Divgi’s Q1 was not yet an EV-transmission inflection. It was a transfer-case and export inflection.
Revenue rose 85% to ₹141.8 Cr, EBITDA more than doubled to ₹41.6 Cr and margin reached 29.4%. Transfer-case revenue grew 93% to ₹76 Cr, while components grew 83% to ₹34.4 Cr.
The Indonesia programme is doing the heavy lifting. About 30% of the 70,000-unit order has been dispatched, and management believes more than half of this business can become recurring.
“More than 50% of the business has the potential to become recurring in nature.” — Jitendra Divgi
The second signal is export reconstruction. Divgi now earns ~₹23 Cr per quarter from exclusive North American contracts after exports had fallen close to zero two years ago. A proposed US greenfield plant near Greenville—initially around $5 million—is intended to meet local-content rules and qualify for a wider RFQ pool.
But the laggard remains visible: E-gear revenue was only ₹5.7 Cr as OEM localisation took longer. PPAP is complete; management now expects ₹10–12 Cr per quarter over the next three quarters.
The longer-term ambition is larger still. Management says the ₹1,000 Cr revenue milestone needs automatic transmissions, where even one programme could add ₹300–500 Cr. Earliest revenue, however, is only in H2 2028.
Kyro inference: the 29.4% margin is a favourable 4x4/export mix—not the safest steady-state assumption. The stronger proof will be whether Divgi converts a temporary programme surge into repeat exports, EV utilisation and proprietary transmission revenue.
Watch next: Indonesia dispatch cadence, E-gear revenue above ₹10 Cr/quarter and concrete US/automatic-transmission awards.
Risk: OEM delays and mix normalisation can pull margins back toward management’s 20–22% sustainable range.
Disc: Not a recommendation
3September 2, 2026 1.2K 3
