Dhoot Transmission Q1 FY27: Growth Surges, EV Mix Rises, Margins Track Commodity Cycles

Dhoot Transmission Limited reported a strong start to FY27, with consolidated revenue from operations of INR 1,446.4 crore in Q1 FY27, up 49.7% year on year. EBITDA rose 29.0% to INR 218.4 crore, while the EBITDA margin stood at 15.1%. Profit after tax came in at INR 132.7 crore, a 37.8% increase over the same quarter last year.

The quarter was also the company’s first earnings call after listing. Management attributed the strong revenue performance to robust demand in the Indian two-wheeler and three-wheeler market, along with continued traction in electrification-linked products. At the same time, it was candid about margin pressure from commodity timing lags and higher labour costs.

A quarter led by scale-up in both wiring and non-wiring businesses

In the earnings call, the company provided an explicit split of revenue between its wiring harness and non-wiring harness businesses.

Wiring harness revenue in Q1 FY27 was about INR 1,090 crore, compared with INR 753 crore in Q1 FY26. Non-wiring harness revenue was INR 358 crore in Q1 FY27, up from INR 213 crore in Q1 FY26. Management noted that wiring harness revenue grew 44.6% year on year, while non-wiring growth was higher at 67.7%.

Electrification continued to lift the mix. EV-related supplies increased 79.2% year on year and formed 27% of consolidated revenue in Q1 FY27, up from 24% in the prior year. Management linked this trend to higher content per electric vehicle, noting that electric two-wheelers typically require both low voltage and high voltage wiring systems. On the call, the company stated that wiring harness content can be 1.5 times to 2.5 times higher for electric vehicles than for internal combustion engine vehicles.

Margins: improving sequentially, but still exposed to copper and labour timing

While EBITDA grew year on year, margins did not. The EBITDA margin of 15.1% was down from 17.5% in Q1 FY26 but improved from 14.0% in Q4 FY26. Management attributed the year-on-year margin decline mainly to input cost timing and higher labour costs.

The company stated that copper and other raw material price increases are not fully passed on to customers in the quarter they are incurred and that there is generally a time lag. In the question and answer session, management described this as a normal part of customer commercial arrangements, often with roughly a three-month lag. It also quantified copper exposure, stating that copper represents about 20% to 23% of the bill of materials.

Despite the near-term variability, the management maintained its full-year EBITDA margin guidance of 15% to 16%. It also indicated that if commodity prices stabilize, the recovery from earlier increases may take time to flow through.

Below the operating line, depreciation and amortisation rose to INR 39.6 crore, up 49.5% year on year, which the company linked to higher capitalisation and the partial-quarter impact of the Multilink acquisition. Finance costs declined to INR 15.5 crore from INR 23.5 crore, reflecting working capital debt optimization following the March 2026 equity infusion.

Multilink acquisition and EV expansion: near-term integration, medium-term cross-sell

A key corporate development in the quarter was the acquisition of Multilink, with control gained on June 11, 2026. The company said most of the consideration was paid in June, with the balance paid in July or August. Integration is in progress and is expected to be completed by Q3 or early Q4.

On the earnings call, management clarified that Multilink contributed about 3% to overall revenue growth in the quarter. It also stated that within the non-wiring harness business growth, about 10% to 12% was contributed by Multilink for the approximately 20-day consolidation period.

Strategically, Multilink adds a new customer relationship (Hero) and expands the product suite with fuel level sensors and relays. Management highlighted cross-selling opportunities because Multilink does not supply to many of Dhoot’s existing customers. It expects Multilink to deliver 25% to 30% growth and believes margins should align with Dhoot’s margin profile once integration is complete.

Alongside this, Dhoot Transmission is widening its EV-related offering beyond wiring harnesses. Management discussed battery pack assembly supplies, noting that the company has added a second customer and started supplies during Q1 FY27, though only for one month in the quarter. It also noted that it is currently prioritizing consolidation in two-wheeler battery packs for the next one to two years.

The company did not disclose detailed economics for battery packs, stating that it cannot provide exact break-ups due to customer concentration. However, it described the operational scope of its assembly work, including integration of multiple components and in-house manufacturing activities.

On new growth areas, management also spoke about its collaboration with Ride Vision, indicating it is in the process of forming a joint venture for two-wheeler advanced driver assistance systems. It described the solution as addressing blind spots and collision risks, and said it has presented to major two-wheeler original equipment manufacturers and received good interest. Management also noted that adoption may be influenced by the pace of future safety regulation.

Finally, on capacity, management stated that IPO proceeds are being used to expand two plants, one in Jhajjar and one in Hosur. The company expects these to add about 15% to 20% capacity during FY27, and indicated that utilization cannot be pushed materially beyond mid-70% levels because customers can require 100% output during peak seasonal months.

Takeaways for investors

Q1 FY27 shows Dhoot Transmission scaling quickly across both wiring harness and non-wiring businesses, with electrification becoming a larger share of revenue. EV-related supplies now account for 27% of consolidated revenue, and management expects this to exceed 30% to 32% in the next two to three years, subject to EV penetration.

At the same time, the quarter reiterates that margins are sensitive to commodity cycles and pass-through timing. With copper comprising 20% to 23% of the bill of materials and price increases passed through with a lag, quarterly margins can fluctuate even when demand is strong. Management’s 15% to 16% full-year EBITDA margin guidance will be a key marker as volumes rise and integration costs normalize.

The Multilink acquisition, capacity expansion in Jhajjar and Hosur, and the Ride Vision initiative provide clear strategic milestones for FY27. The next few quarters should clarify how quickly integration completes, how cross-selling ramps, and whether new EV and safety-related initiatives translate into material, repeatable revenue.