Divgi TorqTransfer Systems reports strong H1 FY26, Q2 performance

Divgi TorqTransfer Systems Limited recorded a total income of INR165.1 crores for H1 FY26, a 39% year-on-year increase from INR118.6 crores in H1 FY25. The company's EBITDA rose to INR41 crores, marking a 35% growth, with a margin of 24.9%. Profit After Tax (PAT) increased by 43% year-on-year to INR19.7 crores, achieving a PAT margin of 11.9%. This growth was primarily fueled by strong performance in the transfer case business, which grew 42% year-on-year, and the export-led components segment, which saw a 113% increase. Exports contributed nearly 16% to total income in H1 FY26.

In Q2 FY26 alone, the company achieved its highest-ever quarterly total income of INR88.3 crores, a 49% year-on-year increase. EBITDA for the quarter was INR22 crores, up 33%, and PAT stood at INR10.7 crores, a 37% rise. This performance reflects increased capacity utilization, better cost absorption, and a favorable sales mix with higher contributions from high-margin component exports.

A significant milestone for Divgi TorqTransfer Systems is securing a nomination from a leading Japanese OEM to develop a transfer case for an iconic pickup truck platform, with SOP targeted for H1 FY28. The company is also exploring establishing a manufacturing footprint in the U.S. to support future global expansion.