Concall AI

DHOOTTRANS — Q1 FY27 earnings call

Call held 4 Sep 2026

Management summary

Dhoot Transmission reported a strong Q1 FY27 with nearly 50% YoY revenue growth driven by robust performance in both wiring harness and non-wiring harness segments, particularly the EV business which grew 79%. EBITDA margins expanded by 110 bps to 15%. The company is confident of 25-30% growth for the full year, despite ongoing raw material price pressures and a cautious outlook on H1 comparisons.

Highlights

Strong overall revenue growth of nearly 50% YoY, reaching ₹1448 crores.
EBITDA margins expanded by 110 basis points to 15% compared to Q4 FY26.
EV business demonstrated robust growth of 79% YoY, increasing its revenue contribution to 27% from 24% last year.
Significant growth in both wiring harness (44.6% YoY) and non-wiring harness (67.7% YoY) segments.
Finance costs declined due to strategic equity infusion in March.

Concerns

Anticipated soft comparison for the first six months due to GST reduction implemented in H2 last year.
Continued upward trend in key raw material prices like Copper and Brass, though at a slower pace.
Margin recovery from raw material softening is expected with a lag, materializing in Q3 rather than Q2.

Key financials

01 Revenue ₹1,448 Cr +49.9%YoY
02 EBITDA Margin 15%
03 EV Revenue Growth 79%
04 EV Revenue Contribution 27%
05 ICE Revenue Growth 52.6%

What they filed

₹ Cr · quarterly

Line item	Q1 FY26	Q4 FY26	Q1 FY27
Revenue	738	988	1,077
Expenses	655	895	974
EBITDA	83	93	104
Margin	11%	9%	10%
Other income	2	2	3
Interest	16	16	9
Depreciation	15	20	21
Profit before tax	55	59	77
Tax rate	25%	23%	26%
Net profit	41	45	57
EPS	203.97	2.41	3.04

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue

₹1,448 Cr Total

Wiring Harness ₹1,090 Cr 75.3%
Non-Wiring Harness ₹358 Cr 24.7%

Capital allocation

high confidence

Capex Capex disclosed
- Capacity expansion in two plants (Jhajjar and Hosur)
No, we have in the IPO proceeds which have come in, in that there is an expansion going on in two plants. One is in Jhajjar and one is in Hosur, and which is going to add about 15%-20% to our capacity this year.
Debt Net ₹220 Cr
- New borrowing Debt level at Rs. 220 crore at end of June quarter, influenced by Bain infusion and Multilink acquisition.
- Repayment Finance cost declined due to equity infusion in March, and IPO money in August will lead to a cash surplus scenario.
Our finance cost declined in the quarter as we continued to optimize working capital debt levels because of equity infusion in March.
M&A Multilink Acquisition · Integrated · Consideration ₹[object Object] (undisclosed)

Scaling up non-wiring harness business, added Hero as a customer, added fuel level sensor and relays.
Contributed about 3% in terms of revenue growth for the quarter.

Multilink integration is progressing well, and we are confident of scaling up our non-wiring harness business with this addition. ... The Multilink acquisition contributed to about 3% in terms of revenue growth for the quarter.
Liquidity Cash ₹1,000 Cr Expected net cash position by end of August after IPO proceeds.

So, spare to around 1,000 crores of net cash like around August, end of August is how we should consider? ... Yes, end of August, that will be the kind of maybe slightly there only, a few crores here and there.

Guidance & targets

Revenue

Overall Revenue Growth Revenue · this year · High confidence 25%-30%

On an overall basis, considering overall things, we are confident of delivering another strong year of 25%-30% of growth.

— Rahul Dhoot
Multilink Revenue Growth Revenue · future · High confidence 25%-30%

I believe that there should be a decent 25%-30% growth which we should be able to do on Multilink as well.

— Rahul Dhoot
EV Revenue Contribution Revenue · two, three years' time frame · Medium confidence more than 30, 32%

What we believe is that maybe in another two, three years' time frame, we should be definitely having a revenue from EVs of more than 30, 32%.

— Nitin Kalani

Margin

Multilink Margin Margin · future · High confidence in line with Dhoot's margin

And the margin should be in line with the Dhoot's margin.

— Rahul Dhoot
EBITDA Margin Margin · full year · High confidence 15%-16%

But we would like to, sort of, continue to stick to our, I would say, indication, 15%-16% kind of margin guidance for the full year.

— Nitin Kalani

Market Share

EV Cord Set Business Market Share Market Share · next year · High confidence 40%-45%

And the EV cord set business is doing very well. In fact, the new business of EV cord sets which are coming for next year, we almost have a 40%-45% share of business for the Indian market.

— Rahul Dhoot

Capacity

Capacity Addition Capacity · this year · High confidence 15%-20%

One is in Jhajjar and one is in Hosur, and which is going to add about 15%-20% to our capacity this year.

— Rahul Dhoot

What to watch in Q2 FY27

Multilink Integration Progress

Next quarter

Current progressing well, full integration in 3-4 months

Target Full integration completed

Why it matters

Successful integration is key to realizing growth and margin synergies from the acquisition.

Multilink full integration with us will take another 3-4 months to have a proper integration in terms of overall products.

Risks & concerns

Commodity Price Volatility (Copper, Brass)
medium

Upward trend in key raw materials continues, impacting margins with a lag, though pace of increase is slower.

