59 minutes ago
Auto components maker Dhoot Transmission Ltd reported a 60.7% year-on-year (YoY) increase in consolidated revenue to ₹1,827.2 crore for the second quarter, compared with ₹1,137 crore in the corresponding quarter last year.
The consolidated net profit remained flat at ₹118 crore against ₹118 crore in the year-ago period. Adjusted PAT, after accounting for non-recurring and exceptional items, increased 30.4% to ₹161.5 crore from ₹123.8 crore.
The consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) increased 31% YoY to ₹262 crore from ₹200 crore. However, EBITDA margin declined 330 basis points to 14.3% from 17.6% in the corresponding quarter last year.
ALSO READ | Dhoot Transmission IPO: Analysts recommend whether investors should bid for this ₹3,067 crore issue
The company said Q2 one-off expenses included ₹45 crore towards management fees and ₹9.7 crore in initial public offering (IPO) expenses charged to the statement of profit and loss. Exceptional items for the quarter stood at ₹54.8 crore.
Dhoot Transmission's revenue growth included the contribution from its Multilink acquisition. Excluding Multilink, the business reported revenue of ₹1,665.6 crore, up 47% YoY, while EBITDA increased 22% to ₹245 crore. The organic business reported an EBITDA margin of 14.7%, compared with 17.5% in Q2 FY26. Multilink contributed revenue of ₹161.5 crore and EBITDA of ₹16.8 crore, with a margin of 10.4%.
The overall EBITDA margin contracted primarily due to higher copper costs, which had an estimated impact of around 150 basis points, PVC costs and increased direct and indirect manpower expenses, including employee stock option (ESOP) costs, which had an impact of around 120 basis points.
The lower margin of the Multilink business compared with the existing business had an additional impact of around 38 basis points. The company said its adjusted organic EBITDA margin, after accounting for ESOP costs, would be 15.2%.
ALSO READ | Dhoot Transmission shares drop for fourth day after Kotak warns of 10% fall on valuation risks
EV and electronics business
Electric vehicle (EV) and electronics products accounted for 31% of Dhoot Transmission's Q2 revenue, compared with 24% in FY26. Revenue from EV products increased 108% to ₹570.1 crore.
Dhoot Transmission added two powertrain battery manufacturing facilities during the quarter. The new facilities at Hosur and Pune are scheduled to commence production in June and September 2027, respectively. The company also started powertrain battery manufacturing for a new customer, a leading South India-based OEM, with production commencing in June 2026.
The company has also started supplying EV-related components to Hero following the Multilink acquisition. It has entered into an agreement to form a 67:33 joint venture with Ride Vision for advanced driver assistance systems (ADAS) and advanced rider assistance systems (ARAS). Proof-of-concept discussions with EV players are also underway.
H1 FY27
For the first half of FY27, Dhoot Transmission reported revenue of ₹3,273.6 crore, up 55.7% from ₹2,103.1 crore in the year-ago period. Revenue growth excluding Multilink stood at 47%. Wiring harness revenue increased 43%, while battery and electronics revenue grew 98%.
ALSO READ | Dhoot Transmission shares make strong debut, list at 38% premium to IPO price
H1 EBITDA increased 29.4% to ₹480.2 crore from ₹371 crore, while the margin declined 290 basis points to 14.7% from 17.6%. PAT rose 16.8% to ₹250.5 crore, while adjusted PAT increased 33.4% to ₹296.4 crore.
The company said the lower EBITDA margin during the first half was primarily due to higher copper costs, with an estimated impact of around 120 basis points, higher PVC and electronics costs; and increased direct and indirect manpower expenses, including ESOP costs, with an impact of around 130 basis points. The lower margin of the Multilink business had an additional impact of around 30 basis points.
Adjusted PAT growth was lower than EBITDA growth during the first half due to higher depreciation and amortisation expenses. H1 one-off expenses included ₹48 crore towards management fees, against ₹6 crore in H1 FY26, and a write-off of investments of ₹4.3 crore. IPO expenses charged to the statement of profit and loss stood at ₹9.7 crore.
EV products accounted for 29% of H1 revenue, compared with 23% in H1 FY26. EV revenue increased to ₹939.4 crore from ₹489.9 crore in the year-ago period.
Capital expenditure stood at ₹292.9 crore during H1 FY27. The company said its FY27 capital expenditure would exceed its earlier estimates. Its revised FY27 capex plan stands at ₹750 crore, against the initial budget of ₹510 crore, while the FY28 capex plan is ₹500 crore.
ALSO READ | Dhoot Transmission Q1 profit rises 38% as revenue jumps 50%, but margins narrow
New wiring harness capacities are being developed across Pune, Chennai, Jhajjar and Hosur. The leased facilities at Pune and Chennai are scheduled for commissioning in Q3 FY27, while the two Jhajjar plants are expected to come up in Q4 FY27 and Q2 FY28. The Hosur facility is scheduled for Q1 FY28. The company has also acquired land for two new plants at Chhatrapati Sambhajinagar and another facility near Indore.
The company added 110% additional battery manufacturing capacity during H1 FY27 and plans to spread new wiring harness capacities over the next two-and-a-half years, from FY27 to FY29.
Dhoot Transmission is also expanding beyond its core wiring harness business into batteries, electronics, commercial vehicles, off-highway vehicles, farming, passenger vehicles, defence and aerospace. Non-wiring harness products accounted for 31% of Q2 revenue, compared with 23% in FY26, partly following the integration of Multilink.
The commercial vehicle, off-highway and farming segments contributed 21.7% of FY26 revenue, amounting to ₹980.5 crore, and recorded a 21% compound annual growth rate between FY24 and FY26. The company is also developing high-voltage harnesses for commercial vehicles, passenger vehicles and four-wheeler EV applications.
ALSO READ | Dhoot Transmission targets 35% EV revenue share in 3 years
Dhoot Transmission reported net cash of ₹903.7 crore as of September 30, 2026, compared with ₹254.5 crore at the end of March 2026. The company said this figure includes IPO proceeds that are yet to be deployed.
Borrowings declined to ₹223.8 crore from ₹841.4 crore in March, while cash and bank balances stood at ₹1,127.5 crore. The company repaid net borrowings of ₹617.4 crore during the first half and received IPO proceeds of ₹1,400 crore.
Annualised return on net assets (RONA) improved to 34% from 30% in March 2026, while annualised return on capital employed (ROCE) rose to 20% from 19%.
Shares of Dhoot Transmission Ltd ended at ₹1,486.40, up by ₹34.05, or 2.24%, on the BSE.
