Dhoot Transmission IPO: ₹916.57 Crore Plan Filed with SEBI

Dhoot Transmission Limited (DTL) has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The company targets to utilize ₹916.57 Crore from the fresh issue for specific corporate objectives.

The IPO proceeds are earmarked for repaying outstanding borrowings, investing in subsidiaries for their debt repayment, and establishing new wiring harness manufacturing plants. These new facilities will be located in Jhajjar, Haryana, and Hosur, Tamil Nadu.

Key Financials & Market Position

DTL, founded in 1998 and headquartered in Chakan, Pune, recorded robust financial growth leading up to FY2026. Its revenue from operations reached ₹4,524.96 Crore in FY2026.

• Revenue from operations increased at a CAGR of approximately 27% from FY2024 to FY2026.
• Profit After Tax (PAT) grew at a CAGR of 32.84% over the same period, reaching ₹396.84 Crore in FY2026.
• DTL holds a 41.03% combined market share in the 2W and 3W segments in FY2026.
• The company commands approximately 70% market share in the electric 2W and 3W segments.
• EV-related revenue increased from 16.19% in FY2024 to 24.18% in FY2026.

The company specializes in wiring harnesses and electronic components for both Internal Combustion Engine (ICE) and Electric Vehicle (EV) platforms. Approximately 95% of DTL’s auto product portfolio is either EV-focused or powertrain-neutral.

IPO Timeline

The IPO schedule is set, with key dates confirmed for the offering and listing.

• IPO Opening Date: August 10, 2026
• IPO Closing Date: August 12, 2026
• Allotment Date: August 13, 2026
• Listing Date: August 17, 2026

The price band, lot size, and offer for sale (OFS) details for the IPO are not yet available in the DRHP. Bajaj Auto Limited stands as DTL’s largest customer, contributing 31.84% of its total revenue in FY2026.

Margin Trends and Risks

Despite revenue growth, DTL experienced margin compression during the period. The PBT Margin declined from 13.87% in FY2024 to 11.40% in FY2026.

Similarly, the PAT Margin decreased from 10.68% to 8.77% over the same timeframe, primarily due to rising raw material costs. Investors face risks including high revenue concentration from the 2W and 3W automotive sectors, which accounts for approximately 78% of revenue, and significant customer concentration with the top 10 customers contributing 80.93% of revenue.