Dhoot Transmission completes Rs 421.16 crore Multilink deal

Dhoot Transmission Limited completed the Rs 421.16 crore purchase of Multilink’s two- and three-wheeler auto-electrical and electronic-parts business, with its operations included in consolidated results from June 10, 2026. The transaction added switches, relays, chargers, sensors and other electronic products, while the purchase-price allocation remains provisional.

What did Dhoot Transmission acquire from Multilink?

Dhoot Transmission acquired all assets and liabilities relating to Multilink’s business of manufacturing auto-electrical and electronic parts for the two-wheeler and three-wheeler automotive industry. The business transferred through a slump sale, meaning it was acquired as a going concern rather than as separately valued individual assets and liabilities.

The products named in the disclosure are switches, relays, chargers, sensors and other electronic products. The acquired operations sit alongside Dhoot Transmission’s main reported business of automotive wiring harnesses and ancillary components, although the group continues to identify only one reportable operating segment.

Dhoot Automotive Systems Private Limited, a Dhoot Transmission subsidiary, signed the Business Transfer Agreement on April 6, 2026. A Letter Agreement followed on June 6, 2026, and the acquired business’s operations were consolidated from June 10, 2026.

How much did Dhoot Transmission pay for Multilink?

Dhoot Transmission paid cash consideration of Rs 421.16 crore for the Multilink business. The half-year cash-flow statement records a Rs 421.16 crore payment on account of business combination for the half year ended September 30, 2026.

The acquisition payment was lower than the Rs 716.03 crore business-combination payment reported in the comparable half year ended September 30, 2025. The filing does not identify the earlier transaction in this note, so it does not provide a like-for-like assessment of acquisition spending between the two periods.

The Rs 421.16 crore payment was one of the principal investing cash outflows in the latest half year. Dhoot Transmission also spent Rs 298.29 crore on purchases of property, plant and equipment and intangible assets, while it invested Rs 724.35 crore in bank deposits.

Why are Dhoot Transmission’s latest results not comparable?

Dhoot Transmission says the quarter ended June 30, 2026 and the quarter and half year ended September 30, 2026 include Multilink operations from June 10, 2026, making them not comparable with prior periods or years. The disclosure does not quantify Multilink’s separate revenue, profit, assets or cash-flow contribution after that date.

For the half year ended September 30, 2026, consolidated revenue from operations was Rs 3,273.62 crore, compared with Rs 2,103.13 crore a year earlier. Profit for the period was Rs 250.49 crore, compared with Rs 214.48 crore in the previous-year half, but Dhoot Transmission specifically cautions that the acquisition changes the basis for comparison.

The September 2026 quarter produced revenue from operations of Rs 1,827.21 crore, against Rs 1,136.80 crore in the September 2025 quarter. Quarterly profit was Rs 117.82 crore, marginally below Rs 118.23 crore a year earlier, after Rs 54.76 crore of exceptional items in the latest quarter.

What goodwill did Dhoot Transmission recognise on the Multilink purchase?

Dhoot Transmission recognised goodwill on a provisional basis under Indian Accounting Standard 103, Business Combinations, pending finalisation of the purchase-price allocation, or PPA. The company says the PPA will be finalised within the measurement period allowed under Ind AS 103, but it does not disclose a separate goodwill amount attributable solely to Multilink.

Consolidated goodwill was Rs 149.01 crore as at September 30, 2026, compared with Rs 15.11 crore on March 31, 2026. Intangible assets rose to Rs 279.76 crore from Rs 5.05 crore over the same six-month balance-sheet comparison, alongside the acquisition of the business.

Total assets increased to Rs 5,604.01 crore at September 30, 2026 from Rs 4,114.83 crore at March 31, 2026. Within current assets, trade receivables rose to Rs 1,239.10 crore from Rs 793.67 crore and inventories increased to Rs 867.45 crore from Rs 639.22 crore; the filing does not attribute those movements specifically to Multilink.

How did Dhoot Transmission fund the Multilink purchase?

Dhoot Transmission’s half-year financing cash flow included Rs 1,400 crore of proceeds from issuing equity shares, while Rs 52.18 crore of transaction costs were paid on the issue. The company completed its initial public offering and listed on National Stock Exchange of India Limited and BSE Limited on August 17, 2026.

The fresh issue raised Rs 1,400 crore before offer expenses, leaving net proceeds of Rs 1,326.98 crore available for use. As of September 30, 2026, Dhoot Transmission had used Rs 779.65 crore of the net proceeds, including Rs 464.80 crore for repayment or prepayment of borrowings and Rs 301.77 crore for investments in subsidiaries to repay or prepay their borrowings.

The Multilink acquisition predated the August 17 listing and the filing does not state that the Rs 421.16 crore consideration was funded from IPO proceeds. The prospectus allocation includes Rs 410.41 crore for unidentified acquisitions and general corporate purposes, of which none had been used by September 30, 2026.

Conclusion

The Multilink purchase adds a defined range of two- and three-wheeler electrical and electronic products to Dhoot Transmission’s business for Rs 421.16 crore, with operations consolidated from June 10, 2026. Revenue rose to Rs 3,273.62 crore in the September 2026 half year, but the company’s disclosure means that comparison with the Rs 2,103.13 crore prior-year figure should be read with the acquisition timing in mind.

The next disclosed item to watch is finalisation of the provisional purchase-price allocation under Ind AS 103, which will determine the final accounting for goodwill and acquired assets. Investors can also monitor use of the Rs 547.33 crore of unutilised IPO proceeds at September 30, 2026, including Rs 410.41 crore designated for unidentified acquisitions and general corporate purposes.