28, as a part of the order book—as you mentioned—60% of our order book will be in SOP in FY28.

Speaker #4: So, again, I don't see any significant shifts across OEMs in terms of business share. But again, specifically, you talked about MG or certain other OEMs. It is largely an outcome of a product mix.

Anmol Jain: But again, specifically you talked about MG or specifically you talked about certain other OEMs, it is largely an outcome of a product mix.

Speaker #5: Understood, sir. And sir, also, if you want to comment on M&M, because that's another company of ours that is doing really well, driven largely by M&M.

Jyoti Singh: Understood, sir. And sir, also, if you want to comment on M&M, because another company of ours that is doing really well is driven by largely M&M. So what kind of traction we are seeing from M&M's side?

Speaker #5: So, what kind of traction are we seeing from the M&M side?

Speaker #4: I will reserve my comment. Go ahead.

Anmol Jain: We reserve a com--

Deepak Jain: Yeah, go ahead.

Anmol Jain: Go ahead. I think Mahindra & Mahindra, we continue to have a very strong wallet share for the lighting. I was not clear what was the comparison you were trying to draw with other company, but Mahindra & Mahindra continues to be a key customer for the group and specifically for this company. We continue to maintain almost close to a 40% to 50% wallet share of Mahindra's overall lighting requirements.

Speaker #2: No, I think M&M—we continue to have a very strong wallet share for the lighting. I was not clear on what comparison you were trying to draw with the other company, but Mahindra & Mahindra continues to be a key customer for the group, and specifically for this company.

Speaker #2: We continue to maintain almost close to a 40% to 50% wallet share of Mahindra's overall lighting requirements.

Speaker #4: I'll just like to add one thing. You know, Jyoti, if you're looking at it from a strategic point of view, please understand that all the segments of the automotive sector in India are largely concentrated among four to five key players.

Deepak Jain: I would just like to add one thing. Jyoti, looking at a strategy point of view, please understand that all the segments of the automotive sector in India is largely concentrated by four to five key players. Fortunately, Lumax has a top wallet share with mostly the four to five in almost all the segments. Hence, we would like to focus on that when the growth momentum is coming in very strongly. Of course, wherever there are opportunities to figure out if there are any new order wins from a new customer or we are under-penetrated, we are continuing to do that. Case in point, Mahindra, Maruti will continue to remain our focus in this thing along with Tata. As you know, associate company Lumax already caters to Hyundai, Kia. That covers 92% of the passenger market in India currently.

Speaker #4: And fortunately, Lumax has a top wallet share, with mostly four to five in almost all the segments. Hence, we would like to focus on that, as the growth momentum is coming in very strongly.

Speaker #4: And of course, wherever there are opportunities to figure out if there are any new order wins from a new customer or if we are under-penetrated, we are continuing to do that.

Speaker #4: So, case in point, Mahindra, Maruti will continue to remain a focus in this, along with, of course, Tata. And as you know, our associate company, Lumax, already caters to Hyundai and Kia.

Speaker #4: That covers 92% of the passenger car market in India currently. In the same way, if you look at HMSI, we look at Hero, we look at also TVS.

Deepak Jain: Same way, if you look at Honda Motorcycle and Scooter India, we look at Hero, we look at also TVS Motor Company is catering from this company. Bajaj Auto, of course, from the other group company. So we actually cater almost about 85% from catering to this vehicle. So we are in a very strong position. Of course, commercial vehicle, as I said, has different lead cycles, have different type of technology. So we will see wherever the opportunity comes in on those off-roaders, three-wheelers and commercial vehicles.

Speaker #4: This catering is from this company, Bajaj, of course, and from the other group companies. So we actually, again, cater almost about 85% from catering to this regulator.

Speaker #4: So, we are in a very strong position. Of course, commercial vehicles, as I said, have different lead cycles and different types of technology. So, we will see wherever the opportunity comes in, on those off-roaders, three-wheelers, and commercial vehicles.

Speaker #5: Very well, sir. Thank you, sir. Understood. Just one last question, sir. On the capex side—so, like in '26, it was 410 shares. So, what's the guidance for '27 capex?

Jyoti Singh: Great, sir. Thank you, sir. Understood. Just one last question, sir, on the CapEx side. In 2026, it was INR 410 crore. So what is the 2027 CapEx guidance?

Speaker #3: Yeah, hi. I mean, this side—so, as I mentioned, basically this year we are expecting capex of somewhere around 200 to 250 crores. And in the previous call, we mentioned 100 to 150.

Ravi Teltia: Yeah. We decide, as I mentioned, basically this year, we are expecting CapEx of somewhere around INR 200 to INR 250 crore. In the previous call, we mentioned INR 100 to INR 150. The reason of increase is, we have one good business over last four months, therefore we are expanding it. It would be close to INR 200 to INR 250.

Speaker #3: So, the reason for the increase is that we have had one good business over the last four months. Therefore, we are expanding it. So, it will be close to 200 to 250.

Speaker #5: And sir, any bifurcation of it?

Jyoti Singh: And sir, any bifurcation of it?

Speaker #3: Bifurcation is, the maintenance capex, as we mentioned, would continue to be somewhere around 40 to 50 crores. The rest all would go to the new business wins.

Ravi Teltia: Bifurcation is the maintenance CapEx, as we mentioned, would continue to be some INR 40 to INR 50 crore. The rest all would go to the new business ventures.

Speaker #5: Okay, great. Thank you, sir.

Jyoti Singh: Okay, great. Thank you.

Speaker #3: On capacity expansion for new business, yeah.

Ravi Teltia: For capacity expansion for new business, yeah.

Speaker #5: Okay.

Jyoti Singh: Okay.

Speaker #1: Thank you. We have our next question from the line of Saurabh Jain from Sunidhi Securities. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Saurabh Jain from Sunidhi Securities. Please go ahead.

Operator: Thank you. We have our next question from the line of Saurabh Jain from Sunidhi Securities. Please go ahead.

Speaker #2: Hello, yes. Congratulations, sir, to the team. We have outperformed the expectations yet another time. Sir, my first question, I would like to—you know, it was touched on by the previous participant.

Saurabh Jain: Hello. Yeah. Congratulations to the team. We have outperformed the expectations yet another time. Sir, my first question, I would like to, it was touched by the previous participant. So, we have showcased strong growth across Maruti, HMSI and all. While M&M for the last couple of quarters has been kind of flattish. Of course, we have done pretty well over the last 2 years. But, having a wallet share of 40% to 50% and yet the revenue for last almost 3 quarters, it is around INR 200 or less, 4 quarters. So, if you can just explain a bit, we have a good wallet share over there, but yet, for the last few quarters, that number is not growing.

Speaker #2: So we have showcased strong growth across Maruti, HMSI, and all, while M&M, for the last couple of quarters, has been kind of flattish.

