Can Lumino Industries IPO deliver long-term growth for high-risk investors?
ET BureauGrowth Equation Power-sector capex offers the firm room to grow, but raw-material price volatility and customer concentration temper outlook
Business
Incorporated in 2005, Lumino Industries is an integrated engineering, procurement, and construction (EPC) company. It manufactures and supplies conductors, power cables, electrical wires, and specialised components to the power transmission and distribution industry. Manufacturing contributed nearly 70% of revenue in FY26, while EPC accounted for the rest. The company operates two manufacturing facilities in Howrah, West Bengal, with a combined capacity of 40,000 MT. The company had a closing order book of ₹3,149.9 crore as of March 31, 2026, comprising ₹1,991.9 crore of EPC orders and ₹1,157.90 crore of manufacturing orders. The government entities accounted for 53% of FY26 revenue, posing concentration risk. It is also exposed to metal prices volatility as it uses aluminium, copper and steel as raw material.
Financials
Revenue grew 20% annually to ₹2,041.1 crore in FY26 from ₹1,407.3 crore in FY24. Operating profit before depreciation and amortisation (Ebitda) increased to ₹238.9 crore from ₹145.1 crore while the Ebitda margin improved to 11.7% from 10.3% during the period. It is within the peer range of 3.5-14%. Net profit rose 36% annually to ₹160 crore in FY26 from ₹86.6 crore in FY24. Return on equity increased to 24.6% in FY26 from 21.5% in FY24 compared with peer range of 1%-15.8%. Total debt rose sharply to ₹384 crore in FY26 from ₹40.9 crore in FY24 amid higher capital expenditure and increasing working-capital requirements. Its working capital cycle widened to 86 days in FY26 from 11 days in FY24.
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Valuation
The company demands a price-earnings (P/E) multiple of 15.6 on post-IPO basis compared with a P/E of 18.9 for KEC International, 57.6 for KEI Industries and 73.1 for Apar Industries.
