Divgi TorqTransfer Systems Achieves Record Q2 Revenue, Secures Major Global Contract

Divgi TorqTransfer Systems , a leading player in the automotive drivetrain industry, has reported significant growth in its Q2 FY26 performance and secured a strategic nomination for a global pickup truck platform, marking a milestone in the company's international expansion efforts.

Record-Breaking Financial Performance

Divgi TorqTransfer Systems achieved its highest ever quarterly revenue of INR 88.30 crores in Q2 FY26, representing a robust 49% year-on-year growth. The company's financial highlights for H1 FY26 include:

Metric	H1 FY26	YoY Growth
Total Income	INR 165.10 crores	39%
EBITDA	INR 41.00 crores	35%
PAT	INR 19.70 crores	43%

The company's gross margins expanded by 119 basis points to 63% in H1 FY26, driven by higher volumes and a favorable sales mix with increased contribution from high-margin component exports.

Strategic Global Nomination

In a significant development, Divgi TorqTransfer Systems has secured a strategic nomination from a leading Japanese OEM through Toyota Tsusho for transfer-case development on a global pickup truck platform. This nomination, with production starting in H1 FY28, represents a major milestone in the company's international expansion strategy.

Jitendra Divgi, Managing Director of Divgi TorqTransfer Systems, emphasized the historic nature of this achievement, stating, "This is a watershed moment in the history of India's automotive industry. No Indian company has previously opened up an opportunity with its own proprietary product technology on European, Japanese, American, or Korean platforms."

The company's proprietary technology for this project has reduced the weight of the transfer case from 45 kilograms to 32 kilograms while preserving the electronic circuitry and in-vehicle networking through the Japanese ECU.

Export-Led Growth

Exports have emerged as a significant driver of growth for Divgi TorqTransfer Systems:

Export contribution increased to 16% of total income in H1 FY26
Q2 FY26 saw exports contribute over 20% to total revenue
The company is progressing well towards its medium-term export target of 20-25%

The components segment, primarily export-driven, grew by 113% in H1 FY26 compared to the same period last year.

Future Outlook

Divgi TorqTransfer Systems remains focused on expanding its global presence and enhancing its product portfolio. The company is actively collaborating with leading OEMs on upcoming platforms and evaluating the feasibility of establishing a manufacturing footprint in the U.S. market.

In the EV transmission segment, while current performance remains muted, the company expects a ramp-up in the second half of FY26, supported by stronger customer offtake and deeper integration across newer EV platforms.

As Divgi TorqTransfer Systems continues to strengthen its position in the global automotive market, investors and industry observers will be keenly watching its progress in capitalizing on these new opportunities and maintaining its growth momentum.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.95%	-2.09%	-2.87%	-1.31%	-7.05%	-3.87%

Divgi Torqtransfer Systems Limited, a leading player in the auto components sector, has announced a significant business win from Toyota Tsusho India Pvt Ltd. The company has received an order confirmation for its transfer case business, marking its first business award from Toyota Tsusho India.

Order Details

The multi-year contract, valued at approximately Rs 62.00 crore in lifecycle revenue, centers on the supply of a transfer case design tailored for a commercial pick-up truck product. This order is set to be executed over a period of 6 years, commencing from the first half of FY28, following product validation and approval.

Strategic Importance

This business award is particularly noteworthy as it opens up potential opportunities with other Japanese OEMs for Divgi TorqTransfer Systems. The order not only demonstrates the company's technical prowess but also its ability to meet the exacting standards of global automotive players.

Technical Challenges

The project comes with its own set of technical challenges, including:

Integration of Divgi TTS's state-of-the-art synchronizer technology
Compatibility with In-Vehicle Networking (IVN)
Meeting superior Noise Vibration Harshness (NVH) standards of Japanese OEMs
Integration with both manual and automatic transmissions

Management Commentary

Jitendra Divgi, Managing Director of Divgi TorqTransfer Systems Limited, expressed his views on this achievement:

"We are honoured to receive this business nomination for our core transfer case. This achievement reflects Toyota Tsusho India's confidence in our latest generation product. It also opens doors for converting opportunities from other Japanese OEMs into business nominations for Divgi India."

Company Background

Divgi TorqTransfer Systems Limited, established in 1964, has over 50 years of industry experience. The company is known for its innovative technologies in 4-wheel drive systems, automatic and manual transmissions. It serves major OEMs including Mahindra and Mahindra, Tata Motors, BorgWarner, Toyota Kirloskar, and Force Motors, among others.

Financial Performance

In its recent financial results for Q2 FY26, Divgi TorqTransfer Systems reported:

Metric	Amount (in million Rs)
Revenue from operations	829.69
Total income	883.35
Net profit	107.49

The company has shown consistent growth, with a focus on expanding its product offerings and increasing its market share with existing and new customers.

This new order from Toyota Tsusho India aligns with Divgi TorqTransfer Systems' strategy of sustainable growth through increased product offerings, wins with new customers, and an expanded export business share.

As the automotive industry continues to evolve, Divgi TorqTransfer Systems appears well-positioned to capitalize on emerging opportunities in the transfer case and drivetrain solutions market.