Lumino Industries IPO: Capitalising on India’s Power Transmission Push – Is It worth Subscribing?

At a Glance

Company and its Business Operations

Lumino Industries Limited, originally the partnership firm Lumino Industries formed on September 1, 1989 at Calcutta and incorporated as a public limited company on March 30, 2005, is a Kolkata, West Bengal headquartered product-driven integrated engineering, procurement and Construction player serving India's power transmission and distribution industry. It manufactures conductors, cables, wires and specialised components and executes turnkey EPC projects across four segments - Power Transmission, Power Distribution, Monopoles and International EPC. The captive manufacturing segment contributed around 69.74 per cent of Revenue from Operations in Fiscal 2026, with EPC making up the balance. Installed capacity stands at 40,000 MT across two units. Key customers include WBSEDCL, Kashmir Power Distribution Corporation and Purvanchal Vidyut Vitran Nigam. Revenue from Operations grew at a CAGR of around 20.43 per cent between Fiscals 2024 and 2026, with an Order Book of Rs 3,149.88 crore as of March 31, 2026.

Industry Outlook

India's wires and cables market was valued at approximately Rs 1,618 billion in Fiscal 2026, up from Rs 787 billion in Fiscal 2020, registering a CAGR of around 13 per cent, led by high-voltage and extra-high-voltage cables as transmission lines expanded and rural electrification deepened. Per the CRISIL Report, the market - the addressable TAM for the company - is projected to reach Rs 2,980-3,120 billion by Fiscal 2031, growing at a CAGR of 13-14 per cent. Growth is anchored by distribution capex under the Revamped Distribution Sector Scheme in the lower-voltage segment and by CTUIL, Inter-State Transmission System and Green Energy Corridor investments in the high-voltage segment. India's power demand is expected to compound at 5-7 per cent over Fiscals 2027-2031, while data-centre build-out, smart-grid rollouts and rising digital connectivity provide additional structural demand.

Objects of the Issue

• Combination issue of Rs 700 crore - Fresh Issue of Rs 500 crore and Offer for Sale of Rs 200 crore.
• Offer for Sale by Promoter Selling Shareholders: Devendra Goel (Promoter) Rs 150 crore and Jay Goel (Promoter) Rs 50 crore.
• Fresh Issue deployment: Rs 337.00 crore towards prepayment or repayment of certain outstanding borrowings; Rs 15.01 crore towards capital expenditure on equipment, machinery, civil works and interior development of an existing manufacturing facility; balance towards general corporate purposes.
• Overall purpose: deleveraging the balance sheet, part-funding manufacturing expansion, and providing an exit to the two promoter selling shareholders. The Company will not receive any proceeds from the Offer for Sale.

SWOT Analysis

Strengths

• Integrated model where the manufacturing segment supplied around 69.74 per cent of Fiscal 2026 Revenue from Operations feeds captive EPC execution, aiding cost control and supply security.
• Sector-leading return profile, with RoNW of 24.62 per cent in Fiscal 2026 against a listed-peer range of 0.98-19.76 per cent.
• Healthy visibility from an order book of Rs 3,149.88 crore as of March 31, 2026, around 1.54x Fiscal 2026 Revenue from Operations.
• Strong growth, with Revenue from Operations CAGR of around 20.43 per cent and net profit CAGR of around 35.92 per cent over Fiscals 2024 to 2026.

Weaknesses

• Thin profitability, with an EBITDA margin of 11.71 per cent and a net profit margin of 7.84 per cent in Fiscal 2026.
• Customer concentration, with the top 10 customers accounting for 46.52 per cent of Fiscal 2026 Revenue from Operations and government entities contributing over 53 per cent.
• Volatile cash conversion, with negative cash flow from operations of Rs 238.59 crore in Fiscal 2025.
• Working-capital intensity, with trade receivables of Rs 894.86 crore in Fiscal 2026, equal to around 43.84 per cent of Revenue from Operations.

Opportunities

• Large addressable TAM projected at Rs 2,980-3,120 billion by Fiscal 2031, growing at 13-14 per cent CAGR.
• Policy tailwinds from RDSS distribution capex and ISTS and Green Energy Corridor transmission investment.
• Capacity expansion at Manufacturing Unit I, part-funded by fresh-issue proceeds, on the existing 40,000 MT base.
• Premiumisation opportunity in high-voltage and extra-high-voltage cables, the fastest-growing product category.

Threats

• Exposure to aluminium and copper price volatility and commodity pass-through risk on fixed-price contracts.
• Cyclicality of tender-based EPC revenue and dependence on government and SEB capex cycles.
• Intense competition from larger, better-capitalised peers such as Apar Industries, KEI Industries and KEC International.
• Elevated current borrowings of Rs 356.42 crore in Fiscal 2026, keeping leverage and interest cost sensitive to execution.

Financial Performance

All figures in Rs crore. Margins in per cent. Source: RHP (Restated Consolidated Financials).

(a) Profit & Loss

(b) Balance Sheet

(c) Working Capital & Cash Flow

Peer Comparison

Outlook & Relative Valuation

Apply. At the upper band of Rs 82, Lumino is valued at 12.48x Fiscal 2026 diluted earnings, a clear discount to the listed-peer P/E range of around 18.64x to 69.42x, and it screens best on profitability with RoNW of 24.62 per cent versus a peer band of 0.98-19.76 per cent, even as its 11.71 per cent EBITDA margin sits below product-focused cable peers. The long-term case rests on an integrated manufacturing-plus-EPC model, structural power transmission and distribution capex under RDSS, ISTS and the Green Energy Corridor, and an order book of Rs 3,149.88 crore, around 1.54x Fiscal 2026 revenue. Fresh-issue proceeds of Rs 337.00 crore towards debt repayment plus manufacturing capex should ease leverage and support expansion. Key risks are thin margins, receivables of Rs 894.86 crore, negative operating cash flow of Rs 238.59 crore in Fiscal 2025 and government-tender dependence; post-issue the P/E rises to around 15.61x, modestly narrowing valuation comfort. Overall, investors may subscribe for listing gains.