Speaker #2: Of course, we have done pretty well over the last two years. But having a wallet share of 40 to 50%, and yet the revenue for the last almost three or four quarters is around 200 or less.

Speaker #2: So, you know, if you can, just explain a bit—we have good wallet share over there, but yet, for the last few quarters, that number is not growing.

Speaker #4: I think it's just an outcome of the product mix. Certain platforms, for example, the new X—I'm not sure what the model name is—but the XUV700 EV is a platform which we are not on, and that has significantly pulled the volumes and the growth of Mahindra in Q1.

Anmol Jain: I think it is just an outcome of the product mix. Certain platforms, for example, the new X, I am not sure what the model name is, but the XUV700 EV is a platform which we are not on, but that has significantly pulled the volumes and the growth of Mahindra in Q1. So again, it is an outcome of product mix. Unfortunately for this quarter, perhaps the other 50% of the models did a lot better than the 40%, 50% where we are present on. So again, strategically, there is no shift. Strategically, we are still a key supplier partner to Mahindra for the lighting needs, but it is just one quarter. If you look at it from a full year perspective, we should be in line with Mahindra's overall growth.

Speaker #4: So again, it's an outcome of product mix. Unfortunately, for this quarter, perhaps the other 50% of the models did a lot better than the 40-50% where we are present on.

Speaker #4: So again, strategically, there is no shift. Strategically, we are still a key supplier partner to Mahindra for the lighting needs, but it's just one quarter.

Speaker #4: If you look at it from a full-year perspective, we should be in line with Mahindra's overall growth.

Speaker #2: Okay. And sir, my second question is on mold revenue. In the previous call, you had mentioned that we can see a steep rise in FY27 revenue from molds.

Saurabh Jain: Okay. My second question is on mold revenue. On the previous call you had mentioned that we can see steep rise in FY27 revenue from molds business. Should we expect this current run rate of this quarter to continue for the rest, or maybe it can go much higher? This is important because that will help us to steer the course of margin trajectory as well.

Saurabh Jain: Okay. My second question is on mold revenue. On the previous call you had mentioned that we can see steep rise in FY 2027 revenue from molds business. Should we expect this current run rate of this quarter to continue for the rest, or maybe it can go much higher? This is important because that will help us to steer the course of margin trajectory as well.

Speaker #2: Home business. So, should we expect the current turn rate of this quarter to continue for the rest, or could it go much higher?

Speaker #2: And this is important because that will help us to, you know, steer the course of margin trajectory as well.

Speaker #3: Yeah, so Ravi this side. This year, as we mentioned, yes, we are expecting healthy growth of mold sale compared to last financial year.

Ravi Teltia: Yeah. Ravi this side. This year, as we mentioned, yes, we are expecting healthy growth of mold sale compared to last financial year on a full year basis. As we already shared in previous calls, it all depends the SOP timelines from a respective customer. But we are hopeful that we will register good growth compared to last financial year.

Speaker #3: On a full-year basis, but as we already shared in previous calls, it all depends on the SOP timelines from the respective customer. But we are hopeful that we will register good growth compared to last financial year.

Speaker #2: But as a part of our visibility, I think the majority of these mold revenues will be planned for H2, specifically in Q3 or Q4. Any ballpark number you would be able to give?

Anmol Jain: As a part of our visibility, I think majority of these mold revenues will be planned for H2, specifically in Q3 or Q4.

Saurabh Jain: Any ballpark number would you be able to give?

Speaker #3: So on a full-year basis, like last year, or...

Ravi Teltia: So on a full year basis, like last year

Speaker #2: Yeah, full year.

Saurabh Jain: Yeah, full year.

Speaker #3: Full year over last year, mold sales were somewhere around 180, 185 crore. And this year, we are hopefully targeting 250 to 300.

Ravi Teltia: Full year, our last year's mold sale was somewhere around INR 180, INR 185 crore, and this year we are hopefully targeting INR 250 to INR 300.

Speaker #2: Okay, cool. And sir, last question about the FY28 capex.

Saurabh Jain: Okay, cool. And sir, last question about the FY28 CapEx.

Speaker #3: Sorry. FY.

Ravi Teltia: Sorry, FY?

Speaker #2: FY 28 capex.

Saurabh Jain: FY28 CapEx.

Speaker #3: FY28 capex will depend on how the business wins happen, but our guidance would be in line with what we mentioned earlier—somewhere around 150 to 200 at this moment.

Ravi Teltia: FY28 CapEx will depend how the business wins will happen, but our guidance would be in line with what we mentioned earlier, somewhere around INR 150 to 200 at this moment.

Speaker #4: I think it's too premature to give an FY28 capex guidance, but for the current year, we are revising it upwards to 200 to 250, largely because of a strong order book.

Anmol Jain: I think it is too premature to give a FY28 CapEx guidance, but for the current year, we are revising it upwards to INR 200 to 250, largely because of a strong order book. As I mentioned, 60% of the order book or roughly almost INR 1,500 crore will get into SOP in FY28.

Speaker #4: And as I mentioned, 60% of the order book, or roughly almost ₹1,500 crore, will get into SOP in FY28.

Speaker #2: Okay, sir. That's it from my side. Thank you, and all the best.

Saurabh Jain: Okay, sir. That is it from my side. Thank you and all the best.

Speaker #1: Thank you. We have our next question from Aditya Kondawar of Complete Circle Capital. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Aditya Kondawar from Complete Circle Capital. Please go ahead.

Operator: Thank you. We have our next question from the line of Aditya Kondawar from Complete Circle Capital. Please go ahead.

Speaker #5: Hi, team. Congrats on a great set. My first question was, you know, if we have any guidance for the next two, three, four years, you know, what kind of a revenue growth rate or a pad growth rate that growth rate we are looking at.

Aditya Kondawar: Hi, team. Congrats on a great set. My first question was if we have any guidance for the next two, three, four years, what kind of a revenue growth rate or a PAT growth rate we are looking at. The second question was, I was just looking at this new car, 2027 Audi Q9, and basically the lights have built-in projectors. For example, if you give a right indicator, you would see the exterior ground projectors or exterior ground figures coming up. This is what you had hinted towards, the future of lighting, and just wanted more color on that. What are the various technologies that are working around the world and some of the technologies that we are working on. Thank you.

Speaker #5: And my second question was, you know, I was just looking at this new car, you know, the 2027 Audi Q9, and basically, the lights have built-in projectors.

Speaker #5: So, for example, if you give a right indicator, you know, you would see the exterior ground projectors or exterior ground figures coming up. So, this is what you had hinted towards, you know, the future of lighting.

Speaker #5: And just wanted more color on that—you know, what are the various technologies that are working around the world, and some of the technologies that we are working on.

Speaker #5: Thank you.

