Business Overview

Dhoot Transmission is one of India's top two two- and three-wheeler wiring harness makers, holding approximately 70% market share in the two-wheeler EV wiring harness segment by value. The company operates 29 manufacturing sites across 3 countries and derives ~10% of revenue from exports. The engineering team comprises 237 engineers who take products from concept to serial production in-house.

Q2 FY27 Financial Performance

Revenue: ₹18,272 million, up 60.7% YoY (Q2 FY26: ₹11,368 million)

Other Income: ₹151 million (Q2 FY26: ₹157 million)

Total Material Cost: ₹12,473 million, up 66.3% YoY

Employee Benefits Expense: ₹1,329 million, up 46.2% YoY

Other Expenses: ₹1,852 million, up 64.6% YoY

EBITDA: ₹2,618 million, up 30.5% YoY

EBITDA Margin: 14.3% (330 bps decline from Q2 FY26's 17.6%)

Depreciation & Amortization: ₹505 million, up 66.1% YoY

Finance Cost: ₹149 million, down 34.6% YoY

Profit Before Tax: ₹2,116 million, up 30.6% YoY

Exceptional Items: -₹548 million (including management fees and IPO expenses)

PAT: ₹1,178 million, down 0.3% YoY

Adjusted PAT: ₹1,615 million, up 30.4% YoY

Adjusted PAT Margin: 8.8%

Segment Performance (Q2):

  • Business excluding Multilink: Revenue ₹16,656 million (+47% YoY), EBITDA ₹2,450 million (+22% YoY), margin 14.7%
  • Multilink business: Revenue ₹1,615 million, EBITDA ₹168 million, margin 10.4%
  • EV and electronics contributed 31% of Q2 revenue

H1 FY27 Financial Performance

Revenue: ₹32,736 million, up 55.7% YoY (H1 FY26: ₹21,031 million)

Other Income: ₹288 million (H1 FY26: ₹233 million)

EBITDA: ₹4,802 million, up 29.4% YoY

EBITDA Margin: 14.7% (290 bps decline from H1 FY26's 17.6%)

Profit Before Tax: ₹3,886 million, up 34.5% YoY

Exceptional Items: -₹578 million

PAT: ₹2,505 million, up 16.8% YoY

Adjusted PAT: ₹2,964 million, up 33.4% YoY

Adjusted PAT Margin: 9.1%

Segment Performance (H1):

  • Business excluding Multilink: Revenue ₹30,851 million (+47% YoY), EBITDA ₹4,606 million (+25% YoY), margin 14.9%
  • Multilink business: Revenue ₹1,885 million, EBITDA ₹197 million, margin 10.4%
  • Wiring harness growth: +43% YoY
  • Battery & electronics growth: +98% YoY

Margin Analysis

EBITDA margin decline attributed to:

  • Higher copper costs (impact ~150 bps in Q2, ~120 bps in H1)
  • Higher PVC costs (quarter impact)
  • Higher direct/indirect manpower costs including ESOP costs (impact ~120 bps in Q2, ~130 bps in H1)
  • Multilink business at lower margin (impact ~38 bps in Q2, ~30 bps in H1)

Adjusted organic EBITDA margin would be 15.2% after adding back ESOP cost impact (48 bps higher in Q2, 27 bps higher in H1).

Balance Sheet Position (as of September 30, 2026)

Borrowings: ₹2,238 million (down ₹6,176 million from March 2026)

Cash and Bank Balances: ₹11,275 million (up ₹316 million from March 2026)

Net Debt (excl leases)/Net Cash: -₹9,037 million (improved by ₹6,492 million)

Trade Working Capital: ₹10,964 million (up ₹2,263 million)

Trade WC Days: 61 days (increased from 55 days)

Key Ratios:

  • Net Debt/EBITDA: -0.8x (improved from -0.3x)
  • Gross Debt/Equity: 0.1x (improved from 0.4x)
  • Debt Service Coverage: 13.5x (improved from 4.4x)
  • Interest Cover: 14.7x (improved from 9.7x)
  • Current Ratio: 2.4x (improved from 1.9x)
  • Annualized ROCE: 20% (up 1 percentage point)
  • Annualized RONA: 34% (up 4 percentage points)

Cash Flow Highlights (H1 FY27)

Profit Before Tax: ₹3,886 million

Change in Trade Working Capital: -₹2,830 million

Operating Cash Flow: ₹402 million

Capex: -₹2,929 million

Free Cash Flow: -₹2,526 million

Acquisitions (Multilink): -₹4,212 million

IPO Proceeds Received: ₹14,000 million

Net Borrowings Repaid: -₹6,174 million

Change in Cash and Bank: ₹6,913 million

Strategic Priorities

1. Strengthen Core: Deepen leadership in 2W and 3W segments through premium mix and capacity addition

2. Electrification: Become the electrical backbone of auto OEMs, expanding harness, EV charging and battery content

3. Diversification: Broaden products, vehicle types, customers and geography (CV, off-highway, farming, PV, defense, aerospace)

4. Technology: Focus on import substitution and first-to-market opportunities through R&D and partnerships

Operational Highlights

Capacity Expansion:

  • 29 manufacturing plants across 3 countries (26 in India, 3 overseas)
  • New plants under construction: Hosur (Q1 FY28), Jhajjar (Q4 FY27 and Q2 FY28), Pune leased (Q3 FY27), Chennai leased (Q3 FY27)
  • Land acquired for new plants at Chhatrapati Sambhajinagar and near Indore
  • ~55% new wiring harness capacities to be added over 2.5 years (FY27-FY29)

Market Position:

  • Supplies to top 6 OEMs in India's two-wheeler market
  • 2 out of 5 wiring harness market share by value in India's 2W and 3W segment
  • EV leadership with ~70% share of two-wheeler EV wiring harness market by value

Technology Initiatives:

  • Ride Vision JV brings camera-based Driver Assist Technology to localize ADAS/ARAS (90% imported currently)
  • 5+ customer engagements across multiple segments
  • Product portfolio includes wiring harness, battery packs, BMS, DC-DC converters, controllers, sensors

Board of Directors

  • Mr. Ajay Seth: Chairman and Independent Director (38+ years in autos, former Maruti Suzuki CFO)
  • Mr. Dhiren Sheth: Executive Director and CHRO (27+ years in automotive sector)
  • Mrs. Matangi Gowrishankar: Independent Director (28+ years in HR, ex-BP India, Cummins India)
  • Mr. Rishi Mandawat: Non-Executive Director (20+ years consulting, Partner at Bain Capital)
  • Mr. Tarun Sharma: Independent Director (16+ years investing/consulting, Partner at Bain Capital)
  • Mr. Saahil Bhatia: Non-Executive Director
  • Mr. Burjor Dadachanji: Non-Executive Director (20+ years healthcare/consulting/banking, Operating Partner at Bain Capital)