Divgi Torqtransfer Systems , a leading player in the auto components sector, has reported robust financial results for the first quarter, showcasing significant growth across key financial metrics, underpinned by strong demand in its core segments.

Revenue Growth

The company's total income for Q1 stood at ₹767.70 crore, marking a substantial 29% increase from ₹593.76 crore in the corresponding quarter of the previous year. This growth was primarily driven by a 32% year-on-year rise in revenue from operations, which reached ₹716.76 crore.

Profitability Boost

Divgi TorqTransfer Systems witnessed a remarkable improvement in its profitability metrics:

Segment Performance

The company's growth was driven by strong performances across its key business segments:

1. Transfer Case: Posted a robust 34% year-on-year growth, led by increased volumes from key OEM customers.
2. E-gear Drive Business: Performance was marginally subdued this quarter, with anticipated strong ramp-up in volumes during H2.
3. Component Business: Recorded an impressive 72% year-on-year growth, underpinned by consistent demand for critical components.

Strategic Initiatives and Future Outlook

Jitendra Divgi, Managing Director of Divgi TorqTransfer Systems, commented on the results: "We have continued our strong growth trajectory, with key drivers being volume expansion in the Transfer Case and ramp-up for recent programs in the Components segments. Our export momentum continues to strengthen as we deepen engagement with global Tier I and II customers."

The company is pursuing several strategic initiatives to sustain its growth momentum:

• Secured a contract with a leading Indian OEM worth over ₹800 crore in lifecycle revenue, to be executed over seven years.
• Engaging with multiple OEMs in the EV business, expected to improve capacity utilization in upcoming quarters.
• Pursuing opportunities in Automatic Transmission and Manual Transmission segments, with ongoing negotiations for high-volume commercial truck applications.

Utilization of IPO Proceeds

The company has utilized ₹741.93 crore out of the total ₹1,696.62 crore raised through its Initial Public Offering (IPO). The majority of these funds have been allocated towards funding capital expenditure requirements for purchasing equipment and machinery for manufacturing facilities.

With a strong order book and strategic expansion plans in place, Divgi TorqTransfer Systems appears well-positioned to capitalize on the growing opportunities in the auto components sector, both domestically and internationally.

Divgi Torqtransfer Systems , a prominent player in the auto components and parts sector, has announced its financial results for the first quarter, along with several key corporate decisions.

Robust Financial Performance

The company reported significant year-over-year growth in its Q1 results:

• Revenue from operations surged to ₹716.76 crore, marking a 23.1% increase from ₹582.20 crore in the same quarter last year.
• Net profit rose by 49.8% to ₹89.29 crore, compared to ₹59.61 crore in the corresponding period.
• The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also showed improvement, although the exact figure was not provided.

Dividend Declaration

In a move that will likely please shareholders, the Board of Directors has declared a final dividend of ₹2.60 per equity share. The record date for dividend entitlement has been set as September 8, 2025.

Corporate Governance Updates

Divgi TorqTransfer Systems has made several key appointments to strengthen its corporate governance:

1. Secretarial Auditor: M/s Kanj and Co. LLP, Practicing Company Secretaries, has been appointed for a term of five years, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

2. Internal Auditor: Kirtane & Pandit LLP, Chartered Accountants, has been appointed for a two-year term to conduct internal audits for FY2025-26 and FY2026-27.

3. E-voting Scrutinizer: CS Rucha Kale has been appointed as the scrutinizer for the e-voting process at the forthcoming AGM.

Annual General Meeting

The company's 60th Annual General Meeting is scheduled for September 16, 2025. Shareholders on record as of September 8, 2025, will be eligible to vote on matters presented at the AGM.

IPO Proceeds Utilization

As of June 30, 2025, Divgi TorqTransfer Systems has utilized ₹741.93 crore of its IPO proceeds, with ₹954.69 crore remaining unutilized. The majority of the utilized funds (₹553.59 crore) have been directed towards capital expenditure for purchasing equipment and machinery for manufacturing facilities.

Monitoring Agency Report

ICRA Limited, acting as the Monitoring Agency, has confirmed that there has been no deviation from the stated objectives of the issue. The unutilized funds are currently invested in fixed deposits with scheduled commercial banks.

Jitendra Bhaskar Divgi, Managing Director of Divgi TorqTransfer Systems, commented on the results, saying, "Our strong performance in Q1 reflects the robust demand for our products and our operational efficiency. We remain committed to delivering value to our shareholders and maintaining our growth trajectory."

As Divgi TorqTransfer Systems continues to strengthen its position in the auto components sector, investors and industry observers will be keenly watching the company's performance in the coming quarters.