DIVGI TORQTRANSFER SYSTEMS Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript DIVGI TORQTRANSFER SYSTEMS Ltd filed with BSE on 02 Jun 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 annual revenue of over Rs 375 crore for FY26, up approximately 56% year-on-year, with EBITDA margins near 25% and PAT growing over 90% to almost Rs 47 crore. Growth was driven by Transfer Case volume recovery, a 124% jump in the Components segment led by exports, and continued investment in EV transmission and automatic transmission development. Management also discussed new Transfer Case export orders for Mahindra and Tata Motors pickup platforms destined for Indonesia, and progress on a technology transfer discussion for automatic transmissions with a global OEM.
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Numbers mentioned
Total revenue: over INR375 crores (FY26)
p. 3
“I'm delighted to share that we delivered the highest ever total revenue in our history, crossing INR375 crores, representing a robust growth of approximately 56% over FY '25 and essentially bringing the trajectory back on track.”
Jitendra Divgi, page 3 of the filed PDF · View the filing
EBITDA: over INR92 crores (FY26)
p. 3
“EBITDA stood at over INR92 crores with margins remaining healthy and resilient at nearly 25%, while PAT grew sharply by over 90% to almost INR47 crores, reflecting strong operating leverage and optimized business mix and sustained operational discipline.”
Jitendra Divgi, page 3 of the filed PDF · View the filing
Quarterly revenue run rate: over INR110 crores (Q4 FY26)
p. 3
“Our quarterly revenue run rate has nearly doubled over the last few quarters, increasing from the low of around INR55 crores to over INR110 crores in Q4 FY '26.”
Jitendra Divgi, page 3 of the filed PDF · View the filing
Export contribution to revenue: nearly 18% (FY26)
p. 6
“Revenue from the Components segment nearly doubled during the year, while exports increased sharply from around 6% of revenue to a meaningful double-digit contribution of nearly 18%.”
Jitendra Divgi, page 6 of the filed PDF · View the filing
Revenue: INR375 crores (FY26)
p. 10
“As I mentioned earlier, we delivered our highest ever revenue of INR375 crores, registering a strong 56% year-on-year growth from INR240 crores in FY '25.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
Transfer Case segment growth: 66% year-on-year (FY26)
p. 10
“So on revenue mix, the Transfer Case segment delivered strong growth of 66% year-on-year compared to FY '25.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
EV transmission segment growth: 10% (FY26)
p. 10
“The EV transmission segment increased by 10% in FY '26 compared to FY '25.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
Components segment growth: 124% (FY26)
p. 10
“The Components segment continued its robust performance, growing 124% in FY '26 compared to FY '25.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
Gross margin: 63.5% (FY26)
p. 10
“Gross margins for FY '26 stood at 63.5%, mainly in line with FY '25.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
EBITDA: INR92 crores (FY26)
p. 10
“EBITDA for FY '26 came in at INR92 crores, registering a healthy 58% year-on-year growth from INR58 crores in FY '25.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
EBITDA margin: 24.6% (FY26)
p. 11
“EBITDA margin for the period stood at 24.6%.”
Sudhir Mirjankar, page 11 of the filed PDF · View the filing
Profit after tax: INR46.9 crores (FY26)
p. 11
“Profit after tax for FY '26 stood at INR46.9 crores, reflecting a strong 92% year-on-year growth from INR24.4 crores in FY '25, driven by enhanced operating efficiency and larger volumes in major segments, leading to further strengthening of overall profitability.”
Sudhir Mirjankar, page 11 of the filed PDF · View the filing
PAT margin: 12.5% (FY26)
p. 11
“PAT margin stood at 12.5%.”
Sudhir Mirjankar, page 11 of the filed PDF · View the filing
Quarterly revenue: INR113.8 crores (Q4 FY26)
p. 11
“We delivered our highest ever quarterly revenue of INR113.8 crores, registering a strong 78% year-on-year growth from INR64.1 crores in Q4 of FY '25 and a strong 18% sequential growth over Q3 of FY '26.”
Sudhir Mirjankar, page 11 of the filed PDF · View the filing
Quarterly EBITDA: INR27.8 crores (Q4 FY26)
p. 11
“EBITDA for the quarter stood at INR27.8 crores, reflecting a 92% increase from INR14.5 crores in Q4 of FY '25 and a strong 19% sequential growth over Q3 of FY '26.”
Sudhir Mirjankar, page 11 of the filed PDF · View the filing
Quarterly EBITDA margin: 24.5% (Q4 FY26)
p. 11
“EBITDA margin for the quarter was healthy at 24.5%.”
