Thank you. A very good afternoon, everyone, and thank you for joining us for Lumax Auto Technologies Limited Q4 and FY '26 earnings conference call.

It's always a pleasure to welcome you all. I'm joined by our leadership team today, including Mr.

Deepak Jain, Vice Chairman; Mr. Sanjay Mehta, Director and Group CFO; Mr.

Vikas Marwah, CEO of the company; Mr. Ankit Thakral, CFO of the company; Mr.

Sanjay Bhagat, Head of Aftermarket Business; Mr. Naval Khanna, Head of Corporate Taxation; and Ms.

Surbhi Chanana, Group Head of Investor Relations and Value Creation; along with our investor relations advisor, SGA. We have uploaded our earnings presentation on stock exchanges and company's website.

I hope everybody had an opportunity to go through the same. I am pleased to share that the company delivered its best-ever financial and operational performance in FY '26, with revenue reaching an all-time high of ₹4,870 crores.

The company also crossed the 700 crore mark for EBITDA to reach record EBITDA of ₹705 crores with a healthy margin of 14.5%, along with a record PAT of ₹337 crores. This performance was driven by strong industry demand, robust execution across businesses, sustained customer momentum, and disciplined operational focus.

The company delivered faster than industry growth and improved profitability during the year, supported by continued scale-up across core product segments, increasing contribution from value-added and technology-led offerings, and a strong momentum in the aftermarket business. Overall, the Indian automotive industry delivered a resilient performance during FY '26, despite witnessing some moderation in demand during the first half of the year.

The recovery in the second half was supported by improving consumer sentiment, easing interest rates, GST-related reforms, infrastructure spending, and a very strong festive demand. Rural demand also showed gradual improvement aided by better agricultural output and government spending, with which positively impacted entry-level vehicle demand and two-wheeler volumes.

On the back of this improving environment, vehicle production across segments remained healthy during the year. According to SIAM data for Q4 FY '26, passenger vehicle production grew by 11% to 15.7 lakh units, two-wheeler production witnessed a strong growth of 21% to 70.5 lakh units, three-wheeler production also increased sharply by 32% to 3.4 lakh units, and commercial vehicle production grew by 20% to 3.6 lakh units.

The continued growth in production across segments reflects the strong underlying fundamentals of the Indian automotive market and reinforces India's position as one of the fastest-growing automotive economies globally. Increasing localization, improving supply chain resilience, and continued investments by OEMs towards capacity expansion of new product development are expected to support the long-term industry growth.

Coming to few updates for the company: During the year, we continued to optimize our portfolio through a calibrated approach to partnerships, strategic investments, and business realignment. These actions are aimed at supporting a sharper execution, improving scalability, enhancing operational synergies, and ensuring that our structure remains aligned with our long-term growth objectives.

To highlight a few of these: the merger of IAC India Private Limited and Lumax Auto Technologies Limited, the merger of Lumax Ancillary Limited and Lumax Auto Technologies Limited. The financial results of both of these are now reflected in the standalone financial results of the company.

The board has also approved the sale of entire 50% equity stake in Lumax Yokowo Allied Technologies Private Limited to Yokowo Holding Germany, the joint venture partner, subject to completion of customary conditions in terms of the share purchase agreement. Consequent to the completion of the said transaction, Lumax Yokowo will cease to be a subsidiary of the company.

The board has also approved proposal to acquire the remaining stake of 15.97% in Lumax FAE Technologies Private Limited from its existing shareholder. Post this acquisition, Lumax FAE will become a wholly owned subsidiary of the company.

Our performance was further validated through multiple customer recognitions at supplier conferences, highlighting the ability to consistently meet and exceed customer expectations. The subsidiary company Lumax ALPS Alpine received the localization of design and development capability for the year 2025-2026 at the recently held Maruti Suzuki vendor conference.

IAC division received the part development for the year 2025-2026 at the same Maruti Suzuki vendor conference. IAC division also received the Mahindra Supplier Excellence Award for execution excellence at the Mahindra Supplier Excellence Awards forum, and the Bengaluru plant was honored with the excellence in quality management award at the Honda Motorcycle and Scooter India supplier convention of 2026.

Coming to the order book: We are pleased to report a robust order book of ₹1,450 crores, which provides healthy visibility for the business going forward. Of this order book, approximately 25% is expected to be executed in this financial year FY '27, 54% in FY '28, and the remaining 21% in FY '29.

