Divgi TorqTransfer Q1 revenue hit by customer issues, new orders secured

Earnings
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Summary · why it matters

Divgi TorqTransfer Systems reported a significant drop in first-quarter revenue due to quality and logistics issues at two growth customers, MG Motor and Mahindra, which caused a 30-40% hit on transfer case revenue. Despite the topline decline, EBITDA margin remained above 20%. The company announced new business awards worth approximately 720 crore rupees, including a 220 crore EV transmission order from Mahindra and a new four-wheel drive vehicle model. The Toyota synchronizer business also saw a significant reduction as the automaker transitions from internal combustion engines to hybrids, with only about 40% recovery from new hybrid content. Management expects recovery in the second quarter and a return to normalcy from the third quarter onwards.

Impact on stocks 2

Electrification & Mobility▼ · 2 stocks

Theme Impact 1

Off-coverage companies 2

Divgi TorqTransfer Systems LtdPrivate▲ Positive
Demandrelevance

Secured new business awards worth ~720 crore rupees, including a 220 crore EV transmission order from Mahindra and a new 4WD model.

JSW MG Motor IndiaPrivate▼ Negative
Demandrelevance

Quality and logistics issues at MG Motor caused a 30-40% hit on transfer case revenue.

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