Lumino Industries IPO

Strengths · 8

• 01Profit has grown strongly for three years, from Rs 86.61 crore in FY2024 to Rs 124.59 crore in FY2025 and Rs 160.00 crore in FY2026.
• 02Return ratios are strong, with RoCE of 31.89% and RoNW of 24.52%.
• 03The issue is priced reasonably on earnings. At the upper band of Rs 82 the P/E is about 15.62 times on an EPS of Rs 5.25.
• 04The company both makes the product and does the EPC work, so it earns at two stages of the same project instead of buying conductors from outside.
• 05It makes HTLS conductors, which are used to increase the capacity of existing transmission lines without laying new ones, an area supported by grid upgrade spending.
• 06Exports go to ten countries across Africa, South Asia and the USA, mostly to government electricity boards and public enterprises.
• 07Net worth grew from Rs 445.86 crore in FY2024 to Rs 729.58 crore in FY2026, and borrowing came down slightly in the last year from Rs 418.83 crore to Rs 384.16 crore.
• 08Rs 337 crore of the issue money will repay borrowings, which should cut interest cost meaningfully from the current level.

Risks · 8

• 01Debt rose enormously in FY2025, from Rs 40.91 crore to Rs 418.83 crore, which is about ten times in one year, and was still Rs 384.16 crore as on 31 March 2026.
• 02Sales growth has slowed sharply. Total income rose only 7% in FY2026, from Rs 1,946.68 crore to Rs 2,089.31 crore, against 37% the year before.
• 03The profit margin is thin at 6.40%, which is normal for conductor making and EPC work but leaves little cushion if metal prices move.
• 04Almost all the money goes to repaying debt. Rs 337 crore of the Rs 700 crore issue repays borrowings while only Rs 15.01 crore is for new equipment and civil work, so very little adds to capacity.
• 05Aluminium and copper prices are the main input cost. A sharp rise that cannot be passed on in fixed price EPC contracts will directly cut margin.
• 06EPC work for electricity boards and public enterprises usually means slow payments and money blocked in retention and unbilled work.
• 07A part of the export business is in African countries such as Mali, Burkina Faso, Cote d Ivoire, Rwanda and Ethiopia, which carry higher country, payment and currency risk.
• 08Promoter holding will come down from 100% to 71.97% after the issue.

Lumino Industries Ltd was started in 2005. It is an integrated engineering, procurement and construction company that also manufactures its own products for the power transmission and distribution industry.

The company works through two segments. Its manufacturing segment makes aluminium conductors, power cables and electrical wires, including high-temperature low-sag conductors, known as HTLS conductors, which carry more current on the same line and are used to upgrade existing transmission lines. Its EPC segment takes up power transmission and distribution work, extra high voltage substations, HTLS re-conductoring, railway electrification, solar power projects and water management projects.

The company supplies to major EPC companies in India and also sells abroad to government owned electricity companies, public enterprises and electricity boards in countries including the USA, Mali, Burkina Faso, Cote d'Ivoire, Nepal, Bangladesh, Kenya, Ghana, Rwanda and Ethiopia. As on 31 March 2026 it had 890 permanent employees.

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