Divgi Torqtransfer Systems Limited — PPTs, 30-05-2025: Investor Presentation

1. Financial Highlights:

Divgi TorqTransfer reported Rs. 240.1 Cr revenue for FY25, down 12% YoY. EBITDA stood at Rs. 58.6 Cr with margins contracting to 24.4%. PAT declined 39% YoY to Rs. 24.4 Cr. Q4 revenues rose 12% QoQ to Rs. 64.1 Cr led by growth in transfer cases, EV transmissions, and components. Q4 EBITDA margin remained above 25% after adjusting for one-time expenses. Capex-led depreciation increased, with property, plant & equipment rising to Rs. 243.4 Cr. Cash reserves fell to Rs. 15.4 Cr reflecting higher investments.

2. Strategic Initiatives & Growth Drivers:

Capacity utilization and product innovation ramp-up continue focusing on 4WD transfer cases, EV transmissions, and exports. A multi-year Rs. 800+ Cr contract from a leading Indian OEM supports growth from H2 FY27. EV transmission volumes are gaining momentum, expecting sizeable ramp-up from Q2 FY26 linked to a top Indian EV manufacturer. Export orders worth ~Rs. 7 Cr monthly were greenlit, targeting 20-25% revenue from exports in 4-5 years. Investments in metallurgy labs and tooling aim to boost quality and competitiveness.

3. Business Developments:

Divgi secured supplier awards from Mahindra & Mahindra and Toyota, cementing OEM ties. New export component business began shipments, generating ~Rs. 90+ Cr annual revenue with 1 million+ parts across multiple geographies. Collaborations with BorgWarner focus on technical and supply chain furthering. Feasibility studies with a global Tier-1 for localizing 8-speed DCT transmissions (potential 1 lakh units/year) are underway. The first DHT prototype was realized, expanding EV drivetrain offerings.

4. Market Position & Competitive Advantage:

With 60+ years’ experience, Divgi is India’s largest EV transmission maker and an automatic transmission pioneer. It maintains deep OEM relationships across domestic and international markets, supported by a broad product portfolio in transfer cases, manual, EV, and hybrid transmissions. Its global presence spans the USA, Japan, Korea, and Europe, leveraging advanced plants and proprietary tech. Scale, diverse products, and innovation form a robust moat amid auto industry shifts.

5. Investor Implications:

Volume growth, a robust export pipeline, and a strong order book signal positive growth potential, especially from EV and 4WD segments. The Rs. 800+ Cr OEM contract and export approvals offer medium-to-long-term revenue visibility. Earnings recovery may be gradual due to capex-related margin pressure and one-time costs. Execution risks include new product ramp-up and export scaling. Investors should monitor margin improvement, EV transmission commercialization success, and timely conversion of large contracts into revenue.