Dhoot Transmission reported a 61% jump in Q2 revenue to ₹1,827 crore, driven by strong growth in its electric vehicle and electronics division. While revenue climbed, margins faced pressure from rising raw material costs and acquisition integration. Investors are now tracking the company's capacity expansion plans and its progress in reducing debt following its August 2026 IPO.
Dhoot Transmission reported a 61% increase in revenue for the second quarter of the current fiscal year, reaching ₹1,827 crore. This growth was largely powered by the company's expanding presence in the electric vehicle and electronics market, which now accounts for 31% of its total sales. The results highlight a period of significant strategic transition for the auto component manufacturer, marked by its recent public market entry in August 2026.
The EV and electronics division was a key contributor to the topline, growing by 108% compared to the same period last year. This performance reflects the integration of the electronics firm Multilink, acquired earlier this year for ₹421.2 crore. While the acquisition has successfully broadened the company’s product portfolio, the consolidation process has exerted pressure on operating efficiency.
EBITDA margins for the quarter stood at 14.3%, compared to 17.6% in the same period last year. This contraction stems from rising prices of essential raw materials like copper and PVC, as well as higher personnel costs associated with employee stock option plans. While adjusted profit after tax rose 30.4% to ₹1,615 million, the reported net profit was weighed down by exceptional costs related to the company’s IPO and management fees, settling at ₹1,178 million.
Following its IPO, the company has focused on strengthening its financial position. It has used proceeds to reduce debt significantly, cutting borrowings by ₹617.4 crore during the first half of the fiscal year. This has improved the net cash position to ₹903.7 crore, providing a buffer as the company pursues growth. To capture a larger share of the market, the firm is moving toward local manufacturing, recently partnering with Israel-based Ride Vision to produce driver-alert systems.
The company is also in the process of scaling its manufacturing footprint. Projects in Pune, Chennai, Jhajjar, and Hosur are currently underway and are scheduled for completion by FY28. For investors, the key monitorable remains the company's ability to navigate raw material price volatility and successfully integrate its expanded operations while maintaining profitability amid competitive pressures in the automotive sector.