Dhoot Transmission Q1FY27 net profit up 38% as EV revenue surges 80%
- Consolidated revenue rose 49.7% YoY to ₹14,464 million in Q1FY27
- Net profit increased 38% YoY to ₹1,327 million despite margin pressure
- EV-related supply revenue surged 79.2% YoY, forming 27% of total revenue
- EBITDA margin contracted 240 bps to 15.1% due to raw material costs
*this image is generated using AI for illustrative purposes only.
Dhoot Transmission reported a 38% year-on-year increase in consolidated net profit for the first quarter of FY27, reaching ₹1,327 million. The auto component manufacturer saw strong top-line growth driven by robust demand in both electric and internal combustion engine vehicle segments.
The company’s financial performance highlights a volume-led growth phase, with revenue climbing significantly against the prior year period. Consolidated revenue from operations surged from ₹9,663 million in the corresponding quarter of the previous fiscal year to ₹14,464 million. This represents a robust 49.7% year-on-year growth in sales.
Financial Performance Overview
While revenue growth was substantial, operating margins faced pressure during the quarter due to input cost inflation and higher labour costs. EBITDA rose by approximately 29% to ₹2,184 million from ₹1,694 million in the same quarter last year. However, this operational gain did not translate proportionally into margin expansion.
| Metric | Current Quarter | Prior Year Quarter | Change |
|---|---|---|---|
| Revenue | ₹14,464 million | ₹9,663 million | +49.7% |
| EBITDA | ₹2,184 million | ₹1,694 million | +29.0% |
| EBITDA Margin | 15.1% | 17.5% | -240 bps |
| Net Profit | ₹1,327 million | ₹962 million | +38% |
The EBITDA margin contracted to 15.1% from 17.5% in the prior year period, a decline of 240 basis points. The company attributed this margin compression to copper and other raw material price increases not being fully passed on to customers immediately, alongside higher labour costs.
Segment Growth and Strategic Updates
A significant driver of the top-line expansion was the rapid adoption of electric vehicles. Revenue from EV-related supplies increased by 79.2% year-on-year and now constitutes 27% of consolidated revenue. India business revenue grew by 53.2% YoY, while global business revenue increased by 18.3% YoY.
The company also highlighted the integration of its recently acquired Multilink business, where control was gained on June 11, 2026. Management stated that integration is progressing well and is expected to be completed by Q3 or early Q4 FY27. This acquisition is intended to scale up the non-wiring harness business meaningfully.
What the Numbers Show
A key analytical observation is the disproportionate contribution of non-operating items to the final profit figure. With EBITDA at ₹2,184 million and net profit at ₹1,327 million, the difference accounts for taxes, interest, and other expenses/income. Finance costs declined by 34% to ₹155 million, aided by equity infusion in March 2026. Other income included ₹75.9 million in interest from fixed deposits created using part of this equity infusion. The fact that net profit grew by 38% while EBITDA grew by only 29% implies that reduced finance costs and other income supported the bottom line more than core operations alone.
Historical Stock Returns for Dhoot Transmission
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.03% | +7.72% | 0.0% | 0.0% | 0.0% | 0.0% |
How will Dhoot Transmission's pricing power evolve in Q2 FY27 as it attempts to pass on rising copper and raw material costs to customers?
What specific synergies or revenue contributions are expected from the Multilink acquisition once integration is completed in Q3/Q4 FY27?
Will the rapid growth in EV-related supplies (currently 27% of revenue) continue to outpace the internal combustion engine segment, and how might this shift impact long-term margin profiles?
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