Lumax Industries Limited (NSE: LUMAXIND) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Deepak Jain — Chairman and Managing Director
Ravi Teltia — Chief Financial Officer
Anmol Jain — Joint Managing Director
Analysts:
Vijay Pandey — Analyst
Saurabh Jain — Analyst
Ronak Jain — Analyst
Neeraj Bukalsaria — Analyst
Nipun Khemka — Analyst
Ashutosh Tiwari — Analyst
Aditya Bhoir — Analyst
Ajit Sethi — Analyst
Presentation:
operator
Sadies and Gentlemen, welcome to the quarter three and nine months FY26 earnings conference call of Lumax Industries Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone form. Please note that this conference is being recorded. I now hand the conference over to Mr. Deepak Jain, Chairman and Managing Director of Lumax Industries Limited. Thank you. And over to you sir.
Deepak Jain — Chairman and Managing Director
Thank you very much. Good morning and thank you for joining us for The Lumex Industries Limited Q3 and 9 month FY26 earnings conference call joined by our leadership team including Mr. Anmol Jain, the Joint Managing Director, Mr. Sanjay Mehta Group CFO Mr. Ravi Tilpia, the CFO of the company Mr. Nabal Khanna, the Corporate Head of Taxation Ms. Priyanka Sharma, Head of Corporate Communication. I would also like to introduce Ms. Surabhi Chandna who is joined on this call as the Group Head of Investor Relations and Value Creation and along with our Investor Relations advisors ga the result and investor presentations have already been submitted to the stock exchanges and are available on the company’s website and we trust that you had the opportunity to review them.
I will begin by giving an overview of the economy followed by the automotive industry performance and the company updates. India’s economic momentum remains strong and supported by resilient domestic demand and steady structural reforms. The economy continues to grow at a pace that places India among the fastest growing major economies globally. The recent union budget reinforces this momentum with a clear focus on growth, stability and long term competitiveness. At the same time, the sustained push on public capital expenditure, particularly across infrastructure, manufacturing and logistics is expected to strengthen supply chains, enhance private investment and generate. Together these levers of consumption support and public capex are expected to drive economic growth in parallel.
Recent developments on the trade front including the US Trade Agreement and progress on the EU FDA should be positive for the industry over the medium term by improving market access and competitiveness. Now regarding the automotive sector, the momentum remains really strong with the industry continuing to fire on all cylinders. The union budget has reinforced this outlook through a higher allocation under the PLI auto scheme for FY27. In addition, 40,000 crore outlay for the electronic manufacturing program is set to enhance domestic capabilities in semiconductors, sensors and power electronics that are critical for modern and electric vehicles.
On the Quarterly industry performance despite Q3 being a seasonally weak period, the automotive industry has delivered its best ever third quarter as per CIAM production data for October to December quarter, the passenger vehicle production stood at about 14 lakh units up 19% year on year, two wheelers were around 68.1 lakh units up 15% year on year, three wheelers are roughly at about 3.5 lakh units up about 35% year on year and commercial vehicles are close to 2.9 lakh units up 18% year on year. This broad based growth has been driven by three key factors improved affordability following the GST rate reductions, benefits from personal income tax relief, enhancing disposable income and successive repo rate cuts by the RBI which have eased financing costs and supported demand across vehicle categories.
Overall, this robust performance in H2 has led to 2025 being the best year for the Indian automotive industry across segments. The year end sales push, healthy pipeline of bookings and the full transmission of 2025 rate cuts into lending rates are expected to support demand pointing to continued growth momentum into 2026. 27 Regarding the Lumex industries, we are proudly reporting our best quarterly performance in the history of operations. Revenues for the quarter grew by 18.7% year on year to rupees 1053 crores with improvement on profitability front with EBITDA of 10.6% for Q3FY26 compared to 8% in the same period last year.
The Indian automotive lighting industry today stands at the cusp of significant technological transformation and as vehicles become smarter, safer and more design, LED lighting has evolved from a functional component to a key element of safety, differentiation and brand identity. With the rapid shift of LED technology, Advanced lighting systems, DRLs and signature designs, the content per vehicle continues to rise. This structural premiumization presents a strong value opportunity and Lumax Industries is well positioned to benefit from the increasing technology intensity per vehicle. Over the years we have evolved alongside the industry and in many ways led advancement.
