DIVGI TORQTRANSFER SYSTEMS Ltd

Financial Performance

• Q1 FY27 revenue Rs. 141.8 crores; YoY +85%; sequential +25%.
• Gross profit Rs. 88.6 crores; margin 62.5%.
• EBITDA Rs. 41.6 crores; margin 29.4%.
• PAT Rs. 25.2 crores; PAT margin 17.8%.

Segment Update

• Transfer case revenue Rs. 76 crores; up 93% YoY; 53% of total.
• Component revenue Rs. 34.4 crores; up 83% YoY.
• E-gear drive revenue Rs. 5.7 crores; ramping towards production.
• Exports contributed ~16% of geographic revenue mix.
• Other businesses revenue Rs. 21.4 crores; includes NexTrac, ALH, Synchro, After Market.

Growth and Capex

• Shirwal facility modernization: capacity 400 per day (120,000 per year).
• Two assembly lines; capacity expansion to meet India demand.
• US Project Mayflower: wholly-owned subsidiary in Greenville, SC; initial team building.
• Phase-1 Mayflower capex ~$5 million; near BorgWarner; local-content considerations.

Outlook and Guidance

• Geography mix guidance: exports/global 25-40%; domestic 60-70%.
• Automatic transmissions to deliver INR 300 crores to INR 400 crores; supports target of INR 1,000 crores.
• US plant commissioning earliest second half Calendar 2028.
• South Africa shipments expected Apr 2028–Mar 2029.

Q&A Highlights

• Mahindra as top domestic transfer-case customer; Tata Motors second; domestic and export mix evolving.
• EV transmission: 6.5–8 cr quarterly run-rate; forecast 10–12 cr; PPAP with Tata obtained.
• Manual transmission/LCV launch next year; automatic timeline from H2 FY28; potential 300–400 crores.
• First order roadmap to 1,000 crores; four verticals; target 2,000 crores long-term.

Meeting Details

• Date: August 12, 2026; Earnings Call for the quarter ended June 30, 2026.
• Type/Mode: Earnings Call; audio recording available (online access).
• Organiser: Divgi TorqTransfer Systems Limited.
• Purpose: discuss unaudited quarterly results for June 30, 2026.
• Recording availability: audio recording uploaded on the company's website.

Participants

• Key company participants: Company Secretary and Compliance Officer.

Meeting Details

• Date and time: August 14, 2026; 10:00 AM onwards.
• Nature: 1x1 / Group Meeting.
• Organized by: Equirus India Growth Summit.
• Mode: Physical.
• Place: Mumbai.
• Purpose: discuss overall business situation based on public information; UPSI not discussed.
• Key company participants: Company Secretary and Compliance Officer.

Business Overview

• Drivetrain components maker; core segments Transfer Case, Components, Exports, and EV Transmission.
• In India, leading EV transmission supplier; pursuing global expansion via partnerships and US operations.
• IPO-funded capex; manufacturing footprint across four sites; next-gen product focus.

Operational Highlights

• Q1FY27 total income Rs 141.8 Cr; highest quarterly performance.
• Transfer Case growth led by Indonesia program; exports ~Rs 23 Cr.
• US subsidiary established: Divgi Transmission Technologies and Systems Inc, SC.
• Sigma EV transmission approvals; SOP expected Q2 FY27.
• Export growth expanding to newer geographies; export potential Rs 80 Cr in FY27.

Financial Performance

• Total income Q1FY27 Rs 141.8 Cr; YoY +85%.
• Revenue from operations Rs 137.1 Cr; EBITDA Rs 41.6 Cr; margin 29.4%.
• PAT Rs 25.2 Cr; PAT margin 17.8%.
• Gross profit Rs 88.6 Cr; gross margin 62.5%.
• CFO Rs 41.1 Cr; Net cash from operations.
• IPO capex Rs 169.66 Cr; deployed ~Rs 96.92 Cr.
• FY26 revenue Rs 352.9 Cr; EBITDA Rs 92.3 Cr; PAT Rs 46.9 Cr.

Capital Structure & Liquidity

• Borrowings near zero; cash Rs 31.5 Cr at Mar-26.
• IPO funds capex deployed; 96.92 Cr out of 169.66 Cr.
• Operating cash flow positive; investing and financing activities modest.