Sudhir Mirjankar, page 11 of the filed PDF · View the filing
Quarterly PAT: INR15.5 crores (Q4 FY26)
p. 11
“Profit after tax for Q4 FY26 came in at INR15.5 crores, marking a 189% year-on-year increase from INR5.4 crores in Q4 of FY '25 and a strong 32% sequential rise from INR11.8 crores in Q3 of FY '26.”
Sudhir Mirjankar, page 11 of the filed PDF · View the filing
Quarterly PAT margin: 13.6% (Q4 FY26)
p. 11
“PAT margin for the quarter stood at 13.6%.”
Sudhir Mirjankar, page 11 of the filed PDF · View the filing
Final dividend: INR3.27 per equity share of INR5 each (FY26)
p. 10
“The Board of Directors has recommended a final dividend of INR3.27 per equity share of INR5 each for FY '26, subject to shareholders' approval.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
Transfer Case volumes: about 50,000, 52,000 (FY26)
p. 11
“Yes. So I think -- and here, I'm kind of speaking from memory. This year we have accomplished about 50,000, 52,000?”
Jitendra Divgi, page 11 of the filed PDF · View the filing
EV transmission volume: about 24,000 (FY26)
p. 12
“I think it was about 24,000.”
Jitendra Divgi, page 12 of the filed PDF · View the filing
Component volumes: Over 13 lakhs (FY26)
p. 12
“Over 13 lakhs.”
Sudhir Mirjankar, page 12 of the filed PDF · View the filing
E-gear drive capacity utilization: 25% to 30%
p. 12
“25% to 30%.”
Jitendra Divgi, page 12 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.
Export contribution to revenue — 20% to 25% · medium-term
stated as an aspiration by Jitendra Divgi
p. 7
“while the company continues to maintain a medium-term target of 20% to 25% export contribution to overall revenues.”
Jitendra Divgi, page 7 of the filed PDF · View the filing
EV volumes — almost a doubling · by July
stated conditionally by Jitendra Divgi
p. 12
“But the vehicle testing, I think, took longer than we had thought it would. So next month or definitely by July, this new model will be going into production, and we are expecting almost a doubling of the EV volumes.”
Jitendra Divgi, page 12 of the filed PDF · View the filing
DCT program revenue — middle to second half of next calendar year
stated conditionally by Jitendra Divgi
p. 13
“In low modest volumes, if our program management is successful, we could see the first revenue trickle happening maybe middle to second half of next year, calendar year and the big volume coming a year after that.”
Jitendra Divgi, page 13 of the filed PDF · View the filing
Indonesia export program execution — FY27
stated firmly by Jitendra Divgi
p. 13
“No, it is on track for FY '27.”
Jitendra Divgi, page 13 of the filed PDF · View the filing
4-wheel drive global business revenue potential — around INR300 crores
stated as an aspiration by Jitendra Divgi
p. 17
“I think we have called out a potential of around INR300 crores on the 4-wheel drive.”
Jitendra Divgi, page 17 of the filed PDF · View the filing
Automatic transmission revenue estimate — INR1,000 crores
stated as an aspiration by Jitendra Divgi
p. 18
“So the -- in summary, our estimate of INR1,000 crores, actually, we could be accused of being too conservative by some of you.”
Jitendra Divgi, page 18 of the filed PDF · View the filing
Net cash position — healthy net cash position
stated firmly by Jitendra Divgi
p. 9
“And even after factoring in future expansion plans and increased working capital requirements associated with growth, the company expects to maintain a healthy net cash position.”
Jitendra Divgi, page 9 of the filed PDF · View the filing
Momentum in Transfer Case and Components segments — coming quarters
stated as an aspiration by Sudhir Mirjankar
p. 10
“We expect this momentum to sustain in coming quarters as well.”
Sudhir Mirjankar, page 10 of the filed PDF · View the filing
Overall business momentum — coming quarters
stated as an aspiration by Sudhir Mirjankar
p. 11
“With the visibility we currently have and the opportunities in the pipeline, we expect this positive momentum to continue in the coming quarters as well.”
Sudhir Mirjankar, page 11 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 gave approximate volumes for Transfer Cases, EV transmissions and Components, and noted capacity utilization for the EV segment.
Answered by Jitendra Divgi
Asked by Karan Gupta: What are the volume numbers for Transfer Case, E-gear drive and Components segments?
p. 12
“Which was up from low 30s that we did in FY '25. So you can see it's almost like 70%, 80% increase in volumes of Transfer Cases.”
Jitendra Divgi, page 12 of the filed PDF · View the filing
Management confirmed the Indonesia program is on track and listed several other growth drivers including a new Tata Sierra contract, a Ford application uplift, Mahindra's South Africa support request, EV utilization improvement, 3-wheeler prototypes, and a manual transmission truck opportunity.
