Dhoot Transmission delivered robust financial results for the quarter ended June 30, 2026, marking its first quarterly results since listing on stock exchanges. According to the company's exchange filing, consolidated net profit surged 37.79% year-on-year to ₹132.66 crore, demonstrating strong operational performance. Revenue jumped 49.68% to ₹1,446.42 crore compared to ₹966.33 crore in the corresponding period last year, reflecting significant business expansion. EBITDA increased 41% to ₹216.59 crore from ₹153.43 crore year-on-year, though EBITDA margin contracted to 15.1% in the June quarter from 17.5% in the previous year, representing a 240 basis points decline. However, the margin compression reflects the impact of elevated copper prices and business mix changes, with sequential improvement from 14.0% in Q4 FY26 indicating recovery momentum. The company reported basic and diluted EPS of ₹7.04 for the quarter, compared to ₹5.97 in Q1 FY26, while finance costs declined 34.0% year-over-year to ₹155 million, reflecting improved capital efficiency.
The company's strategic pivot toward electric mobility showed remarkable results, with EV revenue jumping 79.2% year-over-year and now representing 27% of total revenue, up from 24% in FY26. This growth was driven by India's accelerating EV adoption, with two-wheeler EV production surging 93% year-over-year to 400,000 units in Q1 FY27, while three-wheeler EV production more than doubled with 110% growth to 39,000 units. The comprehensive financial performance demonstrates the company's strong execution across both year-over-year and sequential comparisons, with profit after tax increasing 37.79% to ₹1,326.6 crore and finance costs declining 34.0% year-over-year to ₹155 million. The electrification trend is accelerating, with EV revenue expected to exceed 32% of total revenue in 2-3 years, driven by continued electrification trends across both wiring and non-wiring harness businesses.
Rahul Dhoot, managing director of Dhoot Transmission, expressed confidence in delivering 25%-30% growth for the full year, with margin guidance maintained at 15%-16% for FY27 despite raw material cost pressures. The company is implementing capacity expansion at its Jhajjar and Hosur plants, adding 15%-20% capacity this year to support future growth. According to the management commentary, growth in India's two- and three-wheeler automotive market remained robust, with the company's first-quarter business growth exceeding expectations. "Our business growth for the first quarter was above our expectations with strong growth both in EVs and ICE vehicles," Dhoot stated, adding that the electrification trend was supporting growth in both the company's wiring harness and non-wiring harness businesses. The company's performance significantly outpaced the broader two-wheeler and three-wheeler market expansion, with revenue growth of nearly 50% compared to just over 20% market expansion, suggesting meaningful market share gains.
The company is progressing with the integration of its recently acquired Multilink business, which was completed on June 11, 2026. According to the company's filing, Dhoot Transmission invested ₹499.11 crore in its wholly owned subsidiary Dhoot Automotive Systems Pvt Ltd to facilitate the acquisition of Multilink's undertaking through a Business Transfer Agreement. The company also invested ₹2.82 crore in its wholly owned subsidiary Dhoot Transmission GmbH for general corporate purposes. Integration of the Multilink business is currently underway and is expected to be completed by the end of Q3 or early Q4, with the company confident of using the acquisition to meaningfully scale up its non-wiring harness business. The acquisition has contributed to the company's diversified business model, with wiring harness business expanding 44.6% year-over-year and non-wiring harness segment surging 67.7% (55% excluding the Multilink acquisition impact).
Dhoot Transmission completed its initial public offering after the June quarter, as reported by CNBC TV18. The IPO comprised a fresh issue of 16.08 million shares aggregating to ₹1,400 crore and an offer for sale of 19.14 million shares worth about ₹1,666.9 crore. The shares were issued at ₹871 apiece, including a face value of ₹2 per share and a premium of ₹869. Following the IPO, Dhoot Transmission's shares were listed on the NSE and BSE on August 17. The company stated it will provide an update on the utilisation of IPO proceeds from the next reporting period based on the actual utilisation of funds. The quarter marks the first reporting period after the IPO and listing on NSE and BSE on August 17, 2026.
