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.

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.