Through a long standing partnership with Stanley, a global leader in automotive lighting, we have introduced cutting edge technologies to the Indian market elevating design, engineering and quality standards. This has strengthened our product portfolio and take value across platforms. On the order book front, current order book stands at 1759 crores. We have secured multiple new orders from leading OEM across segments, further strengthening order book in the passenger vehicle segment we have won orders from Tata Motors for the newly launched Sierra where we will be supplying the front fog lamps and auxiliary tail lamps. We have also secured business for the Tata Punch facelift supplying the front DRLs and the position lamps.
Our team executed the Punch lighting project at exceptional speed transforming the concept into a delivered product in the shortest possible timeline. In the three wheeler segment we have also received orders from Mahindra for their Last Mile Mobility E Rickshaws where we’ll be supplying headlamps, tail lamps and reflex reflectors. In the two wheeler segment we have won a prestigious order from TVS for the flagship Apache RTX 300 for the supply of headlamps. On the CAPEX front, our Bengaluru plant expansion to support Maruti and Toyota’s upcoming models is progressing as planned and is expected to be commissioned from Q4FY27.
Additionally, phase two of a Charkin facility remains on schedule to commence operations from Q4FY26 and will primarily cater to the requirements environments of Skoda and Volkswagen, further strengthening our presence with global OEM partners. Overall, supported by strong industry tailwinds and backed by approving capabilities, deep OEM partnerships and technology focus, we are well positioned to strengthen our leadership position. We remain confident of staying at the forefront of automotive lighting industry while driving sustainable growth and long term value creation. I now hand over the call to our CFO for Mr. Ravi Tetriya for updates on operational and financial performance.
Ravi Teltia — Chief Financial Officer
Please go ahead Ravi thank you sir. Good morning everyone. I’ll walk you through the key operational and financial highlights for the quarter and nine months ended 31 December 2025. As our CMD mentioned earlier, we have delivered our best performance to date across all key parameters. Starting with the quarter ended 31st December 2025, our total operating revenue stood at 1053 crores reflecting a strong year on year growth of 18.7%. This was largely driven by robust growth in our manufacturing business where revenues grew 35.8% year on year to 1014 crores. EBITDA excluding exceptional items for the quarter came in at Rs.
112 crore, a growth of 57.3%. YoY our EBITDA margin improved to 10.6%. The margin expansion was supported by operating leverage, improved performance across plants and content per vehicle. Profit after tax including share of associates stood at Rs. 47 crores up 39% year on year with a PAT margin of 4.4%. I would like to highlight that this is after accounting for a one time impact of 15.9 crores related to the implementation of new labor codes. Now looking at the performance for the nine months of FY26, total operating revenue stood at Rs. 29. 84 crores reflecting a healthy growth of 20.5% year on year.
EBITDA was rupees to 87 crore up 41.2% with a margin at 9.6% demonstrating consistent improvement in profitability. PAT for the nine month period stood at rupees one hundred and eighteen crores, a growth of 23% with a margin of 4%. Once again this includes the one time labor code impact of 15.9 crores. Overall, the number reflects strong execution, improving operating efficiency and sustained momentum across our business. Let me now move to our operational performance with a continued rise in LED penetration across the automotive industry. Our revenue mix clearly reflects this structural shift. LED lighting contributes over 61% of our revenue compared to 52% in the same quarter last year.
We expect this share to increase further going ahead as nearly 81% of our current order book is LED based on giving a strong alignment with future market demand and good revenue visibility for the nine month period. The passenger vehicle segment continues to anchor our portfolio driven by higher complexity and increased content for vehicle. PV contributed 65% of revenue while tubular accounted for 29% and the balanced 6% came from other segments. The order book mirrors this mix with nearly 2/3 coming from PV lighting and most of the remainder coming from two wheeler segment. From a product standpoint, front lighting given its higher technological intensity and safety relevance contributed around 69% of revenue.