The order book continues to reflect a healthy traction across all our product verticals, with advanced plastics contributing the largest share, followed by mechatronics, alternate fuels, and structures and control systems. In closing, while we remain watchful of the macroeconomic uncertainties, commodity inflation, and the energy price volatility, the overall demand environment and industry outlook continues to be favorable, giving us confidence as we enter FY '27.

At Lumax Auto Technologies, we remain firmly committed to the execution of our medium-term strategy—

Apologies for that call drop. Just to pick up where I left off: At Lumax Auto Technologies, we remain firmly committed to the execution of our mid-term strategy, backed by a robust order pipeline, a diversified customer base, and a very well-defined roadmap to evolve from a traditional Tier 1 supplier to a Tier 0.5 system integrator.

We believe the company is well positioned to deliver sustainable growth and strengthen its competitive position in the years ahead. With this, I would like to now hand over the call to Mr.

Ankit Thakral, the CFO of the company.

Thank you very much, sir. Good afternoon, everyone, and thank you for joining us today.

FY '26 marked the year of strong operational and financial performance, reflecting disciplined execution of our strategic priorities. The company delivered healthy revenue growth, improved margins, and robust EBITDA expansion, supported by continued focus on operational excellence, portfolio diversification, and prudent financial management.

The year's performance reinforces the strength of our business model and provides a solid foundation for sustainable growth in the years ahead. Let me walk you through the consolidated financial and operational highlights for the Q4 and full year ended March 31, 2026.

The consolidated revenue reached ₹1,417 crores for Q4 FY '26, which is historic high for the company, and ₹4,870 crores for 12-month FY '26, registering a growth of 25% and 34% for Q4 and 12-month respectively. It reflects consistent scale-up across core product lines, steady traction with OEMs, and continued strong momentum of the aftermarket portfolio.

On the profitability front, EBITDA for Q4 FY '26 stood at ₹208 crores, while for 12-month FY '26, it stood at INR 705 crores. This translates into margins of 14.7% for Q4 and 14.5% for 12-month FY '26.

PBT before exceptional item for Q4 FY '26 stood at ₹126 crores, while for 12 months, the same stood at ₹420 crores. There is a slight increase in depreciation cost in Q4 of FY '26.

Part of it is due to capitalization, but majorly on account of reclassification in the life of intangible assets, which were acquired as a part of Greenfuel Energy business. Profit after tax, but before minority interest, for Q4 FY '26 and 12 months stood at ₹98 crores and ₹337 crores respectively, registering an impressive YoY growth of 22% and 47%.

In tax expense, in Q3 of FY '26, there was a one-time of impact on account of reversal of deferred tax as a result of merger of Greenfuel with its SPV company. Excluding the same, the effective tax rate for 12 months of FY '26 comes out as 26%, and we expect it to hold at similar levels way forward.

The share of minority for Q4 FY '26 stood at 10%, which is again due to the same reclassification of intangible assets, as it has been adjusted against the minority interest in the quarter. The minority share for 12 months, however, is at 17%, and which is expected to be in the similar range going forward.

With respect to the division-wise breakup: Beginning with the advanced plastics division, this segment recorded a YoY growth of 25% in 12-month FY '26, with revenues increasing from ₹2,045 to ₹2,566 crores. This performance reflects our strategic alignment with OEM programs that prioritize design, durability, and lightweighting.

The order book remains strong at INR 700 crores, providing solid future visibility. The mechatronics segment sustained its upwards momentum, delivering a YoY growth of almost 150% in 12 months, from ₹115 to ₹281 crores, with a healthy order book of ₹400 crores.

This remains the highly technical business due to its high engineering intensity and relevance in the shift towards intelligent mobility systems. Turning to the structure and control systems vertical, it reported a YoY growth of 17% in 12 months, increasing from 693 crores to ₹816 crores.

With an order book of ₹170 crores, this strengthens our position as a trusted technology partner in the evolving mobility ecosystem. The aftermarket segment showed a strong growth of 15% from last year, reflecting strong customer traction and product acceptance.

We are very much hopeful of building upon this growth traction for FY '27 and way forward. The Greenfuel Energy business, acquired in November of last financial year, contributed ₹383 crores in FY '26, backed by an order book of 180 crores with margins expected to be accretive to the group average over the medium term.

