Divgi Torqtransfer Systems surges as Q1 profit jumps 183%
Revenue from operations rose 91.21% year on year to Rs 137.1 crore in Q1 FY27 from Rs 71.7 crore in Q1 FY26. Revenue increased 27.42% quarter on quarter from Rs 107.6 crore in Q4 FY26.
Gross profit rose 83.44% year on year to Rs 88.6 crore in Q1 FY27 from Rs 48.3 crore in Q1 FY26. It increased 21.20% quarter on quarter from Rs 73.1 crore in Q4 FY26. Gross profit margin stood at 62.5% in Q1 FY27 compared with 62.9% in Q1 FY26 and 64.3% in Q4 FY26.
EBITDA jumped 117.80% year on year to Rs 41.6 crore in Q1 FY27 from Rs 19.1 crore in Q1 FY26. On a sequential basis, EBITDA rose 49.64% from Rs 27.8 crore in Q4 FY26. EBITDA margin improved to 29.4% in Q1 FY27 from 24.9% in Q1 FY26 and 24.5% in Q4 FY26.
EBIT rose 179.34% year on year to Rs 33.8 crore in Q1 FY27 from Rs 12.1 crore in Q1 FY26 and 66.50% quarter on quarter from Rs 20.3 crore in Q4 FY26.
Profit before tax stood at Rs 33.8 crore in Q1 FY27, up 67.33% in Q4 FY26 and 179.34% in Q1 FY26.
Raw material costs rose 86.67% year on year to Rs 53.2 crore in Q1 FY27 from Rs 28.5 crore in Q1 FY26. Employee benefit expenses stood at Rs 13.5 crore in Q1 FY27, up 62.65% year on year from Rs 8.3 crore in Q1 FY26, while declining 5.59% quarter on quarter from Rs 14.3 crore in Q4 FY26. Depreciation and amortisation stood at Rs 7.8 crore in Q1 FY27, up 13.04% year on year from Rs 6.9 crore in Q1 FY26 and 2.63% quarter on quarter from Rs 7.6 crore in Q4 FY26. Interest expense stood at Rs 0.1 crore, unchanged year on year and quarter on quarter.
Management said Q1 FY27 marked a strong start to the year, with improving business momentum, increasing scale and operating leverage. The company delivered its highest-ever quarterly performance, with total income of around Rs 142 crore.
The performance was driven by strong transfer case volumes, healthy traction in components and exports, and a stronger revenue mix. EBITDA stood at around Rs 42 crore, with margins of around 30%, supported by favourable product mix, higher-margin transfer case products, export contribution and operating leverage.
The company said it remains focused on converting opportunities built over the past few years into sustainable and profitable growth.
The company expects near-term growth from its EV transmission, component and core product businesses. In EV transmissions, production ramp-up is expected with several models of a leading Indian EV manufacturer, with series production supplies and manufacturing/SOP expected to start in Q2 FY27. In the component business, the company is focusing on exports and expanding its product portfolio with a global Tier-1 North American transfer-case manufacturer, with final production approval for all export parts and additional revenue potential of around Rs 10-12 crore per month. In its core portfolio, the company is evaluating a US manufacturing footprint for transfer cases, while advancing proof of concept for automatic transmissions and commercial feasibility for manual transmissions for commercial truck applications.
Over the long term, the company sees significant growth potential across its 4-wheel drive, manual transmission and synchronizer, EV transmission, automatic and hybrid transmission, and export businesses. It estimates annual revenue potential of around Rs 300 crore each from 4-wheel drive and manual transmission and synchronizer systems, Rs 250 crore from EV transmissions, Rs 1,000 crore from automatic and hybrid transmissions, and Rs 200 crore from exports. The strategy includes investing in next-generation products, developing indigenous transmission solutions, partnering with global Tier-1 players, building local capabilities and expanding its presence across India and overseas markets including the US, EU, South Africa, Indonesia and Thailand.
Divgi Torqtransfer Systems is India?s largest EV transmission manufacturer. It provides solutions for manual transmission and automatic transmission. The company specialises in crafting drivetrain systems and related components for a diverse array of vehicles, spanning passenger cars, utility vehicles, commercial vehicles, and agri-cultural machinery.
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