IPO closes on 12 Aug'26
Dhoot Transmission Limited
Minimum Investment
₹ 14,807 / 17 shares
Our Verdict:
Neutral
- Dhoot Transmission is India's leading 2W/3W wiring harness maker (~44.64% market share, FY25); revenue grew from ₹2,797.73 crore (FY24) to ₹4,524.95 crore (FY26), and PAT grew from ₹298.75 crore to ₹396.84 crore, though EV-linked revenue eased slightly to 24.17% of FY26 revenue from 25.22% in FY25.
- Growth has come with margin softening PAT margin fell from 10.19% (FY25) to 8.70% (FY26), EBITDA margin from 17.15% to 15.71% alongside continued reliance on a handful of OEMs: the top 10 customers made up 80.93% of FY26 revenue (up from 77.90% in FY24), led by Bajaj Auto at 31.84%.
- At the upper band, the issue values the Company at a post-issue market cap of roughly ₹17,815 crore, or ~44x FY26 earnings a rich multiple for an auto-component supplier, priced for continued EV-linked growth rather than current profitability trends.
- Market leadership, a genuine EV tailwind, and improving leverage (helped by a large FY26 equity infusion) support the growth story, but more than half the issue is Offer for Sale, valuation leaves little room for error, and margins have already started to soften even as revenue keeps climbing.
About the company
Founded in
31 Jan'98
Managing director
Rahul Radhavallabh Dhoot
- Dhoot Transmission designs, manufactures and supplies wiring harnesses, automotive switches, electronic sensors and controllers, connectors, terminals, cables, power cords and lithium-ion battery pack assemblies for two-wheeler, three-wheeler and other automotive OEMs across ICE and EV platforms.
- The Company holds an estimated 44.64% market share by value in India's 2W/3W wiring harness segment (FY25); EV-related revenue was 16.19% of revenue from operations in FY24, rose to 25.22% in FY25, and eased slightly to 24.17% in FY26.
- Manufacturing is carried out across 22 facilities in India, the UK, Slovakia and Thailand, supported by 3 design/engineering centres and 7 warehouses; the Company employed 2,735 full-time employees as at March 31, 2026.
- Promoters: Rahul Radhavallabh Dhoot (Founder & Managing Director) and BC Asia Investments XV Limited (a Bain Capital entity); the Company is led operationally by Managing Director Rahul Radhavallabh Dhoot.
STRENGTHS
- Market Leadership in 2W/3W Wiring Harnesses: Holds an estimated 44.64% market share by value in India’s two-wheeler and three-wheeler wiring harness segment as of FY25.
- EV-Linked Revenue Mix: EV-related revenue moved from 16.19% of revenue from operations (FY24) to 25.22% (FY25) and 24.17% (FY26), tracking the broader shift toward electrified two- and three-wheelers.
- Revenue and Profit Growth: Revenue from operations grew from ₹2,797.73 crore (FY24) to ₹4,524.95 crore (FY26); PAT grew from ₹298.75 crore to ₹396.84 crore over the same period.
- Diversified Manufacturing Footprint: Operates 22 manufacturing facilities, 3 design centres and 7 warehouses across India, the UK, Slovakia and Thailand.
- Established OEM Relationships: Long-standing relationships with major OEMs including Bajaj Auto, TVS Motor, Honda Motorcycle & Scooter India and Royal Enfield, with an average top-client relationship spanning around 13 years.
RISK FACTORS
- Customer Concentration: The top 10 customers contributed 80.93% of FY26 revenue from operations (up from 77.90% in FY24); Bajaj Auto alone accounted for 31.84% of FY26 revenue. The Company does not have firm, long-term volume commitments with these OEM customers.
- Margin Pressure: PAT margin declined from 10.19% (FY25) to 8.70% (FY26), and EBITDA margin softened from 17.15% to 15.71%, even as revenue grew.
- Segment and Product Concentration: The 2W and 3W automotive sectors together contributed 78.33% of FY26 revenue from operations, primarily via wiring harnesses (77.08% of FY26 revenue), making the Company sensitive to demand shifts in those segments.
- Declining Return Ratios: ROCE fell from 29.66% (FY25) to 19.14% (FY26), and Return on Equity fell from 35.60% to 16.30%, partly reflecting the large FY26 equity infusion enlarging the capital base.
- Capacity Constraints at Key Facilities: Certain facilities, including Hosur (Tamil Nadu) and Pithampur (Madhya Pradesh), operate at high capacity utilisation, which could limit the Company’s ability to meet additional demand until capacity is expanded.
Financials
All Values are in Cr.
Issue details
Issue type
MainBoard
Issue size
₹ ₹3,066.89 crore
Fresh Issue
₹ ₹1,400 crore
OFS
₹ ₹1,666.89 crore
Price range
₹ 829 - 871
Lot size
17 shares
Issue Objective
Net Proceeds from the Fresh Issue (₹1,400 crore) are proposed to be used for: (i) repayment/prepayment of certain outstanding borrowings of the Company (₹464.80 crore); (ii) investment in subsidiaries Dhoot Autocomponents, Dhoot Automotive Systems and Dhoot Transmission UK for repayment of their borrowings (₹301.77 crore); (iii) setting up a new wiring harness manufacturing plant at Jhajjar, Haryana and Shoolagiri, Hosur, Tamil Nadu (₹150 crore); and (iv) inorganic growth through unidentified acquisitions and general corporate purposes (balance amount, combined capped at 35% of Gross Proceeds).
Dates
Bidding open
10 Aug'26
Bidding close
12 Aug'26
Allotment date
13 Aug'26
Refund date
14 Aug'26
Listing
17 Aug'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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