Divgi TorqTransfer Q1 FY27: standalone PAT nearly triples YoY to ₹25.2 Cr on margin expansion

Divgi TorqTransfer's standalone revenue from operations rose 91.3% YoY (27.4% QoQ) to ₹137.14 Cr, while net profit climbed 182.7% YoY (63.1% QoQ) to ₹25.24 Cr — profit growing far faster than revenue on the back of operating leverage. OPM expanded to roughly 27.0% from 19.5% a year ago and 20.1% last quarter, and NPM rose to 18.4% from 11.6% YoY (13.6% QoQ). The expansion traces to cost of materials consumed falling to about 39% of revenue versus 42.7% a year ago, alongside other expenses easing to roughly 24% of revenue from 29.2% — both consistent with fixed-cost absorption as volumes scaled, rather than any one-off item; EPS rose to ₹8.25 from ₹2.92 YoY and ₹5.06 QoQ.

Management's only outlook on record, from the Q4 FY26 call, is a long-term aspiration for revenue to reach ₹2,000+ Cr led by the automatic-transmission segment and potential Transfer Case/EV-transmission breakthroughs — the company explicitly gave no quantitative FY27 guidance, so this quarter's ₹137 Cr print cannot be graded against a formal target; on the current run-rate the business remains well short of that aspirational scale. No street consensus estimate for this quarter could be located (an Univest Q1 FY27 preview flagged rural/festive demand recovery and raw-material cost volatility as swing factors but carried no numeric PAT/revenue estimate), so the beat/miss call versus the Street is unknown. Alongside results, the board approved Kirtane & Pandit LLP as new statutory auditors for a five-year term (replacing the outgoing firm, which stepped back from its internal-audit role over a conflict-of-interest), declared a final FY26 dividend of ₹3.27/share (record date September 10, 2026), and confirmed the US subsidiary's incorporation is still awaiting completion of its equity subscription agreement — none of which bear directly on this quarter's operating numbers but set the near-term corporate calendar.

The stock went into the print at ₹1,076.4, up 12.7% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

US subsidiary Divgi Transmission Technologies and Systems Ltd (incorporated Jun 4, 2026) not yet consolidated — equity subscription agreement still pending as of Jun 30, 2026