The segment is positioned to grow in alignment with the national shift towards alternate fuel platforms and rising OEM adoption. Over the year, there has been a notable shift in our revenue composition, leading to a well-diversified and balanced mix across mobility platforms.

In FY '26, the passenger vehicle segment accounted for 53% of total revenues, with two- and three-wheeler segment contributing 24%, followed by aftermarket at 10% and CVs at 9%. The capex during the year was ₹233 crores, which included strategic investment in land in Gujarat and Sarkhej regions of INR 45 crores, and also almost 100 crores on capacity expansions in IAC and Lumax ALPS Alpine.

These investments are aimed at unlocking medium-term revenue growth and supporting localization efforts across key platforms. As of March 2026, we continued to maintain a strong balance sheet and a healthy liquidity position.

Free cash reserves stood at ₹396 crores, providing us with the financial flexibility to support ongoing investments and navigate market cycles confidently. The long-term debt stood at 553 crores, resulting in a conservative debt-to-equity ratio of 0.46, which is within our internal comfort thresholds.

In my closing, would also like to highlight that during the year, CRISIL upgraded the company's credit ratings from AA- to AA, reflecting strong financial strength, prudent capital management, and sustained business performance. With this, we conclude the operational and financial overview.

We now open the floor for question and answers.

Thanks for the opportunity. Congratulations to the entire team for one more outperformance results.

Best wishes for the year ahead. Sir, my question's related to the revenue growth.

Almost all our key customers have reported a good double-digit year-on-year growth in Q4, specially Maruti, Bajaj, and even aftermarket in Q4 have reported some exceptional numbers. What has led to this growth?

On the other side, Tata Motors, we have seen some kind of a 56% drop on a YoY basis in Q4. Anything to read into this, please?

Thank you, Amit, first for your kind words. I think the growth momentum in Q4 was, as you rightly said, extremely positive across all the OEMs.

I'm happy that our Q4 year-on-year growth in fact was even better than some of the OEM performances. I think there is inherently been a very strong pull at the retail level, and that is what has driven this Q4 growth.

Right after the GST rationalization, we saw that there is a significant offtake of demand which went into Q4. Q4 historically also has been a quarter where the industry does probably the highest volume.

I think the momentum of demand continues to be there for the current Q1 as well. However, of course, there are certain input costs and margin pressures, but the demand from a retail point of view still seems to be intact.

Anything on the Tata Motors? We have seen some drop basically in Q4.

I think there Amit, there could be some maybe misreading of the information because with respect to the Q4 of last year, the growth for Tata has increased by almost 33, 34%, and which is in, I would say, exact line with the OEM growth, because OEM has also grew by 34% in current Q4 with respect to the last Q4.

Okay. Noted, sir.

Sir, can you give a broad growth outlook for the next fiscal for the consolidated entity and if possible separately for IAC, Lumax Cornaglia, and other entities, please?

I think the overall volatility in the industry continues, and I think we're going to be waiting and watching. As I mentioned, quarter one, we do not see any significant disruptions or pull back on demand across our OEMs.

Hence, my direction and guidance for the year would be that the company is pretty confident that we will continue to outperform the industry growth. I think few of the businesses we are looking at perhaps doubling that of industry growth, growing by 2x, and in certain business cases, we might as well also grow by 3x of the industry growth on account of various initiatives like value content going up or wallet share expansion.

Overall, I think we continue to be on par with mid-term strategy of our 20% CAGR over the next 3 to 5 years.

Okay. Sir, secondly, looking at the cost inflation, especially for your key raw materials, polypropylene.

Are you maintaining the consolidated margin guidance of continuous improvement, or are you witnessed speed breakers for a year or so?

Amit, most of the inflationary costs, be it on account of raw material commodities or also the manpower costs which has significantly risen up due to certain minimum wage hikes, also the energy prices going up, all of it has of course put some short-term pressure on the margins, but more or less all of it, we actually have a back-to-back understanding with the OEMs. It is just a lag of about 3 to 6 months, depending on the OEM, by when we get these realizations.

Having said that, we are quite confident that we should be able to get most of the inflationary cost increases back to the company. For the full year, I do not foresee any reason the margins would get negatively impacted.

On the contrary, I would say on account of the top-line growth, the margins should just sustain or at least further go up by at least 30 bps or so.

Sure, sir. I'll come back in the queue.

