Divgi Torqtransfer Systems Limited has informed the Exchange about Transcript
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Divgi TorqTransfer Systems reported its highest-ever quarterly total income of Rs. 76.8 crore in Q1 FY26, up 29% year-on-year and 20% sequentially. EBITDA grew 37% YoY to Rs. 19.1 crore with margin expanding 148 bps to 24.9%, and PAT rose 50% YoY to Rs. 8.9 crore, with PAT margin at 11.6%. Transfer cases grew 34% YoY on strong OEM offtake, Components surged 72% YoY led by exports, while EV Transmission declined 9% YoY with a recovery expected in H2 FY26. Management guided to a 20% incremental EBITDA convention, and confirmed that exit quarterly run rate could be in the Rs. 90-100 crore range. Export contribution is targeted to double in FY26, with long-term CAGR guidance of over 15% over 3-4 years.
Strong all-round Q1 performance with record revenue, healthy margin expansion, and clear growth visibility across segments should support positive sentiment. Key catalysts ahead include the Rs. 800+ crore 7-year global vehicle program starting H2 FY27, ramp-up in EV volumes, and new component programs worth up to Rs. 90 crore annually. Investors should watch for sustained margin expansion as capacity utilization improves and US tariff-related risks which management is proactively addressing through potential local manufacturing.