Real lighting accounted for 22% reflecting the growing importance of styling and design differentiation with the balance coming from other lighting products coming to capital expenditure. As mentioned earlier, overall CAPEX plans are progressing well. CAPEX for the full year FY26 will be 350 to 400 crores up from the earlier guided number of 220 to 260 crores in our previous call. However, this is largely due to advancement of CAPEX driven by customer project timelines and related long lead time of machines and equipment particularly for our Bengaluru new plant wherein we are expediting execution. Overall, the two year outlook FY26 and FY27 on CapEx remains broadly unchanged.
We continue to repay our long term loans with improved margins and extended credit. Our net debt to EBITDA is expected to continue to reduce. With this we would like to open the floor for questions. Thank you.
Questions and Answers:
operator
Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may press Star and one on the touchtone phone. If you wish to withdraw yourself from the question queue, you may press Star and two Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press Star and one to ask questions. The first question is from the line of Vijay Pandey from Nuvama. Please go ahead.
Vijay Pandey
Thank you for taking your questions and congratulations for an excellent quarter. Still in separate numbers I have couple of questions. First on the margin expansion. So our EBIT margin increased by 260 basis point more than 250 basis point year on year. So just want to understand how much sustainable is this level of EBIT margin and also should we expect further increase from here because some of our peers have an EBITDA margin of around 12% 13%. So can we go to that level is 10%. 11% is going to be the longer long term perspective. So if you can just understand both short term midterm outlook as well as a long term outlook on the margin front.
Anmol Jain
Sure. So this is Anmol Jain. I’ll take that question. So number one, I think you’re absolutely right. Quarter three has been a significantly higher margin but part of that is aided by an exceptional tooling profitability as well. If you take out the tooling profitability still we have inched forward in terms of EBITDA margins on a consecutive quarter quarter two to quarter three basis. Tooling as you know is very very cyclical. It depends on the new product launches. But we are very confident that we will continue to progressively increase our EBITDA margins. We safely probably secured in the double digit EBITDA margins.
Now we do expect for the full year also to perhaps have a similar EBITDA deliverable in terms of double digit margin. And coming to Your question on 12 13% I think yes, going forward that is our endeavor. But perhaps in the next two years or so we should be able to get close to those margin levels as well. But we are pretty confident that we’ll get there.
Vijay Pandey
Okay sir, thank you. Secondly sir, I wanted to understand how the industry outlook looks in terms of lightning. We understand that LED penetration has been increasing especially in the two wheeler side. But what is if you can highlight little bit about what is happening on the passenger vehicle side and what will be the growth drivers going forward in the mid one to long run scenario.
Anmol Jain
So on the industry side again I think there is as you know, the production numbers across segments have seen a very encouraging upward trend in quarter three coming specifically for the lighting. I think the passenger vehicle continues to be one of the key factor where almost 65% of the total lighting for us is. I mean the market size is on passenger exterior lighting. Again because it has a very high significant contribution per vehicle. We remain focused on expanding our wallet share across key customers. Our order book which is at about 1760 crores is again a testimony of the same.
We’ve had some significant wins. Maruti Suzuki is almost one third of our order book. So again we are expanding our wallet share both in front lighting as well as in rear lighting as long as the passenger vehicle is concerned. And we continue to again progress on the two wheeler aspect as well. We are enjoying the leadership wallet share in certain OEMs like HMSI as well as Hero Motor Corp. And I think the endeavor is to grow certain key accounts where the company has recently entered like tbs.
Deepak Jain
Okay.
Vijay Pandey
Very helpful sir. Lastly sir, if you can help us, are you also planning to get into the ambient lighting in the passenger vehicle segment and do you plan to get into the commercial vehicle space also? Because that is going to be an upcycle. So are you planning to get there that in the commercial at least please.
Anmol Jain
So commercial vehicle is a small part of the pie today. It’s about 6% of our total revenue. But again we do see certain technological evolution, technological changes in the commercial vehicle space and again we are continuously engaged with certain OEMs. So we do expect the commercial vehicle piece of the pie to also expand. But it will definitely be always overshadowed by the growth we see in something like a passenger car and maybe the two wheeler just because of sheer volumes and the value per vehicle. So that’s on the CV part in terms of ambient lighting.
