Lumino shifts from debt to Rs 128 crore net cash in H1 FY27

Lumino reported Rs 128 crore of net cash in H1 FY27, reversing Rs 272 crore of net debt at FY26, after recording Rs 500 crore in share-issue proceeds, reducing borrowings and increasing liquid balances. Total borrowings fell to Rs 128 crore from Rs 384 crore, while cash and current investments reached Rs 256 crore.

How did Lumino move from net debt to net cash?

Lumino moved to net cash because its Rs 128 crore of total borrowings at H1 FY27 was lower than the combined Rs 256 crore held in cash and cash equivalents and current investments. This produced net cash of Rs 128 crore, shown as negative net debt in the presentation, compared with Rs 272 crore of net debt at FY26 and Rs 308 crore at FY25.

The change was driven chiefly by financing cash flows recorded during H1 FY27. Lumino received Rs 500 crore from the issue of shares and reduced short-term borrowings by a net Rs 223 crore. It also repaid Rs 32 crore of long-term borrowings. Cash and cash equivalents consequently rose from Rs 92 crore at FY26 to Rs 185 crore at H1 FY27, while current investments increased from Rs 20 crore to Rs 71 crore.

How far did Lumino's borrowings and leverage decline?

Lumino's total borrowings declined by Rs 256 crore from Rs 384 crore at FY26 to Rs 128 crore at H1 FY27. Short-term borrowings accounted for most of the reduction, falling from Rs 356 crore to Rs 127 crore in the capital-structure presentation. Long-term borrowings fell from Rs 28 crore to Rs 1 crore over the same period.

The lower debt and larger equity base changed the reported leverage ratios. Net debt-to-equity moved from 0.37 times at FY26 to negative 0.1 times at H1 FY27, while net debt-to-last-twelve-month earnings before interest, tax, depreciation and amortisation moved from 1.14 times to negative 0.44 times. Total equity rose by Rs 568 crore, from Rs 730 crore to Rs 1,298 crore, during a period that included the Rs 500 crore share issue.

The H1 FY27 balance sheet also shows total liabilities decreasing to Rs 1,158 crore from Rs 1,445 crore at FY26, even as total assets rose to Rs 2,456 crore from Rs 2,175 crore. Current liabilities declined from Rs 1,398 crore to Rs 1,135 crore. Within current liabilities, trade acceptances fell by Rs 74 crore to Rs 521 crore and trade payables declined by Rs 49 crore to Rs 206 crore.

Did working capital support Lumino's cash position?

Lumino's working-capital cycle shortened to 66 days in H1 FY27 from 73 days in FY26 and 83 days in FY25, although the absolute working-capital balance increased to Rs 427 crore from Rs 408 crore at FY26. The presentation calculates these days using revenue from operations, which reached Rs 1,183 crore in H1 FY27, up 25% from Rs 946 crore in H1 FY26.

Receivable days improved to 123 from 160 at FY26, and inventory days fell to 55 from 65. Payable terms also shortened: acceptance days declined from 106 to 80 and trade-payable days from 46 to 32. The changes show faster receivable and inventory conversion measures alongside lower use of supplier and acceptance credit measured in days.

Cash flow from operations was Rs 56 crore in H1 FY27, compared with Rs 156 crore for the full FY26 and negative Rs 239 crore in FY25. Lumino reported a Rs 73 crore working-capital outflow during H1 FY27. The presentation notes that, excluding the Rs 68 crore impact of trade-acceptance repayment, cash flow from operations would have been positive at Rs 124 crore.

What did Lumino spend while reducing debt?

Lumino used Rs 172 crore in investing activities during H1 FY27 while lowering debt, including Rs 90 crore spent on property, plant and equipment, intangible assets and capital work in progress. Capital work in progress rose to Rs 117 crore at H1 FY27 from Rs 48 crore at FY26, while property, plant and equipment remained at Rs 65 crore.

The presentation identifies a Rs 180 crore expansion plan for Unit III at Ranihati, with 35,000 metric tonnes of planned capacity to be introduced in phases. Management specifies 10,000 metric tonnes in Q4 FY27, another 10,000 metric tonnes in Q3 FY28 and 15,000 metric tonnes in Q1 FY29. Commercial production is expected to commence in Q4 FY27 under that plan.

Operating performance provided a larger earnings base during the period. H1 FY27 operating EBITDA, which excludes other income, rose 34% to Rs 155 crore from Rs 116 crore in H1 FY26. Revenue rose 25% to Rs 1,183 crore, and operating EBITDA margin increased by 91 basis points to 13.1% from 12.2%.

Has Lumino's profit growth reduced finance costs?

Lumino's H1 FY27 finance costs were Rs 35 crore, down Rs 3 crore from Rs 38 crore in H1 FY26, while profit before tax increased 44% to Rs 124 crore. The presentation reports the lower finance-cost figure alongside debt reduction, but does not separately quantify how much of the change resulted from lower borrowings.

Net profit rose 42% to Rs 93 crore in H1 FY27 from Rs 65 crore in H1 FY26, and net profit margin increased to 7.8% from 6.8%. Manufacturing generated Rs 108 crore of EBITDA on Rs 831 crore of H1 revenue, while EPC generated Rs 47 crore on Rs 352 crore. Manufacturing margin rose to 13.0% from 11.7%, whereas EPC margin was 13.5%, marginally below 13.6% a year earlier.

Lumino's reported return on capital employed was 22.2% in H1 FY27, versus 25.8% in FY26, while adjusted return on capital employed was 24.2%. The adjusted figure excludes capital work in progress. Return on equity was 18.4%, or 20.0% on the adjusted basis, compared with 24.6% in FY26.

Conclusion

Lumino's H1 FY27 balance-sheet change was led by Rs 500 crore from the issue of shares, a net Rs 223 crore reduction in short-term borrowings and Rs 32 crore of long-term debt repayment. Those flows took borrowings to Rs 128 crore while cash and current investments reached Rs 256 crore, shifting Lumino from Rs 272 crore of net debt at FY26 to Rs 128 crore of net cash.

The next disclosed milestones are the planned start of Unit III commercial production in Q4 FY27 and phased capacity additions through Q1 FY29. The presentation also identifies a Rs 180 crore expansion plan, while H1 FY27 operating cash flow included a Rs 73 crore working-capital outflow; the development of capital work in progress, borrowings and cash balances remains relevant to that plan.