EV-Related Supplier Stock Jumps 8% as EV Revenue More Than Doubles to 31% of Total Revenue; New Battery Customer to Boost Growth

Dhoot Transmission, an automotive wiring-harness and electrical-components supplier with a growing presence in electric vehicles, is expanding beyond its core products through new customer programmes and the Multilink acquisition. The company reported consolidated revenue from operations of Rs 1,827.2 crore for the quarter ended September 30, 2026, up 60.7 per cent YoY and 26.5 per cent QoQ.

Growth was broad-based, with India business revenue increasing 65 per cent YoY and global revenue rising 12 per cent. EV-related supplies more than doubled from a year earlier and accounted for 31 per cent of quarterly consolidated revenue, underlining the increasing contribution from electrified two- and three-wheeler platforms.

Earnings before interest, Tax, depreciation and amortisation, or EBITDA, rose 30.5 per cent YoY to Rs 261.8 crore. However, the reported EBITDA margin fell to 14.3 per cent from 17.6 per cent a year earlier and 15.1 per cent in the preceding quarter. Dhoot attributed the compression to a lag in recovering higher copper and other raw-material costs, manpower investments for growth and the lower-margin profile of Multilink during integration. Its adjusted organic EBITDA margin, excluding Multilink and employee stock option costs, stood at 15.2 per cent.

Reported profit after tax, or PAT, was broadly flat at Rs 117.8 crore, compared with Rs 118.2 crore in Q2 FY26, after exceptional items of Rs 54.8 crore. These included non-recurring management fees and expenses linked to the initial public offering and listing. Adjusted PAT, which excludes these exceptional costs, rose 30.4 per cent YoY to Rs 161.5 crore.

Multilink contributed Rs 161.5 crore of revenue and Rs 16.8 crore of EBITDA in the quarter, translating into a 10.4 per cent margin. The company expects integration to be completed by the fourth quarter. Lower finance costs following debt repayment and a net cash and Bank position of Rs 903.7 crore provide greater balance-sheet flexibility as it continues to invest in capacity and technology.

As of 11:50 am on November 4, 2026, Dhoot Transmission shares were trading at Rs 1,611.95, up 8.45 per cent from the previous close. The stock was about 6.7 per cent below its 52-week high of Rs 1,727.35, while the company’s market capitalisation stood at about Rs 30,413 crore. The price movement comes as investors assess whether strong revenue growth and rising EV content can translate into a sustained recovery in operating margins.

What This Means for Investors

The quarter reinforces Dhoot’s growth case in vehicle electrification and wider electrical-component content. EV supplies now account for nearly a third of revenue, while Multilink adds products such as fuel-level sensors and relays, as well as access to new customers. The sharp rise in India revenue also suggests the company is benefiting from healthy two- and three-wheeler demand and expanding participation in customer programmes. Its post-IPO cash position reduces financing pressure and supports planned investment.

The key qualification is earnings conversion. Revenue grew much faster than EBITDA because raw-material repricing lags cost inflation, while Multilink’s 10.4 per cent margin remains below the consolidated level. Management expects commodity recovery in later quarters, subject to price stability, and integration execution will be important. At a trailing price-to-earnings multiple of 76.67 times and enterprise value to trailing EBITDA of 39.26 times, the valuation leaves limited room for prolonged margin pressure or a slower-than-expected recovery in profitability.

Disclaimer: The article is for informational purposes only and not investment advice.