Divgi TorqTransfer Systems filed its Business Responsibility and Sustainability Report (BRSR) for FY26 on August 27, 2026, disclosing a standalone turnover of ₹375.17 crore and a net worth of ₹635.46 crore. The Pune-based automotive drive train component manufacturer reported significant investments in capital expenditure and R&D to support its transition toward electric vehicle (EV) technologies.

The company's operations remain concentrated in India, with four plants and one office located nationally. While it serves customers across five domestic states and three international countries, exports contributed only 18% of total turnover. The firm reported zero safety incidents, including lost-time injuries and fatalities, for both employees and workers during the fiscal year.

Financial and Operational Metrics

Divgi TorqTransfer Systems disclosed substantial spending on research and development alongside increased capital expenditure for the year. The data reflects a shift in investment priorities compared to the previous fiscal year.

What the Numbers Show

Capital expenditure rose sharply to ₹443.16 crore from ₹265.03 crore in FY25, while R&D spending declined to ₹117.94 crore from ₹136.50 crore. This divergence suggests the company is moving from the design phase into heavy implementation or capacity expansion, likely linked to its stated focus on EV transmission components which accounted for 12% of turnover.

Environmental and Social Governance

The company reported total energy consumption of 30,322.21 GJ, with energy intensity per rupee of turnover improving to 80.85 from 85.20 in the prior year. Greenhouse gas emissions were recorded at 5,896.87 tCO2e (Scope 1 and Scope 2 combined), with Scope 2 emissions dominating at 5,778.29 tCO2e. Water withdrawal totaled 22,087 kilolitres, primarily sourced from third parties (19,968 kilolitres) and groundwater (2,119 kilolitres).

Divgi TorqTransfer Systems implemented a Zero Liquid Discharge mechanism across all manufacturing units. Waste management efforts resulted in the recycling of 555.58 metric tonnes of non-hazardous waste, primarily aluminum and steel burr. The company also installed a 400 KW rooftop solar plant to reduce dependence on conventional energy sources.

Workforce and Safety

As of the end of FY26, the company employed 317 permanent employees and engaged 597 non-permanent workers. The workforce is predominantly male, comprising 96.52% of employees and 89.61% of workers. Female representation stood at 3.47% among employees and 10.39% among workers.

Safety metrics remained strong with a Lost Time Injury Frequency Rate (LTIFR) of zero for both employees and workers. The company reported no complaints related to sexual harassment, discrimination, child labor, or forced labor during the reporting period. All permanent employees and workers received training on health and safety measures.

Divgi TorqTransfer Systems has uploaded the transcript of its earnings conference call to its official website. The call was held on Wednesday, August 12, 2026, to discuss the company's standalone unaudited financial results for the quarter ended June 30, 2026 (Q1FY27). Investors and stakeholders can now access the detailed discussion directly via the company's digital platform.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This ensures transparency and allows market participants to review the management's commentary on operational and financial metrics post-event.

Financial Performance Highlights

The company delivered its highest-ever quarterly performance with total revenue of ₹141.8 crore, representing an 85% year-on-year growth from ₹76.8 crore in Q1FY26 and a 25% sequential growth from ₹113.8 crore in Q4FY26. Profit after tax (PAT) stood at ₹25.2 crore, reflecting a 183% year-on-year increase from ₹8.9 crore in the same period last year.

EBITDA for the quarter was ₹41.6 crore, up 118% year-on-year, with margins improving to 29.4% from 24.9% in Q1FY26. The improvement was driven by a favorable product mix, higher contributions from exports, and better margins from 4x4 products. Gross profit margin remained stable at 62.5%, compared to 62.9% in Q1FY26.

Segment and Geographic Breakdown

The transfer case segment contributed significantly to the growth, with revenue increasing 93% year-on-year to ₹76 crore, accounting for 53% of total revenue. The component segment also saw strong performance, with revenue rising 83% to ₹34.4 crore, supported by improved realizations and a higher mix of precision components. Exports contributed approximately 16% of the geographic revenue mix, with absolute export revenues growing to around ₹23 crore for the quarter.

The E-gear drive segment reported revenue of ₹5.7 crore, while other businesses recorded strong growth to ₹21.4 crore from ₹6.5 crore in Q1FY26. Managing Director Jitendra Divgi highlighted that the quarter marks a new phase of corporate journey, with investments in technology and engineering capabilities translating into scale.

Strategic Initiatives and Global Expansion

Management discussed significant progress on global expansion fronts. The company is supporting key OEM customers like Tata and Mahindra in their Indonesia program, which has increased volumes substantially. More than 50% of this business has the potential to become recurring.

Additionally, Divgi TorqTransfer introduced "Project Mayflower," an initiative to establish a manufacturing presence in the United States. The company has set up a wholly-owned subsidiary in Greenville, South Carolina, at the International Center for Automotive Research. The initial phase involves a compact facility with an estimated investment of $5 million, aiming to convert new RFQs into concrete revenue streams. Commissioning is targeted for the second half of calendar 2028.

What the Numbers Show

The surge in PAT (183%) outpaced revenue growth (85%), indicating strong operating leverage. With EBITDA margins expanding by 450 basis points to 29.4%, the company is successfully translating higher volumes into disproportionate profit growth. The diversification into components and exports, alongside the scaling transfer case business, reduces dependency on any single product line or geography.

Accessing the Transcript

The audio file and transcript are hosted on the company's website. Interested parties can listen to the full discussion between analysts and the leadership team by visiting the dedicated earnings call recordings section at divgi-tts.com.

Management Participation

The following executives from Divgi TorqTransfer Systems represented the company during the conference call:

Jitendra Divgi outlined the strategic direction, including the transition from a passenger vehicle player to a broader light vehicle and mobility enterprise. Sudhir Mirjankar addressed the financial performance, highlighting the sustainability of margins and future growth drivers.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE753U01022/0fb4cfc2-1b72-4624-b2c9-fd4a0488aff7.pdf