Speaker #4: So I'll take the first part of the question, which is more of a three- to four-year horizon. I think we are quite confident to deliver almost above industry growth over the next three to five years.

Anmol Jain: I will take the first part of the question, which is more of a three to four-year horizon. I think we are quite confident to deliver in almost above-industry growth over the next three to five years. Our CAGR continues to be between 15% to 20%. Largely, this growth will be not just volume led, but also as you mentioned, new technology driven. From a current base of, let us say, INR 4,500 to 5,000 crores, we should be looking at probably INR 9,000 crores or upwards revenue in FY30, 31. Again, in terms of margins, I think we are safe to say that current year forecast remains intact, which is anywhere between 10.5% to 11% EBITDA. Three to four years, I think our endeavor is to hit 13 EBIDTAs, upwards of 13% or so.

Speaker #4: Our CAGR continues to be between 15% to 20%. Largely, this growth will be not just volume-led, but also, as you mentioned, new technology-driven.

Speaker #4: So, from a current base of, let's say, ₹4,500 to ₹5,000 crore, we should be looking at probably ₹9,000 crore or upwards in revenue in FY30-31.

Speaker #4: Again, in terms of margins, I think it is safe to say that the current year forecast remains intact, which is anywhere between 10.5% to 11% EBITDA.

Speaker #4: And in three to four years, I think our endeavor is to hit the 10 EBITDA, upwards of 13% or so. Regarding the second question.

Aditya Kondawar: Regarding the second question.

Deepak Jain: Regarding the second question.

Speaker #4: So that's my take on the first part of the question. On the second part of the question, again, my only two cents is that yes, these are very advanced technologies in the lighting.

Anmol Jain: So that's my take on the first part of the question. On the second part of the question, again, my only two cents is that, yes, these are very advanced technologies in the lighting. Do we have access to these technologies? The answer is yes. Our check center is working on these technologies with Stanley as our lighting partner. They also have these technologies. However, these technologies, for it to come into the Indian context at a reasonable price point, we still feel that it's a little far-fetched. Usually, the technology of lighting goes from the top-end premium segments going down to a more mass market segment. While we have access to these technologies, I do believe it will still be a couple of years before we start seeing them on the Indian models.

Speaker #4: Do we have access to these technologies? The answer is yes. Our check center is working on these technologies with Stanley as our lighting partner.

Speaker #4: They also have these technologies. However, for these technologies to come into the Indian context at a reasonable price point, we still feel that it's a little far-fetched.

Speaker #4: Usually, the technology of lighting goes from the top-end premium segments down to a more mass-market segment. So, while we have access to these technologies, I do believe it will still be a couple of years before we start seeing them on the Indian models.

Speaker #5: Okay, that's helpful. Thank you.

Aditya Kondawar: Okay. That's helpful. Thank you.

Speaker #1: Thank you. We have our next question from the line of Apurva Mehta from AM Investments. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Apurva Mehta from AM Investments. Please go ahead.</

Operator: Thank you. We have our next question from the line of Apurva Mehta from AM Investments. Please go ahead.</

Ravi Teltia: Apurva. Congratulations on great set of numbers.

Apurva Mehta: Apurva. Congratulations on great set of numbers. Sir, just wanted to know about the localization thing. We were at 30%-35% of localization. Where do we see in next two years our localization thing to happen? This would help us to be more resilient, and it would be more predictive about margins also. Can you throw some light on that?

Speaker #5: Congratulations on a great set of numbers, sir. I just wanted to know about the localization thing—you know, we were at 30-35% localization. Where do we see our localization in the next two years?

Apurva Mehta: Sir, just wanted to know about the localization thing. We were at 30%-35% of localization. Where do we see in next two years our localization thing to happen? This would help us to be more resilient, and it would be more predictive about margins also. Can you throw some light on that?

Speaker #5: And this would help us to, you know, be more resilient, and it would also be more predictive about margin. So, can you throw some light on that?

Speaker #3: Yeah. Ravi this side, Misha. So, in localization, primarily the focus is on the electronics, and as we shared, electronics has primarily the core key components.

Ravi Teltia: Yeah. Ravi this side. So in localization, primarily the focus is on the electronics. As we shared, electronics has primarily the four key components. One is the LED module. On that side, some of the projectors are getting localized gradually, which we see that in next two to three years. The second part is the SMT, which is already 100% localized, which we are running our independent plant over here. The bare PCB, which is also started localizing, and we foresee that in next two to three years down the line, this will further increase from current 40%-50% to, say, 70%-80%. The last one is the connector, which is still at a very small number of localization, around 24%, which we foresee that will also further go to somewhere around 40%-50%.

Speaker #3: One is the LED module. On that side, some of the projectors are getting localized gradually, which we see happening in the next two to three years.

Speaker #3: The second part is the SMT, which is already 100% localized and for which we are running our independent plant over here. The bare PCB, which we have also started localizing, and we foresee that in the next two to three years down the line, this will further increase from the current 40–50% to, say, 70–80%.

Speaker #3: And the last one is the connector, which is still at a very small number of localization. Around 20 odd percent, which we foresee that will also further go to somewhere around 40, 50%.

Speaker #3: So with this, the localization in the next two to three years down the line, we are expecting—and based on the currency and the import benefits—we foresee that somewhere around 70 to 90 basis points gain will definitely flow into the business.

Ravi Teltia: With this, the localization in next two to three years down the line, we are expecting. Based on the currency and the import benefits, we foresee that somewhere around 70 to 90 bps gain will definitely flow into the business.

Speaker #5: We found the localization job. Will it be all in-house, or will we be outsourcing all these localizations?

Apurva Mehta: Based on the localization job, it will be all in-house or we will be outsourcing all this localization?

Speaker #4: So, can I come and hear Apurva? This is Deepak.

Deepak Jain: Can I come in here, Apurva? This is Deepak Jain.

Apurva Mehta: Yeah.

Speaker #5: Yeah, yeah.

Speaker #4: So you know, it's a great question. As technology and lighting will shift, particularly driven by higher electronic content, I think the localization will continue to remain although key priority, but also a challenge.

Deepak Jain: It's a great question. As technology and lighting will shift, particularly driven by higher electronic content, I think the localization will continue to remain, although a key priority, but also a challenge. I'm hoping that the next four years, there will be certain, let's say, ecosystems on electronics in India which will be done. We cannot do everything in-house. We will be doing mostly assemblies and certain critical processes in-house. However, when it comes to electronics, ICs, all that, we currently do that. A classic example is the PCB bare backs, which was basically done a very big localization effort by the government of India. However, as the technology changed, we had to go through complex seven, eight, even now we're talking nine layers. In that, again, the import dependency came about. I think the laminates, if you have heard recently, is on an acute shortage.

Speaker #4: I'm hoping that in the next four years, there will be certain, let's say, ecosystems in electronics in India that will be developed. We cannot do everything in-house.

