Divgi TorqTransfer Systems Q2 revenue rose 68%, margin 29.5%

Divgi TorqTransfer Systems Limited reported Rs 148.7 crore of revenue in Q2 FY27, up 68% year on year, and a 29.5% EBITDA margin, as transfer cases, EV transmissions, components and exports contributed to higher volumes; EBITDA rose 99% to almost Rs 44 crore.

What did Divgi TorqTransfer Systems report in Q2 FY27?

Divgi TorqTransfer Systems reported Rs 148.7 crore of revenue for Q2 FY27, the quarter ended September 30, 2026, compared with the corresponding quarter a year earlier. Earnings before interest, tax, depreciation and amortisation, or EBITDA, reached almost Rs 44 crore, up 99%, while profit after tax, or PAT, was almost Rs 26 crore, up about 146%.

The company’s Q2 FY27 EBITDA margin was 29.5%, with EBITDA increasing faster than the 68% revenue rise. Management said this reflected operating leverage becoming more visible as volumes and scale increased after investments in products, technology, customer engagement and manufacturing capability over several years.

Management said the Rs 148.7 crore quarter did not depend on a single short-term event. It attributed the outcome to established transfer-case platforms reaching greater scale, improved EV transmission activity and components and exports broadening the company’s earnings base.

Which businesses drove Divgi TorqTransfer Systems’ Q2 growth?

Transfer cases were the largest disclosed revenue contributor in Q2 FY27, generating Rs 80.4 crore compared with Rs 42.7 crore in Q2 FY26, an 88% year-on-year increase. Management attributed the change to the Indonesia pickup-programme ramp-up, stronger domestic adoption of four-wheel-drive systems and upgraded vehicle launches by original equipment manufacturers, or OEMs.

EV transmission revenue rose to Rs 11.4 crore in Q2 FY27 from Rs 6.2 crore in the prior-year quarter. Management said improved end-market demand, increased EV adoption and market-share gains at OEM customers supported the increase, while noting that EV demand and programme schedules can fluctuate.

Components revenue was Rs 35.9 crore in Q2 FY27, up from Rs 29.1 crore a year earlier. Exports within the components business exceeded Rs 23 crore during the quarter, and management said global programmes had progressed to stable production, supporting customer confidence in quality and delivery performance.

Why did Divgi TorqTransfer Systems’ EBITDA margin reach 29.5%?

Divgi TorqTransfer Systems’ EBITDA margin reached 29.5% in Q2 FY27 as EBITDA grew 99%, ahead of the 68% increase in revenue. Management said volume growth and business scale made operating leverage more visible, alongside prior spending on products, technology, customer engagement and manufacturing capability.

Management did not quantify the contribution of each product vertical to the 29.5% margin. It said, however, that transfer-case platforms provided greater scale, the EV transmission business improved after a softer first quarter, and the components and exports businesses added revenue across multiple applications and markets.

The company also linked the Q2 FY27 performance to execution by its operations and sourcing teams as demand increased. Management said strategic investments in product portfolio and manufacturing had been made in earlier quarters, while the Rs 148.7 crore Q2 result reflected delivery against that demand.

How did Divgi TorqTransfer Systems perform in H1 FY27?

Divgi TorqTransfer Systems recorded Rs 290 crore of total income in the first six months of FY27, up 76% from the corresponding half-year. H1 FY27 EBITDA was Rs 85 crore, up 108%, and PAT was almost Rs 52 crore, up 162%, while management said the half-year EBITDA margin was above 29%.

The H1 result shows that the Q2 FY27 margin of 29.5% was accompanied by higher profitability across the six-month period. Management said the first-half outcome reflected transfer-case demand, a Q2 recovery in EV transmissions, and continuing contributions from components and export programmes.

Transfer-case revenue was Rs 156.4 crore in H1 FY27, compared with Rs 82 crore in H1 FY26, a 91% increase. EV transmission revenue was Rs 17.2 crore in H1 FY27 versus Rs 13.2 crore a year earlier, meaning the Rs 11.4 crore Q2 contribution followed the softer first quarter cited by management.

What are Divgi TorqTransfer Systems’ next programmes and targets?

Divgi TorqTransfer Systems is pursuing all-wheel-drive systems and Power Take-off Unit, or PTU, systems with another Indian OEM alongside its transfer-case business. Management said its relationship with Toyota Tsusho provides a route to engage customers in Japanese ecosystems and other Asian markets, while the Indonesia four-wheel-drive programme illustrates support for Indian OEM platforms abroad.

In EV transmissions, management said the Sigma programme has customer approval for production supplies and is prepared for series production in H2 FY27. The company has also secured a prototype order from an Indian-China joint-venture company, but management said it should not be treated as a production award because technical validation, commercial alignment and a sourcing decision remain pending.

Management’s presentation sets an FY27 revenue target of well above Rs 500 crore, after Rs 290 crore of total income in H1 FY27. It also outlined revenue aspirations of about Rs 1,000 crore by FY30 and about Rs 2,000 crore beyond FY32 and FY33, while stating that these are targets and aspirations rather than assured outcomes.

The company has established a wholly owned subsidiary in Greenville, South Carolina, to engage North American customers, progress requests for quotation and assess sourcing solutions. Management said any US manufacturing investment would depend on customer commitments, programme economics, operating risk, tariff exposure, logistics, technology content, expected volumes and returns.

Conclusion

Divgi TorqTransfer Systems combined 68% Q2 FY27 revenue growth with a 29.5% EBITDA margin as transfer-case revenue increased 88% to Rs 80.4 crore, EV transmission revenue reached Rs 11.4 crore and components revenue rose to Rs 35.9 crore. Its H1 FY27 total income of Rs 290 crore and EBITDA of Rs 85 crore indicate that the quarterly improvement was reflected across the first six months.

The next disclosed milestones are Sigma EV transmission series production in H2 FY27, continued execution of the Indonesia pickup programme and progress on technical and commercial steps for the EV prototype order. Management’s well-above-Rs-500-crore FY27 revenue target remains dependent on customer programmes, market demand, validation, sourcing decisions and execution.