Dhoot Transmission Q2 FY27 Results (NSE: DHOOTTRANS)
Signal: Margin pressure
The read
The trajectory remains top-line-led: revenue accelerated to ₹18,272 million, +60.7% YoY, with EV supplies growing 108% and contributing 31% of revenue, but EBITDA margin declined to 14.3% from 17.6% as raw-material recovery lagged and manpower investments and Multilink diluted profitability; the reported PAT outcome of ₹1,178 million, -0.3% YoY, was distorted by ₹548 million of exceptional costs, while adjusted PAT rose 30.4% to ₹1,615 million.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,827.2 Cr | 60.7% | 26.5% |
| Net profit | ₹117.8 Cr | -0.3% | |
| EBIT margin | 14.3% |
P&L walk
Revenue accelerated to ₹18,272 million, +60.7% YoY and +26.5% QoQ, led by India at +65% and EV supplies at +108%; EBITDA rose 30.5% to ₹2,618 million but margin compressed to 14.3% from 17.6% as raw-material recovery lagged, manpower investments increased and Multilink diluted margins; reported PAT was ₹1,178 million, -0.3% YoY, after ₹548 million of exceptional costs.
Key positives
- Consolidated revenue reached ₹18,272 million, up 60.7% YoY and 26.5% QoQ, with India Business revenue up 65% YoY.
- EV-related supplies grew 108% YoY and reached 31% of consolidated revenue, indicating continued mix shift toward the faster-growing EV portfolio.
- Adjusted organic EBITDA margin was 15.2%, above the reported 14.3% margin after excluding Multilink and ESOP costs.
- Finance cost fell 34.6% YoY to ₹149 million after debt repayment, while the group reported net cash and bank of ₹9,037 million excluding leases.
Key concerns
- Reported EBITDA margin compressed 330bps YoY to 14.3% from 17.6% because raw-material price increases were not fully passed through in the quarter, manpower investments increased and Multilink diluted margins.
- The company reported raw-material price recovery with a timing lag, leaving near-term margin recovery dependent on subsequent customer pass-through and commodity prices.
- Reported PAT was only ₹1,178 million, down 0.3% YoY, despite EBITDA growth of 30.5% because ₹548 million of exceptional management-fee and IPO/listing expenses were charged.
- Multilink generated ₹1,615 million of revenue with ₹168 million EBITDA, a 10.4% margin below the group's reported 14.3%, creating dilution while integration remains ongoing.
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