Divgi TorqTransfer Systems Q2 Net Profit More Than Doubles as Revenue Jumps 72.5%

Divgi TorqTransfer Systems reported standalone net profit of Rs 26.49 crore for Q2 FY27, up 146.5% from Rs 10.75 crore a year earlier, Autocar Professional reported on November 2, 2026. Revenue from operations rose 72.5% to Rs 143.09 crore. The Pune-based Tier 1 supplier makes 4WD transfer cases, transmissions, synchronizers and torque-coupling systems for OEMs including Mahindra, Tata Motors, Toyota Kirloskar, MG Motor, John Deere and JCB, according to akta.pro company records.

Divgi TorqTransfer's Q2 Earnings Detail

Standalone revenue from operations for Q2 FY27 expanded 72.5% year-on-year to Rs 143.09 crore against Rs 82.97 crore in Q2 FY26, and grew 4.3% sequentially over Rs 137.14 crore in Q1 FY27. On a sequential basis, standalone net profit rose 5% compared to Rs 25.24 crore recorded in Q1 FY27. The growth in earnings was driven by sustained volume expansion in torque transfer systems and transmission component supplies, which outpaced the rise in total operating costs.

Total standalone expenses for the quarter increased 53.9% year-on-year to Rs 113.22 crore compared to Rs 73.59 crore in the year-ago quarter, and rose 4.8% sequentially from Rs 108.01 crore in Q1 FY27. The higher outlay was primarily driven by raw material costs, which grew 69.5% year-on-year to Rs 59.81 crore from Rs 35.29 crore.

Consolidated revenue from operations stood at Rs 143.09 crore, with total expenses reaching Rs 113.31 crore and net profit after tax reported at Rs 26.40 crore. This quarter marked the company's first consolidated financial disclosure following the incorporation of its wholly owned US subsidiary, Divgi Transmission Technologies and Systems Inc., on June 4, 2026. Auditors noted that the newly formed foreign subsidiary contributed total assets of Rs 2.78 crore as of September 30, 2026.

Divgi TorqTransfer's US Subsidiary and Order Book

According to akta.pro company records, Divgi TorqTransfer Systems incorporated the Delaware subsidiary in June 2026 to handle business development, sales and marketing for the North American automotive market. The same records show a five-year strategic order for 6,000 AWD units annually from a leading Indian OEM, covering ITM assemblies, ECUs and PTU assemblies, with production commencing Q1 FY28. The company was founded in 1964 and is led by Managing Director Jitendra Divgi, with Praveen Kadle as Chairman and Independent Director and Sudhir Mirjankar as Chief Financial Officer.

Divgi TorqTransfer's Earlier Results and Orders

Divgi Torqtransfer Systems reported an 183% year-on-year surge in Q1 FY27 profit to Rs 25.2 crore, driven by strong transfer case volumes and export traction, Business Standard reported in August 2026. The same outlet reported standalone net profit of Rs 25.24 crore for the quarter ended June 2026, a 182.64% increase from Rs 8.93 crore a year earlier. In June 2026, Business Standard reported that the company secured a strategic order from an existing leading Indian OEM to supply ITM assemblies, ECUs and PTU assemblies for upcoming all-wheel drive variants of mid-sized and full-sized SUV models.

What Comes Next for Divgi TorqTransfer

Deliveries under the five-year AWD order are scheduled to commence in Q1 FY28, according to akta.pro company records. The company's US subsidiary, incorporated on June 4, 2026, is included in consolidated results from this quarter.