Lumax Auto's Anmol Jain sees content per vehicle rising 10-15% by FY29 on premiumisation

Anmol Jain, MD of Lumax Auto Technologies said that the company is expanding its product portfolio and mechatronics capabilities to benefit from rising electronic content in vehicles and changing automotive technology trends.

Lumax Auto Technologies expects the value of components supplied per vehicle to increase by 10-15% by 2028-29 , as automakers add more features, localise production and adopt green-fuel technologies. Managing Director Anmol Jain said the company currently supplies components worth ₹70,000-75,000 per passenger car and ₹20,000-22,000 per two-wheeler.The company expects content per vehicle to rise further by 2030-31 - 2031-32 , supported by premiumisation and an expanding product portfolio. Lumax Auto is also investing in its mechatronics business, which includes electrical and electronic components, body control modules, switches and sensors, to benefit from the growing electronic content in vehicles.The first half has been strong.

What is the outlook for the second half, and where do you expect revenue and margins to be by the end of the year?The first half of the year has been a great for the industry. We have seen a massive surge in volumes across original equipment manufacturers . Our playbook of higher premiumisation, higher localisation and increased content per vehicle is also playing out well.For H2, I do not see any headwinds. Having said that, while our topline grew by about 35% in H1, we anticipate growth of around 18-20% in H2 because of the higher base in H2 last year. We expect full-year topline growth of close to 25%.We are on course to maintain our margins, as we did in H1.

We have seen several inflationary price increases, but we should be able to pass most of them on to our customers. Given the current margins, we are looking at delivering earnings before interest, taxes, depreciation and amortisation of about ₹1,000 crore in 2027-28 , so we should close the current year, 2026-27 , at around ₹900 crore.Mechatronics is a big growth opportunity, with a target of ₹800-1,000 crore by 2030-31 . What are the growth drivers, its contribution to the order book, and the capability enhancements planned over the next two to three years?Mechatronics is the fastest-growing vertical for Lumax Auto Technologies.

It already includes close to five joint ventures and has a diverse product line. We are largely talking about electrical and electronic parts. We are also getting into the manufacturing of body control modules, more switches and more sensors.The growth drivers will be increasing localisation, premiumisation and rising electronic content per vehicle.We are going to invest in a new manufacturing facility for mechatronics, which the board recently approved. It will have a peak annual turnover of about ₹500 crore once fully commissioned. We are confident of attaining close to 10% of total consolidated revenue from the mechatronics vertical.In terms of the order book, mechatronics accounts for roughly 20-25% of the total order book.Coming back to the ₹11,000 crore revenue target by FY31, how much of this will come from acquisitions, and how much can be achieved organically through existing and upcoming business wins?Our north star was to deliver a 20% CAGR from FY25 to FY31.

Earlier, we had guided that close to a 15% CAGR would come organically, with the balance coming from strategic inorganic opportunities.Today, we are pretty confident of delivering this ₹11,000 crore topline by FY31, pretty much entirely organically, with the basket of products we currently have under Lumax Auto Technologies.Having said that, we continue to engage with and evaluate strategic inorganic opportunities. If something clicks by FY31, it would further add to the company's topline and bottom line.H1 EBITDA margins improved by about 90 basis points to nearly 15%, while Q2 margins were broadly flat year-on-year.

What are the levers for margin expansion, given the target of ₹1,000 crore EBITDA by FY28 and the ambition of reaching 20% margins by FY31?Margins were relatively flat in Q2, primarily because of inflationary price increases. We were able to pass most of these on to our OEMs, but a price increase that adds to the topline does not necessarily lead to an expansion in the bottom line. This resulted in a margin contraction of around 30-40 basis points.However, to clarify, we have never given guidance that we will achieve a 20% EBITDA margin by FY31. Our endeavour is to steer the organisation towards an EBITDA margin of close to 20% over the next five to seven years.The margin drivers are clear.

Almost 60% of our consolidated revenue comes from business verticals with EBITDA margins of around 18% or higher. Similarly, almost 60% of our order book comes from these verticals. As this order book gets delivered and flows into the profit and loss statement, margins should expand further.Some of our other business verticals currently have EBITDA margins of around 12-15%. With scalability and a higher order book, we expect better operating leverage and higher margins from these businesses as well. These are the primary drivers of margin expansion.By when do you expect content per vehicle to reach ₹40,000 for two-wheelers and ₹1 lakh for four-wheelers?Currently, our content per vehicle is around ₹70,000-75,000 for passenger cars and ₹20,000-22,000 for two-wheelers.

We expect a 10-15% increase by FY29.With higher content per vehicle, premiumisation and further localisation, particularly in green fuels, we hope to reach these levels by FY31-FY32. We are also constantly looking at other product lines that could be added to our portfolio at Lumax Auto Technologies.Watch the full conversation here