Dhoot Transmission Q1 FY27: Capacity Expansion, EV Growth and Management Outlook

BY A_ADMIN • FILED 10 Sep 2026, 3:30 PM

Dhoot Transmission Limited expects another strong year of growth as rising vehicle electrification, new customers, product additions, and capacity expansion support its automotive components business.

During its Q1 FY27 earnings call, management highlighted expansion at its Jhajjar and Hosur plants, increasing EV-related revenue, the integration of Multilink, a proposed ADAS joint venture with Ride Vision, and a continuing pipeline of potential acquisitions.

Management also maintained its full-year growth outlook of 25%-30%.

Capacity Expansion Underway at Jhajjar and Hosur

One of the key takeaways from the earnings call is that Dhoot Transmission is already expanding capacity at two manufacturing plants.

Managing Director Rahul Dhoot said expansion is underway at the company’s Jhajjar and Hosur facilities, funded through the IPO proceeds.

The expansion is expected to add approximately 15%-20% to the company’s capacity during the current year.

Management explained that the company deliberately operates at around 75% utilisation during normal periods because customers require significantly higher capacity during the peak season.

During the five-to-six-month peak season around the festive period, customers can operate at close to full capacity. Maintaining spare capacity during the rest of the year therefore allows Dhoot Transmission to handle seasonal demand without creating a capacity constraint.

Why the Capacity Expansion Matters

The expansion becomes particularly important as Dhoot Transmission is seeing strong growth in both its ICE and EV businesses.

The company reported nearly 50% YoY revenue growth in Q1 FY27, while wiring harness revenue increased 44.6% and non-wiring harness revenue rose 67.7%.

Management believes additional capacity will help the company support existing customers while accommodating new products and customer additions.

EV Revenue Contribution Rises to 27%

Electric vehicles are becoming an increasingly important part of Dhoot Transmission’s business.

The company’s EV revenue increased 79% YoY in Q1 FY27, taking EV revenue contribution to 27% of total revenue, compared with 24% in the corresponding period last year.

Management expects this contribution to continue increasing as EV penetration rises.

CFO Nitin Kalani said the company expects EV revenue to account for more than 30%-32% of revenue over the next two to three years.

The company is present across multiple parts of the EV powertrain rather than only battery packs.

Its product portfolio includes:

EV wiring harnesses
Battery pack assemblies
Controllers
Sensors
Switches
Charging-related products
Charging guns
RCDs
Chargers
DC-DC converters
High-voltage and low-voltage harnesses

Management indicated that EV products can provide substantially higher content per vehicle than ICE applications.

For the wiring harness component alone, management said EV content can be approximately 1.5x to 2.5x that of an ICE vehicle, while the overall opportunity can be substantially higher when multiple products are supplied.

Battery Pack Business Expanding

Dhoot Transmission has started supplying battery pack assemblies to another major customer in addition to its existing customer.

Management said supplies to the new customer began during the last month of Q1.

The company is currently focusing on consolidating its position in two-wheeler battery packs and intends to focus on this segment over the next one to two years before considering expansion into areas such as three-wheelers.

The company also said it has an opportunity to cross-sell additional products to customers acquired through its expanded product portfolio.

Multilink Acquisition: Integration and Cross-Selling

The integration of Multilink is progressing, with management expecting full integration to take another three to four months.

The acquisition has expanded Dhoot Transmission’s customer and product base.

Multilink brings a relationship with Hero and products such as:

Fuel level sensors
Relays

Management sees significant cross-selling potential because Multilink does not currently supply many of Dhoot Transmission’s existing customers.

The company expects Multilink to deliver approximately 25%-30% growth, with margins broadly in line with Dhoot Transmission’s overall margin profile.

Multilink contributed approximately 3% to overall revenue growth in Q1, according to management.

Ride Vision JV Could Open ADAS Opportunity

Another important development is the proposed joint venture with Ride Vision, an Israeli company focused on advanced driver assistance systems for two-wheelers.

Dhoot Transmission said the JV formation process is underway.

The companies are targeting two-wheeler ADAS, with products designed to address areas such as:

Blind-spot detection
Front collision-related alerts
Rear collision-related risks
Side-area monitoring

Management said it has already presented the technology to major two-wheeler manufacturers and received strong interest.

The company is positioning the business ahead of potentially stricter safety regulations in India.

While two-wheelers will be the initial focus, management indicated that ADAS technology can potentially be applied across different vehicle segments.

EV Cord Set Business Shows Strong Potential

Dhoot Transmission also highlighted its EV cord set business.

Management said the company has secured approximately 40%-45% share of the business for new EV cord-set programmes expected in the Indian market next year.

This could provide another growth avenue as EV adoption increases.

Management Maintains 25%-30% Growth Outlook

Despite commodity-cost volatility and a potentially tougher comparison in the second half, management remains confident about the company’s growth trajectory.

