Dhoot Transmission Q2 revenue rose 61%, reported PAT flat

Dhoot Transmission Limited reported Q2 FY27 revenue from operations of Rs 1,827.2 crore, up 60.7% year on year, but reported profit after tax, or PAT, was broadly unchanged at Rs 117.8 crore after Rs 54.8 crore of exceptional items. Adjusted PAT rose 30.4% to Rs 161.5 crore after excluding specified management-fee and initial public offering, or IPO, costs.

How fast did Dhoot Transmission's Q2 FY27 revenue grow?

Dhoot Transmission's consolidated revenue from operations grew 60.7% year on year and 26.5% quarter on quarter to Rs 1,827.2 crore in Q2 FY27. The comparison is against Rs 1,136.8 crore in Q2 FY26 and Rs 1,446.4 crore in Q1 FY27, showing that sales increased both annually and sequentially in the quarter ended September 30, 2026.

India business revenue increased 65% year on year, compared with 12% growth in the global business, according to Dhoot Transmission. Revenue from electric-vehicle, or EV, related supplies rose 108% year on year and represented 31% of consolidated revenue in Q2 FY27, making EV supplies a disclosed part of the quarter's sales mix.

The Q2 FY27 outcome followed growth across geographies and drive-train types, Dhoot Transmission said. Managing Director Rahul Dhoot attributed the performance to robust Indian two- and three-wheeler automotive markets and faster electrification, and said the EV battery business had added a customer during the period.

Why did Dhoot Transmission's EBITDA margin decline despite sales growth?

Dhoot Transmission's reported earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 30.5% to Rs 261.8 crore, but its EBITDA margin declined to 14.3% from 17.6% in Q2 FY26. The 330-basis-point decline, with one basis point equal to one-hundredth of a percentage point, occurred while revenue rose 60.7% year on year.

Dhoot Transmission attributed the margin movement to a timing lag in raw-material cost recovery, manpower investments for growth and dilution from Multilink. It said copper and other raw-material price increases are not fully passed to customers in the quarter in which they arise and are expected to be recovered in subsequent quarters, subject to commodity prices.

The reported margin also decreased by 83 basis points from 15.1% in Q1 FY27, although EBITDA increased 19.9% sequentially from Rs 218.4 crore. Dhoot Transmission reported an adjusted organic EBITDA margin of 15.2% for Q2 FY27, excluding Multilink and employee stock option plan, or ESOP, costs.

Multilink generated revenue of Rs 161.5 crore and EBITDA of Rs 16.8 crore in Q2 FY27, equivalent to a 10.4% EBITDA margin. Its disclosed margin was below Dhoot Transmission's 14.3% reported consolidated margin, while the company separately identified Multilink as a contributor to consolidated margin dilution.

What held Dhoot Transmission's reported PAT flat in Q2 FY27?

Dhoot Transmission's reported PAT was broadly flat because exceptional items increased to Rs 54.8 crore in Q2 FY27 from Rs 7.3 crore in Q2 FY26. Reported PAT was Rs 117.8 crore, down 0.3% from Rs 118.2 crore a year earlier, despite profit before tax increasing 30.6% to Rs 211.6 crore.

The company said the quarter included non-recurring management fees of Rs 45 crore and IPO and listing expenses incurred in connection with its public offer of equity shares. Part of the IPO and listing expenses was charged to the statement of profit and loss, and Dhoot Transmission classified these costs as exceptional items without providing a separate amount for that component.

Adjusted PAT rose 30.4% year on year to Rs 161.5 crore from Rs 123.8 crore in Q2 FY26. Dhoot Transmission defines adjusted PAT as excluding management fees and IPO expenses charged to profit and loss while retaining all other items, meaning the adjusted measure differs from reported PAT of Rs 117.8 crore.

Depreciation and amortisation increased 66% year on year to Rs 50.5 crore from Rs 30.4 crore, which Dhoot Transmission linked to higher capitalisation, the Multilink acquisition and lease amortisation. Finance cost declined to Rs 14.9 crore from Rs 22.8 crore, while other income included Rs 10.5 crore of interest on fixed or term deposits created using part of the March 2026 equity infusion.

What do Dhoot Transmission's cash position and Multilink plans show?

Dhoot Transmission reported net cash and bank balances of Rs 903.7 crore at September 30, 2026, excluding lease effects. Leases classified as debt amounted to Rs 148.7 crore, and the company said finance costs declined after it repaid most term debt and working-capital loans using primary equity raised in its August 2026 IPO.

The financing change is reflected in finance cost of Rs 14.9 crore in Q2 FY27, compared with Rs 15.5 crore in Q1 FY27 and Rs 22.8 crore in Q2 FY26. Dhoot Transmission also said Rs 10.5 crore of other income in Q2 FY27 was interest on deposits funded with a portion of the March 2026 equity infusion.

Dhoot Transmission said Multilink integration was under way and likely to be completed by Q4. Multilink's Q2 FY27 revenue of Rs 161.5 crore broadened the group's products and customers beyond wiring harnesses, according to management, while its Rs 16.8 crore EBITDA was included in consolidated results.

Management said Dhoot Transmission would continue to invest in capacity and technology in stages, ahead of customer demand and against validated customer programmes. The release does not provide a rupee capital-expenditure target or a revenue target for Q4 FY27.

Conclusion

Dhoot Transmission's Q2 FY27 results combined 60.7% revenue growth to Rs 1,827.2 crore with a 0.3% decline in reported PAT to Rs 117.8 crore. India business growth of 65%, EV-supply growth of 108% and Rs 161.5 crore of Multilink revenue expanded sales, while raw-material recovery timing, growth-related manpower spending and Multilink dilution coincided with a lower reported EBITDA margin.

The next disclosed items to watch are the expected recovery of raw-material price increases in subsequent quarters, subject to commodity prices, and the planned completion of Multilink integration by Q4. Dhoot Transmission's staged capacity and technology investments against validated customer programmes are also relevant to its 15.2% adjusted organic EBITDA margin in Q2 FY27.