Dhoot Transmission Q1 Revenue Jumps 50% as EV Share Hits 27%, Multilink Integration Underway
Dhoot Transmission makes the electrical nervous system for vehicles—wiring harnesses, switches, sensors, and battery packs—mainly for two- and three-wheeler giants like Bajaj, Honda, and TVS. The company just reported its Q1 FY27 results, with revenue from operations surging 49.7% year-on-year to ₹1,446.4 crore, driven by a 44.6% jump in its core wiring harness business and a 67.7% leap in non-wiring harness products. EV revenue grew 79.2% and now accounts for 27% of total sales, up from 24% in FY26, as electrification accelerates across its customer base. The takeaway: Dhoot is riding a powerful electrification wave that is expanding content per vehicle and lifting both its traditional and new product lines, even as margins face some compression from the rapid mix shift and acquisition integration.
Revenue Growth Outpaces Industry, Both Segments Fire
Dhoot’s consolidated revenue of ₹1,446.4 crore in Q1 FY27 was 49.7% higher than the ₹966.3 crore reported a year ago. The wiring harness business, which is the company’s backbone, grew 44.6% YoY—well ahead of the broader two- and three-wheeler industry growth. Management noted that the “electrification trend is visibly seen to gain pace” .
The non-wiring harness segment, which includes battery packs, sensors, electronic controllers, and switches, expanded 67.7% YoY. This headline number includes the contribution from the recently acquired Multilink business (control gained on 11 June 2026). Excluding Multilink, organic growth in non-wiring harness was still a robust 55.0% . The company said electrification is “aiding growth outperformance” in this segment as well.
EV Revenue Share Leaps to 27%, Electrification Tailwind Strengthens
Dhoot’s EV revenue jumped 79.2% YoY in Q1 FY27, pushing its share of total revenue to 27% from 24% in FY26. This continues a sharp upward trajectory: EV revenue was just 16.2% of total revenue in FY24, rose to 25.2% in FY25, and moderated slightly to 24.2% in FY26 before the latest surge .
The company is structurally positioned to benefit. Around 95% of its auto product portfolio is either EV-focused or powertrain-neutral, meaning it can serve both internal combustion and electric vehicles without major redesign . Industry data cited in the presentation shows domestic two-wheeler EV sales grew over 90% YoY and three-wheeler EV sales over 112% YoY in the quarter, while overall two-wheeler production (ICE + EV) rose from 5.9 million to 7.2 million units .
Multilink Integration on Track, Adds Heft to Non-Wiring Harness
Dhoot gained control of Multilink, a partnership firm, on 11 June 2026. The acquisition is meant to deepen its electrical and electronics capabilities for two- and three-wheelers. The majority of the consideration was paid in June, with the balance settled in July and August. Management said integration is “in full swing” and likely to be completed by the end of Q3 or early Q4 FY27 . The deal contributed to the non-wiring harness segment’s reported 67.7% growth; organic growth excluding Multilink was 55.0%, indicating the acquisition added about 12.7 percentage points to the segment’s growth rate in the quarter.
Financial Trends: Strong Top Line, Margin Compression, Return Ratios Normalise
Dhoot has delivered consistent revenue growth over the past three fiscal years, and Q1 FY27 accelerated that momentum. However, EBITDA and PAT margins have trended lower as the business scales and integrates acquisitions.
EBITDA in Q1 FY27 rose 29.0% YoY to ₹218.4 crore, but the margin contracted to 15.1% from 17.5% a year ago. Finance costs fell 34% YoY to ₹15.5 crore, helping profit before tax grow 40.3% to ₹173.9 crore. PAT of ₹132.7 crore was up 37.8% .
Return ratios have come off their FY24 peaks as the company deployed capital for growth. ROCE declined from 33.6% in FY24 to 19.1% in FY26, while ROE fell from 39.9% to 16.3% over the same period . The company’s net debt position improved significantly, with net debt to EBITDA turning negative (net cash) at -0.3x in FY26, compared to 1.3x in FY25 . The recent capital infusion into subsidiaries to repay borrowings is likely to further strengthen the balance sheet.
Customer Mix Stable, Diversification Efforts Underway
Dhoot’s top customer (Bajaj) contributed 31% of revenue in Q1 FY27, down marginally from 32% in FY26. The top five customers together accounted for 71% of revenue, with the next five adding 9% and others 20% . While concentration remains high, the company is actively working to broaden its customer base. The presentation highlights an explicit goal to “expand customer base to include new OEMs” through export-led diversification and acquisitions like Multilink and the JV with Ride Vision for ADAS systems . Overseas revenue was 8% of the total in Q1 FY27, compared to about 9.5% in FY26, as domestic growth outpaced international sales.
Industry Tailwinds: Wiring Harness Market to Grow Faster Than Vehicle Volumes
The domestic two-wheeler wiring harness market is projected to grow at a 14–16% CAGR between FY26 and FY31, reaching ₹12,200–12,500 crore, well above the 6–8% expected volume growth for two-wheeler OEMs. The three-wheeler wiring harness market is seen growing at 7–9% CAGR to ₹1,020–1,070 crore . Key drivers include electrification (1.5–2.5x increase in wiring harness content per EV two-wheeler), safety upgrades (BS-IV to BS-VI adding 2.5–3.5x content per vehicle), premiumization, and connected-vehicle features. Dhoot, with a 38% share (top 2) in two-wheeler wiring harnesses and over 70% share (No. 1) in three-wheelers, is well placed to capture this content expansion .
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