Lumax Auto Technologies Limited announced a significant change in its auditing structure as S.R. Batliboi & Co. LLP resigned from its role as statutory auditors of IAC International Automotive India Private Limited, a material subsidiary of the company. The resignation, effective August 12, 2025, comes less than a year into their four-year term, which was initially set to conclude at the Annual General Meeting in FY 2027-28.

Reasons for Resignation

The primary driver behind this unexpected move is the management's decision to align the subsidiary's auditors with those of the holding company. S.R. Batliboi & Co. LLP had previously completed their tenure as statutory auditors of Lumax Auto Technologies Limited in September 2024. This strategic realignment aims to ensure consistency in auditing practices across the group.

Auditor's Statement

In their resignation letter, S.R. Batliboi & Co. LLP emphasized that there were no material concerns or issues leading to their departure. The firm had recently submitted its latest limited review report for the quarter ended June 30, 2025, on August 2, 2025, further underlining the absence of any auditing discrepancies.

Regulatory Compliance

Adhering to regulatory requirements, Lumax Auto Technologies Limited disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also complied with SEBI Circular No. CIR/CFD/CMD1/114/2019 dated October 18, 2019, and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, by providing detailed information about the auditor's resignation.

Impact and Next Steps

While the resignation marks a significant change, both the company and the auditing firm have assured stakeholders that this transition is part of a broader strategic alignment rather than a response to any financial or operational concerns. The move is expected to streamline the auditing process across Lumax Auto Technologies and its subsidiaries.

As the auto component industry continues to evolve, Lumax Auto Technologies' decision to harmonize its auditing structure across its group companies reflects a proactive approach to corporate governance and financial transparency. Stakeholders will likely be keen to see who the company appoints as the new auditors for IAC International Automotive India Private Limited and how this change might influence the group's financial reporting processes going forward.

Lumax Auto Technologies Limited , a leading automotive component manufacturer, has kicked off the fiscal year 2026 with a robust financial performance, setting the stage for its ambitious growth plans. The company reported a significant 36% year-on-year increase in consolidated revenue for the first quarter ended June 30, 2025, reaching ₹1,026.00 crores.

Strong Financial Performance

The company's Q1 FY26 results showcase its resilience and growth trajectory:

• Consolidated revenue surged to ₹1,026.00 crores, up from ₹756.00 crores in Q1 FY25
• Profit after tax (PAT) increased by 30% to ₹54.00 crores
• EBITDA grew by 29% to ₹136.00 crores

However, the EBITDA margin saw a slight dip to 13.20% from 14.00% in the same quarter last year, which the company attributes to delayed price corrections from customers.

Strategic Growth Initiatives

Lumax Auto has outlined an ambitious growth strategy, aiming for:

• Revenue target of ₹11,000.00 crores by FY31
• 20% EBITDA margins
• Focus on clean mobility, vehicle electronics, and premium OEMs

The company is implementing a four-fold strategy dubbed "20.20.20.20":

1. 20% minimum CAGR in revenue
2. 20+% EBITDA margin
3. 20% ROCE (Return on Capital Employed)
4. 20+% focus on future and clean mobility

Expansion and Innovation

To achieve these targets, Lumax Auto is undertaking several strategic initiatives:

1. Acquisition of IAC India: The company has completed the acquisition of the remaining 25% stake in IAC International Automotive India Private Limited, making it a wholly-owned subsidiary.

2. Technology Center - SHIFT: Lumax is setting up a Smart Hub for Innovation and Future Trends (SHIFT) in Bengaluru, focusing on technologies like telematics, ADAS, HMI, and software-defined vehicles.

3. China Branch Office: The company is establishing a branch office in China to explore new business prospects and strengthen technological capabilities.

4. Diversification: Lumax is expanding its product portfolio, particularly in green and alternate fuel segments, through acquisitions like Greenfuel Energy Solutions.

Segment Performance

The company's Q1 FY26 revenue mix shows a strong focus on the passenger vehicle segment:

Management Commentary

Anmol Jain, Managing Director of Lumax Auto Technologies Limited, stated, "We have kicked off FY26 with a steady performance both in revenue & profitability, which is in line with our internal operating budgets. The 100% acquisition of IAC India marks a key strategic step, strengthening our role in the EV interior space and enhancing integration across platforms."

Future Outlook

Lumax Auto Technologies is positioning itself for sustainable growth in the evolving automotive landscape. With its focus on innovation, strategic acquisitions, and expansion into future mobility solutions, the company appears well-equipped to navigate the changing dynamics of the automotive component industry.

As the company progresses towards its FY31 targets, investors and industry watchers will be keen to observe how Lumax Auto balances its ambitious growth plans with the challenges of market dynamics and technological shifts in the automotive sector.