Speaker #4: We will be doing mostly assemblies and certain critical processes in-house. However, when it comes to electronics, ICDs, all that, we continue to do that.

Speaker #4: And a classic example is the PCB bare boards, which was basically done through a very, very big localization effort by the government of India. However, as the technology changed, we had to go through complex seven-, eight-, even now we’re talking nine-layer boards.

Speaker #4: And in that, again, the import dependency came about. And I think laminates, if you have heard recently, are in acute shortage. And because of that, again, there is a lot of import.

Deepak Jain: Because of that, again, there is a lot of import. So it will continue to do that, but the company is prioritizing localization along with customers. To your question, we will continue not to keep on doing insourcing. We will continue to work with supplier partners who will be having a much more localized capability. Our processes, certain technology interventions and certain processes which we do on injection, surface treatment or assemblies, will continue to do a lot of localization. Last point being on tooling. There is all the impetus to try and bring to tool localization. As you know, all our tooling are imported right now. But currently, we are finding a challenge in the Indian tooling ecosystem, and we're trying to look at it.

Speaker #4: So, it will continue to do that, but the company is prioritizing localization along with customers, to your question. We will continue—not to keep on doing—insourcing.

Speaker #4: We will continue to work with supplier partners, who will be having a much more localized capability, and our processes—certain technology interventions and certain processes which we do on injection, surface treatment, or assemblies—we will continue to do a lot of localization.

Speaker #4: Last point, being on tooling. There is also impetus to try and do localization. As you know, all our tooling is imported right now.

Speaker #4: But currently, we are finding a challenge in the Indian tooling ecosystem. And we're trying to look at it. But if you will have to look at it maybe a 20, 30 kind of a visibility, where definitely we will continue to focus on our localization improvement content.

Deepak Jain: But we will have to look at it at maybe a 2030 kind of a visibility, where definitely we will continue to focus on our localization improvement content.

Speaker #5: Any sourcing from China, which is—you know, everybody is trying to source from China—or tools or, you know, stuff like that, which is far cheaper than what we want to source from any other place.

Apurva Mehta: Any sourcing from China, which is everybody is trying to source from China, tools or stuff like that, which is far cheaper than what we want to source from any other place.

Speaker #4: Yeah, so we actually do source a lot from China, as does the whole supply chain. But we are also cognizant of the risks involved.

Deepak Jain: Yes. So we actually do source a lot from China, as the whole supply chain does. But we are also cognizant of the fact of the risks. We continue to actually now in our engineering drawing, look at alternatives than to China. But the cost competitiveness of China continues to be one of the key highlights why we source from there. Rather, the group has actually recently opened office in China for basically, it is a global resource center to see how we can basically do a lot more kind of diligent trading with China. But that is one part of it. But the intent for us is to become more and more cost competitive, either by sourcing more competitively, importing more competitively, or by basically localizing. But in the future, we will be localizing more and more as a priority.

Speaker #4: We continue to actually, now in our engineering drawing, look at alternatives done to China, but the cost competitiveness of China continues to be one of the key highlights why we source from there.

Speaker #4: Rather, the group has actually recently opened an office in China. Basically, it's a global resource center to see how we can do a lot more diligent trading with China.

Speaker #4: But that's one part of it. The intent for us is to become more and more cost-competitive, either by sourcing more competitively, importing more competitively, or by basically localizing.

Speaker #4: But in the future, we will be localizing more and more as a priority.

Speaker #5: I know on the competition side, how do we see, you know, intensity? Because of new technologies, are there fewer competitors, or is the competition still intense?

Apurva Mehta: And on the competition side, how do we see intensity? Because of new technologies, are there fewer competitors, or the competition is still intense?

Speaker #4: No, the competition intensity will increase and will enhance. As Bharat goes through that 'Dixit Bharat' journey, as the India market will continue to become the number three market in the world for the auto sector, the economy will grow.

Deepak Jain: No, the competition intensity will increase and will enhance as Bharat goes through that Viksit Bharat journey. As India market will continue to become the number three market in the world for the auto sector, the economy will grow. There will be more players which will be coming in. However, as I said, our strategy is very simple. We want to dominate the industry by being very embedded with the top four, top five of every sector OEMs. As you see the auto industry I mentioned before, they are highly concentrated. They are 80%, 90% market share. So even if new players come in, it will be very difficult for them to actually gain. They may take a few percentage depending upon. So that is our strategy, but the competition intensity will increase in this product line.

Speaker #4: There will be more players coming in. However, as I said, our strategy is very simple. We want to dominate the industry by being very, very embedded with the top four or top five OEMs in every sector.

Speaker #4: And as you see, the auto industry, I mentioned before, they're highly concentrated. They have 80% to 90% market share. So even if new players come in, it'll be very difficult for them to actually gain.

Speaker #4: They may take a few percentage points depending on us. So that's our strategy, but the competition intensity will increase in this product line.

Speaker #5: And on the HVAC, can we throw some light? Where do we stand currently? And, Honda was one of our customers. Are we going for any, you know, any other customers or, you know, getting which can be a bigger, like a revenue stream for us over a period of time?

Apurva Mehta: On the HVAC, can we throw some light where do we stand currently? Honda was one of our customers, are we waiting for any other customers or getting this can be a bigger revenue stream for us over the period of time.

Deepak Jain: Anmol, you want to comment?

Speaker #4: And what would you like to comment?

Speaker #2: Yeah, so Apurva, HVAC, we got for Honda, I think we did about close to 18, 20 crores. Revenue in an annualized basis. I think the peak revenue for that one particular customer was expected to be around between 35 to 40 crores.

Anmol Jain: Yeah. So Apurva, HVAC we got for Honda, I think we did about close to INR 18, 20 crores revenue on an annualized basis. I think the peak revenue for that one particular customer was expected to be around between INR 35 to 40 crores. Unfortunately, the volumes of Honda itself has taken a beating, not in line with what was estimated. I think it is a longish game. I think right now we want to focus on the lighting. There could be some opportunities in other OEMs, but I would not like to comment on that because I still feel it is quite distant for HVAC to become something materially significant.

Speaker #2: Unfortunately, the volumes of Honda itself have taken a beating—not in line with what was estimated. I think it's a longish game. I think right now we want to focus on the lighting.

Speaker #2: There could be some opportunities in other OEMs, but I would not like to comment on that because I still feel it's quite distinct for HVAC to become something materially significant.

Speaker #5: Okay, thanks, and wish you all the best.

Apurva Mehta: Okay. Great. Thanks, and wish you all the best, sir.

Speaker #2: Thank you.

Anmol Jain: Thank you.

Speaker #4: Thanks.

Deepak Jain: Thanks, Apurva.

