DIVGI TORQTRANSFER SYSTEMS Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript DIVGI TORQTRANSFER SYSTEMS Ltd filed with BSE on 18 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Divgi TorqTransfer Systems reported its highest ever quarterly revenue of approximately Rs 142 crore in Q1 FY27, up 85% year-on-year and 25% sequentially, with EBITDA margin at 29.4% and PAT of approximately Rs 25 crore. Management attributed the growth to strong transfer case volumes, higher export contribution, and improved operating leverage, while noting the E-gear drive (EV transmission) segment remained relatively subdued during the quarter. The company also announced Project Mayflower, a new wholly-owned subsidiary in Greenville, South Carolina, aimed at eventually establishing US manufacturing presence.
Numbers mentioned
Revenue: Rs 141.8 crores (Q1 FY27)
p. 9
“in Q1 FY '27, we delivered our highest-ever quarterly revenue of Rs. 141.8 crores, registering a strong 85% year-on-year growth from Rs. 76.8 crores in Q1 FY '26 and a 25% sequential growth from Rs. 113.8 crores in Q4 FY '26.”
Sudhir Mirjankar, page 9 of the filed PDF · View the filing
EBITDA: Rs 41.6 crores (Q1 FY27)
p. 10
“EBITDA for the quarter stood at Rs. 41.6 crores, registering a strong 118% year-on-year growth from Rs. 19.1 crores in Q1 of FY '26, and a 50% sequential growth from Rs. 27.8 crores in Q4 of FY '26.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
EBITDA margin: 29.4% (Q1 FY27)
p. 10
“EBITDA margin improved to 29.4% compared to 24.9% in Q1 of FY '26 and 24.5% in Q4 of FY '26, supported by a favourable product mix, higher contributions from exports, and better margins from the 4x4 products.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
PAT: Rs 25.2 crores (Q1 FY27)
p. 10
“Profit after tax for Q1 of FY '27 stood at Rs. 25.2 crores, reflecting a strong 183% year-on-year growth from Rs. 8.9 crores in Q1 of FY '26, and a 63% sequential growth from Rs. 15.5 crores in Q4 of FY '26.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
PAT margin: 17.8% (Q1 FY27)
p. 10
“PAT margin stood at 17.8% compared to 11.6% in Q1 of FY '26 and 13.6% in Q4 of FY '26.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
Transfer case segment revenue: Rs 76 crores (Q1 FY27)
p. 9
“the transfer case segment delivered strong growth during the quarter, with revenue increasing 93% year-on-year to Rs. 76 crores compared to Rs. 39.3 crores in Q1 of FY '26.”
Sudhir Mirjankar, page 9 of the filed PDF · View the filing
E-gear drive segment revenue: Rs 5.7 crores (Q1 FY27)
p. 9
“The E-gear drive segment reported revenue of Rs. 5.7 crores, with the business positioned for a gradual ramp-up as existing platforms, scale, and new programs move towards production.”
Sudhir Mirjankar, page 9 of the filed PDF · View the filing
Component segment revenue: Rs 34.4 crores (Q1 FY27)
p. 9
“The component segment continued its strong performance, with revenue increasing 83% year-on-year to Rs. 34.4 crores compared to Rs. 18.8 crores in Q1 of FY '26.”
Sudhir Mirjankar, page 9 of the filed PDF · View the filing
Gross profit: Rs 88.6 crores (Q1 FY27)
p. 10
“Gross profit for Q1 FY '27 stood at Rs. 88.6 crores compared to Rs. 48.3 crores in Q1 of FY '26, representing an 83% year-on-year growth.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
Gross profit margin: 62.5% (Q1 FY27)
p. 10
“Gross profit margin stood at 62.5%, broadly stable compared to 62.9% in Q1 of FY '26.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
Return on invested capital (ex-cash): almost 32% (Q1 FY27)
p. 4
“return on invested capital without the cash component stood at almost 32% in Q1 FY '27, reflecting strong returns being generated on the investments made over the past few years.”
Jitendra Divgi, page 4 of the filed PDF · View the filing
Export revenue: around Rs 23 crores (Q1 FY27)
p. 13
“In absolute terms, the export has grown, I think it is almost Rs. 34 crores and for the quarter, it is around Rs. 23 crores.”
Jitendra Divgi, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
US manufacturing facility investment — about $5 million in first phase
stated conditionally by Jitendra Divgi
p. 11
“But the figure that we are looking at is about $5 million in the first phase.”
