Divgi Torqtransfer Systems Limited has informed the Exchange about Transcript
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Divgi TorqTransfer Systems reported FY25 total income of INR240 crores, down 12% year-on-year, impacted by a 29% decline in the transfer case segment. However, the EV transmission segment grew 6% and the components business surged 41%, while export revenue rose from about 1% to 5% of total sales. The company stayed profitable with EBITDA margin of 24.4% and PAT margin of 10.2%, supported by gross margin expansion to 63% from 61%. Q4 FY25 showed recovery, with total income up 12% sequentially to INR64 crores. Management announced a final dividend of INR2.6 per share and is targeting at least 50% growth in the EV segment, INR70 crores in exports, and double-digit export contribution by end of FY26. The company remains net cash, deployed INR27 crores of capex during FY25, and flagged a long-term revenue target of INR1,000 crores driven by new opportunities in automatics, hybrid transmissions and global expansion.
The transcript signals a bottoming-out story with improving order pipeline, export ramp-up and new program wins that could support a recovery in FY26. Short-term, the stock may react positively to Q4 sequential recovery and management confidence, but investors should note the 39% YoY drop in FY25 profits and weak transfer case volumes remain near-term concerns.