Speaker #1: Thank you. We have our next question from the line of Viraj Kacharia from Simple. Please go ahead. Viraj Kacharia, are you there? Viraj, are you there?

Operator 2: Thank you. We have our next question from the line of Viraj Kacharia from Simple. Please go ahead. Viraj Kacharia, are you there? Viraj, are you there? As there is no response, we will move on to the next participant from the line of Utkarsh Somaiya from Eiko Quantums. Please go ahead.

Operator: Thank you. We have our next question from the line of Viraj Kacharia from Simple. Please go ahead. Viraj Kacharia, are you there? Viraj, are you there? As there is no response, we will move on to the next participant from the line of Utkarsh Somaiya from Eiko Quantums. Please go ahead.

Speaker #1: As there is no response, we'll move on to the next participant from the line of Utkarsh Somaya from EcoQuantums. Please go ahead.

Speaker #4: Thank you for the opportunity. I think you already spoke about your margins being 10.5% in Q1, barring the commodity price inflation. And given that these will be passed on, can we expect that number in Q2 onwards?

Utkarsh Somaiya: Thank you for the opportunity. I think you already spoke about your margins being 10.5% in Q1, barring the commodity price inflation. Can we expect that number in Q2 onwards?

Speaker #2: Ravi, do you want to come in?

Anmol Jain: Ravi, you want to come in?

Deepak Jain: Ravi, you want to come in?

Speaker #3: Yeah, so basically, as we mentioned, there is a very high commodity impact in the market, primarily due to the West Asia conflict.

Ravi Teltia: Yeah. So basically, as we mentioned, there is a very high commodity impact in the market, primarily due to the West Asia conflict. We are having a discussion with our OEM partners about this. There were some recoveries. Some recoveries are underway. Therefore, we are maintaining our full year guidance of 10.5% to 11% EBITDA. It is under discussion with the respective OEMs, so accordingly the things will move in the quarter on quarter basis.

Speaker #3: And we are having discussion with our OEM partners about this. There were some recoveries, some recoveries are underway. So therefore, we are maintaining our the full year guidance of 10 and a half to 11% EBITDA.

Speaker #3: It is under discussion with the respective OEM, so accordingly, things will move in the quarter-on-quarter business.

Speaker #2: Yeah, but we do expect, in Quarter 2, the margins to be higher because a lot of the Q1 realizations will actually get realized in Quarter 2.

Anmol Jain: But we do expect in Q2, we do expect the margins to be higher because a lot of the Q1 realizations will actually get realized in Q2. Yes, I am not sure whether it will be 10.5%, but it definitely should be above 10% for Q2.

Speaker #2: So yes, I'm not sure whether it will be 10.5%, but it definitely should be above 10% for Q2.

Speaker #4: Okay. And earlier you had guided that every year we'll probably expand by 50 to 100 bits. We are still in that direction, still intact, right?

Utkarsh Somaiya: Okay. Earlier you had guided that every year we will probably expand by 50 to 100 bps at least, that is still intact, right?

Speaker #2: Yes, I think for the full year FY26, we were just short of 10%, and I think 9.8% was more specific, as Ravi mentioned. This year we are looking at a 10.5% to 11% total full-year EBITDA, which is about a 100 bps increase.

Anmol Jain: Yes. I think for the full year FY26, we were just short of 10%, I think 9.8% was more specific. As Mr. Ravi Teltia mentioned, this year we are looking at a 10.5% to 11% total full year EBITDA, which is about 100 bps increase. As I mentioned, a three to four-year horizon, we do expect to touch close to 13% EBITDA. That is our endeavor. If you were to calculate it on an annualized basis, it will come to roughly about 100 bps increase every year.

Speaker #2: And as I mentioned, over a three to four-year horizon, we do expect to reach close to 13% EBITDA. That is our endeavor. So, if you were to calculate it on an annualized basis, it would come to roughly about a 100 bps increase every year.

Speaker #4: Perfect. And one more question. The last two quarters, we've been growing at 30%, which is a tad behind.

Utkarsh Somaiya: Perfect. One more question. The last two quarters we have been growing at 30%, which is a tad bit higher.

Speaker #1: Sorry to interrupt, Utkarsh. Your voice is breaking.

Operator 2: Sorry to interrupt, Utkarsh Somaiya, your voice is breaking.

Operator: Sorry to interrupt, Utkarsh Somaiya, your voice is breaking.

Speaker #4: And am I audible now? Hello? Yeah, yeah. So, in the last two quarters, you've been growing at a higher rate of 30% compared to the last 10 or 12 quarters.

Utkarsh Somaiya: Am I audible now?

Operator 2: Yes.

Operator: Yes.

Utkarsh Somaiya: Hello. So the last two quarters, we have been growing at a higher rate of 30% compared to the last 10, 12 quarters. Can we expect this 30% to be the new normal for the next four to five quarters?

Speaker #4: So, can we expect this 30% to be the new normal for the next four to five quarters?

Speaker #2: I think if you look at the industry, last year, H1 was at a much smaller base, and hence we are looking at significant growth.

Anmol Jain: I think if you look at the industry, last year H1 was at a much smaller base, and hence we are looking at a significant growth. While the industry volumes continue to be robust in H2, I do foresee that because of a high base from last year post the GST rationalization, the growth rates of the industry overall will reduce. Today, you are looking at a 20%, 25%, 17% growth across different segments. This growth will slow down, not because of the demand going away, but purely because of a high base effect. To that extent, I do not think that we will continue to report a 30%, 35% each quarter. But I think on a full year basis, the growth revenue forecast is still about a 15% to 20% growth, which is again, better than what the industry is expected to clock.

Speaker #2: While the industry volumes continue to be robust in H2, I do foresee that, because of a high base from last year—post the GST rationalization—the growth rates of the industry overall will reduce.

Speaker #2: Today, you are looking at 20%, 25%, and 17% growth across different segments. This growth will slow down, not because of the demand going away, but purely because of a high base effect.

Speaker #2: So to that extent, I don't think that we will continue to report a 30, 35% each quarter, but I think on a full year basis, the growth revenue forecast is still about a 15 to 20% growth, which is again, better than what the industry is expected to clock.

Speaker #4: Okay, thank you. Fantastic.

Utkarsh Somaiya: Okay. Thank you. All the best for

Speaker #1: Thank you. We have our next question from the line of Radha from Motilal Oswal Financial Services. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Radha from Motilal Oswal Financial Services. Please go ahead.

Operator: Thank you. We have our next question from the line of Radha from Motilal Oswal Financial Services. Please go ahead.

Speaker #5: Hello, sir. Am I audible?

Radha: Hello, sir. Am I audible?

Radha Agarwalla: Hello, sir. Am I audible?

Operator 2: Yes, ma'am. We can hear you.

Operator: Yes, ma'am. We can hear you.

