Lumino Industries Targets 25% Growth as It Shifts Focus to Wires and Cables
Lumino Industries is targeting 25% or more long-term growth as it changes the mix of its business, with Managing Director Devendra Goel saying the company wants to become more product-focused and reduce its dependence on engineering, procurement and construction (EPC) projects.
The strategy comes at an important point for the company. Lumino is currently preparing to list after its ₹700-crore IPO, while the power transmission and distribution industry is seeing strong investment demand. Management believes that increasing the contribution of wires, cables and high-voltage conductors can make the business faster to execute, less working-capital intensive and potentially more cash-generative.
However, the transition also needs to be watched carefully. Lumino's existing order book remains heavily linked to EPC, and working capital has been a significant issue for the company. That makes execution of the product-led strategy just as important as the headline 25% growth target.
Lumino Industries' New Growth Strategy
According to Devendra Goel, Lumino has historically delivered around 25–27% CAGR over the past decade, with EBITDA margins of approximately 10–11%. The company now wants to sustain growth at 25% or higher while changing the composition of its revenue.
The target is to take the contribution of products to around 70–75% of revenue, while EPC is expected to account for roughly 25–30%.
This represents a meaningful strategic shift.
Lumino currently operates across manufacturing and EPC, supplying products such as conductors, cables and wires while also executing power-sector infrastructure projects. Its official website lists conductors, cables, house wires, transmission and distribution, EHV substations, railway electrification and solar EPC among its businesses.
The company's management believes that increasing the product share can create a more efficient business model.
Why Lumino Wants to Reduce EPC Dependence
EPC projects can generate sizeable orders, but they often require substantial working capital.
In simple terms, working capital is the money tied up in inventory, receivables and other operating requirements before a company receives cash from customers.
For Lumino, this has been an important consideration because EPC projects can take much longer to execute and collect payments from compared with manufacturing orders.
Goel said EPC projects typically take 24–36 months to execute, while product orders can be completed in roughly three to four months.
That difference matters.
A shorter product cycle can potentially allow Lumino to convert orders into revenue and cash faster. It can also reduce the amount of capital tied up in individual projects.
CRISIL's July 2026 rating rationale similarly identifies Lumino's operations as moderately working-capital intensive, particularly because of the tender-based nature of the business and long payment cycles associated with some government and EPC customers.
Wires and Cables Could Become the Bigger Growth Engine
The company's product strategy is not limited to conventional wires and cables.
Lumino is also focusing on high-temperature low-sag (HTLS) conductors, which are used in power transmission. According to Goel, Lumino is among a small group of Indian manufacturers with capabilities spanning the design, manufacture, supply, installation and performance certification of HTLS conductors.
The company is also expanding its high-tension cable capabilities in West Bengal, with plans to manufacture cables for 11 kV, 33 kV and 66 kV applications.
These products could become important to the company's margin and cash-flow strategy if demand scales successfully.
CRISIL has also highlighted Lumino's established position in the cables and conductors business, alongside newer products such as high-efficiency and HTLS conductors.
The Power Infrastructure Opportunity
The broader industry backdrop is another reason Lumino sees room for growth.
India continues to invest in electricity transmission and distribution infrastructure, grid expansion, electrification and related projects. Demand for conductors, cables and other transmission equipment is therefore linked to spending by utilities, industrial customers and infrastructure developers.
CRISIL expects Lumino's revenue to grow to around ₹2,500–3,000 crore over the medium term, representing a CAGR of around 20%, supported by sustained demand. It also reported an order book of approximately ₹2,791 crore as of March 2026.
The management's 25%+ growth target is therefore an ambitious goal, but it is being pursued against a sizeable existing business and order pipeline.
Investors should remember, however, that an order book is not the same as revenue or profit. Orders still have to be executed on time, customers must pay and margins must remain healthy.
The Biggest Challenge: Working Capital
The product-focused strategy is partly a response to Lumino's working-capital requirements.
According to CNBC-TV18's report, trade receivables rose to around ₹900 crore in FY26, compared with ₹460 crore in FY24. Management expects payments from completed electricity-board projects to improve during the current financial year.
CRISIL's assessment also highlights the issue. Adjusted debtor days stood at 132 days as of March 31, 2026, while inventory was around 74 days. The rating agency noted that retention money and unbilled revenue were around ₹474 crore, with about ₹228 crore of debtors outstanding for more than six months.
This is one of the most important numbers investors should monitor after the IPO.
If receivables decline and operating cash flow improves, the product-focused strategy will receive stronger support. If working capital remains stretched despite the change in business mix, the benefits could take longer to appear.
IPO Proceeds Could Strengthen the Balance Sheet
Lumino's ₹700-crore IPO includes a ₹500-crore fresh issue and ₹200-crore offer for sale.
According to the management commentary reported by CNBC-TV18, ₹385 crore of the fresh proceeds is planned for debt repayment, ₹15 crore for revamping an existing manufacturing facility and around ₹140 crore for general corporate purposes.
Debt reduction could be particularly relevant as Lumino shifts toward a more product-oriented model.
Lower debt can reduce interest costs and give the company greater flexibility to invest in manufacturing capacity. The company's current borrowing cost was reported at around 8.5%.
CRISIL's July 2026 assessment showed adjusted debt-to-net-worth at 0.53 times in FY26, down from 0.73 times in FY25, while interest coverage improved to 3.16 times from 3.06 times.
That suggests the balance sheet had already improved, although working capital remains a key risk.
Can Lumino Actually Deliver 25% Growth?
The answer will depend on execution rather than the target itself.
The company's growth plan has several potential positives:
Rising demand for power transmission and distribution equipment
A sizeable order book
Greater focus on faster-moving products
Expansion into HTLS conductors and high-voltage cables
Planned debt reduction
Potential improvement in cash conversion
But there are also clear risks.
Raw-material prices, particularly aluminium and copper, can affect profitability. CRISIL notes that these materials account for roughly 75–80% of overall raw-material costs. The company mitigates some of this exposure through pricing mechanisms and hedging, but significant price volatility remains a monitorable.
Competition is another factor. The business includes tender-based contracts, where aggressive bidding can put pressure on pricing and margins.
What Investors Should Watch After Listing
For investors evaluating Lumino Industries as a long-term opportunity, the next few quarterly results will be more important than the initial IPO excitement.
The key indicators to track are:
Product revenue share — Is manufacturing actually moving toward the 70–75% target?
EBITDA margin — Can the company maintain or improve the 10–11% range?
Receivable days — Is working capital becoming more efficient?
Operating cash flow — Is accounting profit translating into cash?
Debt — Is IPO-led debt reduction followed by further deleveraging?
Order execution — Is the order book converting into revenue at the expected pace?
HTLS and high-voltage cable growth — Are higher-value products becoming meaningful contributors?
These metrics will provide a much better test of the company's strategy than the 25% growth target alone.
Bottom Line
Lumino Industries is attempting to move from a business with a significant EPC component toward a more product-driven model focused on wires, cables and specialised conductors. Management is targeting 25% or more long-term growth and wants products to contribute 70–75% of revenue.
The strategy makes sense from a cash-flow perspective because product orders can generally be executed faster than large EPC projects. But the transition will take time, and the company's elevated receivables and working-capital requirements remain important risks.
For investors, the real test begins after the IPO: whether Lumino can combine 25% growth, healthy margins, faster cash conversion and lower leverage. If it can achieve that combination, the product-led strategy could strengthen the company's long-term profile. If not, the growth target could prove harder to translate into shareholder value.
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This article is for informational and educational purposes only and should not be considered investment advice.
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