Lumax Auto Technologies Limited has informed the Exchange that the Board of Directors at its meeting held on May 29, 2026 have considered and approved the proposal for modification in Channel Financing Facility obtained from ICICI Bank Limited relating to First Loss Deficiency Guarantee for an amount up to 20% of the program level, earlier it was 20% of the dealer limit, being availed by Channel Partner(s) for the overall credit facility of Rs. 30 Crores to be provided by ICICI Bank Limited to the Channel Partners of the Company under Channel Financing Facility ("Facility").
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The board approved a modification in the Channel Financing Facility from ICICI Bank, changing the First Loss Deficiency Guarantee calculation basis from 20% of dealer limit to 20% of program level. The overall credit facility for channel partners remains Rs. 30 Crores. This is a technical change in how the guarantee cap is calculated for the dealer's financing program. Separately, the company reported strong FY26 results with standalone revenue of Rs. 3,605.49 Crores (up 25.6% YoY), consolidated revenue of Rs. 4,870.33 Crores (up 33.9% YoY), and recommended a dividend of Rs. 5.50 per share. The board also approved acquiring the remaining 15.97% stake in Lumax FAE Technologies to make it a wholly-owned subsidiary.
The facility modification is a routine administrative change in guarantee calculation methodology and does not indicate financial stress. The company continues to show healthy growth, which is positive for shareholders.