Speaker #1: Yes, ma'am, we can hear you.

Speaker #5: Sure, thanks. Sir, with reference to your presentation, page number 12, where the technology roadmap is provided for lighting, I wanted to understand what is the current content per vehicle for lighting products that you supply to a passenger car, and where do you see this content moving in the next five years as per the roadmap?

Radha: Sure. Thanks. Sir, with reference to your presentation, page number 12, where the technology roadmap is provided for lighting, I wanted to understand what is the current content per vehicle for lighting products that you supply to a passenger car. And where do you see this content move in the next 5 years as per the roadmap?

Radha Agarwalla: Sure. Thanks. Sir, with reference to your presentation, page number 12, where the technology roadmap is provided for lighting, I wanted to understand what is the current content per vehicle for lighting products that you supply to a passenger car. And where do you see this content move in the next 5 years as per the roadmap?

Speaker #2: The content per vehicle would differ model to model, based on the technology being utilized. However, on a full platform, all the lamps, if I were to consolidate, the current level would be anywhere between 15,000 to 20,000 on average per vehicle.

Anmol Jain: The content per vehicle would differ model to model based on the technology being utilized. However, on a full platform, all the lamps, if I were to consolidate, the current level would be anywhere between INR 15,000 to INR 20,000 on an average per vehicle. There will be some outliers where there are higher technologies, which would also go to almost INR 30,000 a vehicle. So that would be the content per vehicle as on today on a passenger car. I do foresee that going forward, this should at least go up by 50% over a four to five-year horizon. Again, the logic of that is purely based on new technologies. But again, those new technologies will not come at the same price points as it is globally available today. There will be a lot of push towards reducing those prices.

Speaker #2: There will be some outliers where there are higher technologies, which would also go to almost ₹30,000 per vehicle. So that would be the content per vehicle as of today on a passenger car.

Speaker #2: I do foresee that, going forward, this should at least go up by 50% over a four- to five-year horizon. And again, the logic of that is purely based on new technologies. But again, those new technologies will not come at the same price points as are globally available today.

Speaker #2: There will be a lot of push towards reducing those prices. So again, the 15,000 to 20,000 may become somewhere around 22,000 to 25,000 in my best estimate over the next four to five years.

Anmol Jain: Again, the INR 15,000 to INR 20,000 may become somewhere around INR 22,000 to INR 25,000 in my best estimate over the next four to five years.

Speaker #5: Understood, sir. That's helpful. So secondly, given Stanley's global portfolio beyond lighting, so HMI Automotive sensors, BMS, what products does Lumax Industries Limited currently have in India and can we expect any of these products to keep coming in the in Lumax Industries and any revenue contribution from this can it be expected?

Radha: Understood, sir. That's helpful. Sir, secondly, given Stanley's global portfolio beyond lighting, HMI, automotive sensors, BMS, what products does Lumax Industries Limited currently have in India? Can we expect any of these products to keep coming in Lumax Industries and can any revenue contribution from this be expected?

Radha Agarwalla: Understood, sir. That's helpful. Sir, secondly, given Stanley's global portfolio beyond lighting, HMI, automotive sensors, BMS, what products does Lumax Industries Limited currently have in India? Can we expect any of these products to keep coming in Lumax Industries and can any revenue contribution from this be expected?

Speaker #4: Deepak, you want to take that? Yeah. So if you see, currently we have a 42-year relationship with Stanley. It actually is on all lighting products.

Anmol Jain: Deepak, you want to take that?

Deepak Jain: Yeah. If you see currently, we have a 42-year relationship with Stanley. It actually is on all lighting products which Stanley makes. Stanley, actually, if you see, majority of its revenues, actually close to about 75%, is coming in from automotive lighting. Over the time, they have actually also kind of diversified and got into LED manufacturing, consumer lighting, street lighting, and certain basically sensors as well as certain applications which are more towards the UV lighting. This is a very different domain for India. Although we have our joint venture agreement for all the products, we will continue to evaluate based on Stanley's India guidance for the global businesses. Currently we are doing only lighting. X-Track was one of the products which we were just discussing on the call, which had come in for Honda's, particularly four-wheeler requirement.

Speaker #4: The Stanley makes. Stanley actually, if you see, majority of its revenues actually close to about 75% is coming in from automotive lighting. Over the time, they have actually also kind of diversified and got into LED manufacturing, consumer lighting, street lighting, and certain basically sensors as well as certain applications which are more towards the UV lighting.

Speaker #4: This is a very different domain for India. Although we have our joint venture agreement for all the products, we will continue to evaluate based on Stanley's India guidance for the global businesses.

Speaker #4: So currently, we are doing only lighting. HVAC was one of the products which we were just discussing on the call, which had come in for Honda's particularly four-wheeler requirement.

Speaker #4: So it continued to evaluate that, but I think our focus, given the order book, given the pull in the industry, given our leadership in the lighting industry, is that we want to make sure we continue to maintain and grow our market share.

Deepak Jain: We continue to evaluate that, but I think our focus, given the order book, given the pull in the industry, given our leadership in the lighting industry, we continue to want to make sure that we continue to maintain and grow our market share. Thanks.

Speaker #4: Thanks.

Speaker #5: Sure, sir. Thanks, that's helpful. Sir, but within this lighting, there is this MGN lighting that is picking up, and I believe that Lumax Auto Tech also will be catering to ambient lighting.

Radha: Sure, sir. Thanks. That's helpful. Sir, but within this lighting, there is this ambient lighting that is taking off, and I believe Lumax Auto Technologies also will be catering to ambient lighting. So how will that be divided between both the companies?

Radha Agarwalla: Sure, sir. Thanks. That's helpful. Sir, but within this lighting, there is this ambient lighting that is taking off, and I believe Lumax Auto Technologies also will be catering to ambient lighting. So how will that be divided between both the companies?

Speaker #5: So, how will that be divided between both the companies?

Speaker #4: Strategically, first and foremost, the ambient lighting also has many layers to it. We are not going ahead with very, very simple ambient lighting, but going forward, if it becomes more and more complex, depending on customers, we will be going through it.

Deepak Jain: Strategically, first and foremost, the ambient lighting has also many layers to it. We are not going ahead with the very simple ambient lighting. But going forward, if it becomes more and more complex, depending on customers, we will be going through it. Yes, IAC, which is in the other company, has one basically advantage because it does the complete interior design and cabin design. So that's where we are also looking at supporting from a group perspective, customers who actually request for. And in this company, if there is any order opportunity, particularly certain customer requests following standard customer needs, we will continue that. We want to basically focus on this, but I think this company right now continues to focus and put strength in more on the exterior lighting.

Speaker #4: Yes, IAC, which is in the other company, has one basic advantage because it does complete interior design and cabin design. So that’s where we are also looking at supporting, from a group perspective, customers who actually request for it.