I have more questions to follow. Thank you, sir.

All the best. Thank you.

Yeah. Hi.

Thank you for the opportunity. Sir, just wanted to understand on Lumax Yokowo.

This business seemed to have been growing well. Just wanted to understand the rationale behind giving up this stake and were you seeing some challenges in scaling up the business?

Lumax Yokowo again was a very small base and a very small contributor from a top-line perspective, but it also continued to have a negative impact on the bottom line. I think as I mentioned, we wanted to make sure that we stay laser-sharp focused on our mid-term strategy and have our resources be dedicated in growing and, let's say, unlocking the absolute potential of the businesses where we do see scalability and margin expansion.

Hence for those reasons, Lumax Yokowo was something which strategically was not something which we were extremely confident or extremely bullish about. Hence, we took that decision to exit that joint venture.

Understood. Of the 500 crore IAC order book, how much of it would be from M&M, and how much of it would be non-M&M?

More than 90% of IAC's order book would be from M&M. There would be some orders from other clients like Maruti Suzuki as well, but largely it would be driven by M&M.

Understood. Sir, have we been able to make any inroads on getting new OEMs for IAC?

Any progress on that front if you could share?

Yes, absolutely. The discussions and dialogues with other OEMs are progressing extremely well.

However,

please do appreciate that these dialogues take minimum 2 to 3 years to fructify from an engagement to an RFQ to a business win to get into SOP. I still remain pretty optimistic that over our mid-term plan of 2030, IAC would definitely see an expansion on its OEM customer base.

Okay. Just last question.

Did we see any disruptions in production in April or May because of labor shortage or any other reason?

Yes, it is very much a fact, and there is no point saying that there are no labor shortages that we have experienced either due to elections or due to the war-related scenario or other conditions. The good news is that our servicing to the OEM has not been disrupted to that extent.

Of course, there has been a marginal impact as also at the OEM level itself of their production lines not being able to operate to the desired demand levels. The good news is that the situation is easing up quite fast, and we are coming back to near normalcy right now.

Sir,

if you could quantify how much the disruption would have impacted our production, like in numbers or that sort?

It would have been negligible in terms of the impact.

Understood. Thank you so much.

Thank you.

Hi, sir. Thank you for taking my question and congratulations for an excellent quarter.

Sir, I have a couple of questions.

Is it okay now? Hello?

Yeah. Please go ahead.

Yeah. Sir, I wanted to understand how is the dynamics looking for the CNG business for the Greenfuel Energy because of the fuel prices and the shortage on the CNG side.

Is there any disruption coming, or are you seeing any disruption on the CNG side? Feedback from the OEM were that at least from some of the dealers that the CNG supply chain issue have impacted the sales.

Just want to understand how are you looking at the products, is there any production disruptions also, and is there any change in the order book for the Greenfuel Energy?

Sorry, your line was not clear. This is Deepak Jain, but what I can understand of the question is that you would like to understand from CNG perspective, is there any disruption from the demand point of view?

Is my understanding correct?

Yes, sir. Yes.

Okay. CNG continues to have a very strong pull in the market.

Obviously, there has been price escalations, but you also have to understand that on the petrol and the gasoline as well, there has been more price escalations. As far as customers who have a large portfolio of CNG, they will continue to basically not just strengthen it, but grow the CNG portfolio.

I think the company, particularly Greenfuel, is having some good growth plans as per the current demand. We don't see that to be slowed down for this sector.

Okay.

Secondly, sir, because we have grown so fast over last 4 to 6 quarters, wanted to understand if there is any capacity constraints in the company or you may be looking to expand any capacity side, anything on the capacity side?

Mr. Pandey, I think the capacities vary across the different business verticals.

Certain of them are still operating at maybe 20 to 30% spare capacity, and in certain cases, because we are enjoying a significant order book, we have to ramp up capacities. To give you just one example, mechatronics, which has significantly grown, is also putting up investments towards the new facility, which is a part of the new capacity expansions.

Similarly, the other verticals also are putting in new lines and new machinery and equipment to cater to the new models. Again, capacity, I would say, is pretty much in line with the OEM growth plans, and it is reflected in our capex plans for the year, which Ankit had mentioned, it would be anywhere between 275 to 300 crores.

Okay. That's good to hear.

Sir, okay. Also just on the previous question, wanted to understand about the IAC business.

