Divgi TorqTransfer Systems Reports Record Q3 FY26 Performance with Major Export Orders
Divgi TorqTransfer Systems achieved record Q3 FY26 performance with total income of INR96.3 crores, up 68% YoY. The company secured major export orders totaling 70,000 units from Mahindra and Tata Motors for Indonesian market. Nine-month FY26 income reached INR261.4 crores with 48% growth. Components business delivered exceptional 120% growth driven by exports to global customers.
*this image is generated using AI for illustrative purposes only.
Divgi TorqTransfer Systems Limited delivered exceptional performance in Q3 FY26, achieving its highest ever quarterly total income while securing major export orders that position the company for sustained growth.
Record Financial Performance
The company reported outstanding financial results for Q3 FY26, surpassing its previous best performance from Q2 FY26. Key financial highlights demonstrate strong operational execution across business segments.
| Metric | Q3 FY26 | Q3 FY25 | Growth (%) |
|---|---|---|---|
| Total Income | INR96.3 crores | INR57.5 crores | +68% |
| EBITDA | INR23.4 crores | INR13.6 crores | +72% |
| PAT | INR11.8 crores | INR5.2 crores | +125% |
| EBITDA Margin | 24.3% | - | - |
| PAT Margin | 12.2% | - | - |
For the nine months of FY26, the company achieved total income of INR261.4 crores, marking a robust 48% year-on-year growth from INR176 crores in the corresponding period of FY25. This represents the highest ever nine-month performance in the company's history.
Major Export Order Wins
The company announced significant strategic developments with order confirmations from two key OEM customers for the Indonesian market. Mahindra & Mahindra and Tata Motors have each secured orders for 35,000 pickup trucks, totaling 70,000 units for export to Indonesia.
| Parameter | Details |
|---|---|
| Total Order Volume | 70,000 units |
| Mahindra Scorpio Pickup | 35,000 units |
| Tata Yodha | 35,000 units |
| Production Commencement | Calendar 2026 |
| Primary Execution | FY27 |
| Supplier Status | Exclusive for both OEMs |
Under these exclusive arrangements, Divgi TorqTransfer Systems will serve as the sole supplier of transfer case systems and allied products to both OEMs. This represents a significant milestone in supporting Indian OEMs' global expansion journey and provides strong medium-term volume visibility for the Transfer Case business.
Segment-wise Performance Analysis
Transfer Case Business
The Transfer Case segment delivered strong performance with 58% year-on-year growth in the nine months of FY26. Current quarterly volumes average 13,500 to 15,000 units, with manufacturing capacity of up to 9,000 units per month across two assembly lines.
Components Business - Star Performer
The Components segment emerged as the standout performer, recording impressive growth of over 120% year-on-year in the nine months of FY26. Export revenues reached a quarterly run rate of approximately INR19 crores, compared to negligible levels in FY23.
| Segment Performance | 9M FY26 vs 9M FY25 |
|---|---|
| Transfer Case Growth | +58% |
| Components Growth | +117% |
| EV Transmission Growth | +11% |
| Export Share in Total Income | ~17% |
Global Customer Expansion
The company strengthened its export footprint by commencing supplies to new geographies including Portugal and Europe. Key export customers include BorgWarner and Magna, reflecting growing acceptance within global supply chains.
Strategic Developments and Future Outlook
The company is progressing on multiple strategic initiatives, including engagement with a leading Japanese OEM for transfer case development with SOP expected in the first half of FY28. Additionally, the company has an exclusive distribution agreement with Toyota Tsusho India Private Limited for global market penetration.
Management expressed confidence in achieving the long-term growth aspiration of delivering 12% to 15% CAGR over five years with FY20 as the base year. The company is also evaluating feasibility for establishing a manufacturing footprint in the United States, with preliminary conclusions expected by end of Q1 FY27.
The quarterly revenue run rate is now approaching the range of INR90 crores to INR100 crores, signaling entry into an exciting phase of growth supported by sustainable business strategies and execution capabilities built over recent years.
Source: Divgi TorqTransfer Systems Limited Q3 and 9 months FY2026 Earnings Conference Call Transcript
Historical Stock Returns for Divgi Torqtransfer Systems
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.31% | -9.15% | -12.25% | -5.45% | +40.95% | +4.73% |
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