Lumino Industries IPO Review – Well-Informed Investors can Park Funds for Medium to Long Term

Lumino Industries Ltd. (LIL) is a product-driven integrated engineering, procurement and construction (“EPC”) player in India, with strong focus on manufacturing (“Manufacturing”) and supplying conductors, power cables and electrical wires and other specialized products and components to the growing power transmission and distribution industry in India. The company also manufactures high-temperature low-sag (“HTLS”) conductors used in distribution and transmission lines in India. It achieved an Operating EBITDA Margin of 11.71% in Fiscal 2026. By leveraging its experience of more than three decades in the power transmission and distribution industry, the company has developed a product driven business model focused on designing, engineering, manufacturing and distributing specialized products used in a wide range of power transmission and distribution, industrial applications, electrical wiring, renewable energy projects, communication systems, electrical panels and railway networks applications.

LIL supplies conductors, power cables and other specialized products to large EPC players such as Kalpataru Projects International Limited (formerly known as Kalpataru Power Transmission Limited), Jackson Limited, Warora Kurnool Transmission Limited, K.G.N. Electricals, WRSS XXI (A) Transco Limited, Monte Carlo Limited and R.S. Infraprojects Private Limited. It also caters its products to international clients, which include government owned and controlled electricity companies, public enterprises and electricity boards, in countries such as United States of America, Mali, Burkina Faso, Côte d'Ivoire, Nepal, Bangladesh, Kenya, Ghana, Rwanda and Ethiopia. Further, in line with its product-driven strategy and integrated operations, the company also supplies products for captive consumption in the EPC projects executed by it. In Fiscal 2026, 23.08%2 of the specialised products used in the EPC projects were manufactured by LIL in-house.

Its integrated operations ensure captive consumption of a portion of its specialised products and reduces external dependence, driving consistency in demand and enhancing revenue stability. The captive consumption of its products helps the company in ensuring stable and predictable sales, while also streamlining production planning and reducing inventory risks. Similarly, by manufacturing critical products and components in-house, it has developed a reliable and uninterrupted supply chain for its EPC projects, reducing dependency on external vendors and mitigating risks associated with procurement delays or price volatility. The integrated operations enhance LIL’s project execution capabilities by allowing it to meet product specifications, while deriving cost efficiencies through economies of scale. Its distinct product driven business model improves its bidding capabilities for EPC projects (by minimizing external costs and maximizing operational flexibility) and enables it to improve receivable cycle and overall profitability.

LIL’s manufacturing facilities are a critical aspect of its integrated approach. This integration allows it to be more cost competitive and time efficient during the bidding process by leveraging its cross-feeding capabilities, resulting in economies of scale. The company operates two manufacturing facilities located in Howrah, West Bengal with a combined capacity of 40,000 metric tons (“MT”) of aluminium consumption per year for manufacturing cables and conductors, with an aggregate area of 264,208 sq. ft. It also operates four warehouses covering an aggregate area of approximately 156,600 sq. ft. Its manufacturing facilities are certified for ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and 5S Workplace Organizing Management Systems. The testing lab within its manufacturing facility for quality check of the finished products is accredited by the National Accreditation Board for Testing and Calibration Laboratories (“NABL”).

Its in-house manufacturing capabilities allows it to significantly reduce lead times and uncertainties associated with external suppliers, enabling faster response times. Further, its in-house manufacturing enhances inventory management by providing more accurate control over stock levels, reducing excess inventory and minimizing inventory shortages. As at March 31, 2026, it had 890 permanent employees. With an objective to establish a 250,000 sq. ft. manufacturing facility, it is in the process of expansion, for which the company has acquired approximately 650,000 sq. ft. of land in Ranihati, Howrah, West Bengal. This expansion will enable it to produce a wider range of cables and conductors like low voltage power cables, high voltage power cables, instrumentation cables, solar cables, railway signalling cable, flexible electrical wire, overhead aluminium conductors and HTLS conductors. LIL’s proposed manufacturing facility will help it in strengthening integration by increasing production capacity of overhead conductors, aerial bunch cables, and control cables used in electricity distribution and transmission, which will help it in creating greater synergy in manufacturing process.

The Company has received the Underwriter’s Laboratories (Global Safety Certification) Standards certification (“UL Certification”), demonstrating its ability to comply with the stringent safety and regulatory standards required by clients based in the U.S. and Europe, thereby significantly expanding its market opportunities in both the U.S. and European markets. UL certification is widely recognized as a mark of safety, quality, and compliance with industry standards, particularly in the U.S. and Europe, where regulatory requirements for product safety and performance are stringent. Its order book stood at Rs. 3149.88 cr. as of March 31, 2026.