Speaker #4: And in this company, if there is any order opportunity, particularly certain customer requests following Stanley's customer needs, we will continue that. So we want to basically focus on this, but I think this company right now continues to focus on its big strength and more on the exterior lighting.

Speaker #5: Understood, sir. So lastly, you mentioned that 90% of your order book is from LEDs. So I wanted to understand that once the LED penetration approaches 100%, then what are the key specific levers that you see that will help us in maintaining the double digit growth?

Radha: Understood, sir. Sir, lastly, you mentioned that 90% of your order book is from LED. I wanted to understand that once the LED penetration approaches 100%, then what are the key specific levers that you see that will help us in maintaining the double-digit growth?

Radha Agarwalla: Understood, sir. Sir, lastly, you mentioned that 90% of your order book is from LED. I wanted to understand that once the LED penetration approaches 100%, then what are the key specific levers that you see that will help us in maintaining the double-digit growth?

Speaker #4: So I think two things are there. Number one, as LED penetration continues to increase, our focus will continue to be on how to make sure that we are more cost-competitive, and localization comes in.

Deepak Jain: I think two things are there. Number one, when and as LED penetration continues to increase, our focus will continue to be on how to make sure that we are more cost competitive and localization comes in, because as more and more electronic conversion comes, it has a different kind of challenges on localization. Second point is that, if you look at a much more long-term roadmap, India is still under-penetrated if I look at the more developed markets. LED penetration will continue, but with the LEDs, there will be dynamic lighting. There are different projector lightings. There are many multiple technologies which are already prevalent in developed countries and developed auto industries. If you look at China, you look at US, the top two markets of the world, they have gone beyond LEDs.

Speaker #4: Because as more and more electronic conversion comes, it has a different kind of challenge on localization. Second point is that if you look at a much more long-term roadmap, India is still under-penetrated.

Speaker #4: If I look at the more developed markets, LED penetration will continue. But with LEDs, there will be dynamic lighting, and there are different projector lightings.

Speaker #4: There are many multiple technologies which are already prevalent in developed countries and developed auto industries. If you look at China and the US, the top two markets in the world, they have gone beyond LEDs.

Speaker #4: So, I think this trend—and the group is already working on software, on embedded electronics, and on certain POCs—to make sure that we get the technologies right.

Deepak Jain: I think this trend will continue in India and the group is already working on software, on embedded electronics and on certain POCs to make sure that we get the technologies right. Some customers are already evaluating this technology. We are very, actually bullish that after even LED penetration grows at a higher level, we will continue to add more value-driven content per vehicle.

Speaker #4: And some customers are already evaluating these technologies. So we are at least very bullish that even after LED penetration grows at a higher level, we will continue to have more value-driven content for vehicles.

Radha: Understood, sir. Sir, lastly, is there any global company that we can refer to, in terms of how we see this evolution happen, in technology within the lighting space, so that to get an understanding as to how the company will look maybe five years, 10 years down the line?

Radha Agarwalla: Understood, sir. Sir, lastly, is there any global company that we can refer to, in terms of how we see this evolution happen, in technology within the lighting space, so that to get an understanding as to how the company will look maybe five years, 10 years down the line?

Speaker #5: Understood, sir. So, lastly, is there any global company that we can refer to in terms of how we see this evolution happen in technology within the lighting space?

Speaker #5: So that we can get an understanding as to how the company will look maybe five years, ten years down the line.

Speaker #4: Well, you can benchmark any global. I think of this thing—so if you see, there is one more trend which has happened in lighting: there is a merger of all the interior players with the lighting players.

Deepak Jain: Well, you can benchmark any global, I think, other things. If you see, there is one more trend which has happened in lighting. There is a merger of all the interior players with the lighting players. Case in point, Forvia, which was basically Faurecia and Hella. Case in point, when basically Varroc was being bought over, which was originally best known lighting, was bought over by OP, which is OPmobility, which is Plastic Omnium. So this is a global trend, and if you actually take any of these trends and you take any of these lighting players, you can see a very global trend defined. So Europeans were dominated by two or three, Hella, Marelli, the OPs, and the Forvias. The Japanese are with Stanley, with Koito. So you can benchmark any of these players.

Speaker #4: Case in point, Forvia, which was basically for Asia and Hella. Case in point, when basically Varroc was being bought over, which was originally based on lighting, was bought over by OP, which is OP Mobility.

Speaker #4: Which is plastic home. So this is a global trend. And if you actually take any of these trends, and you take any of these lighting players, you can see a very global trend defined.

Speaker #4: So, Europeans have dominated by two or three: Hella, Marelli, the OPs, and the Forvias. The Japanese are with Stanley, with Koito. So, you can benchmark any of these players.

Speaker #5: Understood, sir. Thank you, and all the best to the team.

Radha: Wonderful, sir. Thanks, and all the best to the team.

Radha Agarwalla: Wonderful, sir. Thanks, and all the best to the team.

Speaker #4: Thank you.

Deepak Jain: Thank you.

Speaker #2: Thank you. We have our last question from the lineup. Viraj Kacharia from Simple, please go ahead.

Operator 2: Thank you. We have our last question from the line of Viraj Kacharia from Simple. Please go ahead.

Operator: Thank you. We have our last question from the line of Viraj Kacharia from Simple. Please go ahead.

Speaker #3: Yeah. Am I audible now?

Viraj Kacharia: Yeah. Am I audible now?

Speaker #2: Yes.

Operator 2: Yes.

Operator: Yes.

Speaker #3: Okay, so this is just extending the previous participant's question. If you have to look at this company over the next five to seven years, will the primary segment be mainly lighting solution-driven?

Viraj Kacharia: Yeah. This is just extending on the previous participant question. If I have to look at this company, say, next 5, 7 years, would the primary segment be majorly lighting solution-driven? Or do you think over a period of time, just how we've seen in our another group company, Lumax Auto Technologies, we would see a range of other products being added? And why I'm asking this is if you look at Stanley Electric Mobility, they have launched ECUs, not just for LED control unit, but you also have ECU for air conditioner, you have ECU for heated and cooled seats. So there are a range of other products also they have come out with.

Speaker #3: Or do you think, over a period of time—just as we've seen in our other group company, Lumax Auto Tech—we would see a range of other products being added?

Speaker #3: And the reason I am asking this is, if you look at Stanley Electric Mobility, they have launched these ECUs not just for the LED control unit, but they also have ECUs for the air conditioner.

Speaker #3: You have ECU for heated and cooled seats, so there's a range of other products they've also come out with. So I'm just trying to understand, in terms of the orientation of the two promoters.

Viraj Kacharia: I am just trying to understand in terms of orientation of the two promoters for this company, how should one look at it over next 5, 7 year kind of a horizon or more?

