Lumino Industries IPO (27-31 August) Analysis

Lumino Industries Limited is a Kolkata based integrated power infrastructure company with two complementary businesses: manufacturing of cables, conductors, and wires for the power transmission and distribution (T&D) sector, and execution of Engineering, Procurement, and Construction (EPC) projects for the same industry.

Issue Opens Aug 27, 2026

Issue Closes Aug 31, 2026

Exchange BSE & NSE

Issue Type Fresh Issue + OFS

The company was originally established as a partnership firm in 1989 and was converted into a public limited company in 2005. Over more than three decades, Lumino has built a position supplying critical components and executing turnkey projects for India's electricity grid.

The manufacturing segment produces aluminium and copper conductors, cables, wires, and related components that form the physical backbone of power transmission lines and distribution networks. These products are supplied to utilities, discoms, and infrastructure companies across India.

The EPC segment takes on contracts to build or upgrade power transmission infrastructure   from towers and substations to overhead lines   serving both public sector utilities and private sector project developers.

Manufacturing Facilities

Lumino operates two manufacturing units, both located in the Howrah district of West Bengal. Manufacturing Unit I at Bipranapara, Jalan Complex, P.S. Domjur has an installed capacity of 31,000 MT and is the primary production base; it is partially owned and partially leased.

Manufacturing Unit II at Mouja Baniara, P.S. Domjur has an installed capacity of 9,000 MT on a compete leasehold basis. Combined installed capacity stands at 40,000 MT, with actual production of 31,571 MT in FY2026 (approx. 79% utilisation). The IPO proceeds will be used to expand Unit I's capacity to 50,980 MT.

The company is promoted by Purushottam Dass Goel (Non Executive Chairperson), Devendra Goel (Managing Director), and Jay Goel (Whole time Director). The promoter family collectively holds approximately 84.90% of the pre offer share capital. CIN: U14293WB2005PLC102556.

The IPO comprises a Fresh Issue of up to Rs. 5,000.00 million and an Offer for Sale (OFS) of up to Rs. 2,000.00 million by two Promoter Selling Shareholders   Devendra Goel (up to Rs. 1,500.00 million) and Jay Goel (up to Rs. 500.00 million). The company will not receive any proceeds from the OFS portion. An Employee Reservation Portion of up to Rs. 100.00 million has also been carved out.

Parameter	Details
Fresh Issue Size	Up to Rs. 5,000.00 million
Offer for Sale	Up to Rs. 2,000.00 million (promoters)
Total Offer Size	Up to Rs. 7,000.00 million
Face Value	Rs. 5 per share
Price Band	To be announced
Pre Issue Shares	24,35,78,096 equity shares
Issue Opens	August 27, 2026
Issue Closes	August 31, 2026
Anchor Date	August 25, 2026
Listing Exchange	BSE & NSE (NSE designated)
Book Running Lead Managers	Motilal Oswal Investment Advisors; JM Financial; Monarch Networth Capital
Registrar	Bigshare Services Private Limited

The Fresh Issue proceeds of Rs. 5,000.00 million will be applied across three objectives. The dominant use   Rs. 3,370.00 million   is prepayment or repayment of existing borrowings, which will substantially reduce the company's debt load. The remaining proceeds will fund a manufacturing capacity expansion at Unit I and general corporate purposes.

Object	Amount (Rs. mn)	Fiscal Year
Debt repayment / prepayment	3,370.00	FY2027 (fully)
Capex   equipment & machinery	75.30	FY2027: nil; FY2028: 75.30
Capex   civil works & interiors	74.83	FY2027: 74.83; FY2028: nil
General corporate purposes	Balance (max 25% of gross)	-

Debt Repayment

As at July 31, 2026, total outstanding borrowings stood at Rs. 18,567.82 million (against a sanctioned limit of Rs. 21,586.79 million), primarily working capital and vendor finance facilities from HDFC Bank, Union Bank of India, Bank of Baroda, Yes Bank, State Bank of India, and IDFC First Bank. The Rs. 3,370.00 million to be prepaid will reduce overall leverage and lower annual finance costs, freeing internal cash flows for operations and growth.

