LALumax Auto Technologies532796Capex expansion plan

Board approves guarantee of up to Rs. 15 Crores for subsidiary; new Manesar plant with around Rs. 150 Crores outlay

Board approved corporate guarantee/letter of comfort/PDCs to secure loans to subsidiary Lumax Greenfuel Energy Solutions, up to an additional Rs. 15 Crores.

By ScoutQuest · Sat 24 Oct 2026, 4:38 PM IST · 3 min read

Corporate guarantee for subsidiary

up to an additional Rs. 15 Crores

New Mechatronics plant capex (Manesar)

about Rs. 150 Crores

Peak turnover expected

about Rs. 500 Crores

The board of Lumax Auto Technologies met on Saturday, October 24, 2026 and approved, among other items, the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, a corporate guarantee for a subsidiary, and a new factory. The results carry limited review reports from Price Waterhouse Chartered Accountants LLP, the statutory auditors.

Corporate guarantee for the subsidiary

• The board approved issuance of a corporate guarantee, letter of comfort and/or post dated cheques (PDCs) to secure loans that banks, financial institutions or NBFCs provide or will provide to Lumax Greenfuel Energy Solutions Private Limited, a subsidiary of the company.
• The cover is for an additional amount up to Rs. 15 Crores (Rupees Fifteen Crores Only), as recommended by the Audit Committee.
• In simple terms, the listed company is agreeing to stand behind a part of its subsidiary's borrowing. If the subsidiary is unable to repay, the obligation can come back to the parent.

New Mechatronics plant at Manesar

• The board approved setting up a new Mechatronics manufacturing facility at Manesar, Haryana, with a capital outlay of around Rs. 150 Crores.
• The plant will cater to the requirement for electronic components including Body Control Module and similar parts for leading OEMs.
• The capex will be funded by a mix of debt and internal accruals.
• Peak annualised turnover is expected to be around Rs. 500 Crores after commissioning.
• The project is expected to be commissioned in 2 phases starting Q3 FY 2028.

Quarterly and half-year numbers (consolidated, unaudited)

• Revenue from operations for the quarter ended September 30, 2026: 1,55,550.53 (Rs. in Lakhs), against 1,36,361.57 in the quarter ended June 30, 2026 and 1,15,636.22 in the quarter ended September 30, 2025 (restated).
• Profit before exceptional item and tax for the quarter: 15,424.39 (Rs. in Lakhs); profit for the quarter 11,667.11 (Rs. in Lakhs), of which 10,550.89 (Rs. in Lakhs) is attributable to owners of the company.
• Basic and diluted earnings per share for the quarter: 15.48 each on face value of Rs. 2 per share, not annualised.
• For the half year, revenue from operations 2,91,912.10 (Rs. in Lakhs) and profit for the period 21,530.76 (Rs. in Lakhs).
• Standalone revenue from operations for the quarter: 1,20,469.75 (Rs. in Lakhs); standalone profit for the quarter 8,899.65 (Rs. in Lakhs); standalone basic EPS 13.06.
• Total income tax expense for the quarter on a consolidated basis: 3,757.28 (Rs. in Lakhs).

Other items placed before the board

• The board took note of the relocation of a manufacturing facility from Plot No. 7-10, 23-25, Gat No. 53, Sahajapur, Aurangabad to Plot No. B 14/2, MIDC Waluj, Chhatrapati Sambhajinagar, Maharashtra.
• The sale of the company's entire 50% equity stake in Lumax Japp Allied Technologies Private Limited to Japp Holding GmbH, Germany, was concluded in the current period, and that company ceases to be a subsidiary. An impairment loss of Rs. 703.97 Lakhs had been recognised as an exceptional item in the standalone results for the year ended March 31, 2026.
• Comparative figures for the quarter and half year ended September 30, 2025 have been restated following the mergers of two wholly owned subsidiaries, Lumax Ancillary Limited and IAC International Automotive India Private Limited, into the company under the pooling of interest method.

What a retail reader can take away

• The guarantee is a commitment made by the listed company in respect of a subsidiary's borrowings, so it is worth tracking alongside the group's overall liabilities.
• The Manesar plant is growth capital: money goes out first, and the expected turnover of around Rs. 500 Crores is linked to commissioning from Q3 FY 2028, in 2 phases.

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