Revenue rose 26.33%, but faster costs cut margin and net profit
Sequential expenses grew 27.48%, while other income turned negative, taking net profit down 11.19%.
Filed 04 Nov 2026, 00:02 IST · Dhoot Transmission Ltd (DHOOTTRANS)
Key takeaways
- Revenue grew +26.33% sequentially, but expenses grew faster at +27.48%, narrowing operating margin by 0.77 percentage points.
- Net profit fell -11.19% sequentially as other income moved from Rs 10.65 cr to -Rs 39.63 cr and the tax rate rose 1.15 percentage points.
- Operating margin at 14.33% remained 2.10 percentage points above the 12.23% median for 189 reported Consumer Discretionary peers.
Price around the results
Revenue momentum did not translate into profit growth
Consolidated revenue increased +26.33% sequentially to Rs 1,827.2 cr, while operating profit grew only +19.86% to Rs 261.81 cr. With expenses rising faster than revenue, operating margin narrowed to 14.33% from 15.10%. Net profit declined -11.19% to Rs 117.82 cr, despite a -4.00% fall in interest expense.
Higher costs and negative other income weighed on earnings
The company’s presentation says total material cost rose +66.3% year on year, faster than revenue growth of +60.7%, and EBITDA margin fell to 14.3% from 17.6%. Sequentially, depreciation increased +27.27%, while other income swung from Rs 10.65 cr to -Rs 39.63 cr and represented -25.26% of profit before tax. The tax rate also rose 1.15 percentage points to 24.88%, adding to the pressure on net profit.
EV and non-harness products expanded their contribution
Management said EV products accounted for 31% of Q2 revenue and that about 95% of the portfolio was EV-focused or powertrain-neutral. The presentation said non-harness products reached 31% of current-quarter revenue as Multilink was integrated. Management also said high-voltage harness is on its FY29 roadmap, identified a near-term passenger-vehicle and four-wheel EV pipeline, and plans to enter a 67:33 joint venture with Ride Vision for ADAS and ARAS.
Margin stayed above the reported peer median
Dhoot Transmission’s 14.33% operating margin was 2.10 percentage points above the 12.23% median among 189 Consumer Discretionary companies that had reported the quarter. The sequential margin decline still marks weaker profitability than in Q1FY27, when operating margin was 15.10%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,827 cr | ₹1,446 cr | +26.33% |
| Other income | ₹-40 cr | ₹11 cr | — |
| Expenses | ₹1,565 cr | ₹1,228 cr | +27.48% |
| Operating profit | ₹262 cr | ₹218 cr | +19.86% |
| Operating margin (%) | 14.33% | 15.10% | — |
| Interest | ₹15 cr | ₹15 cr | -4.00% |
| Depreciation | ₹50 cr | ₹40 cr | +27.27% |
| Profit before tax | ₹157 cr | ₹174 cr | -9.82% |
| Tax | ₹39 cr | ₹41 cr | -5.45% |
| Net profit | ₹118 cr | ₹133 cr | -11.19% |
| EPS (₹) | ₹5.98 | ₹7.04 | -15.06% |
Operating margin of 14.33% compares with a Consumer Discretionary sector median of 12.23% across 189 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- EV products accounted for 31% of Q2 revenue, and about 95% of the portfolio was EV-focused or powertrain-neutral.
- Non-harness products reached 31% of current-quarter revenue as Multilink was integrated.
Guidance & outlook
- High-voltage harness is on the company’s FY29 roadmap.
- The company identifies a near-term passenger-vehicle and four-wheel EV product pipeline.
New products
- The company lists PDUs for three-wheelers and four-wheelers in its near-term EV product pipeline.
New initiatives
- The company plans to enter a 67:33 joint venture with Ride Vision for ADAS and ARAS.
Problems & risks
- EBITDA margin declined to 14.3% in Q2 FY27 from 17.6% in Q2 FY26.
- Total material cost increased 66.3% year on year, faster than revenue from operations at 60.7%.
What to watch
- Whether operating margin recovers above 15.10%, its Q1FY27 level.
- Whether other income improves from -Rs 39.63 cr and stops weighing on profit before tax.
- Whether EV products and non-harness products remain at 31% of revenue.