Manufacturing Capacity Expansion   Rs. 150.13 million

Lumino proposes to expand Manufacturing Unit I's capacity from 31,000 MT to 41,980 MT (adding 10,980 MT) by purchasing and installing rod break down machines, annealing furnaces, stranding machines, and related equipment (Rs. 75.30 mn), along with construction of a Pre Engineered Building and Vacuum Dewatered Flooring for the new production area (Rs. 74.83 mn). Overall group capacity will increase from 40,000 MT to 50,980 MT post expansion.

FINANCIAL PERFORMANCE

Lumino Industries has delivered strong revenue growth over the three fiscal years presented in the RHP, with consolidated Revenue from Operations rising from Rs. 14,073.15 million in FY2024 to Rs. 20,410.73 million in FY2026   a CAGR of approximately 20%.

Profit After Tax attributable to owners grew from Rs. 866.07 million to Rs. 1,599.99 million over the same period, nearly doubling in two years. The company operates with consistent EBITDA margins in the 10 to 12% range, reflecting the commodity linked nature of its raw material (aluminium and copper) but also an effective pass through pricing model.

Metric (Rs. mn)	FY2024	FY2025	FY2026
Revenue from Operations	14,073.15	19,179.68	20,410.73
Operating EBITDA	1,450.92	2,229.37	2,389.47
EBITDA Margin (%)	10.31%	11.62%	11.71%
PAT (attributable to owners)	866.07	1,245.86	1,599.99
Basic & Diluted EPS (Rs.)	3.56	5.11	6.57
Return on Net Worth (%)	21.52%	24.52%	24.62%
NAV per Share (Rs.)	18.30	23.41	29.95

Balance Sheet and Order Book

Total assets grew from Rs. 11,754.41 million (FY2024) to Rs. 21,748.75 million (FY2026), reflecting both working capital growth and scale of operations. Total debt stood at Rs. 3,841.61 million in FY2026 with a Debt/Equity ratio of 0.53   an improvement from 0.73 in FY2025 as earnings accumulated. A portion of the IPO proceeds earmarked for debt repayment should reduce this ratio further post listing.

A standout feature is the company's closing order book, which reached Rs. 31,498.78 million as at March 31, 2026   up from Rs. 24,362.69 million the prior year. The EPC segment accounts for Rs. 19,919.76 million of this and the manufacturing segment for Rs. 11,579.02 million. This robust and growing order book provides strong near term revenue visibility and signals healthy demand for both segments of the business.

PEER COMPARISON

The RHP identifies seven listed peers operating in cables, conductors, power EPC, or related segments. Lumino's revenue of Rs. 20,410.73 million places it as a mid sized player relative to large caps like Apar Industries (Rs. 2,29,668.90 mn) and KEC International (Rs. 2,35,558.70 mn), but comparable to Bajel Projects (Rs. 28,185.58 mn), Universal Cables (Rs. 30,509.91 mn), and Techno Electric (Rs. 34,011.70 mn). Notably, Lumino's Return on Net Worth of 24.62% in FY2026 is the highest in the peer group shown below, reflecting efficient use of equity capital.

Company	Revenue (Rs. mn)	Diluted EPS (Rs.)	RoNW (%)
Lumino Industries (Our Company)	20,410.73	6.57	24.62%
Apar Industries Limited	2,29,668.90	242.81	19.76%
Bajel Projects Limited	28,185.58	1.74	0.98%
Kalpataru Projects International	2,72,479.30	60.90	15.80%
KEC International Limited	2,35,558.70	22.75	11.10%
KEI Industries Limited	1,19,063.18	96.02	14.76%
Universal Cables Limited	30,509.91	47.01	8.91%
Techno Electric & Engineering	34,011.70	40.74	12.00%

The industry peer P/E range spans 19.81x (KEC International, the lowest) to 108.66x (Bajel Projects), with an average of 48.55x. Since Lumino's own P/E cannot be determined until the price band is finalised, investors will need to assess the offer price relative to this peer range once announced. The company's superior RoNW relative to all listed peers is a notable differentiator.

KEY RISKS

Raw Material Price Volatility

Aluminium and copper are the primary raw materials for cables and conductors, and their prices are driven by global commodity markets, currency fluctuations, and supply chain dynamics. While Lumino largely passes through raw material cost changes to customers, sharp or sudden increases can compress margins on fixed price contracts and create working capital pressure. The company's cost of materials consumed represented 56.0% of revenue in FY2026 (Rs. 11,433.55 million), underscoring the magnitude of this exposure.