Answered by Jitendra Divgi
Asked by Mihir Vora: Is the Indonesia Transfer Case order on track for FY27 completion given current situation, and what other segments offset potential decline post-FY28?
p. 13
“First is we have won a new 4-wheel drive contract on the Tata Sierra at Tata. The second one is there is an uplift on the volumes coming from the U.S. on a particular Ford application at one of our Tier 1 customers there.”
Jitendra Divgi, page 13 of the filed PDF · View the filing
Management explained the US presence is an initial beachhead intended to support all business lines through market understanding, manufacturing evaluation, and program management engagement, not limited to Components.
Answered by Jitendra Divgi
Asked by Mihir Vora: Will the US investment cover only Components or also Transfer Cases and other proprietary products?
p. 14
“See, the U.S. presence is like the beachhead, if I can use an Americanism. It's our initial beachhead.”
Jitendra Divgi, page 14 of the filed PDF · View the filing
Management said their current preference is to grow organically given the company's size and to avoid the cultural adaptation challenges of acquisitions.
Answered by Jitendra Divgi
Asked by Mihir Vora: Would the company pursue inorganic growth opportunities for the US business?
p. 15
“Right now, our preference is to grow. Given the size of the business and the way we work, our preference is to sort of do this organically.”
Jitendra Divgi, page 15 of the filed PDF · View the filing
Management dismissed the reports as media narrative and said the tender process was transparent and the order proceeded, split between Tata and Mahindra due to capacity constraints.
Answered by Jitendra Divgi
Asked by Jai Prakash: Is the Indonesian government holding the Tata Motors and Mahindra orders, as reported in the news?
p. 15
“There was a tender put up by the Indonesian government. We bid fair and square, and we beat them comprehensively.”
Jitendra Divgi, page 15 of the filed PDF · View the filing
Management explained delays were due to longer-than-expected vehicle testing at Tata, that production part approval has now been received, and volumes are expected to ramp in FY27, while acknowledging competitive pressure from Mahindra's Tier 1 and MG Motors.
Answered by Jitendra Divgi
Asked by Amit Dhameja: Why is EVD utilization still at 25% despite expected onboarding from H2 FY26, and what challenges exist, plus what is the FY27 target utilization?
p. 16
“Now it is this design, 90 to 120 kilowatt, which goes across these 4 platforms that was in vehicle testing at Tata, which took longer than expected. But we have successfully finished all our testing.”
Jitendra Divgi, page 16 of the filed PDF · View the filing
Management said the automatic transmission opportunity is the cornerstone, with a conservative estimate of around Rs 1,000 crore, while a global 4-wheel drive win of 200,000 units could add roughly Rs 800 crore, though they are guiding conservatively due to brand perception challenges.
Answered by Jitendra Divgi
Asked by Kashish Shah: Which segment will drive the additional Rs 500 crore of revenue potential and by when?
p. 17
“We can easily scale up to that level. That would represent an opportunity of almost INR800 crores if we were to win 200,000.”
Jitendra Divgi, page 17 of the filed PDF · View the filing
Risks flagged
EV transmission segment volumes remained subdued due to lengthened development cycles and delayed customer vehicle testing
p. 5
“This segment remained relatively subdued, but consistent with last year and partly because of lengthened development cycles at our major OEM customer, that is Tata Motors.”
Jitendra Divgi, page 5 of the filed PDF · View the filing
Delayed customer vehicle testing pushed back a new EV product launch
p. 12
“And on EVs, it was much more modest, but that happened because one of our new products that was supposed to launch last year, it got delayed because of delayed customer vehicle testing.”
Jitendra Divgi, page 12 of the filed PDF · View the filing
Media narrative attempting to create impediments around the Indonesian order
p. 15
“But I think it was, how should I say, a little frivolous and somebody thought that they could create this narrative and create some impediments for the Indian OEMs.”
Jitendra Divgi, page 15 of the filed PDF · View the filing
US market competitiveness challenges for the company's planned entry
p. 14
“Our initial analysis has shown that the U.S. still is not a very competitive place.”
Jitendra Divgi, page 14 of the filed PDF · View the filing
Competitive pressure in the EV transmission market from Mahindra's Tier 1 supplier and MG Motors
p. 16
“There's also MG Motors with the Windsor model. So there are competitive forces out there that we have to contend with.”
Jitendra Divgi, page 16 of the filed PDF · View the filing
Brand perception challenges for Indian companies affecting automatic transmission guidance conservatism
p. 17
“We are a little more conservative because there is a certain brand perception about India and Indian companies right now, which we have to gradually overcome.”
Jitendra Divgi, page 17 of the filed PDF · View the filing
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