EV Transmission Stock Jumps 11% After Reporting 189% YoY Growth in Q4 Net Profit

Synopsis: Record revenue, a 189 percent jump in Q4 PAT, and nearly 520 percent growth in export revenue marked a breakthrough FY26 for this drivetrain specialist. With transfer case volumes scaling sharply and EV transmission programs moving toward serial production, the company appears to be entering a new phase of global and technology-led growth. 

A year of record volumes, accelerating exports, and expanding technology capabilities has pushed this automotive drivetrain player into a new phase of growth. Strong operational execution, rising global traction, and steady progress in EV transmission programs suggest the company is moving beyond recovery mode and into a broader scale-up cycle.

With a market capitalization of Rs. 2,416 crore, the shares of Divgi TorqTransfer Systems  were trading at Rs. 825.21 per share on 26 May 2026; the stock went up by 11 percent from the previous low of Rs. 743.38. It is trading at a P/E of 51x.

FY26 Full-Year Performance & Dividend announcement

For the full financial year, total income reached Rs. 375.2 crore, the highest in the company’s history, surpassing even the strong FY23 peak of Rs. 278.7 crore SCS Revenue (Excluded amount): Rs. 447.8 crore. Revenue from operations grew to Rs. 352.9 crore from Rs. 218.9 crore in FY25, a jump of 61 percent. EBITDA for the full year rose 58 percent to Rs. 92.3 crore, with EBITDA margins holding steady at 24.6 percent, essentially flat against the 24.4 percent of FY25, a sign that the revenue surge did not come at the cost of operational discipline. 

Full-year PAT came in at Rs. 46.9 crore, up 92 percent from Rs. 24.4 crore in FY25, with PAT margins expanding to 12.5 percent. The Board recommended a final dividend of Rs. 3.27 per equity share of face value Rs. 5 (65.4%)

Q4 FY26 Snapshot

The quarter ended March 2026 was the company’s strongest in recent history across every meaningful metric. Total income for Q4 FY26 came in at Rs. 113.8 crore, up 78 percent year-on-year from Rs. 64.1 crore in Q4 FY25 and 18 percent higher sequentially over Q3 FY26. Revenue from operations for the quarter stood at Rs. 107.6 crore.

EBITDA for the quarter climbed 92 percent year-on-year to Rs. 27.8 crore, while EBITDA margins improved to 24.5 percent from 22.7 percent in the year-ago period. The quarter’s most striking number, however, was PAT, which surged 189 percent year-on-year to Rs. 15.5 crore from Rs. 5.4 crore in Q4 FY25, with PAT margins expanding sharply to 13.6 percent. 

Profit before tax for Q4 stood at Rs. 20.2 crore, more than double the Rs. 7.3 crore reported a year earlier. The balance sheet remained virtually debt-free, keeping finance costs negligible and allowing operating gains to flow through cleanly to the bottom line.

The Numbers Behind the Numbers

What makes FY26 particularly significant is the sharp shift in both product mix and geographical exposure, which has fundamentally changed the company’s earnings profile. Transfer case revenue grew 66 percent year-on-year to Rs. 183 crore, reaffirming its leadership position within the drivetrain portfolio and contributing nearly half of total revenue. The components business emerged as another major growth pillar, with revenue surging 124 percent to Rs. 112.2 crore and increasing its contribution to 30 percent of total income, compared to just 21 percent a year earlier. 

Export revenue recorded the most dramatic acceleration, rising nearly 520 percent year-on-year to Rs. 66.9 crore and lifting export contribution to 18 percent of total revenue from barely 4 percent in FY25. Meanwhile, the EV Gear Drive business contributed Rs. 28.5 crore during FY26, supported by development programs with leading OEMs and production approvals already secured for serial supplies beginning Q2 FY27. 

Technology and the Road Ahead

Beyond the financial recovery, the company has also begun laying the groundwork for its next phase of technology-led expansion. During FY26, it signed a strategic MoU with BITS Pilani to establish a Centre of Excellence focused on Automotive Transmission Engineering and advanced drivetrain technologies. Management also strengthened leadership bandwidth with the appointment of a Chief Growth Officer to accelerate business development and global partnerships.

In another strategic step, the board approved the incorporation of a wholly-owned subsidiary in the United States to deepen engagement with North American Tier-1 suppliers and OEM customers. These initiatives come alongside management’s long-term addressable revenue opportunity estimate of over Rs. 2,000 crore spanning 4WD systems, manual transmissions, EV transmissions, automatic transmissions, exports, and high-value precision components. 

Technical Overview 

The stock’s Immediate support is placed near Rs. 704.80, while Rs. 859 remains the Closest resistance level. Price movement near these levels may determine the stock’s near-term trading range and overall market direction.

Verdict

FY26 marks a credible inflection for this drivetrain specialist. With exports scaling rapidly, EV transmission heading to series production, and margins holding firm despite volume-led expansion, the company appears to have moved from capability-building to monetization,  and the quarterly trajectory through FY26 suggests the momentum has not yet peaked.

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