High Debt Relative to Operations

Despite IPO linked deleveraging, Lumino's total borrowings remain large. As at July 31, 2026, total outstanding borrowings were Rs. 18,567.82 million. Finance costs in FY2026 were Rs. 660.00 million. Even after repaying Rs. 3,370.00 million from IPO proceeds, substantial working capital borrowings will remain. Any tightening of credit facilities, an interest rate increase, or deterioration in working capital cycles could increase financial charges and pressure profitability.

Order Book Execution and EPC Risk

A closing order book of Rs. 31,498.78 million   nearly 1.5x annual revenues   is a positive indicator, but EPC contracts carry inherent execution risks. Cost overruns, contractor delays, material procurement challenges, land acquisition issues, and regulatory approvals for transmission infrastructure can all affect project margins and timelines. Any erosion in EPC project profitability due to execution issues would disproportionately affect overall group margins.

Promoter Share Selling   OFS Component

Two promoter directors   Devendra Goel (MD) and Jay Goel (Whole time Director)   are together selling up to Rs. 2,000.00 million of their shareholding through the OFS. While partial monetisation by founders is common, the quantum (29% of the total offer size) may raise questions about promoter conviction in the near term share price. Investors typically weigh promoter selling as a signal when interpreting the IPO pricing.

Geographic Concentration of Manufacturing

Both manufacturing units are located in the Howrah district of West Bengal, within close proximity to each other. Any regional disruption   floods, labour unrest, power outages, or logistical challenges in Howrah   could simultaneously impact both facilities and impair the company's ability to fulfil manufacturing orders. This is a single region concentration risk for the production base.

KEY POSITIVES

Large and Growing Order Book

A closing order book of Rs. 31,498.78 million as at March 31, 2026   growing 29% year on year from Rs. 24,362.69 million   provides strong near term revenue visibility for both the manufacturing and EPC segments. The EPC order book of Rs. 19,919.76 million alone is nearly equal to the company's full year revenue, indicating a well stocked pipeline of projects to execute. This reduces short term demand uncertainty for investors.

Best in Class Return on Net Worth

Lumino's Return on Net Worth of 24.62% in FY2026 (and 24.52% in FY2025) is the highest among all seven listed peers identified in the RHP. With a weighted average RoNW of 24.07%, the company has consistently generated superior returns on shareholder equity, reflecting the quality of its business model and efficient capital deployment.

Integrated Business Model

The combination of cables manufacturing and EPC project execution creates a synergistic business: the EPC division is a captive customer for the manufacturing unit's products, which reduces external market dependency for volumes. Simultaneously, being an EPC player gives Lumino visibility into T&D project pipelines, allowing more informed manufacturing capacity planning. This integration provides stability that pure play peers in either segment alone may lack.

India Power Sector Tailwind

India's ambitious power sector targets   expansion of renewable energy capacity, grid modernisation under RDSS (Revamped Distribution Sector Scheme), inter state transmission upgrades, and smart metering rollouts   create a sustained multi year demand environment for cables, conductors, and EPC services. As a domestically focused integrated player in this sector, Lumino is well positioned to benefit from this structural growth.

Debt Reduction Post IPO

Using Rs. 3,370.00 million of Fresh Issue proceeds to repay borrowings will meaningfully deleverage the balance sheet. For a company generating Rs. 2,389.47 million in operating EBITDA, retiring this quantum of debt will reduce annual interest outgo and improve free cash flow generation going forward. A lower Debt/Equity ratio also creates headroom to raise incremental project financing for future growth without breaching prudent leverage thresholds.

Disclaimer

The content on this website is for informational and educational purposes only and should not be construed as investment advice, a recommendation, or a solicitation to buy or sell any security, mutual fund, or financial instrument. Equity Research India is not a SEBI-registered investment advisor or research analyst, and nothing on this site constitutes personalized financial advice.

Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. NAV, returns, rankings, and other data may change and may not reflect the most current information at the time of reading.

Readers should conduct their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. Equity Research India and its authors accept no liability for any loss or damage arising from the use of this content.