Dhoot Transmission Q1 FY27: Growth accelerates as EV revenue mix rises to 27%

Dhoot Transmission reported a strong start to FY27, with revenue from operations rising 49.7% year on year to 1446.4 crore in Q1 FY27. Profitability also improved in absolute terms, although margins compressed. Consolidated EBITDA came in at 218.4 crore, up 29.0% year on year, translating into an EBITDA margin of 15.1% versus 17.5% in Q1 FY26. Profit after tax increased 37.8% year on year to 132.7 crore.

The quarter reflected two clear themes the company highlighted repeatedly: continued outperformance versus underlying two-wheeler and three-wheeler growth, and a steady shift in the business towards electrification-led content growth. The company stated that its EV revenue grew 79.2% year on year in Q1 FY27, lifting EV contribution to 27% of total revenue, up from 24% in FY26.

Q1 FY27 performance in context

Dhoot Transmission attributes a meaningful part of its growth to the underlying industry backdrop. The presentation cited SIAM data showing two-wheeler EV production nearly doubling year on year in the quarter (from 206 thousand to 400 thousand), while internal combustion engine volumes also rose (from 5694 thousand to 6847 thousand). Three-wheeler production growth was even sharper in the company’s data, with EV volumes rising from 18 thousand to 39 thousand and internal combustion engine volumes increasing from 238 thousand to 318 thousand.

Against this backdrop, the company stated its wiring harness business revenue increased 44.6% year on year, which it described as ahead of industry growth. It also highlighted that non-wiring harness revenue rose 67.7% year on year, and excluding the impact of Multilink, the growth was 55.0% year on year. While the presentation did not provide absolute segment revenues for the quarter, it positioned electrification as a key growth driver for both wiring harnesses and the non-wiring harness portfolio.

Revenue mix signals: customers, vehicle types, and EV share

The company provided a broad snapshot of Q1 FY27 revenue mix across several dimensions. By geography, India contributed 92% and overseas 8%. By drive-train, internal combustion engine-led programs contributed 63%, EV contributed 27%, and others 10%. By vehicle type, two-wheelers were 22%, three-wheelers 11%, and the balance 67% was classified as others.

Customer concentration remains notable. In Q1 FY27, Customer 1 contributed 31% of revenue and Customer 2 contributed 21%. The top three customers together accounted for 63%, while the rest was split between Customer 4 (5%), Customer 5 (3%), the next five customers (9%) and others (20%). The presentation also provided a customer mix example that included Bajaj at 32%, TVS at 20% and Honda at 11% (for a separate revenue mix slide), indicating the company’s strong linkage to large Indian two-wheeler original equipment manufacturers.

Portfolio evolution beyond wiring harnesses

A key longer-term shift in Dhoot Transmission’s strategy is a gradual expansion beyond wiring harnesses. The company’s FY24 to FY26 revenue mix by product shows wiring harnesses declining from 82% in FY24 to 77% in FY26, while others increased from 18% to 23%. With FY26 revenue from operations at 4525.0 crore, this implies wiring harness revenue of about 3484.3 crore and other products at about 1040.8 crore in FY26.

The company described its electrical and electronics product suite as being about 95% EV-focused or powertrain-neutral. Beyond wiring harnesses, the portfolio includes battery packs, sensors and electronic controllers, and automotive switches. It also highlighted backward integration into critical components such as terminals, connectors, and cables, positioning this as a way to reduce procurement overhead, secure supply, and strengthen competitiveness in request for quotation (RFQ) wins through reliable launches.

Multilink acquisition: integration timeline is the key near-term variable

The most important corporate development highlighted for Q1 FY27 was the Multilink acquisition. The company stated it gained control on 11 June 2026, paid the majority of consideration in June, and paid the balance in July and August. Integration is underway and management indicated it is likely to be completed by the end of Q3 or early Q4.

While the presentation does not quantify Multilink’s financial contribution yet, it repeatedly references growth metrics both with and without Multilink’s impact. For investors, the key will be whether the company can complete integration within the indicated timeline and translate the acquisition into sustained growth in non-wiring harness categories.

Financial foundations: growth, profitability, and cash position

Looking beyond the quarter, the company’s three-year historical financials show strong top-line growth with some margin compression. Revenue rose from 2797.7 crore in FY24 to 3444.9 crore in FY25 and 4525.0 crore in FY26. EBITDA rose from 512.4 crore to 591.0 crore to 711.0 crore, but EBITDA margin declined from 18.3% in FY24 to 15.7% in FY26. PAT increased from 298.7 crore in FY24 to 396.8 crore in FY26.

Balance sheet data shows a sharp rise in cash and cash equivalents to 1084.3 crore in FY26 from 46.4 crore in FY25. The company also disclosed net debt to EBITDA at -0.3 in FY26 compared to 1.3 in FY25, indicating a net cash position by FY26. The cash flow statement reflects a net increase in cash of 998.3 crore in FY26, driven by financing cash flows of 1912.3 crore and investing outflows of 1261.7 crore.

What to track next

The presentation makes it clear that Dhoot Transmission is positioning itself as a beneficiary of electrification, premiumization, automation and safety, and connected vehicles. The near-term operational focus is the Multilink integration, with a stated completion target of end Q3 or early Q4. At the same time, investors should track whether the company can stabilize margins as revenue scales, given the year-on-year EBITDA margin decline in Q1 FY27.

With EV revenue now at 27% of Q1 FY27 revenue and the company building out adjacent electrical and electronics products, the next few quarters should clarify whether this growth is translating into a more diversified and resilient earnings profile.