Divgi Torqtransfer Systems Limited Earnings Summary — Q1 FY2027
Divgi Torqtransfer Systems Delivers Robust Q1 Growth with 91% Revenue Surge and Significant Margin Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 7 consecutive quarters.
- Revenue of ₹137 Cr is 91.3% higher year-on-year.
- Revenue has compounded at 39.3% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹25 Cr is 182.6% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 56.5% annualised across the period.
- Operating margin stands at 27.0% in Q1 FY2027.
- Operating margin expanded by 746 bps year-on-year.
- Over the last two years operating margin has expanded by 1087 bps.
- PBT margin is 24.6%.
- Expense growth of 73.6% remained below revenue growth of 91.3%.
- Operating profit of ₹37 Cr is 164.4% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 91/100 (Excellent) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 137 | 108 | 91 | 83 | 72 | 58 | 53 | 54 | 54 | 65 |
| Expenses | Improving | 100 | 86 | 73 | 66 | 58 | 50 | 44 | 43 | 45 | 52 |
| Operating Profit | Strong Uptrend | 37 | 22 | 18 | 17 | 14 | 9 | 9 | 11 | 9 | 13 |
| Operating Margin | Improving | 27.0% | 20.1% | 19.5% | 20.0% | 19.5% | 14.9% | 16.4% | 21.0% | 16.1% | 20.2% |
| Other Income | Stable | 5 | 6 | 6 | 5 | 5 | 6 | 5 | 5 | 5 | 5 |
| Interest | Stable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | Improving | 8 | 8 | 8 | 7 | 7 | 7 | 6 | 6 | 6 | 6 |
| Profit Before Tax | Strong Uptrend | 34 | 20 | 16 | 15 | 12 | 7 | 7 | 11 | 8 | 12 |
| Tax | Accelerating | 9 | 5 | 4 | 4 | 3 | 2 | 2 | 3 | 2 | 3 |
| Net Profit | Strong Uptrend | 25 | 15 | 12 | 11 | 9 | 5 | 5 | 8 | 6 | 9 |
| Net Margin | Improving | 18.4% | 14.4% | 13.0% | 13.0% | 12.5% | 9.2% | 10.0% | 14.5% | 11.0% | 14.2% |
Key Takeaways
- Revenue from operations surged 91.3% YoY to ₹1,371.42 million, indicating sharp acceleration in the EV and drivetrain segments.
- Net profit witnessed an explosive growth of 182.7% YoY, rising from ₹89.29 million to ₹252.40 million.
- Operating leverage is becoming visible as margins expanded significantly compared to the prior-year period.
- The company maintains a strong liquidity position with ₹591.81 million of unutilized IPO proceeds still held in deposits and bank accounts.
- A new foreign subsidiary, Divgi Transmission Technologies and Systems Ltd., was incorporated in June 2026 to facilitate international expansion.
- The Board has proposed the appointment of M/s. Kirtane & Pandit LLP as the new Statutory Auditors for a five-year term.
- Inventory levels remain a point of monitoring, although the company has shifted towards a higher growth trajectory in the e-gear drive segment.
Management Guidance
Management emphasizes a pivot toward EV transmissions and high-entry-barrier products, focusing on utilizing recently added capacities to drive operating leverage.
Sentiment Shift
Improving
The massive YoY growth in both top and bottom lines suggests the company has successfully moved past its FY24-FY25 volatility and is now capturing significant market share in the EV transmission space.
Outlook
The outlook remains strong as the company capitalizes on its position as India's largest EV transmission manufacturer, with new international structures being put in place for global reach.
From the Annual Report (Key Quotes)
“Divgi TorqTransfer Systems Limited... has established itself as India’s largest EV transmission manufacturer.”
“The Board has fixed Thursday, September 10, 2026 as the cut-off date to record entitlement... for final dividend of ₹ 3.27/- per equity share.”
“Net IPO proceeds which were un-utilised as at June 30, 2026 were temporarily invested in deposits with scheduled commercial banks.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Divgi Torqtransfer Systems Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.