Management acknowledged
Comparison Base for H1 FY27
low

Soft comparison for H1 FY27 due to GST reduction implemented in H2 FY26.

Management acknowledged

Q&A highlights

8 direct

Margin expansion outlook and copper inflation pass-through Direct

most of the copper inflation is already passed on... we would like to, sort of, continue to stick to our, I would say, indication, 15%-16% kind of margin guidance for the full year.

Clarifies current margin drivers and future outlook amidst commodity price volatility.

Asked by Siddharth Bera

Multilink acquisition strategy, revenue, and margin profile Direct

decent 25%-30% growth which we should be able to do on Multilink as well. And the margin should be in line with the Dhoot's margin.

Provides specific growth and profitability expectations for a recent acquisition.

Asked by Siddharth Bera

Long-term contribution of non-wiring harness EV business Direct

when we talk of the growth in terms of electrification, it is going much beyond the expected numbers and the present customers are very bullish on the growth... I believe that there will be a lot of opportunities to not only selling through them in India but also out of country.

Highlights management's bullish view on EV segment's potential, including exports.

Asked by Rishi Vora

Cash levels post-IPO and FCF Direct

debt level which is at about Rs. 220 crore at the end of June quarter. ... After the equity infusion has happened, the debt level would have turned again in a cash surplus kind of scenario... around 1,000 crores of net cash like around August, end of August.

Provides clarity on the company's liquidity position and balance sheet strength post-IPO.

Asked by Rishi Vora

Ride Vision JV and ADAS product opportunities Direct

it is all about the ADAS for the two-wheeler setup... it's a futuristic thing and it will be lots to do with the regulations coming on board from the government of India. But we are well in time and we will be prepared for all those areas to explore before they come.

Details the company's foray into advanced driver-assistance systems and its strategic positioning for future regulatory changes.

Asked by Vijay Kumar Pandey

Goodwill impact from Multilink acquisition Direct

My sense is that roughly, it would be about 20 or 25% of the acquisition price when it comes to goodwill.

Provides insight into the accounting treatment and intangible asset recognition for a significant acquisition.

Asked by Ayush Ved

Long-term EV revenue contribution Direct

maybe in another two, three years' time frame, we should be definitely having a revenue from EVs of more than 30, 32%.

Sets a clear medium-term target for the EV segment's share in total revenue.

Asked by Sheetal Kumar

Capacity expansion plans for wiring harness Direct

we have in the IPO proceeds which have come in, in that there is an expansion going on in two plants... which is going to add about 15%-20% to our capacity this year.

Confirms ongoing capacity additions funded by IPO proceeds to support growth.

Asked by Preet Jain

2 min read 7 chapters

Detailed narrative

Q1 FY27 Performance Overview

Dhoot Transmission delivered a strong Q1 FY27, achieving nearly 50% YoY revenue growth, reaching ₹1448 crores. This was supported by robust performance across segments, with wiring harness revenue growing 44.6% and non-wiring harness business expanding by 67.7% YoY. EBITDA margins improved by 110 basis points sequentially to 15%, driven by operational efficiencies.

EV Business: A Key Growth Driver

The Electric Vehicle (EV) segment emerged as a significant growth engine, with revenue surging 79% YoY. The contribution of EV revenue to the total increased to 27% in Q1 FY27, up from 24% in the previous year. Management expressed bullishness on the EV sector's growth, anticipating EV revenue to constitute over 30-32% of total revenue within the next two to three years, driven by both domestic and export opportunities.

Multilink Acquisition and Integration Progress

The integration of Multilink is progressing well, with full integration expected within the next three to four months. The acquisition contributed approximately 3% to the quarter's revenue growth and has already led to the addition of a new customer (Hero) and new products like fuel level sensors and relays. Management expects Multilink to achieve 25-30% growth and maintain margins in line with Dhoot's overall profitability.

Strategic Foray into ADAS with Ride Vision JV

The company's collaboration with Ride Vision for Advanced Driver-Assistance Systems (ADAS) for two-wheelers is advancing, with JV formation underway. Management views ADAS as a futuristic segment, anticipating future regulatory mandates in India. Initial customer presentations have garnered good interest, positioning Dhoot Transmission to be prepared for this evolving market.

Margin Outlook and Commodity Price Dynamics

EBITDA margins improved to 15% in Q1 FY27, a 110 bps increase from Q4 FY26. While key raw materials like Copper and Brass continued their upward trend, the pace of increase was slower than the previous year. The company has largely passed on copper inflation, and expects to maintain full-year EBITDA margins in the 15-16% range. Margin recovery from any raw material softening is anticipated with a lag, likely materializing in Q3 FY27.

Capital Allocation and Liquidity

Finance costs declined due to an equity infusion in March. The company reported a debt level of ₹220 crores at the end of June. Post the IPO proceeds received in August, the company expects to be in a cash surplus position, with net cash around ₹1,000 crores by August end. IPO funds are earmarked for capacity expansion in Jhajjar and Hosur, which will add 15-20% to capacity this year.

Future Outlook and Growth Drivers

Dhoot Transmission is confident of delivering another strong year with 25-30% overall growth. Key drivers include the electrification trend, new customer additions, and product expansions. The company aims to consolidate its position in 2-wheeler battery packs for the next 1-2 years and expects to capture 40-45% market share for new EV cord set business next year.

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