Dhoot Transmission expects to deliver approximately 25%-30% growth for the full financial year.

Management highlighted several factors supporting the outlook:

Rising vehicle electrification
New customer additions
New product launches
Expansion of the non-wiring harness business
Multilink integration
Growth in EV battery pack assemblies
Increasing EV exports from India
Capacity expansion at Jhajjar and Hosur

However, management also cautioned that the first six months will face a tougher comparison because the GST reduction that supported industry growth last year was implemented during the second half.

EBITDA Margin Guidance at 15%-16%

Management maintained its full-year EBITDA margin guidance at approximately 15%-16%.

Q1 EBITDA margins improved by around 110 basis points sequentially to 15%.

Commodity prices remain an important factor for margins, particularly copper.

Management said most of the copper inflation has already been passed through to customers, although copper prices continued to increase during the recent months.

The company generally operates with a lag of around three months in passing changes in raw-material prices through to customers.

Management expects margin recovery to become more visible if commodity prices eventually soften.

Copper Accounts for 20%-23% of BOM

Copper remains an important raw material for Dhoot Transmission.

Management indicated that copper represents approximately 20%-23% of the company’s bill of materials.

The company has been working on increasing localisation to reduce dependence on imported components.

Management said imported components that previously represented around 30%-35% of components have been reduced to approximately 20%-25%, with the balance increasingly localised.

Acquisition Strategy: Organic Growth First

Dhoot Transmission continues to evaluate acquisitions, with Bain involved in supporting the company’s M&A process.

However, management said the company intends to remain selective.

The stated priority is broadly:

JVs → technology collaborations/organic opportunities → acquisitions

Management said Indian acquisitions would be preferred, while overseas acquisitions would primarily be considered when they provide strategic access to technology or specific sectors.

There is currently no specific passenger-vehicle acquisition that management has announced.

However, the company is in an advanced stage regarding a joint venture for passenger-vehicle high-voltage wiring harnesses, with further information expected in the company’s second earnings call.

Financial Position Strengthened After Equity Infusion

Dhoot Transmission’s financial position has also improved following the equity infusion.

At the end of June, debt stood at approximately ₹220 crore, according to the CFO.

Management indicated that following the subsequent equity infusion, the company moved towards a cash-surplus position, with net cash around ₹1,000 crore at the end of August, subject to minor variations.

The IPO proceeds are therefore expected to provide financial flexibility for capacity expansion, JVs and potentially strategic acquisitions.

Management said an update on utilisation of IPO proceeds will be provided in the next reporting period based on actual utilisation.

Localisation and Backward Integration

Dhoot Transmission is also increasing its backward integration through its subsidiary Dhoot Autocomponents.

The company manufactures cables and connection systems internally rather than relying entirely on bought-out components.

Management said Dhoot Autocomponents handles approximately ₹1,200 crore of business for group companies, much of which represents internal consumption and therefore does not appear as external consolidated sales.

This vertical integration could help the company improve localisation and manage its component supply chain as volumes increase.

Key Investor Takeaways

Dhoot Transmission expects 25%-30% full-year growth.
Q1 FY27 revenue growth was nearly 50% YoY.
EV revenue increased 79% YoY.
EV contribution increased to 27% from 24%.
Management expects EV revenue contribution to exceed 30%-32% over the next 2-3 years.
Jhajjar and Hosur capacity expansion is expected to add 15%-20% capacity this year.
Multilink integration is expected to be completed in approximately 3-4 months.
Multilink is expected to grow around 25%-30%.
EV cord sets have approximately 40%-45% share of new Indian market programmes for next year, according to management.
Ride Vision JV could provide an entry into two-wheeler ADAS.
Full-year EBITDA margin guidance remains 15%-16%.
Copper represents approximately 20%-23% of BOM cost.
Debt was approximately ₹220 crore at June-end, while management indicated net cash of around ₹1,000 crore by end-August following equity infusion.
Management continues to evaluate JVs and acquisitions but remains selective.

What Investors Should Watch Next

For Dhoot Transmission, the most important near-term monitorables are capacity utilisation, EV revenue growth, Multilink integration, raw-material prices and the conversion of new product programmes into revenue.

The proposed Ride Vision JV and passenger-vehicle high-voltage wiring-harness JV could provide additional long-term opportunities, but neither should be treated as a current revenue or order-book commitment until commercial programmes are confirmed.

The company’s ability to maintain 15%-16% EBITDA margins while delivering 25%-30% growth will also be an important factor for investors over the coming quarters.

Source: Dhoot Transmission Limited Q1 FY27 Earnings Conference Call transcript dated September 4, 2026.

Disclaimer: This article is for informational and educational purposes only and should not be considered investment advice. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.