Jitendra Divgi, page 11 of the filed PDF · View the filing
US plant commissioning timeline — second half of Calendar 2028
stated as an aspiration by Jitendra Divgi
p. 15
“Yes, right now, the thinking is that we will do this in the second half of Calendar '28, the earliest.”
Jitendra Divgi, page 15 of the filed PDF · View the filing
South Africa transfer case shipments — April 28 to March 29
stated firmly by Jitendra Divgi
p. 16
“Directionally, I can tell you, sometime next year, which means from April 28 to March of 29, we are expecting shipments to start to South Africa.”
Jitendra Divgi, page 16 of the filed PDF · View the filing
LCV manual transmission commercialization — later this year
stated firmly by Jitendra Divgi
p. 16
“Around the same time, we are looking forward to commercializing an LCV manual transmission.”
Jitendra Divgi, page 16 of the filed PDF · View the filing
Automatic transmission programs revenue potential — INR 300 crores to INR 400 crores
stated as an aspiration by Jitendra Divgi
p. 17
“We think that automatic transmission programs at a minimum will deliver INR 300 crores to INR 400 crores.”
Jitendra Divgi, page 17 of the filed PDF · View the filing
Automatic transmission commercialization timeline — second half of 2028
stated as an aspiration by Jitendra Divgi
p. 17
“As far as automatics are concerned, the earliest now that we see is second half of 28.”
Jitendra Divgi, page 17 of the filed PDF · View the filing
EV transmission quarterly revenue forecast — 10 to 12 crores per quarter · next three quarters
stated conditionally by Jitendra Divgi
p. 18
“We were averaging 6.5, let's say, 7 to 8 crores a quarter on the EV products. Our forecasts now are in the region of 10 to 12.”
Jitendra Divgi, page 18 of the filed PDF · View the filing
Revenue target — INR 1,000 crores
stated as an aspiration by Jitendra Divgi
p. 24
“I think you would agree that our first order of business is to work out a roadmap to get to the first 1,000.”
Jitendra Divgi, page 24 of the filed PDF · View the filing
Revenue target — INR 2,000 crores
stated as an aspiration by Jitendra Divgi
p. 24
“Yes, I think 2,000 is like a potential in terms of the addressable market and the potential we have.”
Jitendra Divgi, page 24 of the filed PDF · View the filing
EBITDA margin sustainability — 20% to 22% and above
stated as an aspiration by Jitendra Divgi
p. 24
“My proposition to you is if I can sustain 20% to 22% and above, I think that is a very fair offering we are giving you.”
Jitendra Divgi, page 24 of the filed PDF · View the filing
Business mix domestic vs exports/global — 25% to 40% exports/global, 60% to 70% domestic
stated as an aspiration by Jitendra Divgi
p. 12
“Broadly, 25% to 40% of our business, as I see it, will continue to be either exports or global operations. And the remaining 60% to 70% will be domestic.”
Jitendra Divgi, page 12 of the filed PDF · View the filing
Next transfer case export program start — FY28
stated conditionally by Jitendra Divgi
p. 6
“And one such program, we expect, will start in FY '28.”
Jitendra Divgi, page 6 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management indicated an initial phase investment of about $5 million for a small facility in South Carolina, while stating Indian investments would be larger given the greater domestic opportunity.
Answered by Jitendra Divgi
Asked by Mahesh Bendre: What investment is required for the US facility and overall over the next three years, both capex and new factories?
p. 11
“But the figure that we are looking at is about $5 million in the first phase.”
Jitendra Divgi, page 11 of the filed PDF · View the filing
Management said export revenue was around Rs 23 crore for the quarter, growing from near zero two years earlier, with all such contracts being exclusive supply agreements into North America.
Answered by Jitendra Divgi
Asked by Vimal Gohil: What is the export revenue this quarter and how is domestic transfer case traction beyond the top customer?
p. 13
“Many of these, in fact, not many, all of these contracts that we are executing that are contributing this 23 per quarter or almost 90 per year are all exclusive contracts.”
Jitendra Divgi, page 13 of the filed PDF · View the filing
Management said the earliest planned timing for the US facility is the second half of calendar 2028.
Answered by Jitendra Divgi
Asked by Vimal Gohil: What is the timeline for the USA plant?
p. 15
“Yes, right now, the thinking is that we will do this in the second half of Calendar '28, the earliest.”
