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

Divgi TorqTransfer Systems reported a net profit of ₹252.40 million for the quarter ended June 30, 2026, marking a 183% year-on-year increase from ₹89.29 million in Q1FY26. This significant profitability surge was driven by a 91% jump in revenue from operations, which reached ₹1,371.42 million compared to ₹716.76 million in the prior-year period. The strong top-line growth directly expanded the profit before tax to ₹337.51 million from ₹120.79 million previously, reflecting robust operational leverage and demand for its auto components.

Key Financial Performance

The company's EBITDA for the quarter stood at ₹370 million, compared to ₹141 million in the corresponding period of the previous year, representing a sharp improvement in absolute operating profitability. EBITDA margin expanded meaningfully to 27% from 19.67% year-on-year, underscoring the benefits of operating leverage as revenue scaled. The following table summarises the key financial metrics for the quarter:

Operational efficiency remained stable despite the volume surge. Cost of materials consumed rose to ₹536.26 million from ₹306.33 million, while employee benefit expenses increased to ₹134.77 million from ₹82.72 million. Other income declined slightly to ₹46.22 million from ₹50.94 million, but this was offset by robust core earnings. Earnings per share (basic) stood at ₹8.25, up significantly from ₹2.92 in the corresponding quarter of FY26.

Board Decisions and Dividend

The Board of Directors, meeting on August 11, 2026, approved the unaudited financial results pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Alongside the financial approval, the Board declared a final dividend of ₹3.27 per equity share for FY26. Shareholders holding records on Thursday, September 10, 2026, will be entitled to this dividend and to vote electronically at the 61st Annual General Meeting scheduled for Friday, September 18, 2026.

Corporate Governance and Auditor Appointment

The Board appointed M/s. Kirtane & Pandit LLP, Chartered Accountants (Firm Registration No. 105215W/W100057), as Statutory Auditors for a five-year term. The appointment, recommended by the Audit Committee, commences from the conclusion of the 61st AGM until the 66th AGM, subject to shareholder approval. This appointment follows a conflict of interest that prevented the firm from continuing as internal auditor after FY26. CS Mrunmayee Sathaye of Kanj. And Co. LLP has been appointed as the Scrutinizer for the e-voting process under Regulation 44 of the LODR Regulations.

What the Numbers Show

The primary driver of the financial performance was operational scale rather than margin expansion or one-off gains. Revenue grew at a faster pace (91%) than total expenses (67%), indicating positive operating leverage. The company operates in a single reportable segment, "Auto Components and Parts," suggesting that the entire business unit benefited from this demand surge. Additionally, the company incorporated Divgi Transmission Technologies and Systems Ltd. on June 4, 2026, though it has not yet been consolidated due to incomplete equity subscription agreements as of June 30, 2026.