We have grown very strongly with Mahindra & Mahindra. I understand that it takes around 2 to 3 years to get the RFQs, but if you can just help us understand how is the conversation with OEMs going, is there any project pipeline from when can we expect new revenue to come up?

Probably not this year, but in FY '28 or '29 also. You can just help us understand that, that will be pretty helpful.

Sure. I think Mahindra continues to dominate the IAC's overall pie, and I do not see any reason why that is going to change even for the next 3 to 5 years.

Mahindra will continue to dominate the lion's share of IAC pie. However, as a part of our de-risking, we are in advanced stages of discussions with other OEMs.

There have been numerous discussions, visits, and face-to-face conversations, where because of the technology on offer and the sequential supply system which IAC offers, more and more OEMs are actually keen on getting a module supply just in time versus them doing all of this. I see a very positive and a good traction, but I believe it will be at least before FY '28 or FY '29 where we could see a significant new order from, let's say, an alternative OEM to come into IAC.

Till then, yes, there will be some small business wins as well.

Sir, for the IAC business, this year also we expect more than 25-30% growth or should it normalize this year?

It will be in line with the industry growth, as I mentioned. Since Mahindra & Mahindra is the largest customer for IAC, it would really depend on Mahindra's own growth forecast for the year.

As I mentioned, right now we do not see any disruptions, but again, I would not be able to give you a specific number because of the high volatility. We continue to enjoy a very strong position in Mahindra, and our growth will be aligned with Mahindra's own growth.

Sir. Congratulations and all the best for upcoming quarter.

Thank you.

Yeah. Just want to understand on this debt piece.

If you see, we are now almost 1,000 crores debt, and specifically on the standalone side, debt has kind of increased significantly. Almost long-term borrowings 243 crores.

Can you give some color on the overall debt piece?

As you rightly said, though total debt at the consolidated level is at 1,000 crores, and out of this 1,000 crores, almost long-term debt is contributing around from 550 to 570 odd crores, and balance is the short-term debt. Long-term debt of 550 odd crores, and I think more than 90% of it has been taken by the company on account of two and three inorganic acquisitions which the company has done in the last 2 to 3 years.

Accordingly, their repayment or I would say the full repayment is starting from this year onwards, and considering the balance repayment, I think in next three, 3 to 4 years I think the current levels of debt, or the loan which is there, will automatically die down. On account of your second question related to the standalone: As you must have read also and as a part of our opening speech also, now the standalone financial statements is including both the IAC and, of course, Lumax Ancillary.

As major debt was taken on account of IAC only, that is why you see a change in numbers of the standalone entity in debt.

Understood. Sir, we are setting up this R&D unit in Bangalore.

What would be the spend there for this FY '27, and if you can give some color on the R&D side also, what exactly are we planning? You mentioned that we are focusing on software-defined vehicles, SDVs and all, if you can give some color there also.

Sure. The R&D center that we have named in Bangalore is called SHIFT.

It is a smart hub for innovation and future technologies. It is, as you rightly noted, it is going to focus very strongly on the software innovations and which is at the heart of electronics.

It is already supporting our upcoming new product, body control module, that is getting into SOP in 45 to 60 days from now. It is driving the software integration for that.

It is also in advanced stages of doing POCs with couple of customers for new product entries that will fall under the Lumax Auto Technology portfolio. We already have a bench strength of about 20 20 engineers now there.

We are taking very sure-footed steps there. The total expense, if we were to just put a number, would be in the region of about ₹5 to ₹7 crore per year, and that is a very negligible spend for this kind of a return on investment.

Also, this center would be helping the joint ventures in India trying to localize their offerings with the Indian solutions, largely focusing around the electronics and software content. Still, I would say the first 6 months of the opening of this center, and we are very happy with the way it is on traction now.

That's it from my side. Wish you all the best.

Thank you.

Good afternoon, team, and thanks for the opportunity. Sir, just wanted to check on the order book size that you mentioned.

It at 1,450 odd crores. Last quarter also mentioned a similar amount.

Is there anything that like to highlight in terms, are there any orders which have gone into mass production because of which it looks optically flat, or there no new order wins for doing this quarter period? Your clarification on this front.

Yes, you're right. There were a lot of orders which have actually gone into the revenue stream during the quarter, and there have been some new significant wins across the different business verticals.

