Divgi TorqTransfer Systems Limited , a leading manufacturer of automotive drivetrain systems, has reported a strong financial performance for the second quarter. The company's net profit surged 38% year-over-year to 108 million rupees, up from 78 million rupees in the same period last year.

Revenue Growth and Operational Performance

The company's revenue increased significantly to 830 million rupees, marking a 54% rise from 540 million rupees in the corresponding quarter of the previous year. This substantial growth in revenue was primarily driven by continued product development and focused marketing initiatives.

Improved EBITDA

Divgi TorqTransfer Systems saw its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rise to 166 million rupees, compared to 113 million rupees in the corresponding quarter of the previous year. This represents a robust 47% increase in EBITDA.

Margin Performance

Despite the strong growth in revenue and EBITDA, the company experienced a slight decline in its EBITDA margin. The EBITDA margin stood at 19.98%, compared to 21.02% in the same quarter last year. This marginal decrease in margin could be attributed to changes in the product mix or increased input costs.

Key Growth Drivers

The company's performance was bolstered by several factors:

1. Volume expansion in Transfer Cases
2. Robust performance in the Components Export business

Business Segment Updates

Transfer Case Business

• Delivered 42% year-over-year revenue growth
• Growth driven by higher volumes from a key OEM customer
• A volume-led price correction occurred during the quarter as volumes crossed the agreed threshold, indicating sustained demand and long-term volume visibility
• Performance supported by rising adoption of 4WD systems and successful launch of new customer models

E-gear Drive Business

• EV vehicle sales in the market remained subdued
• Stable volumes in line with the previous quarter
• Growth momentum expected to pick up in the second half with commencement of production and supply for the Sigma platform to a key customer

Component Business

• Export markets remained encouraging despite global uncertainties
• High volume offtake drove a 113% year-over-year growth in this segment
• Exports contributed 16% of first-half revenue, progressing towards the medium-term target of 20-25%

New Business Win

Divgi TorqTransfer Systems has secured a significant order from Toyota Tsusho India for its transfer case business. The multi-year contract, valued at approximately 62 crore rupees in lifecycle revenue, is for supplying transfer cases designed for a commercial pick-up truck product for India and international markets. The order will be executed over six years, commencing from the first half after product validation and approval.

Management Commentary

Jitendra Divgi, Managing Director of Divgi TorqTransfer Systems Limited, commented on the results and new business win: "We are honored to receive this business nomination for our core transfer case from Toyota Tsusho India. This achievement will also open doors for converting opportunities from other Japanese OEMs into business nominations for Divgi India. Our company's superior technical capabilities have helped us acquire many such orders in the past, and as the market grows, we are well-positioned to win many more in the coming years."

Outlook

The company remains optimistic about its growth prospects, citing a strong and visible order book from existing OEMs in the transfer case segment. Divgi TorqTransfer Systems is also actively exploring opportunities with additional OEMs in passenger vehicles and adjacent vehicle categories to enhance capacity utilization and diversify exposure in its EV business.

With its strong financial performance, new business wins, and strategic focus on expanding its product portfolio and market reach, Divgi TorqTransfer Systems appears well-positioned for sustained growth in the automotive drivetrain market.

Divgi Torqtransfer Systems has announced key dates for its upcoming dividend distribution and Annual General Meeting (AGM). The company has set September 8, 2025, as the record date for determining shareholder eligibility to receive the final dividend for the fiscal year 2024-25.

Dividend Details

The Board of Directors has approved a final dividend of ₹2.60 per equity share for FY 2024-25. Shareholders whose names appear on the company's register as of the record date will be entitled to receive this dividend payment.

Important Dates

Corporate Actions

The company has taken these steps in compliance with Section 108 of the Companies Act, 2013, and Rule 20 of the Companies (Management and Administration) Rules, 2014. The announcement was made through a regulatory filing to both the BSE Limited and the National Stock Exchange of India Limited.

Investor Relations

In a separate announcement, Divgi TorqTransfer Systems also disclosed its participation in an upcoming investor conference:

The company stated that this investor meeting will focus on discussing the overall business situation, and no Unpublished Price Sensitive Information (UPSI) is intended to be shared during the event.

Divgi TorqTransfer Systems, with its Corporate Identification Number (CIN) L32201MH1964PLC013085, is headquartered at 75, General Block, MIDC, Bhosari, Pune 411 026, India. Investors and stakeholders can find more information on the company's website at www.divgi-tts.com .

Shareholders and potential investors are advised to take note of these important dates and events as they may impact their investment decisions.