While the company does have one specific ambient lighting order which is under development with one of the OEMs. But that’s a category which largely is something which is not a core of this company and we would perhaps cater to that from the other group company.
Vijay Pandey
Okay, now what is the industry mix in the passenger vehicle between LED and conventional lights? Industry mix and versus our mix. And how is this expected to grow.
Ravi Teltia
Currently if we see like our led share is 60 plus percentage and industry is running somewhere around close to 50%. So of course as we mentioned that LED is more hygiene today and it is becoming more and more and that’s been reflected in our order book as well. So we see that industry will also expand and our share of LED and electronics Will also expand spend incoming.
Vijay Pandey
And there’s some realization basic in terms of LED and conventional or both similar first.
Ravi Teltia
Yes, yes. So basically it differs model to model but in general because electronics has higher import content and content for vehicle and electronics based on lighting is somewhere range from 2 to 5,6x that way.
Vijay Pandey
Okay sir. So thank you sir for all the questions and congratulations for excellent set of numbers.
Anmol Jain
Thank you.
Vijay Pandey
All the best.
operator
Thank you. Thank you. You may press star in one to ask questions. The next question is from the line of Sourav Jain from Sunidi Securities. Please go ahead.
Saurabh Jain
Hello. Yeah. Congratulations sir for the wonderful set of numbers. We have, you know surpassed our initial guidance which we had given at the beginning of the year by a wide margin. And so sir, my first question connects to two things. CapEx and revenue. So we are you know getting into the fructifying stage of chart and phase two where the CAPEX has already been done Capex and this would be the quarter where you know commercial production would begin and you had guided that in FY27 the expected revenue can be around 250 to 300 crore. Now we had in the last quarter also we had revised our capex guidance from 180 to 220 crore to 260 crore and now we are again elevating that to 350 to 400 crore.
Now our Bangalore facility where the major CAPEX will be in FY27 and we were expecting revenue of almost 450 crore in FY28. So how all these things are shaping up for FY27 and FY28 based on our current order book and the new Capex, what kind of growth should one expect?
Ravi Teltia
Yeah. Thank you. So basically first on the plant three phase two part you rightly mentioned that project is ready to go for SOP and as per our previous guidelines in this quarter month of March, most likely March or April sometime the SOP of the models will start and AMPO will take up in FY27 to 250 to 300 crore. As far as the Bangalore facilities there it’s a new facility which is under under development at this stage. And the expected business start would be somewhere around quarter four of FY27. On the CapEx guidelines as I mentioned for the two year that is current FY26 and FY27 we are maintaining our overall guideline.
Only thing is to like a preloading in the current financial year to speed up the execution as well as the customer timeline meeting requirement. But overall the Capex is same as we mentioned earlier.
Saurabh Jain
So 350 to 400 for FY26 and next year would be next.
Ravi Teltia
Next year would be somewhere around 100 to 150.
Saurabh Jain
Okay, so sir, that brings me to the top line growth for FY27 and 28.
Ravi Teltia
And in terms of top line growth for next financial year, we are looking at somewhere around close to 20 plus percentage. And overall for next three to five years we are maintaining our guidelines of 15 to 20%.
Saurabh Jain
Okay. And sir, my next question is on EBITDA front. So last quarter we had an impact of forex fluctuations of 70 to 80 basis points. And this quarter you mentioned that there was some tooling profitability. So apart from tooling profitability, was there any impact of forex in this quarter?
Ravi Teltia
No, actually this quarter as such, there’s no impact on of the forex gain or loss.
Saurabh Jain
Okay, and what would be the quantum of tooling profitability that was exceptional in this quarter? Approximately.
Anmol Jain
So it should be about, give or take 10 crores which would be over and above what we usually do. If I look at an average, we do about 5 crores of profit on a quarter. On a tooling, if you look at the last few quarters, this quarter has been exceptional because of certain key parts. So yeah, I would say 10 crores would be extraordinary gain from tooling in the quarter.
Saurabh Jain
Got it, sir. That’s helpful. My last question is on the localization front. Earlier we had stated that we aim to increase localization to around 25 to 30%. I think we have, we had already reached that level and we were aiming for 50 to 60% mainly through PCB assemblies and certain electronics. So any update on that? And also if you can just give the revenue numbers for SLU max for this quarter and nine months. And how has been the growth during these nine months and what’s the outlook for FY27?
