Dhoot Transmission Ltd. Share Price

Dhoot Transmission

• Dhoot Transmission is coming out with a 100% book building; initial public offering (IPO) of 3,60,33,148 shares of face value Rs 2 each in a price band Rs 829-871 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 10, 2026 and will close on August 12, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 414.50 times of its face value on the lower side and 435.50 times on the higher side.
• Book running lead managers to the issue are Axis Capital, Jefferies India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India), SBI Capital Markets and 360 ONE WAM.
• Compliance officer for the issue is Amey Deeliprao Jogas. 

Profile of the company

Dhoot Transmission is one of India’s leading electrical and electronics (E&E) companies. The company designs, engineers, manufactures and supplies critical wiring harnesses that integrate electronic sensors and controllers, switches, terminals, connectors, junction boxes, high-voltage interconnection systems and data cables, delivering application-specific architectures across platforms. It serves both automotive and non-automotive applications, supporting stringent performance, safety and reliability requirements for OEMs. In line with the industry’s shift in powertrain, it caters to the spectrum of powertrain architectures across customer segments and end markets. It manufactures wiring harnesses and electrical distribution systems for internal combustion engine (ICE) vehicles and electric vehicles (EV). Its offerings also include battery packs, switches, sensors (such as ABS sensors and lean angle sensors), controllers (such as USB chargers and light control modules) and power supply cords. Further, it is in the process of developing certain products such as side stand sensors and temperature sensors.

The company has a diversified presence across multiple end-markets, extending beyond 2W and 3W into commercial vehicles (CVs), off-highway vehicles (OHW), and farming and industrial equipment. Its extensive product portfolio has driven a sustained increase in kit value per vehicle reflecting higher content from high-voltage cables, battery interconnects, power electronics interfaces and advanced sensor/data links. This has enhanced its presence across multiple vehicle platforms and architectures, improving value realization and deepening integration with its OEM customers.

Proceed is being used for: 

• Repayment/prepayment, in full or in part, of all or certain outstanding borrowings availed by the company 
• Investing in certain of its Subsidiaries, namely, Dhoot Autocomponents Private Limited, Dhoot Automotive Systems Private Limited and Dhoot Transmission UK Limited, for repayment/prepayment, in full or part, of all or certain of the outstanding borrowings availed by Dhoot Autocomponents Private Limited, Dhoot Automotive Systems Private Limited and Dhoot Transmission UK Limited.
• Setting up of a new wiring harness manufacturing plant by the company at (i) Jhajjar, Haryana, India (Jhajjar Wiring Harness Plant), and (ii) Shoolagiri, Hosur, Tamil Nadu, India (Hosur Wiring Harness Plant)
• Funding inorganic growth through acquisitions and general corporate purposes

Industry overview

The wiring harness is the combination of electrical cables, or assembly of wires, that connects all electrical and electronic (E/E) components in a vehicle, like sensors, electronic control units, batteries, and actuators. The wiring harness handles the energy and information flow within the E/E system interconnecting various electrical and electronic components such as sensors, actuators, lighting systems, infotainment systems and control modules. Instead of running individual wires to each component, the harness bundles and organizes them into structured assemblies, improving efficiency, reliability, and ease of installation. A typical commuter motorcycle may only contain 70-100 meters of cumulative wiring including all strands, while premium and performance motorcycles can have wiring in length of 100 to 200 meters, since it offers advanced features like Ride by Wire, ABS systems, TFT screens and Bluetooth connectivity by binding them into a cable harness, they can be better secured against the adverse effects of vibrations, abrasions, and moisture. Constricting the wires into a non-flexing bundle optimizes usage of space while decreasing the risk of a short.

The automotive wiring harness market is expected to witness significant growth in the coming years, driven by the increasing penetration of electric vehicles across 2W, 3W and CV segments, enabling the demand for HV wiring harness. The ICE wiring harness market, valued at Rs 78,711 million in fiscal 2026, is projected to reach Rs 115,000-118,000 million by fiscal 2031, growing at a CAGR of 7-9%. This growth will be largely driven by the increasing functionalities in ICE and EVs, expected to add to the complexity and cost of LV wiring harness in vehicles. Shift towards premiumization also enables vehicle segments is also expected to augment this growth. Proliferation of ADAS due to high emphasis on safety, advancements in infotainment system and the ABS mandate are all expected to increase the complexity and cost of LV wiring harness.

