Dhoot Transmission Limited Q2 revenue rises 61%, profit flat

Dhoot Transmission Limited reported consolidated revenue from operations of Rs 182.7205 crore for the quarter ended September 30, 2026, up 60.7% from Rs 113.6800 crore a year earlier, while profit for the period slipped 0.3% to Rs 11.7824 crore after exceptional items increased to Rs 5.4761 crore.

How fast did Dhoot Transmission’s Q2 revenue grow?

Dhoot Transmission’s revenue from operations rose 60.7% year on year to Rs 182.7205 crore in the quarter ended September 30, 2026, from Rs 113.6800 crore in the quarter ended September 30, 2025. Revenue also increased 26.3% from Rs 144.6415 crore in the preceding quarter ended June 30, 2026. Total income, including other income, reached Rs 184.2336 crore, compared with Rs 115.2511 crore a year earlier.

For the half year ended September 30, 2026, revenue from operations increased 55.7% to Rs 327.3620 crore from Rs 210.3128 crore in the corresponding previous half year. Dhoot Transmission identifies automotive wiring harness and ancillary components as its sole reportable operating segment, so the filing does not provide sales by product, customer or geography. The company also said the 2026 periods include Multilink operations from June 10, 2026, making comparisons with earlier periods not comparable.

Why did Dhoot Transmission’s Q2 profit remain flat?

Dhoot Transmission’s profit remained broadly flat because exceptional items rose by Rs 4.7434 crore year on year, absorbing most of the Rs 4.9596 crore increase in profit before exceptional items and tax. Profit before exceptional items and tax rose 30.6% to Rs 21.1619 crore, but exceptional items reached Rs 5.4761 crore, compared with Rs 0.7327 crore in the September 2025 quarter. Profit for the period consequently declined to Rs 11.7824 crore from Rs 11.8232 crore.

The September-quarter exceptional items comprised Rs 4.5041 crore of advisory and consultancy services and Rs 0.9720 crore of initial public offering expenses. Dhoot Transmission said the advisory and consulting work included business strategy and restructuring, plus financial and operational guidance from Bain Capital Advisors (India) Private Limited. The company classified those expenses as exceptional because of their non-recurring and strategic nature, while the other charge related to listing its equity shares.

Dhoot Transmission’s equity shares were listed on the National Stock Exchange of India Limited and BSE Limited on August 17, 2026. The half-year exceptional-item charge was Rs 5.7761 crore, against Rs 1.0286 crore in the corresponding 2025 period. Despite the higher charge, half-year profit rose 16.8% to Rs 25.0494 crore from Rs 21.4482 crore because revenue expanded by Rs 117.0492 crore.

Which costs increased in Dhoot Transmission’s Q2?

Dhoot Transmission’s total expenses increased 64.6% year on year to Rs 163.0717 crore in the September 2026 quarter, a faster increase than the 60.7% rise in revenue. Cost of materials consumed grew to Rs 131.8245 crore from Rs 77.3248 crore, employee-benefit expense rose to Rs 13.2893 crore from Rs 9.0871 crore, and other expenses increased to Rs 18.5232 crore from Rs 11.2462 crore.

Depreciation and amortisation increased 66.2% to Rs 5.0453 crore from Rs 3.0354 crore, while finance costs declined 34.9% to Rs 1.4866 crore from Rs 2.2846 crore. Profit before tax was Rs 15.6858 crore, compared with Rs 15.4696 crore a year earlier. Total tax expense rose to Rs 3.9034 crore from Rs 3.6464 crore, including a deferred-tax credit of Rs 0.3145 crore.

For the half year, finance costs declined to Rs 3.0360 crore from Rs 4.6329 crore, while depreciation and amortisation rose to Rs 9.0096 crore from Rs 5.6865 crore. The filing reported no impairment loss on financial assets in the half year ended September 30, 2026, compared with Rs 0.2150 crore in the prior-year half. Cost of materials consumed for the 2026 half year was Rs 231.1561 crore, against Rs 140.9736 crore a year earlier.

How did Multilink and cash flows affect Dhoot Transmission’s balance sheet?

Dhoot Transmission’s subsidiary bought Multilink’s auto-electrical and electronic-parts business for cash consideration of Rs 421.155 crore under agreements dated April 6 and June 6, 2026. The acquired business manufactures switches, relays, chargers, sensors and other electronic products for two-wheeler and three-wheeler automotive applications. Its operations were included in consolidated results effective June 10, 2026.

The acquisition resulted in provisional goodwill of Rs 149.008 crore at September 30, 2026, compared with Rs 15.106 crore at March 31, 2026. Dhoot Transmission said the purchase price allocation remains to be finalised within the measurement period specified under Indian Accounting Standard 103, Business Combinations. Intangible assets increased to Rs 279.762 crore from Rs 5.052 crore over the same period.

Total assets increased to Rs 560.4014 crore at September 30, 2026 from Rs 411.4825 crore at March 31, 2026, while total equity rose to Rs 404.2534 crore from Rs 243.4951 crore. Trade receivables increased to Rs 123.9098 crore from Rs 79.3667 crore and inventories rose to Rs 86.7454 crore from Rs 63.9215 crore. Cash and cash equivalents declined to Rs 39.5150 crore from Rs 108.4282 crore, while other bank balances increased to Rs 73.2342 crore from Rs 1.1566 crore.

What do Dhoot Transmission’s half-year cash flows show?

Dhoot Transmission generated net operating cash flow of Rs 4.0213 crore in the half year ended September 30, 2026, down from Rs 16.4461 crore in the corresponding 2025 period. A Rs 39.2812 crore increase in trade receivables and a Rs 16.6588 crore increase in inventories reduced cash generated from operations to Rs 10.5018 crore, compared with Rs 21.5409 crore a year earlier.

Investing activities used Rs 141.9537 crore during the 2026 half year, including Rs 42.1155 crore for the business combination, Rs 29.8293 crore for property, plant, equipment and intangible assets, and Rs 72.4350 crore invested in bank deposits. Financing activities generated Rs 69.1266 crore, supported by Rs 140.0000 crore from equity-share issuance, partly offset by Rs 5.2176 crore of issue costs and repayments of long-term borrowings of Rs 32.4344 crore.

The statutory auditor issued an unmodified review conclusion on the September 2026 consolidated results on November 3, 2026. However, Dhoot Transmission said the comparative quarter and half year ended September 30, 2025 had been approved by its board but were not subjected to limited review. The auditor also noted that the Dhoot Transmission UK Group reported a net loss after tax of Rs 1.329 crore for the September 2026 quarter.

Conclusion

Dhoot Transmission delivered a 60.7% rise in September-quarter revenue and a 30.6% increase in profit before exceptional items and tax, but reported profit was nearly unchanged because exceptional items rose to Rs 5.4761 crore. The period also included Multilink from June 10, 2026, contributing to revenue growth, higher asset balances and reduced comparability with earlier periods.

The next results will show Multilink’s contribution across a full quarter and whether Dhoot Transmission finalises the provisional purchase price allocation under Indian Accounting Standard 103. Working-capital movements also warrant attention after receivables reached Rs 123.9098 crore and inventories Rs 86.7454 crore at September 30, 2026, while half-year operating cash flow declined to Rs 4.0213 crore.