Anmol Jain
The localization is going well, I think. Overall, yes, we are upwards of 30 to 35% today. But again it depends on the product category. For example, in something like connectors we are at about 35 to 40% localization. But on a PCB, the bare board PCB, we’ve already achieved close to 70% localization. The SMT is 100% localized. And again some LED modules and projectors are still high on the imported front. So it’s a mixed bag. There are a few components which have a higher localization opportunity and a in the near term, some will take a longer term and some will continue to be imported for now like the LED modules.
But overall I think we’re progressing well. You know, coming from a 10:15, we’ve reached a 30, 35% overall localization level on SL Lumax. I’ll let Ravi answer that please.
Ravi Teltia
Yeah. So on SL Lumax in the quarter three as we see that they have reported a growth. They are Pune facility is now operational with platform October 25th. Therefore they have reported somewhere around 15 plus percentage of revenue growth on a nine month basis. Because the quarter one and quarter two were little lean. So they are close to flat I would say compared to last financial year, nine months. So in terms of revenue for nine months.
Saurabh Jain
Yeah, nine months revenue was how much?
Ravi Teltia
Sir, revenue for nine months in the current financial year compared to last financial year is almost flat.
Saurabh Jain
So what was the number?
Ravi Teltia
Amount is Overall number is 2160 crore.
Saurabh Jain
Okay. And how is the outlook for FY27.
Ravi Teltia
For slum outlook for the current financial year? Most likely they will close somewhere around 27 to 2800 crore. That’s the outlook. But it all depends how the market will ship up.
Saurabh Jain
Got it sir. Thank you. That’s all from my side. Wish you all the best.
Anmol Jain
Thank you.
operator
Thank you. Thank you. Please press star and one to ask questions. The next question is from the line of Ronak Jain from Equitas Securities. Please go ahead.
Ronak Jain
Yeah, congratulations on good set of numbers and thank you for giving me the opportunity. So my question is on LED penetration. So you mentioned that 60% of your revenues currently come from LED. But that is in terms of value. So I was looking on how what is the LED penetration in terms of volumes in two wheelers and PVs for the industry currently.
Anmol Jain
So it’s a difficult thing to tell you exactly. Because I would assume that the penetration of LED by volume would be close to about perhaps 70 to 80%. Please understand by volume I’m saying by value it drops because again when you look at the headlamp, which is a higher content per vehicle on a two wheeler that only has a part of the function which is an led, the main lighting is still from a halogen bulb. So again it’s a partial LED lamp, not a full LED lamp. But when it comes to a tail lamp we do see that there is a higher penetration of LED as a technology.
And the full lamp itself is based on LED along with the blinkers as well which are more and more getting into the LED space. So again by volume I would say it would be pretty higher than value. But again it’s a mixed bag between a headlamp and a tail lamp.
Ronak Jain
Yeah. So Just a follow up on this. So you said by volume it would be higher, but in general LEDs have higher content per vehicle. Right. So shouldn’t it be that by volume LEDs would be lower penetration compared to value?
Anmol Jain
Now are you talking about two wheelers specifically or are you talking about the whole industry in Pascar as well?
Ronak Jain
Two wheelers and Pascar separately, like you can tell us about both the things.
Anmol Jain
So again from a volume perspective I would say almost. You know, again there are a lot of smaller lamps which are not on a led. As I said, when you say it’s a LED lamp for us it’s a partial led. So again the value content per vehicle is a mixed bag between how much LED value is going onto that lamp versus how much conventional technologies are still used on that lamp. We don’t classify that as 100% value towards accruing towards LED if there are certain other halogen or certain other technologies in play. So again from a volume perspective, yes, most of the lamps today have some part of function as a LED technology.
And that’s why when we report we say that Almost close to 80% of our order book is 81% is on LED lighting. But again from a value wise it would tend to be lower because there is also a lot of lamps we make which are non led, which are more conventional technologies today.
Ronak Jain
Okay, got it. Sir, just one last question. So can you specifically tell like what would be the penetration for headlamps like in LED in both two wheelers and PV LED penetration in headlamps?
