Divgi Torqtransfer lifts revenue target to ₹2,000 cr
Management raised its long-term revenue goal after record FY26 results, even as a key EV transmission launch slips to July.
What's new
- FY26 revenue hit a record ₹375 cr, up 56% YoY.
- Net profit climbed 92% to ₹46.9 cr with gross margins at 63.5%.
- EV transmission production for Tata Motors platforms approved for July 2026 launch.
Why this matters
Divgi is betting heavily on its automatic transmission technology deal to scale the business. While the delay in its new EV model is a setback, the production approval for high-power transmissions on key Tata platforms provides a clear path to volume growth in the current fiscal year.
What we're watching
- Execution of the July 2026 EV transmission launch.
- Whether the company maintains its 63.5% gross margin as volumes scale.
- Progress on the automatic transmission technology transfer deal.
The full read
Divgi Torqtransfer Systems closed FY26 with record revenue of ₹375 crore, a 56% increase over the previous year. Net profit followed suit, rising 92% to ₹46.9 crore, while gross margins remained stable at 63.5%. During the May 27 earnings call, management signaled confidence by raising its long-term revenue target from ₹1,500 crore to ₹2,000 crore. This optimism rests on an automatic transmission technology transfer deal.
Not everything is moving to plan.
A new EV transmission model, initially expected in April, is now delayed until July 2026 due to extended customer testing. Still, the company secured production approval for higher-power transmissions on Tata Motors' Nexon, Curvv, and Harrier platforms. Management expects this specific win to double EV transmission volumes in the current fiscal year. The company is clearly in a high-growth phase, but the ability to hit these new targets now hinges on the successful July rollout.
Questions answered
- What drove Divgi's 56% revenue growth in FY26?
- Growth was primarily driven by a 66% increase in transfer case volumes and a near-doubling of component exports.
- Why was the EV transmission model launch delayed?
- The launch, originally slated for April, was pushed to July 2026 because the customer required extended vehicle testing.
- Which Tata Motors platforms will use Divgi's new transmissions?
- Divgi received production approval for the Nexon, Curvv, and Harrier platforms.
- How does management expect the new Tata deal to impact volumes?
- Management expects the production approval for these platforms to double its EV transmission volumes during the current fiscal year.