It just so happens that the numbers are pretty similar, but there is always every quarter this evolves, where there are new wins and there are existing wins which go into the revenue stream.

Right. Secondly, sir, the execution of the order book, the timelines that you've mentioned, the revenues, this would be over and above the organic growth that we will undertake at your customer's end, right?

Let's say if the industry grows 10%, 10% is organic growth that you'll have in the top line plus over and above this is the execution of order book, right? Is it correct in my understanding?

There will be some overlap, because again, some of this would be on a replacement business where we would already be having a position. That could be something which replaces the existing revenue.

Although with a new model launch, there is usually also an incremental volume, which again kind of ties down to your organic piece. I would say that a majority of the order book is new business, and hence this should definitely help us outperform the industry's organic growth.

That's the reason why we remain pretty optimistic of beating the industry growth by at least 2x going forward.

Right. Sir, lastly, on the dividend side: Our profitability is broadly more than double over the last 2 years, whereas absolute dividend in terms of rupees per share kind of remained flat.

Any thought process you have at the board level as to what should be the payout ratios going forward?

The payout ratio, we have a very clear internal policy of maintaining a minimum 35% payout ratio, and the company continues to maintain that for the year. Sir,

payout ratio essentially is the dividend paid upon the profit earned, not as a face value. I think face value doesn't hold any significance to that extent, yeah.

Shashank, just to add: Might be you are seeing the current year financial statements, because this statements include the profitability of the merged entities, which has taken place, I would say, subsequent to the year-end, and it is only because of the accounting that we needed to merge those entities. That is why the dividends has been paid for FY '25-'26 considering the standalone profit which we budgeted.

However, for FY '27, we will internally review our this payout policy and will come back next year.

Right. Sir, the capex spend for this year is if I've heard it right is closer to about 300 odd crores, right?

Yes, correct.

Okay. Sir, one last thing: There is increase in your non-current investments to 150-60 odd crores in console balance sheet.

Can you help us identify what would that be on account of? From 160-2 odd crores, it goes to 300 21.6 odd crores.

There's substantial increase in other investments, long-term investments.

It is nothing, but which the company has invested its 5% stake in Lumax Industries Limited, and because the overall, I would say, the share price of that company has increased,

and that is why you are seeing a mark to mark. It's largely mark-to-market, right?

Yes,

yes, correct.

Right, sir. Sir, lastly on the debt side, with absolute debt near 1,000 odd crores and we comfortably generating 500+ crores of cash flow from operations, do we see the absolute debt retiring from now onwards, FY '27 onwards?

As we said in the beginning, the most of the debt is towards acquisition financing, and full-year repayment starts from FY '27, and we do have internal cash flows available in all the divisions, and in next three odd years, the current level, or I would say the current debt which is there, will automatically die down.

Understood, sir. Thank you so much, and wish you all the best.

Thank you.

Yeah. Hi.

Sir, this growth guidance of 20% sir, revenue growth, is that including inorganic growth? If it is inorganic, from which year you will start having 20% growth with inorganic growth?

That's the first question.

Mr. Kumar, the mid-term strategy of the company is to maintain and deliver a 20% CAGR.

While there may be few years where we are able to achieve beyond 20%, and in some cases less than 20%, but I think overall, we remain pretty positive and optimistic of doing a 20% CAGR growth despite the base continuously increasing every year. This 20% would be a mix of inorganic as well as organic.

I do not have a exact number or a exact clarity in terms of when the next inorganic would be done, but the company continues to evaluate possible opportunities for future inorganic growth.

Got it, sir. Thank you.

Sir, can you just give a little bit of color on this minority interest? Because I think you acquired additional stake in IAC last year, and this quarter minority interest was lower than whatever last quarter was.

If you can just give some color on how it will move, sir, going forward just to model it.

Mr. Kumar, as I said in my opening remarks also, the minority share for this particular quarter, Q4, was exceptionally low because due to certain reclassification that happened in the life of intangible assets, which we acquired as a part of Greenfuel business, because the other part of that adjustment that takes place in minority interest.

That is why you were seeing a 10% minority share. However, for the full 12 months, this minority share will continue to range anywhere between 15 to 17%, which was there in the 12 months last year also, because this IAC 100%, it was done in the May month.

It is only the merger that had taken place in the March month, but it became the wholly owned subsidiary in the beginning of the financial year only.

Got it, sir. Thank you.