Ravi Teltia
Yeah. So basically if we see overall our business has a roughly around 70% is coming from front lighting. So front lighting is not only the headlamp, it’s a combination of all type of lighting. And from our PV segment today we are driving roughly around 55 to 60% from LED bay. So by that logic if we do then that must be the LED contribution comes from the front lighting.
Ronak Jain
Okay, got it sir. Thank you so much.
Anmol Jain
Thank you.
operator
Thank you. A reminder to all the participants that you may please press star and one to ask questions at this time. The next question is from the line of Neeraj from Demac Capital. Please go ahead.
Neeraj Bukalsaria
Yeah, hello, thank you for the opportunity and congrats to the management team. You know we are finally at double digit margins which we have been aiming for so many years. So really commendable efforts. Sir, my question was around our revenue split. So if you see, you know, for the nine months Maruti is, let’s say 26% of our revenue. And also it Forms a significant part of our order book. Just wanted to understand out of this 26%, you know, what percentage of revenue can be attributable to, you know, which is which Maruti is in turn exporting? You know, we are so.
Can you elaborate on that?
Anmol Jain
Well, we are on a few models, we do not specifically track out of the total revenue of Maruti what percentage of Maruti’s revenue is coming out of export models. But we are present on various platforms which Maruti Suzuki does export out for the other countries. But again for us it is the same lamp which goes on the export or the domestic side. So it’s very difficult for us to give you a very detailed breakup as to what kind of revenue comes out of the export vehicles.
Neeraj Bukalsaria
Understood. And just on coming back to the margin commentary, I did hear your views that there were some one offs as well on the tooling side. But will it be fair to assume that whatever margins, EBITDA margins we did in Q3, it is like the base and from this, you know, we will build on onwards because more and more capacities will come online so there will be some operating leverage as well. Will that be a correct, correct way to look at it?
Anmol Jain
Yes, absolutely. I think if you take out the extraordinary gain on the tooling, you would see that our margins have expanded based on the previous quarters. And I think this definitely should be a solid foundation for us to progressively now further enhance and expand the margins in the coming quarters. So I think we do see we are quite optimistic on expanding our margins not just in Q4, but going into FY27 as well. On again the back of operational efficiencies with the 15 20% growth as well as better capacity utilization.
Neeraj Bukalsaria
Understood. Thank you so much, sir. All the best.
Anmol Jain
Thank you.
operator
Thank you. Participants, you may please press star and one to ask questions. The next question is from the line of Nipun Khemka from CD Research. Please go ahead.
Nipun Khemka
Thank you for the opportunity. So my question is how much development of our new products integral to our future.
Anmol Jain
Sorry, could you repeat that question?
Nipun Khemka
Yeah, sure, sure. Specifically regarding new products. So how much development of new products integral to our future?
Anmol Jain
EV products?
Nipun Khemka
No, sorry, new products. New.
Anmol Jain
So if I understand correctly, you’re asking me what a part of the order book, how much is the EV business?
Nipun Khemka
No, no, no, let me repeat that.
operator
Mr. Kimka, I’m sorry to interrupt you. I would request you to kindly use your handset and try asking your question again.
Nipun Khemka
Yeah, yeah, sure, yeah. Now.
operator
You may try. So you may proceed.
Nipun Khemka
Yeah. So how much Development of new products. Integral to our feature book. Two wheeler.
Anmol Jain
I’m sorry, I’m still unable to understand. You’re saying two wheeler products.
Nipun Khemka
New products.
Anmol Jain
Yes, the new products.
Nipun Khemka
Yeah. So how much is that integral to our feature book?
Anmol Jain
Okay, so again as I said, the order book is at about 1760 crores. 60% of this order book comes into production in the next financial year FY27. That is part of the reasons why we have accelerated and preponed the capex towards the Bangalore facility. As Ravi mentioned earlier, I think we do expect next year to give a revenue forecast of a growth of 20% plus. And I would say that close to perhaps half of that should come from the new products. And the rest would be inorganic. Sorry, Organic growth of the industry.
Nipun Khemka
Okay. Okay, got it. And my second question was regarding that. Is fast paced launching of models by OEMs considered good or bad? For us.
