Dhoot Transmission plans April 30 Multilink product move

Dhoot Transmission Limited plans to move 100% of products selected for its new automated Multilink facility in Hosur by April 30, after the first product enters production on February 1, management said during its second-quarter (Q2) financial year (FY) 2027 earnings call on November 3, 2026.

When will Dhoot Transmission complete the Multilink move to Hosur?

Dhoot Transmission expects the first product to enter the new Hosur facility on February 1 and said 100% of products earmarked for the move should be transferred by April 30. Managing Director Rahul Dhoot described the site as a new Multilink facility focused on substantial automation and new products.

The April 30 date is the clearest operational milestone management gave for the Multilink integration during the Q2 FY 2027 call. Management did not disclose the number of products, their production volumes, the investment at the Hosur site, or a separate revenue target for the transfer, so the stated scope is limited to products selected for migration.

The schedule follows Multilink’s contribution of about Rs 160 crore of revenue in Q2 FY 2027. Dhoot Transmission reported 60% year-on-year growth in the quarter, including 44.6% growth in wiring-harness revenue and 124% growth in non-wiring-harness revenue, the segment that includes the acquired Multilink business.

How will Hosur automation affect Multilink profitability?

Dhoot Transmission linked completion of the automated Hosur setup by April 30 to reaching the Multilink profitability outcome management had been discussing. The company did not disclose Multilink’s standalone margin, a cost-saving target from automation, or a quantified timetable for a margin improvement after the transfer.

The acquisition was one factor affecting reported profitability in Q2 FY 2027. Reported earnings before interest, tax, depreciation and amortisation (EBITDA) margin was 14.3%, compared with an organic adjusted EBITDA margin of 15.2%; management said the reported figure also reflected Multilink consolidation and a 0.5-percentage-point employee stock option plan (ESOP) impact.

Management retained its 15% to 16% group EBITDA-margin guidance for coming quarters and said the 15.2% organic adjusted margin was maintained despite a difficult commodity cycle, particularly in September. That is group guidance rather than a Multilink target, as Dhoot Transmission only said integration and automation should improve margins at the acquired business.

Which Multilink products will be made at Hosur?

Dhoot Transmission said the new Hosur facility will serve the Multilink business, while off-board chargers and direct-current to direct-current (DC-DC) converters will have manufacturing setups at both Hosur and Aurangabad. Management therefore did not describe the new facility as the sole production location for either off-board chargers or DC-DC converters.

Management also said a battery setup in Hosur will make off-board chargers, but did not confirm that every product in its presentation would move there. When asked about further Multilink products and customers, management said two or three products were in progress but would not provide details until they materialise into business, potentially at a subsequent investor call.

Multilink has already added a product relationship with Hero MotoCorp, according to Chief Executive Officer, India, Naveen Kumar. He said the product currently supplied to Hero MotoCorp is a Multilink product rather than a wiring harness, while describing other potential opportunities as still at a premature stage.

How does Multilink fit Dhoot Transmission’s capacity expansion?

Dhoot Transmission raised FY 2027 capital-expenditure guidance to around Rs 750 crore after customer demand exceeded earlier expectations. Management said it would commence five additional plants over the next 12 months, comprising accelerated spending on two initial public offering-funded plants, leased facilities in Pune and Chennai, and an additional rented facility in Jhajjar.

The company said electronics and battery components together would account for about Rs 150 crore to Rs 200 crore of capital expenditure, with part of the spending potentially spilling into the first quarter of the following year. It did not provide a split between battery and electronics spending, but said investment would include electronics-manufacturing capability for Multilink and products under development.

Dhoot Transmission said its plants were running at 75% capacity on its planning basis, after operating at 100% in the prior two months during the seasonal two-wheeler period. Management treats 75% as peak capacity for planning because its two-wheeler customers operate at that level for about eight months of the year and at 100% for about four months.

What does the Hosur deadline mean for FY 2027?

The Hosur transfer is scheduled alongside management’s revised FY 2027 growth guidance of 40% to 45%, up from more than 30% previously. Dhoot Transmission said electric-vehicle revenue grew 108% year on year in Q2 FY 2027 and reached 31% of total sales, compared with 27% in the first quarter and 24% in FY 2026.

Management said the expanded capital programme is intended to prepare for customer volume guidance across wiring harnesses for internal-combustion-engine and electric vehicles, battery manufacturing, electronics and Multilink. Dhoot Transmission also said it had started production at two battery manufacturing plants during the first six months, one in South India and one in West India, while its new wiring-harness plant at Chhatrapati Sambhajinagar was running at full capacity.

Dhoot Transmission said copper and other commodity price increases are passed through to customers quarter to quarter. Management estimated copper-price inflation added about 4% to 5% to year-on-year organic growth in Q2 FY 2027 and said it expected the commodity cycle to soften from the current quarter, an expectation rather than a disclosed contractual outcome.

Conclusion

Dhoot Transmission has provided a dated operational plan for Multilink integration: the first product is due at the automated Hosur facility on February 1, and all products selected for the move are expected to transfer by April 30. The timetable matters because Multilink contributed about Rs 160 crore in Q2 FY 2027 and management has connected completed integration with improved profitability, without publishing a standalone margin target.

The next point to watch is whether Dhoot Transmission confirms the April 30 transfer and provides detail on the two or three Multilink products under development. Management’s planned five additional plants over the next 12 months, around Rs 750 crore of FY 2027 capital expenditure and 15% to 16% group EBITDA-margin guidance will also frame the Hosur ramp-up.