The automotive industry is undergoing significant transformation as every segment shift towards electrification. This transition is driven by the unique requirements of the EV market, including the need for lightweight components, new powertrains, and innovative component segments such as high-power electronics and batteries. As a result, traditional ICE vehicle manufacturers are facing a rapid transformation of the entire ecosystem. One of the key changes is the increased focus on electronics and associated components in vehicles. EVs have a distinct powertrain and propulsion technology, which replaces traditional ICE components such as engine parts, operating mechanisms, and fuel systems. Instead, EVs feature specialized components like batteries, motors, inverters, and their associated assemblies. The electrification of vehicles has led to a significant shift in industry, with manufacturers needing to adapt quickly to changing market demands.

Pros and strengths 

Established leadership position in India: It is one of the largest manufacturers of wiring harnesses for the 2W and 3W segments, with market shares that reflect both its scale and its product-critical role in electrical automotive systems. Its position is underpinned by an extensive product portfolio across model variants and OEM platforms and deep integration in customers’ new product development cycles.

It is positioned to capitalize on key industry trends, leveraging its differentiated capabilities to deliver sustained growth and value: Its wiring harnesses, which incorporate high voltage interconnections, sensors/controllers and data cables, are foundational to power distribution, signal integrity and control in electrified and software defined vehicle architectures. The 2W segment was the largest automotive segment in India by volume in Fiscal 2025, and EV penetration in the 2W segment is forecasted to increase from 6.6% in Fiscal 2026 to 25-30% in Fiscal 2031. Additionally, EV penetration in the 3W segment was the highest among automotive segments in India. In the 3W segment, electrification is forecasted to increase from 31.6% in Fiscal 2026 to 53-58% in Fiscal 2031. Its ability to serve the growing EV market in India is evidenced by the growing share of its revenue from operations derived from EV segments, which increased from 16.19% in Fiscal 2024 to 25.22% in Fiscal 2025 and 24.18% in Fiscal 2026.

Strong business foundation anchored by marquee customer base and diversified business mix, enabling sustained growth: As a vendor to leading OEMs across 2W and 3W vehicles, it benefits from long standing relationships with a diverse customer base. Its OEM customers had a combined share of 69.37% in Fiscal 2026 of the Indian 2W market, aligning its growth with core domestic industry demand. The average relationship with its top five customers was 13 years. It has maintained customer retention driven by embedded engineering and supply chain and operational linkages that raise the cost of changing suppliers. Additionally, a leading EV 2W OEM faced recurring service challenges where battery removal required dismantling the wiring harness. Its design team developed a specialized in built connector with a lever mechanism integrated into the harness to enable safe battery disconnection without removing the harness.

Strong financial performance: Its track record of growth, profitability and efficient use of capital positions it well for continued success and underscores its commitment to delivering value to its stakeholders. Over the past three Fiscals, it increased profitability. its profit after tax for the year increased from Rs 2,987.48 million in Fiscal 2024 to Rs 3,968.42 million in Fiscal 2026, representing a CAGR of 32.84%. It is committed to upgrading its manufacturing with technological and operational enhancements and increasing production capacity to satisfy future demand for its products.

Risks and concerns

Significant dependence on 2W and 3W automotive sectors and wiring harness sales: The company derives a significant portion of its revenue from operations from the design, manufacture and sale of critical wiring harnesses that integrate electronic sensors and controllers, switches, terminals, connectors, junction boxes, high voltage interconnection systems and data cables to companies manufacturing 2W and 3W vehicles and are therefore heavily dependent on the performance of the 2W and 3W automotive sector in India. The company derived a significant portion of its revenue from operations from the 2W automotive sector in India, contributing 65.47%, 66.91% and 64.53% of its revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. It also derived 12.86%, 12.50% and 11.71% of its revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively, from the three-wheeler (3W) automotive sector in India. In each case, such revenue was derived primarily through the sale of wiring harnesses, which constituted 77.08%, 78.00% and 81.93% of its revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Any adverse changes in these sectors in India, or in demand for, pricing of or technology relating to wiring harnesses, could adversely impact its business, results of operations, cash flows and financial condition.