Anmol Jain
A faster launch of models by OEM fares very well for the company because pretty much in every facelift there is a styling change on both the front and the rear lighting. So for us it is an opportunity. And for us it’s kind of a new product development. So yes, we’ve seen shorter product cycles now by the oem. You know, earlier it used to be three to four years, five years in some cases. Now it’s definitely squeezed to two to three years. So it definitely is a positive opportunity for the company.
Nipun Khemka
Okay, got it. Thank you.
Anmol Jain
Thank you.
operator
Thank you. To ask questions you may please press star and one. Now the next question is from the line of Ashutosh Tiwari from Equirus. Please go ahead. Mr. Tiwari, I have unmuted your line. Please proceed with your question. Sir.
Ashutosh Tiwari
Yeah. Am I audible?
operator
Yes.
Ashutosh Tiwari
Yeah. Congressman goes at the numbers. Firstly, on the pun side, what is applying earlier is a new order for us.
Anmol Jain
On the what side?
Ashutosh Tiwari
Tata Punch. Tata Punch is a new order for us or was applying earlier also.
Ravi Teltia
We were supplying to Tata Punch earlier also. And we have in the new orders also for the Punch. And it has a very limp short exhibition time. And we did it in very well.
Anmol Jain
Punch has been an existing model.
Ashutosh Tiwari
Okay. And generally that now we are seeing that you talked about new designs. And also has the content increased versus where we were earlier in Punch in terms of lighting content per vehicle in Punch versus earlier model?
Anmol Jain
Yes. In general we do see the content per vehicle is increasing. But again that is primarily because of different technologies and new styling requirements. I think we are progressing very well on the acceptance of new technologies. But again this is probably more true for certain OEMs. So I’m not sure exactly what the punch, the new punch technology map is like. I would not be able to comment specifically on the punch. But in general, yes, we do see OEMs like Tata Motors, OEMs like Mahindra and Mahindra. With the new tech and the new innovation, the content per vehicle on the lighting is definitely going up.
Ashutosh Tiwari
And see in LED as well. I think over the last few years, globally as well as in India, there’s a transition that probably first shifted to basic lights and now you’re getting more advanced lighting and all. You want to see that change with that even let’s say when you migrate to a new variant or new model, basically, are you seeing that they’ve upgraded in terms of technology and that’s why content will probably keep increasing? Is that thought process correct?
Anmol Jain
Absolutely. I think LED is just one piece of the puzzle. I think there are a lot of other technologies like again, there are projector lamps, there are also adaptive driving, assisting beams. All of those are very high technology. Again, it will not come to mass market. It will probably start at certain variants on the premium segment of passenger vehicles and then make its way into the mass market. Scalable models based on the price points also will change accordingly. But yes, that is one of the reasons why the content per vehicle will continue to increase. Not just based on LED penetration, which I think is fairly high already, but on the back of other technologies being introduced into the exterior lighting.
Ashutosh Tiwari
No, but on this point of LED penetration, like you mentioned, that penetration is high, but in that we include tail lamps and everything all put together, your blinkers, everything. But the high content is in the headlamp on the LED side and now maybe in tail lamps. Also because you are not seeing across the length of the vehicle in the TVs but in case of headlamps only if I talk ask about what would be penetration of LED in two wheelers. In this, in the vehicle I’m talking about only in the two wheelers and TV headlamps, the penetration like halogen is what percentage and what percentage led roughly? I know that you won’t have the exact figure, but industry for industry.
Anmol Jain
So again, it’s a very difficult question to answer, but I will try and give you some sense on this. On a two wheeler lamp, again, as I said, you know there is usually a DRL or a separate front combination lamp that has a technology and that is the only function which goes on the led. Let us say the main light source for the main headlamp in two Wheelers is still on a halogen which is the low beam and the high beam. So that continues to be halogen technology. So in terms of value we don’t have a breakup as to what is the contribution of LED as a technology on the total headlamp value and what would be the halogen because for us it’s the same lamp and you know we look at the whole lamp as a unit.