Strategic Outlook

• FY27 growth: Indonesia volumes; ramp domestic volumes; expand EV, exports.
• Sigma production to start in Q2 FY27; localization ongoing.
• Strategic partnerships to accelerate global expansion: Tata, Mahindra, Magna, BorgWarner, Toyota Tsusho.
• Potential annual revenue pathway to Rs 2,000+ Cr.
• Long-term focus: 4WD/AWD, manual, EV, automatic, exports.

Risks & Mitigation

• EV timelines delayed; OEM inventory build; Sigma ramp delayed; mitigated by Q2 ramp and multiple programs.
• Export growth concentration risk; mitigated by geographic diversification.

Governance & Leadership

• MD Jitendra Divgi; Independent Directors include Praveen Kadle, Kudva, Geeta Tolia, Sanjay Divgi.
• Strategic partnerships with Magna, BorgWarner, Toyota Tsusho, Tata, Mahindra, Force Motors.
• US subsidiary strengthens global footprint; North America Tier 1 engagement.
• IPO-funded capex deployment progress.

Deviation status and fund utilisation

• Mode of fund raising: Public Issue.
• Date of raising funds: March 14, 2023.
• Amount raised: ₹180 crore (fresh issue portion of IPO ₹412.12 crore).
• Report filed for quarter ended: June 30, 2026.
• Monitoring agency: Applicable; Monitoring Agency Name: ICRA Limited.
• Deviation in use of funds: No.
• Audit Committee comments: Nil.
• Auditors comments: Nil.
• Deviation/variation table: NIL.

Issue Overview

• IPO of equity shares; proceeds intended for funding capex and GCP.
• Total issue size and net proceeds revised upward/down due to lower offer expenses.
• Main objectives: funding capex for equipment and General Corporate Purposes.

Utilisation of Proceeds

• Utilisation largely as disclosed; no material deviations observed.
• Funding capex: end-quarter utilisation 91.527 crore; unutilised 59.180 crore; 24-month delay due to supplier lead times.
• GCP: utilisation 18.954 of 18.955; 0.001 crore unutilised; remaining to be spent in FY27; cost revision noted.
• Unutilised funds total 59.181 crore; parked in fixed deposits and 0.049 crore in monitoring account.

Governance and Compliance

• All stat/SH approvals for deviations not applicable; no material regulatory actions reported.
• No conflicts of interest disclosed by MA; report based on issuer information.
• No material events affecting the viability of objectives reported.

General Corporate Purpose

• GCP utilised 18.954 crore; breakdown by sub-heads not detailed here; board approval not stated.

Financials

• Revenue from operations: ₹1,371.42m; total income: ₹1,417.64m for quarter ended 30 Jun 2026.
• Total expenses: ₹1,080.13m; profit before tax: ₹337.51m; net profit: ₹252.40m.
• EPS (basic/diluted) ₹8.25 for the quarter (not annualised).
• Single reportable segment: Auto Components and Parts.

Dividend & AGM

• Final dividend of ₹3.27 per equity share for FY2025-26; record date 10 Sep 2026.
• 61st AGM scheduled for 18 Sep 2026.

Auditors & governance

• Statutory auditors appointed: M/s Kirtane & Pandit LLP for five years, subject to member approval.

IPO proceeds & use

• IPO proceeds ₹1,696.62m; utilised ₹1,104.81m; unutilised ₹591.81m as of 30 Jun 2026.
• Unutilised funds temporarily invested in deposits with scheduled banks and monitoring agency account.

Consolidation

• Foreign entity not consolidated as of 30 Jun 2026.

Meeting Details

• Date and time: 12 August 2026 at 12:00 PM IST
• Type/Mode: Group conference call (virtual)
• Event/organiser: Q1FY27 Post Results Conference Call hosted by Divgi TorqTransfer Systems Limited

Participants

• Managing Director
• Whole Time Director
• Chief Financial Officer
• Chief Growth Officer
• Chief Operating Officer

Purpose

• Discuss Q1FY27 post-results standalone unaudited financials for quarter ended June 30, 2026

Additional Notes

• Joining details enclosed; schedule provided.