Dhoot Transmission has revised its financial year 2027 growth guidance upwards from 30% to over 40%. This adjustment follows a strong performance in Q2 FY27, with a 60% year-on-year revenue growth, driven by a significant 108% increase in EV revenue. The company also announced plans for a ₹750 crore CAPEX to expand capacities across various segments, including EV components and battery manufacturing.
Dhoot Transmission Revises Growth Outlook
Dhoot Transmission Limited has announced a significant upward revision of its growth guidance for the current fiscal year, FY27. The company now anticipates a growth rate exceeding 40%, an increase from its earlier projection of 30%. This optimistic outlook stems from robust performance in the second quarter of FY27 and strong momentum across its business segments.
Strong Q2 FY27 Performance
In the second quarter of FY27, Dhoot Transmission reported a commendable 60% year-on-year revenue growth. This performance was notably boosted by a substantial 108% increase in revenue from its Electric Vehicle (EV) components business, which now constitutes 31% of the company’s total sales. The acquisition of Multilink also contributed approximately ₹160 crore to the quarterly revenue. Despite commodity price volatility, the company maintained its organic adjusted EBITDA margins at a healthy 15.2%.
Increased CAPEX for Expansion
In response to the burgeoning demand and opportunities, Dhoot Transmission has increased its capital expenditure (CAPEX) guidance for the year to around ₹750 crore. This investment will be directed towards expanding capacities across its product verticals, including wiring harnesses (both ICE and EV), battery manufacturing, electronics, and the Multilink business. The company is planning to establish five new plants over the next 12 months and is also enhancing its electronics manufacturing capabilities.
EV Segment Momentum
The company highlighted strong growth in the EV sector, with EV revenue contributing 31% of total sales, up from 27% in Q1 FY27 and 24% in FY26. Dhoot Transmission is also ramping up volumes for powertrain batteries with a new South India-based customer. The automotive industry’s overall growth, particularly in the two-wheeler segment, has been a key driver for the company’s performance.
Productivity and Outlook
The company is focusing on manufacturing excellence and capacity creation to meet future demand. A new facility in Hosur for the Multilink business, focusing on automation and new products, is set to commence operations by February 1st and be fully operational by April 30th. Dhoot Transmission expects the electrification trend to continue aiding growth in both wiring harness and non-wiring harness businesses.
Source: BSE