Speaker #3: For this company, how should one look at it over the next five to seven year kind of horizon or more?

Speaker #4: So, I think visibility as given is, let's say, let's talk about 2031, and we've just talked about the revenue opportunity and the margin opportunity that this company can achieve.

Deepak Jain: Well, I think our visibility as giving is, let us say, we told this talk about 2031. Anmol just talked about the revenue opportunity and the margin opportunity, what this company can do. But this is primarily being driven by lighting products, which are there. If the market evolves to various other products, we will continue to do that as we have a very good relationship with Stanley. We have access to that technology. I think the key will be to make sure that we meet the customer needs through their localizations. A very small start was on HVAC, which was a Honda-driven need. Stanley supported that. It was a new product line. We made the investments. However, unfortunately, the Honda, where we were on that model, did not do well.

Speaker #4: But this has primarily been driven by lighting products, which are there. If the market evolves to various other products, we will continue to do that as we have a very good relationship with Stanley.

Speaker #4: We have access to that technology. I think the key will be to make sure that we meet the customer needs through their localizations. A very small start was on HVAC, which was a Honda-driven need.

Speaker #4: Stanley supported that. It was a new product line. We made the investments. However, unfortunately, the Honda, where we were on that model, did not do well.

Speaker #4: So these opportunities will come on, but the focus will continue to remain on lighting, because we also do see a large opportunity for lighting itself to grow in the Indian market.

Deepak Jain: These opportunities will come on, but the focus will continue to remain as lighting because we also do see a large opportunity for the lighting itself to grow in the India market.

Speaker #5: And just so, a related question:

Viraj Kacharia: And just a related question. See, one of the interesting points you made is that the ecosystem will keep on evolving while the technology further evolves, there is a limit to which you can do localization. But is there a possibility where, as your scale increases, complexity increases, you might want to capture a part of the component value add, in terms of electronic subsystems, not just for the local market, maybe also for the global market. Any thoughts on those lines?

Speaker #3: Right? See, one of the interesting points you made is that the ecosystem will keep on evolving. While the technology further evolves, there's a limit to which you can do localization.

Speaker #3: But is there a possibility where, as your scale increases and complexity increases, you may want to capture a part of the component value-add in terms of electronic subsystems—not just for the local market, but maybe also for the global market?

Speaker #3: Any thoughts on those lines?

Speaker #4: Again, very premature to say. As I said, about six years ago, this company actually started with the SMT lines. We didn't have that order.

Deepak Jain: Again, very premature to say. As I said, about six years ago, this company actually started with the SMT lines. We did not have that orders. And now if you see, we are doing sizable revenues coming in to in-source from electronics from this plant, which is in Bawal. These opportunities continue to do so. As I said, the company and the group are very clearly and closely working with customers. We do see that there will be more software, more embedded electronics coming in in lighting. There will be more dynamic lighting which will be coming through, and we will work on to get the best value creation within India. Again, as I said, it is a very open-ended question. The way ecosystem with electronics involved in India is still premature. OSATs are coming in, and those are still again premature. So we will see basically five to seven years.

Speaker #4: And now, if you see, we are seeing sizable revenues coming in to insource from electronics from this plant, which is in Powell. These opportunities will continue to do so.

Speaker #4: As I said, the company and the group are very, very clearly and closely working with customers. We do see that there will be more software and more embedded electronics coming in lighting.

Speaker #4: There will be more dynamic lighting, which will be coming through. And we will work on getting the best value creation within India. So, again, as I said, it's a very open-ended question.

Speaker #4: The way the ecosystem with electronics involved in India is still premature. OSATs are coming in. Those are still, again, premature. So we'll see how, basically, in five to seven years.

Speaker #4: I don't think, currently, the company has planned to get into small electronic components for the market.

Deepak Jain: I do not think currently the company has planned to get into small electronic components for the market.

Speaker #3: Okay, just two more questions. See, on the competitive landscape—if I look at two-wheelers specifically—I think, if you look at our own journey in the last few years, we've been able to get a sizable share from HMSI.

Viraj Kacharia: Okay, just two more questions. On the competitive landscape, if I look at two-wheeler specifically, I think if I look at our own journey in last few years, we have been able to get a sizable share from HMSI, and we are talking on similar lines with, say, TVS and Suzuki now. Can you give some color in terms of competitive landscape? Whom are we gaining share from? Any color on the market share there?

Speaker #3: And we are talking along similar lines with, say, TVS and Suzuki now. Can you give some color in terms of the competitive landscape—whom are we gaining share from?

Speaker #3: Any color on the market there?

Speaker #4: So, competition in the industry, as I mentioned, will continue to increase. We all know that, let’s say, in two-wheelers, there are two or three incumbent players.

Deepak Jain: Competition in industry, as I mentioned, will continue to increase. We all know that, let us say, two-wheelers, there are two or three incumbent players. That basically we, depending on the customer, we will continue to gain some market share, particularly, as I mentioned, HMSI and TVS. These are the basically two things. And of course, as I said, four-wheelers is very highly dominated by global players. Not too many localized players here, and they are all basically putting up aggressive plans. It will become a very intense competition going forward.

Speaker #4: Basically, depending on the customer, we'll continue to gain some market share, particularly—as I mentioned—with HMCI and TVS. So these are basically the two things.

Speaker #4: And of course, as I said, four-wheelers is very, very highly dominated by global players—not too many localized players here. And they are all basically putting up aggressive plans.

Speaker #4: So, it will become a very, very intense competition going forward.

Speaker #3: Okay, thank you, and good luck.

Viraj Kacharia: Okay. Thank you, and good luck.

Speaker #4: Thank you.

Deepak Jain: Thank you.

Speaker #2: Thank you. Ladies and gentlemen, that was the last question of the day. I will now hand the conference over to the management for closing comments.

Operator 2: Thank you. Ladies and gentlemen, that was the last question of the day. I now hand the conference over to the management for closing comments.

Operator: Thank you. Ladies and gentlemen, that was the last question of the day. I now hand the conference over to the management for closing comments.

Speaker #4: Well, thank you very much for joining today's conference call and for your continued participation and guidance. We look forward to continuing to answer your questions.

Deepak Jain: Thank you very much for joining today's conf call and your continued participation and guidance. We look forward to continue to answer your questions. If you have any further queries, you may get in touch with Ms. Surbhi Changna or our investor advisors. Have a great day. Thank you for your support. Bye.

Speaker #4: If you have any further queries, you may get in touch with Suzuki or our industry advisors. Have a great day. Thank you for your support.

Speaker #4: Bye.

Operator 2: Thank you. On behalf of Lumax Industries Limited, that concludes the conference. Thank you for joining us. You may now disconnect your lines.

Operator: Thank you. On behalf of Lumax Industries Limited, that concludes the conference. Thank you for joining us. You may now disconnect your lines.

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