Highlights
| Issue Size – 3,52,18,047 shares | Issue Open/Close – 10 Aug / 12 Aug, 2026 |
| Price Band (Rs.) 829 – 871 | Issue Size (Rs.) – 30,675 mn |
| Face Value (Rs) – 2 | Lot Size (shares) – 17 |
Dhoot Transmission Limited (DTL) incorporated in 1988, is one of India’s leading electrical and electronics companies specializing in the design, engineering, manufacturing, and supply of wiring harnesses and electrical distribution systems for automotive and non-automotive applications.
DTL is among the top two players in India’s 2W and 3W wiring harness market, with a 41 pct market share by value in FY26, and is market leader in the EV wiring harness segment with 70 pct market share. Its product portfolio includes wiring harnesses, battery packs, sensors, electronic controllers, switches, connectors, and power supply cords, serving ICE and EV platforms. Additionally, has a diversified presence across commercial vehicles (CVs), off-highway vehicles (OHWs), and farming and industrial equipment.
DTL served nearly 495 customers in FY26 across India and global markets. Its key Indian 2W and 3W customers includes leading OEMs such as Bajaj Auto, TVS Motors, Royal Enfield, and Honda Motorcycles and Scooters, catering to both ICE and EV segments. Also, expanded its global footprint by exporting products to UK, USA, Latvia, Thailand, South Korea, etc.
Out of the total proceeds of Rs. 30,675 mn, Rs. 4,648 mn and Rs. 3,018 mn would go towards repayment/pre-payment, in full or part of certain borrowings availed by the company and subsidiaries respectively, Rs. 1,500 mn would go towards setting up of a new wiring harness manufacturing plant and remaining Rs. 4,840 mn goes to general corporate purposes. Additionally, Rs. 16,669 mn going towards promoter selling shareholders of the company.
Key Highlights
- EV adoption in India is expected to witness significant growth, with 2W EV penetration projected to rise from 6.6 pct in FY26 to 25-30 pct by FY31 and 3W EV penetration from 31.6 pct to 53-58 pct during the same period. DTL’s growing EV capabilities are reflected in its EV revenue contribution, which increased from 16.19 pct in FY24 to 24.18 pct in FY26.
- Around 95 pct of DTL’s automotive product portfolio is EV-focused or powertrain-neutral positioning the company to benefit from electrification, premiumization, connected vehicles, and automation trends.
- DTL’s manufacturing network comprises 19 facilities in India and 3 overseas, with a total installed capacity of 14.09 mn, supported by 3 engineering and design centres and 7 warehouses serving domestic and international customers. Additionally, 3 manufacturing facilities are under construction.
- DTL is planning to expand into additional areas of high-voltage power electronics, with an initial roadmap focused on DC-DC converters, onboard chargers, and BJB subsystems. This strategy targets segments with strong demand visibility, higher wiring and electronics content per vehicle, favourable platform stability, and longer model lifecycles, particularly in the commercial vehicle segment.
- DTL’s key growth strategies include (i) To expand its product portfolio by capitalizing on electrification and premiumization trends, (ii) strengthen R&D and engineering capabilities to drive innovation and improve manufacturing efficiency, (iii) invest in capacity expansion to support future demand, and (iv) pursue strategic acquisitions, joint ventures, and technology partnerships to expand technology capabilities, customer base, and global presence.
- The sales of the company have grown by 27.18 pct CAGR over FY24-26 and EBITDA/profit has grown 17.78 pct CAGR/15.25 pct CAGR over same year. In FY26 the company reported sales of Rs. 45,250 mn, rose 31.35 pct YoY. EBITDA of the company increased 20.31 pct YoY to Rs. 7,110 mn. In FY26 the company posted profit of Rs. 3,968 mn, up 12.14 pct.
Key Risk
- The company might face client concentration risk, as 71.56 pct of company’s sales came from top 5 clients and 80.93 pct from top 10 clients.
- DTL do not have any long term volume commitment from OEM, where they have broad right to modify, reschedule or cancel order, and even terminate program arrangement without compensation.
- DTL’s significant revenue comes from sale of wiring harness for 2W and 3W in India, any changes in pricing power, technology and automobile demand would impact the company significantly.
Financial Performance
| Particulars (Rs. mn) | FY24 | FY25 | FY26 | CAGR | YoY |
| Sales | 27,977 | 34,449 | 45,250 | 27.18% | 31.35% |
| EBITDA | 5,124 | 5,910 | 7,110 | 17.78% | 20.31% |
| EBITDA Margin % | 18.31% | 17.15% | 15.71% | ||
| Profit | 2,988 | 3,539 | 3,968 | 15.25% | 12.14% |
| Profit Margin % | 10.67% | 10.19% | 8.70% | ||
| ROE % | 39.88% | 35.60% | 16.30% | ||
| ROCE % | 33.56% | 29.66% | 19.14% | ||
| RONA % | 41.05% | 37.43% | 30.37% | ||
| Net Debt to EBITDA | 0.99 | 1.29 | -0.25 |
Source: – RHP.
Peer Comparison based on FY26 Financials.
| Particulars (Rs. mn) | Dhoot Transmission | Minda Corporation | Uno Minda | Motherson Sumi Wiring | Sona BLW Precison Forging |
| Sales | 45,250 | 61,853 | 1,96,575 | 1,14,776 | 44,752 |
| EBITDA | 7,110 | 7,211 | 21,820 | 11,880 | 11,069 |
| EBITDA Margin % | 15.71% | 11.66% | 11.10% | 10.35% | 24.73% |
| Profit | 3,969 | 3,582 | 12,841 | 6,252 | 6,402 |
| Profit Margin % | 8.70% | 5.78% | 18.60% | 5.45% | 14.31% |
| ROE % | 16.30% | 10.44% | 18.60% | 28.92% | 13.20% |
| ROCE % | 19.14% | 23.1% | 18.30% | 39.00% | 15.40% |
| RONA % | 30.37% | 25.24% | 52.58% | 38.41% | 31.83% |
| Net Debt to EBITDA | -0.25 | 1.20 | 0.95 | 0.15 | -0.93 |
Source: – RHP.
Valuation
Dhoot Transmission Limited is a global Tier-1 manufacturer of integrated electrical systems, specialising across eight product families with a presence across India, the United Kingdom, Slovakia, Thailand, South Korea, and Japan, the company supports OEMs across automotive, electric vehicles, industrial equipment, agriculture, marine, railways, medical devices, and consumer applications, delivering engineering depth and manufacturing consistency across global programs. At the upper end of the price band of Rs. 871, the issue is priced at an EV/EBITDA of 22.7x its FY26 post issue capital. Only high-risk investors can subscribe this issue from a longer-term perspective.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
