Crisil Ratings upgrades ratings of Lumino Industries to 'A+' with 'stable' outlook
The agency has also reaffirmed its 'Crisil A1' rating on the short-term bank facilities of Lumino Industries.
Crisil Ratings stated that the upgrade factors in the continued strengthening of the business and financial risk profiles owing to increasing scale of operations supported by strong order book, healthy operating profitability, and improvement in the working capital cycle and debt coverage indicators.
Revenue increased at compound annual growth rate (CAGR) of around 39% in the three fiscals through 2026 driven by healthy execution of the order book, which stood at Rs 3,090 crore as on 30 June 2026. The company sustained healthy operating performance in the first quarter of fiscal 2027 with estimated turnover of Rs 550 crore.
Besides, it emerged as the lowest bidder (L1) for a few orders, which along with the existing order book, will ensure healthy medium term revenue visibility. Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be healthy over the medium term, with the EBITDA margin expected to improve backed by greater share of remunerative orders through transmission and distribution (T&D) and export.
The business risk profile will also benefit from its increasing market presence and established clientele, and the strong industry outlook for the T&D sector in domestic and international markets.
The working capital cycle has improved in the first quarter of fiscal 2027 with realisation of a chunk of receivables greater than six months and retention money expected to be sustained over the medium term, backed by greater revenue contribution from manufacturing orders, which have leaner working capital cycles than engineering, procurement and construction (EPC) orders.
The company has raised around Rs 500 crore via fresh equity share initial public offering (IPO) allotment dated 3 September 2026. The funds have been utilised for funding the working capital cycle, thereby reducing reliance on debt by around Rs 360 crore. The fund raise will strengthen the financial risk profile and improve key debt metrics.
The ratings continue to reflect the strong business risk profile of LIL, supported by its established presence in the conductors and cables business, leading to sizeable and diversified scale of operations.
The ratings also factor in the extensive experience of the promoters in the heavy electrical equipment and EPC industry, the reputed clientele of the company, its established market presence and a comfortable financial risk profile.
These strengths are partially offset by working capital-intensive operations and susceptibility of operating performance to cyclicality in end-user industries and risks inherent in tender-based business.
Lumino Industries manufactures conductors and cables, such as low-voltage, medium-voltage and high voltage power cables, aerial bunches cables, aluminium conductors (steel-reinforced and aluminium alloy conductors), power cables, PPC poles and substation components. It also has an EPC division for laying down T&D lines and construction of power substations under different government schemes.
The firm had reported a consolidated net profit of Rs 159.97 crore and sales of Rs 2,041.07 crore for the twelve months ended on 31 March 2026.
The scrip tumbled 4.88% to end at Rs 103.91 on the BSE today.