Lumino Industries Limited (May Subscribe)

Highlights

Lumino Industries Limited (LIL) incorporated in 2005, is a product-driven integrated EPC player with strong focus on manufacturing and supplying aluminium conductors (for long-distance power transmission across distribution, industrial and power plant), power cables (low voltage, aerial bundled, railway signalling, concentric cables), and Electrical Wires (thermoset insulated, earth and house wires) and other specialised products to India’s growing T&D industry, reflecting a well-rounded presence across the value chain.

LIL serves large EPC players along with international clients, including government-owned electricity companies, public enterprises, and electricity boards across the USA, Nepal, Bangladesh, Kenya, Ghana, Rwanda, etc. Further in line with its product-driven strategy integrated operations, also supply products for captive consumption in its own EPC projects.

LIL’s EPC and manufacturing operations spans across 26 states & 4 UTs in India and 17 countries globally, serving a diversified mix of government authorities and private players across domestic and international markets.

Out of the total proceeds of Rs. 7,000 mn, Rs. 4,200 mn would go towards prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by company, Rs. 151 mn would go towards Capex and remaining Rs. 649 mn go towards funding company’s general corporate purposes. Additionally, Rs. 2,000 mn going towards promoter selling shareholders of the company. 

Key Highlights

• India’s cables and wires market is valued at Rs. 1.62 trillion in FY26 and is projected to grow at a 13-14 pct CAGR to Rs. 2.98-3.12 trillion by FY31, while the conductors market, valued at Rs. 227 bn in FY26, is set to grow 12-15 pct CAGR over the same period. The power sector investments are also expected to rise 1.9x-2.2x from Rs. 19.2 trillion in FY22-26 to Rs. 37-42 trillion in FY27-31, with EPC projects accounting for 40-50 pct of total investments, positioning LIL well to capture this growth.

• LIL operates through two interconnected segments – Manufacturing and EPC. Manufacturing segment converts raw materials into cables, conductors, and wires, which are sold both to external customers and captively supplied to its own EPC segment. The EPC segment, in turn, combines these internally-sourced components with externally-procured materials to deliver end-to-end project execution, including supply and installation services, billed separately to customers.
• LIL’s integrated operations helps reducing external dependence and driving stable, predictable demand, streamlining production and inventory. In-house manufacturing also secures an uninterrupted EPC supply chain, mitigating procurement delays and price volatility, while enabling cost efficiencies through economies of scale – strengthening bidding competitiveness, receivable cycles, and overall profitability.
• LIL operates two manufacturing facilities in Howrah, West Bengal, with a combined capacity of 40,000 MT aluminium consumption p.a. (operating at capacity utilization of 78.93 pct) supported by four warehouses. To scale further, the company has acquired land in Ranihati, Howrah for a new facility, which will expand its product range and strengthen backward integration across the conductor-cable value chain.
• LIL’s order book stood at 31,499 mn (with EPC contributing Rs. 19,920 mn and Manufacturing Rs. 11,579 mn) in FY26 which doubled from Rs. 19,406 mn in FY24. At 1.54x of revenue, the order book reflects healthy revenue visibility of more than a year.
• LIL’s key growth strategies include (i) To leverage market opportunities and core competencies for growth in EPC of power transmission and distribution sector, (ii) expand manufacturing capabilities and product development, (iii) expand and diversify into allied EPC sectors by leveraging existing project execution capabilities, and (iv) focus on increasing global presence and entering new markets.
• The sales of the company have grown by 20.43 pct CAGR over FY24-26 and EBITDA/profit has grown 28.34 pct CAGR/35.93 pct CAGR over same year. In FY26 the company reported sales of Rs. 20,411 mn, rose 6.42 pct YoY. EBITDA of the company increased 7.22 pct YoY to Rs. 2,390 mn. In FY26 the company posted profit of Rs. 1,600 mn, up 28.41 pct.

Key Risk

• LIL’s top 10 supplier’s account 87.50 pct of raw material procurement; losing one or more due to disputes, insolvency, or supply chain issues could disrupt sourcing and hurt operations of the company.
• LIL’s receivable days have risen steadily from 92 in FY24 to 145 in FY26; any further delays in collections could strain the company’s financial condition and operating results.

• LIL’s manufacturing and warehousing facilities and are all concentrated in West Bengal; any infrastructure or location-specific disruptions could adversely affect the operations.

Financial Performance

Source: – RHP.

Peer Comparison based on FY26 Financials.

Source: – RHP.

Valuation

Lumino is a leading manufacturer of a wide range of products, including Cables, Conductors and Wires. They, as an EPC major, deliver projects in key infrastructure sectors such as Distribution & Transmission, Railway electrification, Reconductoring with HTLS Conductors, Solar power projects and EHV Substation. At the upper end of the price band of Rs. 82, the issue is priced at an PE of 15.6x its FY26 post issue capital. The issue appears to be fully priced. However, only high-risk investor may apply for listing gains.

Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.