Jitendra Divgi, page 15 of the filed PDF · View the filing
Management said roughly 30% of the Indonesia contract has been executed so far, and EV transmission quarterly revenue is expected to rise from about 7-8 crore to 10-12 crore.
Answered by Jitendra Divgi
Asked by Sumit Ambekar: How many of the 70,000 Indonesia transfer case units were dispatched in Q1 and what is the EV platform dispatch run rate?
p. 17
“Yes. So, I think roughly you could say some 30% of the total contract has been roughly broadly in that range.”
Jitendra Divgi, page 17 of the filed PDF · View the filing
Management said a new automated assembly line under installation will add about 120,000 units per year of capacity at the Shirwal facility.
Answered by Jitendra Divgi
Asked by Karan Gupta: What is the transfer case capacity and utilization, and plans to expand?
p. 20
“So, I believe we will have capacity on that line of 400 a day, about 120,000 a year on that new line, which will go into our Shirwal facility.”
Jitendra Divgi, page 20 of the filed PDF · View the filing
Management said it does not want to sound overly optimistic on margins and that scaling the business sustainably while maintaining reasonable margins is the priority, citing a prior year EBITDA margin of about 20% even in a weaker year.
Answered by Jitendra Divgi
Asked by Rushit Shukla: Can margins improve further and when might the company reach its Rs 2,000 crore revenue target?
p. 21
“What we can assure you, and which we will even in the relatively bad year that we had last year, when we were down to 240 for the whole year, we still maintained an EBITDA of about 20%.”
Jitendra Divgi, page 21 of the filed PDF · View the filing
Management said its internal aim is to sustain EBITDA margins of 20% to 22% and above, benchmarked against an Indian auto industry average of 14% to 17%, and that the first priority is reaching Rs 1,000 crore in revenue before 2,000 crore.
Answered by Jitendra Divgi
Asked by Darshil Jhaveri: What is the internal margin target range and timeline for the Rs 2,000 crore revenue run rate?
p. 24
“We know that over the last six to seven years, EBITDA margins have on an average gone between 14% to 17% in the Indian automotive industry.”
Jitendra Divgi, page 24 of the filed PDF · View the filing
Risks flagged
EV transmission (E-gear drive) segment remained subdued during the quarter
p. 9
“Our E-gear drive business remained relatively subdued during the quarter.”
Sudhir Mirjankar, page 9 of the filed PDF · View the filing
Transition from imported platforms to localized production at a key OEM has taken longer than anticipated
p. 6
“So, while the transition from imported platforms to localized production at one of our key OEMs has taken longer than initially anticipated, the underlying opportunity remains intact”
Jitendra Divgi, page 6 of the filed PDF · View the filing
Some transfer case order execution may spill over due to impediments elsewhere in the supply chain
p. 17
“But because of their impediments in the rest of the supply chain and all that, some of this contract may spill over into the one or two months of the next year.”
Jitendra Divgi, page 17 of the filed PDF · View the filing
Geopolitical shock from the Iran war affected market schedules and created uncertainty
p. 18
“Yes. So, I don't know, call it the effect of the Iran war and the general scare created in the market.”
Jitendra Divgi, page 18 of the filed PDF · View the filing
Uncertainty over whether elevated EV scheduling will hold going forward
p. 18
“As with anything else, whether the market holds or not, time will tell, but I think tactically speaking over the next three quarters, we think it will hold.”
Jitendra Divgi, page 18 of the filed PDF · View the filing
Weak rupee and long overseas supply chains for automatic transmissions create cost and inventory risk
p. 22
“There are long, tenuous supply chains, with the problems of inventory pile up, inefficient working capital, and of course, the mounting costs because of the weak rupee.”
Jitendra Divgi, page 22 of the filed PDF · View the filing
Building only commodity components without proprietary products limits scalability and margins
p. 12
“It will work if you are doing just components, commodity components, with a little bit of automation. But then the attendant factor then is going to be relatively more modest EBITDA margins.”
Jitendra Divgi, page 12 of the filed PDF · View the filing
Broader execution bandwidth is strained as multiple opportunities develop simultaneously
p. 8
“So, the opportunity also therefore presents challenges in terms of execution bandwidth. And that is what continues to preoccupy us.”
Jitendra Divgi, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.