Divgi TorqTransfer Systems Limited reported a 92% year-on-year increase in profit after tax to ₹46.9 crore for the fiscal year ended March 31, 2026, driven by strong product acceptance and market expansion. Total income rose 56% to ₹375.2 crore, while revenue from operations grew 61% to ₹352.9 crore. The Board of Directors has recommended a final dividend of ₹3.27 per equity share of ₹5.00 each, subject to shareholder approval at the upcoming Annual General Meeting. The Statutory Auditors have issued an unmodified opinion on the audited financial results.

Financial Performance

Operational efficiency improved significantly, with EBITDA growing 58% to ₹92.3 crore and EBITDA margins remaining stable at approximately 24.6%. For the fourth quarter of FY26, revenue stood at ₹1,076.22 million compared to ₹582.20 million in the same period last year, while PAT for the quarter rose to ₹154.81 million from ₹53.52 million year-on-year. Q4 EBITDA surged to ₹216 million from ₹86 million in the year-ago period, with EBITDA margins expanding to 20.1% from 14.75%.

The following table summarises the full-year financial highlights:

The quarterly performance for Q4 is summarised below:

Strategic Initiatives

Divgi TorqTransfer Systems Limited signed a Memorandum of Understanding (MoU) with BITS Pilani to establish a Centre of Excellence for Automotive Transmission Engineering (CREATE). This collaboration aims to focus on next-generation transmission technologies, including EV, automatic, and manual systems. The Board also approved the incorporation of a Wholly Owned Subsidiary in the United States of America with an initial investment of up to ₹3 crore to strengthen its long-term capital base and support business development, sales, and marketing.

Divgi TorqTransfer Systems Limited has approved the incorporation of a wholly-owned subsidiary in the United States of America to drive advanced business development, sales, and marketing. The Board of Directors, in a meeting held on May 25, 2026, sanctioned an initial investment of up to ₹3 crore by way of subscribing to equity shares or other classes of shares. This strategic move aims to strengthen the company's long-term capital base and support working capital expenditure for the new entity.

Investment Details

The Committee of the Board of Directors approved the investment cap of ₹3 crore, which will be disbursed in one or more tranches. The funds are designated to meet set-up costs, initial operational expenses, procurement, and other associated costs. The subsidiary will operate within the automotive industry, focusing on promotion and distribution alongside its primary sales functions.

Regulatory Framework

The incorporation is subject to necessary regulatory approvals under the Foreign Exchange Management Act and regulations from the Reserve Bank of India. Additionally, the entity will require specific licenses from authorities in the United States. The proposed subsidiary will be a related party of Divgi TorqTransfer Systems Limited upon incorporation, with the listed entity holding 100% of the share capital.