Dependence on the company's top ten customers for revenue: The company is dependent on its top ten customers. Its top ten customers (based on contribution to revenue from operations in Fiscal 2026) contributed 80.93%, 81.81% and 77.90% of its revenue from operations in Fiscals 2026, 2025 and 2024, respectively. Any failure to maintain its relationship with these customers will have an adverse effect on its business, results of operations, cash flows and financial condition. Additionally, it does not have exclusivity agreements with its customers and compete for new business through its customers’ supplier selection processes, starting from the issuance of a request for quote (RFQ) to the awarding of the order.  

Absence of firm long-term volume commitments from OEM customers: The company does not have firm, long-term volume commitments with its OEM customers. Its contractual arrangements are generally requirement-based, under which it supplies against customer schedules and purchase order releases. While it may enter into general terms or nomination letters that record commercial and technical parameters for a program, these arrangements typically provide only non-binding forecast volumes and do not compel customers to purchase any minimum quantities. Customers typically retain broad rights to modify, reschedule or cancel orders, and to terminate program arrangements (for cause or, in some cases, for convenience) without compensating it for lost profits, unabsorbed overheads, capital investments, engineering costs or other related expenditures. Accordingly, any termination of such arrangements, material reduction in customer production requirements, or inaccurate production forecasts by its customers could adversely affect its business, results of operations, financial condition and cash flows.

Pricing pressure arising from competitive RFQ processes: The company faces ongoing pricing pressure not only from direct price reduction demands but also from broader market dynamics such as competitive RFQ processes, expectations of changes in profit margins, and steps to reduce cost while keeping required performance, safety, quality, and compliance that seek continuous cost reductions through design and process changes. These dynamics, combined with its contractual and commercial ability (or inability) to pass through increases in input costs (including raw materials, energy, freight, and labor), may adversely affect its margins and profitability.

Outlook

Dhoot Transmission is engaged in the business of manufacturing/sale of wiring harness, electronic parts, cables and terminals for two-wheeler industry, light and commercial vehicle industry, off- road machinery, appliances and industrial sector. It has a diversified presence across multiple end-markets, extending beyond 2W and 3W into CVs, off-highway vehicles, and farming and industrial equipment. Its product lines are: (i) wiring harnesses; (ii) battery packs; (iii) sensors and electronic controllers; and (iv) automotive switches. On the concern side, it faces competition from both domestic and multinational corporations and there is no assurance that it will be able to successfully compete in the markets it currently operates in or those that it plans to expand into. Its inability to compete effectively could result in the loss of customers and its market share, which could have an adverse effect on its business, results of operations, cash flows and financial condition. Additionally, it faces competition from both domestic and multinational corporations and there is no assurance that it will be able to successfully compete in the markets it currently operates in or those that it plans to expand into. Its inability to compete effectively could result in the loss of customers and its market share, which could have an adverse effect on its business, results of operations, cash flows and financial condition.

The issue has been offering 3,60,33,148 shares in a price band of Rs 829-871 per equity share. The aggregate size of the offer is around Rs 2,987.15 crore to Rs 3,138.49 crore based on lower and upper price band respectively. Minimum application is to be made for 17 shares and in multiples thereon, thereafter.  On performance front, its total income increased by 31.43% to Rs 45,637.00 million in Fiscal 2026 from Rs 34,722.36 million in Fiscal 2025. Its restated profit for the year increased by 12.14% to Rs 3,968.42 million in Fiscal 2026 from Rs 3,538.87 million in Fiscal 2025.

Meanwhile, it intends to focus on growth trends in wiring harness and allied segments, including the polarization between high-voltage (HV) and low-voltage (LV) harnesses, transition to modular and zonal electrical architectures, transition to communicating signal and high-speed data harnesses, and rising EMC and thermal & technical validation requirements. Additionally, it plans to invest ahead of demand by expanding its manufacturing footprint and capabilities in anticipation of customer and platform requirements, ensuring timely readiness for upcoming product launches and technology transitions. Its approach is anchored in a customer-proximate network, vertical integration, and scalable facilities that are designed to be rapidly deployable in key automotive hubs.