Broker’s Call: Lumax Auto Tech (Buy)

Target: ₹2,210

CMP: ₹1,635.35

Lumax Auto Tech reported Revenue/EBITDA/PAT growth of 40/49/116 per cent y-o-y during Q3FY26. PAT was boosted by one-time deferred tax gain of ₹39 crore on account of merger of GreenFuel Energy with the SPV.

Looking at the robust growth during 9MFY26, the management again raised the FY26E revenue growth guidance to 30 per cent from 25 per cent announced at the end of Q2FY26. The EBITDA margin improvement continued with Q3FY26 margin at 13.8 per cent, up 80 bps. EBITDA margin is expected to structurally improve to 20 per cent over the next five years, driven by operational efficiencies, expanding portfolio of high margin components and presence in OEM programmes creating high entry barriers.

The two acquired subsidiaries — IAC India and GreenFuel Energy — continue to drive growth for the company.

Lumax Auto Tech’s revenue from M&M grew 15 per cent during Q3. Growth is expected to bounce back in Q4 as the XUV 7XO scales up production. Recovery in 2W export volumes for Bajaj Auto led to 22 per cent growth for revenue from Bajaj Auto. Integration of GreenFuel Energy along with the increase in share of business has led to 88 per cent/110 per cent growth for Lumax’s revenue from Maruti Suzuki and Tata Motors respectively.

The stock is currently trading at a P/E of 33.3x/22.1x/16.1x its FY26E/FY27E/FY28E EPS of ₹48.9/₹73.6/₹101.1 respectively. We raise our target multiple to 30x FY27E EPS of ₹73.6 to arrive at our TP of ₹2,210.

Published on February 17, 2026