Divgi Torqtransfer Systems Limited, a leading player in the auto components sector, has announced a significant business win from Toyota Tsusho India Pvt Ltd. The company has received an order confirmation for its transfer case business, marking its first business award from Toyota Tsusho India.

Order Details

The multi-year contract, valued at approximately Rs 62.00 crore in lifecycle revenue, centers on the supply of a transfer case design tailored for a commercial pick-up truck product. This order is set to be executed over a period of 6 years, commencing from the first half of FY28, following product validation and approval.

Strategic Importance

This business award is particularly noteworthy as it opens up potential opportunities with other Japanese OEMs for Divgi TorqTransfer Systems. The order not only demonstrates the company's technical prowess but also its ability to meet the exacting standards of global automotive players.

Technical Challenges

The project comes with its own set of technical challenges, including:

• Integration of Divgi TTS's state-of-the-art synchronizer technology
• Compatibility with In-Vehicle Networking (IVN)
• Meeting superior Noise Vibration Harshness (NVH) standards of Japanese OEMs
• Integration with both manual and automatic transmissions

Management Commentary

Jitendra Divgi, Managing Director of Divgi TorqTransfer Systems Limited, expressed his views on this achievement:

"We are honoured to receive this business nomination for our core transfer case. This achievement reflects Toyota Tsusho India's confidence in our latest generation product. It also opens doors for converting opportunities from other Japanese OEMs into business nominations for Divgi India."

Company Background

Divgi TorqTransfer Systems Limited, established in 1964, has over 50 years of industry experience. The company is known for its innovative technologies in 4-wheel drive systems, automatic and manual transmissions. It serves major OEMs including Mahindra and Mahindra, Tata Motors, BorgWarner, Toyota Kirloskar, and Force Motors, among others.

Financial Performance

In its recent financial results for Q2 FY26, Divgi TorqTransfer Systems reported:

The company has shown consistent growth, with a focus on expanding its product offerings and increasing its market share with existing and new customers.

This new order from Toyota Tsusho India aligns with Divgi TorqTransfer Systems' strategy of sustainable growth through increased product offerings, wins with new customers, and an expanded export business share.

As the automotive industry continues to evolve, Divgi TorqTransfer Systems appears well-positioned to capitalize on emerging opportunities in the transfer case and drivetrain solutions market.

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.