Lumax Auto Technologies Plans To Grow 20% Each Year Until 2030

Lumax Auto Technologies Ltd. is confident of achieving a 20% compound annual growth rate every year on an average until 2030, backed by strong organic growth and high volumes, according to Managing Director Anmol Jain.

Despite subdued industry sentiments, the company has a bullish outlook towards its mid-term growth targets. Jain explained three reasons that could aid Lumax's growth.

"Our confidence in sustaining 20% CAGR growth stems from three key drivers — a strong order book that alone provides close to 10% organic growth in FY26, increased wallet share with major customers driven by new products and deeper penetration, and full-year revenue realisation from recent joint ventures and inorganic initiatives," Jain said. "Together, these factors position us well for robust top-line performance."

Additionally, the aftermarket segment, which had previously been impacted by external challenges affecting the entire Tier 1 ecosystem, is showing clear signs of recovery, he said.

"We did have some setbacks because of the external dynamics of the aftermarket. It was true for all Tier 1 companies. We've seen a rebound. April numbers look encouraging. Quarter one seems to be on track.

"We do expect a good double-digit growth in the aftermarket as well for FY26 and hence, the consolidated numbers are looking positive," Jain noted.

While no acquisitions are planned for FY26, Jain confirmed the company is actively evaluating multiple inorganic opportunities, with one or two strategic deals likely by FY31. 

Outlining Lumax's FY31 mid-term vision, he explained that the company is targeting 20% CAGR growth to reach Rs 10,000–11,000 crore in revenue from the current Rs 3,500-crore base. 

"A 15% CAGR is achievable organically through deeper wallet share, a strong order book, and full-year realizations from joint ventures," the managing director said. "To reach 20% CAGR by FY31, we’re evaluating multiple inorganic opportunities and expect one or two strategic acquisitions to materialise during this period to support overall growth."

Jain explained that Lumax's margin targets will be achieved through both margin-accretive acquisitions and organic improvements. For inorganic growth, the company is focused on acquiring strategically aligned, high-performing businesses rather than distressed assets.

"We aspire to inch closer towards the 20% Ebitda margin. By FY28, we expect to double our Ebitda in absolute terms and reach around 16% Ebitda margin," Jain said.

"This will be driven by acquisitions operating at higher margins, like ISE and Green Fuel, as well as margin expansion in our core business, especially as revenue from clean mobility grows from 6% to around 20%," he added.