Lumino's in-house EPC supply share fell to 23% in FY26

Lumino Industries Limited's in-house products supplied for its engineering, procurement and construction, or EPC, projects fell to 23.08% of Manufacturing-segment revenue in Fiscal 2026 from 65.49% in Fiscal 2024. The internal-product revenue fell to Rs 328.52 crore even as Lumino revised segment reporting to classify proprietary products used in EPC work under Manufacturing.

Why did Lumino's in-house EPC supply share fall to 23% in FY26?

Lumino's in-house EPC supply share fell because revenue from manufactured products supplied for EPC projects declined to Rs 328.52 crore in Fiscal 2026 from Rs 604.57 crore in Fiscal 2024. Lumino defines the ratio as revenue attributable to products supplied by its Manufacturing segment for EPC execution, divided by Manufacturing-segment revenue. The ratio was 53.83% in Fiscal 2025, following 65.49% in Fiscal 2024.

The change was visible in both the value of internal supply and its contribution to Manufacturing revenue. Internal-supply revenue rose to Rs 670.73 crore in Fiscal 2025 before declining by Rs 342.21 crore in Fiscal 2026. Over the same two-year period, Manufacturing-segment revenue rose from Rs 923.151 crore in Fiscal 2024 to Rs 1,423.448 crore in Fiscal 2026, meaning a larger segment contained a smaller internal EPC component.

Lumino does not identify a single reason for the decline in its disclosure. Its EPC-segment revenue, measured under the revised framework, decreased to Rs 617.625 crore in Fiscal 2026 from Rs 671.965 crore in Fiscal 2025, while Manufacturing revenue increased by Rs 177.445 crore. A higher in-house EPC supply share would require more Manufacturing output to be used on Lumino's EPC contracts rather than sold to external customers.

How did Lumino's reporting change affect the Manufacturing and EPC split?

Lumino revised segment reporting effective Fiscal 2026 to assess operating performance by underlying economic activity rather than the contractual form of customer arrangements. The Chief Operating Decision Maker, or CODM, is the management function that reviews operating information for resource allocation and performance assessment. Lumino says the revised approach also presents comparable Fiscal 2025 and Fiscal 2024 segment figures.

Under the revised framework, Manufacturing includes revenue from all proprietary manufactured products, including products supplied for EPC execution. EPC includes project-execution services and third-party traded products. Lumino states that this management-reporting allocation does not alter total revenue from operations, profitability, cash flows or shareholders' equity reported in its restated consolidated financial information.

The reclassification moved Rs 328.52 crore from EPC to Manufacturing in Fiscal 2026, versus Rs 670.73 crore in Fiscal 2025 and Rs 604.57 crore in Fiscal 2024. Before reclassification, Manufacturing revenue was Rs 1,090.529 crore in Fiscal 2026 and EPC revenue was Rs 945.520 crore. After it, Manufacturing revenue was Rs 1,423.448 crore and EPC revenue was Rs 617.625 crore, with Rs 5.024 crore of other operating revenue allocated between the segments.

The higher Manufacturing revenue classification therefore includes proprietary products ultimately used to fulfil EPC contracts. The 23.08% in-house EPC supply share provides the separate measure of how much Manufacturing-segment revenue came from that internal project channel. It does not measure the share of all materials procured for EPC projects that Lumino sourced internally.

What changed in Lumino's revenue mix and order book in FY26?

Lumino's revenue mix shifted toward Manufacturing in Fiscal 2026, while EPC remained the larger component of its closing order book. Manufacturing revenue was Rs 1,423.448 crore, or 69.74% of revenue from operations, in Fiscal 2026, compared with Rs 923.151 crore, or 65.60%, in Fiscal 2024. EPC revenue was Rs 617.625 crore, or 30.26%, compared with Rs 484.164 crore, or 34.40%, over the same period.

Within Manufacturing, aluminium-conductor revenue reached Rs 735.065 crore in Fiscal 2026, up from Rs 238.001 crore in Fiscal 2024. Power-cable revenue was Rs 634.031 crore, compared with Rs 598.830 crore, while electrical-wire revenue increased to Rs 43.86 crore from Rs 18.84 crore. Lumino entered the electrical-wire business in Fiscal 2023 under the Lumicon brand.

Lumino's closing order book was Rs 3,149.878 crore at March 31, 2026, compared with Rs 1,940.566 crore at March 31, 2024. EPC accounted for Rs 1,991.976 crore, or 63.24%, of the Fiscal 2026 order book, while Manufacturing accounted for Rs 1,157.902 crore. Lumino defines order book as total contract value of existing contracts less revenue already recognised on those contracts.

The EPC backlog also changed by business line. Extra-high-voltage, or EHV, substation projects represented 44.57% of the EPC order book at March 31, 2026, up from 40.65% at March 31, 2025 and zero at March 31, 2024. Lumino has disclosed that it is increasing its focus on EHV substation projects while selectively bidding for power-distribution projects, which may affect the products required by future EPC contracts.

Can Lumino's manufacturing base support greater internal EPC supply?

Lumino's stated cable-and-conductor capacity was 40,000 metric tonnes, or MT, in each of Fiscal 2024, Fiscal 2025 and Fiscal 2026, but utilisation declined in the latest year. Capacity utilisation was 78.93% in Fiscal 2026, compared with 82.40% in Fiscal 2025, as actual production fell to 31,571 MT from 32,960 MT. The difference between stated capacity and Fiscal 2026 production was 8,429 MT.

Lumino operates two manufacturing facilities in Howrah, West Bengal, with a combined area of 264,208 square feet, and four warehouses covering about 156,600 square feet. It says in-house manufacturing can shorten lead times, support production planning and reduce dependence on external vendors for EPC components. Those operational effects depend on the types of cables and conductors required by projects and on the company using its own production in those contracts.

Lumino is developing a 250,000-square-foot manufacturing facility in Ranihati, Howrah, after acquiring about 650,000 square feet of land for the expansion. The proposed facility is intended to produce low- and high-voltage power cables, instrumentation cables, solar cables, railway-signalling cable, flexible electrical wire, overhead aluminium conductors and high-temperature low-sag, or HTLS, conductors. Commercial production is targeted for the second half of Fiscal 2027, subject to necessary consents and government approvals.

The proposed facility could increase the product range available for external sales and EPC execution, but Lumino has not disclosed a future target for in-house EPC supply. Capacity expansion alone would not restore the 65.49% Fiscal 2024 ratio. The mix of EPC awards, technical specifications and the extent to which each project uses Lumino-made products would also determine the ratio.

Conclusion

Lumino's 23.08% Fiscal 2026 in-house EPC supply share shows that its Manufacturing business derived a smaller share of revenue from supplying its own EPC projects than it did two years earlier. The reporting revision places all proprietary product revenue in Manufacturing, but the separately disclosed internal-supply value of Rs 328.52 crore identifies the reduced contribution from the EPC channel.

The next measures to watch are execution of the Rs 1,991.976 crore EPC order book, the 44.57% EHV-substation share within that backlog and progress toward commercial production at Ranihati in the second half of Fiscal 2027. Lumino has not provided a target for future internal consumption, so subsequent disclosures will determine whether new products and EPC awards increase in-house use or primarily support external sales.