Lumino Industries

IPO Size: Rs. 700 cr

• Fresh Issue of Rs. 500 cr (20% dilution) to (i) repay Rs. 337 cr of Rs. 756 cr gross debt as of 31.7.26 (ii) Rs. 15 cr brownfield capex
• Offer for Sale (OFS) of Rs. 200 cr by promoter (100% to 72% post IPO)

Price band: Rs. 78-82 per share

M cap: Rs. 2,497 cr (IPO is 28% of m cap)

IPO Date: Thu 27^th Aug to Mon 31^st Aug 2026, Listing Thu 3^rd Sep 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

Power Sector Manufacturer and EPC Company

Lumino Industries is a 3-decade-old Kolkata headquartered manufacturer of aluminium conductors and power cables and provides engineering, procurement and construction (EPC) services. Its 40,000 MTPA installed capacity for manufacturing conductors (including high-temperature low-sag conductors), cables, wires was utilised 80% in FY26. It plans Rs. 15 cr capex, from fresh issue proceeds, to increase capacity by 10,980 MTPA or 27% to 50,980 MTPA by FY28E. Capital work in progress stands at Rs. 48 cr as of 31.3.26, when net fixed assets were Rs. 65 cr.

Company states Rs. 2,041 cr FY26 revenue split 70:30 between manufacturing and EPC, with manufacturing mix improving from 54:46 in FY22. Or, is it really so?

 

‘Financial Engineering’ from DRHP to RHP

FY24 Manufacturing Revenue from External Customers is mentioned as Rs. 319 cr on page 236 of DRHP dated 20.1.25 but increased to Rs. 923 cr on page 376 of RHP dated 20.8.26, for the same year FY24. As a result, FY24 EPC revenue from external customers reduced by the same amount of Rs. 604 cr from Rs. 1,089 cr in DRHP to Rs. 484 cr in RHP. Thus, while FY24 revenue of Rs.1,407 cr is same in both the IPO documents,  company has conveniently eliminated disclosing the line item inter-segment revenue or separating gross and net manufacturing revenue, treating entire manufacturing revenue as that from external customers in the RHP.

Even segmental results have changed from DRHP to RHP – FY24 segmental result of Rs. 55 cr for manufacturing on page 350 of DRHP has increased to Rs. 108 cr for FY24 as mentioned on page 376 of RHP, with similar decrease in segmental profit for EPC for FY24. All this supports company’s positioning as a power sector product manufacturer unlike a power EPC company, which enjoys lower valuation multiple in stock market.   

Since FY24 was the only overlap period in DRHP and RHP, this ‘financial engineering’ did not go unnoticed. We wonder if company, auditor, book running lead managers hold any liability for this incorrect and misleading data. Surprising how this was overlooked at regulator’s end?

Bottomline: which revenue split is actually correct for FY24? And is FY26 split of 70:30 accurate or subject to ‘interpretation’?

 

Rising Debt and High Interest Burden

Gross debt doubled from Rs.384 cr as of 31.3.26 to Rs. 756 cr as of 31.7.26, in just 4 months. This may primarily be linked to EPC business where receivables cycles are elongated due to government entities being the customers.

The interest expense on bank borrowings and others charged to P&L is Rs. 64 cr in FY26 as well as in FY25. This is quite high vis-à-vis Rs. 400 cr gross debt as at the end of both the fiscals. It also means interest cost reduction from H2FY27E will be closer to Rs. 30 cr and interest expense may remain unchanged at Rs. 64 cr due to increased borrowing YTD FY27. 

 

Financials: A Mixed Bag  

Company’s FY26 revenue growth was limited to 6% YoY with EBITDA excluding other income up 8% YoY to Rs. 239 cr. FY26 PAT stood at Rs. 160 cr, up 29% YoY, primarily due to Rs. 27 cr non-recurring derivative gain included in other income. Thus, FY27E PAT may remain flat YoY at around Rs. 160 cr.

High working capital need rose debtors to Rs. 895 cr, as of 31.3.26, outstanding for over 5.2 months. Going forward, EPC may continue to remain a key vertical as order book of Rs. 1,992 cr as of 31.3.26 was up 48% YoY in FY26. RoE is also likely to shrink from 24-25% to mid-teens, as equity expands post IPO.

 

EPC trying to Morph as a Manufacturer?

M cap of Rs.2,497 cr and Enterprise Value of Rs. 2,645 cr implies PE multiple of 12.5x and EV/EBITDA of ~11x. These multiples are low for a power sector manufacturer but fair for EPC company.

Conductor and cable making peer Diamond Power, clocking Rs. 1,200 cr topline and 7-8% net margin is trading at a PE of 24x and EV/EBITDA of 17x. However, power EPC players, both larger and smaller, Transrail and Om Power respectively, are trading at PE of 12x for similar margins as Lumino. Thus, company is fairly valued for its predominantly EPC operations, which we’d like to believe, as explained above.