When it comes to passenger vehicles this actually drops even further because the main source of lighting could be a halogen or it could be a projector lamp which again has a very high value per vehicle. LED again could be just a turn indicator function or more and more now we have seen there is something called a front center lamp which runs across the front hood of a vehicle between the two headlamps. That is usually again on LED just because of the sleekness and just because of the styling requirements. So again I do not have a clear answer in terms of what would be the LED content part of the header lamp on a two wheeler or a four wheeler.
But if I were to give you a rough estimate I would assume it would be probably a 40, 60, 40% of the value of the lamp would be probably LED or maybe 50% of it would be LED in passenger cars and maybe another 50% would come from non led technologies. And on a two wheeler I would probably tend to say that it would be slightly higher at maybe a 60, 40 or a 65, 70, 30 ratio.
Ashutosh Tiwari
And lastly on this extension of this only, do you think that over next three to four year period even this low high beam on two wheelers or even in passenger vehicle can shift towards LEDs?
Anmol Jain
It definitely can, but I personally still feel that it’s going to be pretty long haul as LED as a full LED headlamp to become mass market because again the cost and the economies just don’t work out. As I mentioned earlier, most of the LED modules, not just for Lumax but across the industry are still imported. So they are not really being localized yet. But again I would tend to say that instead of LED as a light source, more and more use of projector lamps and other technologies would come into play faster on the two wheeler.
Ashutosh Tiwari
Okay, got it. Thank you so much.
Anmol Jain
Thank you.
operator
Thank you. The next question is from the line of Aditya Bhohair from LFC security. Please go ahead.
Aditya Bhoir
Hello, am I audible?
operator
Yes Aditya, but there is a lot of background noise from your end. Can you move to a quieter please?
Aditya Bhoir
Yeah, am I audible now?
operator
You may proceed now. Thank you.
Aditya Bhoir
Yeah, Currently first of all, congratulations on good setup number and my management has been guiding that there will be a margin expansion and currently we are having. A 70% volume penetration in LED lamps. So is there any other contributor to this which will fuel margin growth? Yeah, that was my mention.
Anmol Jain
Yeah, of course. I think margin growth is a combination of multiple factors. It is better asset realization, better capacity utilizations, optimized fixed cost based on a higher turnover growth as well as again I say LED as a higher penetration will definitely aid a lot to the revenue side because of the contribution per vehicle. But it cannot be just seen as an automatic improvement in the margins. In some cases, the LED lamps may not be as profitable as some of the conventional lamps. So again, there are various reasons why the margins have expanded and I think we continue to, as I said, remain bullish and optimistic that we will continue to progressively increase the margin performance of the company over the next quarters going into FY27 as well.
Aditya Bhoir
Okay, thank you.
operator
Thank you. Ladies and gentlemen. Due to time constraints, this will be the last question for today which is from Ajit Sethi from Eco Quantum Solutions. Please go ahead.
Ajit Sethi
Thank you for the opportunity, sir. As we have said that we are expecting half of the growth in FY27 should come from the new products. So should we expect that the EBITDA margin should be around 11 to 11.5% in FY27 and in the subsequent FY28 with our all capacity will come online. So can we expect to reach that 12% margin that you are saying that we will reach in two years?
Anmol Jain
So as I mentioned earlier, Ajit, I think the endeavor would be to attain a 12% EBITDA margin over the next two years or so. Having said that, yes, there are various factors which definitely on the back of which we are confident that the ebitda margin in FY27 should move forward and should become better than what we would deliver on FY27. But I think we are safely giving a guidance that the company has now achieved a double digit EBITDA margin with a solid foundation and I think we will continue to expand on that. So I don’t know specifically if we will hit 11% or so in FY27.
But yes, we will continue to expand the EBITDA margin from hereafter.
Ajit Sethi
Thank you sir.
Ravi Teltia
Thank you.
operator
Thank you. As that was the last question for today, I would now like to have the conference over to the management for closing comments. Thank you. And over to you sir.
Anmol Jain
Well, I would like to thank you all for joining us today. We hope we have addressed all your questions. We remain committed to keeping the investment community informed with regular updates on any developments in the company. For any further information or queries, please feel free to reach out to us or sga, our investor relations advisor. Thank you.
operator
Thank you, members of the management. On behalf of Lumax Industries Ltd. That concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.