Divgi TorqTransfer Systems Limited , a leading player in the auto components sector, has announced robust financial results for the second quarter and first half of fiscal year 2026, demonstrating significant growth across key metrics.

Q2 FY26 Highlights

• Revenue Surge: Total income for Q2 FY26 reached ₹883.35 crore, marking a substantial 49% increase compared to ₹592.09 crore in Q2 FY25.
• Profit Growth: Net profit for the quarter rose to ₹107.49 crore, up 37% from ₹78.43 crore in the same period last year.
• Margin Performance: EBITDA margin stood at 24.9%, while the profit after tax margin was 12.2% for Q2 FY26.

H1 FY26 Performance

For the first half of FY26, Divgi TorqTransfer Systems reported:

• Revenue: Total income of ₹1,651.05 crore, a 39% increase from H1 FY25.
• Profit: Net profit of ₹196.78 crore, up 43% year-over-year.
• Margins: EBITDA margin of 24.9% and PAT margin of 11.9%.

Operational Highlights

The company's growth was primarily driven by:

1. Transfer Case Business: Delivered 42% year-on-year revenue growth, reflecting continued momentum in this segment.
2. Components Business: Exhibited strong performance, particularly in export markets, with a 113% year-on-year growth.
3. E-gear Drive Segment: Remained stable, with growth momentum expected to pick up in H2FY26.

Financial Position

As of September 30, 2025, Divgi TorqTransfer Systems maintained a strong balance sheet with:

• Cash and Cash Equivalents: ₹235.11 crore
• Total Assets: ₹6,890.16 crore
• Total Equity: ₹6,080.87 crore

IPO Fund Utilization

The company reported efficient utilization of its IPO proceeds:

All figures in ₹ crore

Management Commentary

Jitendra Divgi, Managing Director, commented on the results: "We are pleased with our strong performance in Q2 and H1 FY26. Our core transfer case business continues to show robust growth, and we're seeing encouraging traction in our export markets. While the EV segment remained subdued, we anticipate a strong volume ramp-up in H2, supported by deeper integration across multiple EV platforms."

Future Outlook

The company remains optimistic about its growth trajectory, citing:

• Continued strong performance in the transfer case segment
• Expected outperformance in the EV business for FY26
• Ongoing pursuit of opportunities in automatic transmission and manual transmission segments
• Steady growth in the components business, with exports contributing 16% to H1 FY26 revenue

Divgi TorqTransfer Systems Limited's Q2 and H1 FY26 results underscore its strong market position and growth potential in the auto components sector, with a clear focus on innovation and expansion across various product segments.

Divgi Torqtransfer Systems , a leading player in the auto components sector, has reported robust financial results for the second quarter of fiscal year 2026, while also announcing strategic expansions into new market segments.

Q2 FY26 Financial Highlights

The company's performance for the quarter ended September 30, 2025, showcased significant growth:

• Revenue from operations surged to ₹829.69 crore, marking a 53.80% increase year-over-year.
• Total income reached ₹883.35 crore, up 49.20% compared to the same quarter last year.
• Net profit rose to ₹107.49 crore, representing a 37.00% growth from Q2 FY25.

Half-Year Performance

For the first half of FY26, Divgi TorqTransfer Systems reported:

• Revenue from operations of ₹1,546.45 crore, a 43.00% increase from H1 FY25.
• Total income of ₹1,651.05 crore, up 39.20% year-over-year.
• Net profit of ₹196.78 crore, showing a robust 42.60% growth.

Operational Highlights

Jitendra Divgi, Managing Director, commented on the company's performance: "We achieved the highest-ever quarterly revenue in Q2FY26, driven by continued product development and focused marketing initiatives. Our growth was primarily fueled by volume expansion in Transfer Cases and robust performance in the Components Export business."

Strategic Expansion

Divgi TorqTransfer Systems is strategically expanding its product portfolio:

• Entering the EV transmission systems market
• Growing presence in hybrid drivetrain and DCT segments
• Increasing global OEM share
• Focusing on export ramp-up and backward integration for margin expansion

New Business Wins

The company secured significant new business:

• A nomination from a leading Japanese OEM to develop a transfer case for their flagship pickup platform, with production expected to start from FY28.
• A contract with Toyota Tsusho India for transfer case business, valued at approximately ₹62.00 crore in lifecycle revenue, to be executed over 6 years starting from H1FY28.

Future Outlook

Divgi TorqTransfer Systems is well-positioned for future growth:

• Expecting strong volume ramp-up in the EV segment in H2 FY26
• Actively exploring opportunities with additional OEMs in various vehicle categories
• Pursuing Proof of Concept with a leading Indian OEM for an automatic transmission program
• Progressing towards the 20-25% export share target, with potential to double export revenue in FY26

The company's strategic initiatives and strong financial performance indicate a positive trajectory in the evolving automotive landscape, particularly in the growing EV and hybrid vehicle segments.

Balance Sheet Strength

As of September 30, 2025, the company reported:

This solid financial foundation provides Divgi TorqTransfer Systems with the resources to fund its expansion plans and capitalize on emerging opportunities in the auto components sector.