Thank you.

Sorry, my question is already answered, I can skip.

Yeah. Thank you.

Sir, in FY '26, two entities, Lumax Ituran and Lumax Mannoh, comparatively they have reported some lower growth versus other subsidiaries, and we have also observed that Lumax Mannoh in FY '25 as well has reported some lower growth as well. Any comments on this?

Also Ituran's margins have dropped in FY '26 marginally.

I'll just comment on the Lumax Mannoh, and then maybe I'll have Vikas talk about Lumax Ituran. See, Lumax Mannoh is already the market leader in passenger vehicles, where we command a sizable part of the market leadership and the pie.

Hence, our growth largely is driven by some technological value-adds, but largely it is driven from the organic growth in the passenger vehicle segment. If I look at Lumax Mannoh's growth across its OEM customers, largely we have grown in line with what the OEM's organic growth has been.

That's the reason you see a disparity in the growth numbers of Lumax Mannoh, which is close to, I believe, 9 to 10% on a full-year basis, vis-a-vis some of the other businesses which have grown upwards of 20-25%. That's on Mannoh.

I'll let Vikas come in on the Lumax Ituran.

Coming to Lumax Ituran, your observation is right. There is a small drop-down on the EBITDA level at FY '26 level.

However, the FY '27 guidance remains in place for up to 150 basis points improvement as is being projected internally right now. There were some year-on-year cost downs that were committed to the customer.

It was a part of the business acquisition when it happened, 3 years post-SOP we had to give a cost down. Also happy to confirm to you that in another 3 months from now, we will be getting into the SOP of a brand-new product at Lumax Ituran, which is at a significantly higher margin, which will be the second product in the telematics category to be included.

It's an OEM product, details of which will be shared with you in the next quarter earning call.

Right. Sir, just a follow-up on Mannoh.

Can you help us understand what is the penetration of automatic gear shifters in India for FY '25 and '26?

AT gear shifters right now, along with AMT and manual gear shifters, continue to hold a large part of the market, I would say about 95 to 97%. The migration of AT shifters towards the e-shifters, which we call as shift-by-wire, is currently in progress at the transmission level gear shifter system.

However, the total transition would take another about 36 months when it would become 50-50. 50% would remain AT shifter out of the current pie.

Let's say we are selling about 100 AT shifters volume-wise right now, it will turn to 50 shifters out of 83 years down and 50 would move to shift-by-wire. On shift-by-wire, your company has already made significant progress by now getting into the SOPs of three major platforms with customers on both Hall sensor-based shift-by-wire and CAN-based shift-by-wire.

We are future-ready, and you can rest assured that we will get to the next level with the same market share.

Understood. Just a follow-up on Ituran, sir.

Sir, you had said you're going to introduce a second telematics product. Is it with the Daimler only?

I'm sorry, we cannot name the customer right now due to the NDAs being in place. The product is not in SOP right now, but I can very well share with you, it's a regulation-driven product, and therefore you can safely assume that there is a very high potential for this.

It's a regulation compliance-driven product that we are getting into with another OEM besides Daimler, this will be a new OEM entry.

That's good to hear, sir. Sir, we were also reading on the media reports, especially for Ituran, that we are trying to get some orders for the Daimler for the export opportunities.

Any comments on this, please?

I am not very sure. We have not come across any media quotes at a company level on this kind of a statement.

Maybe might be some old archives.

Sure. Okay.

Sir, one more thing: In December 2025, we have opened office in China. Just wanted to understand what is the progress?

Are we looking for partnership with the Chinese auto ancillary peer over there?

I think the China is on progress on its journey. I think we already have about eight individuals who occupy in the China office.

This will get expanded slowly to about 15 odd people. The company continues to be absolutely bullish about engaging with local Chinese companies through a technology agreement, trying to bring certain new cutting-edge technologies towards the Indian market.

Again, as I said earlier, the strategy for China remains intact, and we are progressing very, very in a fast manner to try and deliver that.

Thank you once again for joining us for the Q4 and FY '26 earnings call, and for your continued interest in Lumax Auto Technologies. We truly appreciate your time and engagement today.

Should you have any further questions or require any additional information, please feel free to reach out to the Lumax Group investor relations team or SGA, our investor relations advisors. We remain committed to keeping the investor community regularly updated on our progress.

Thank you, and we wish you all a great day ahead. Thank you.