Divgi TorqTransfer Systems Limited has outlined an export-led growth strategy centred on geographic diversification, advanced transmission technologies, and portfolio flexibility across internal combustion, hybrid, and electric vehicle platforms, including an evaluation of a potential manufacturing footprint in the United States.
Exports contributed around 11 percent of revenue in Q1 FY26, up from 1 percent in FY24. Management indicated that the company is targeting a doubling of export revenues in FY26 and expects exports to grow at a compound annual growth rate of more than 15 percent over the next three to four years. “With multiple contracts already secured and a robust pipeline in place, we believe we are well positioned to double our export revenues in FY26,” said Jitendra Divgi, Managing Director, during an earnings call.
In response to potential US import tariffs estimated at 15–20 percent, Divgi TorqTransfer Systems is evaluating the feasibility of establishing a manufacturing presence in the United States. “We are actively investigating a US manufacturing footprint, because we believe that what is underway is a watershed defining moment in global industrial history,” Divgi said. He added that the company has begun deploying sales teams to the US and is leveraging experience from its Cologne office to engage with OEM and Tier 1 purchasing teams. “We are trying to be extremely proactive and pre-empt any response that could have a detrimental effect on the long-term prospects of our company,” he said.
The transfer case business remains a central pillar of the company’s growth plans, particularly for global programs. Divgi TorqTransfer Systems has secured a transfer case contract with an estimated lifecycle revenue exceeding INR 8 billion, to be executed over seven years starting in the second half of FY27, linked to a global vehicle launch by an Indian OEM. “We have secured the contract… with an estimated life cycle revenue of over Rs. 800 crores,” Divgi said. Management indicated that, over the longer term, the transfer case vertical could exceed INR 12 billion in annual revenues as additional platforms and export programs scale up.
Alongside systems, the company is expanding its components business as a complementary, export-driven growth engine. New programs that have commenced shipments are expected to generate annual revenues of up to INR 900 million. “We have commenced shipments on several new programs… a significant milestone in expanding our global footprint,” Divgi said. Management added that the components vertical could scale to around INR 2 billion in annual revenue as more programs are awarded.
Product development across automatic, hybrid, and electric powertrains is another key focus area. Divgi TorqTransfer Systems is working on localisation of an eight-speed dual-clutch transmission and has submitted a commercial quote to a leading Indian OEM following vehicle drive trials. “A commercial quote has already been submitted… and the feedback has been quite spectacular,” Divgi said, noting that the company aims to combine advanced technology with deep localisation to improve cost competitiveness.
In hybrid applications, the company has completed a simulation exercise for a dedicated hybrid transmission with a large Indian SUV OEM. “These results have demonstrated notable efficiency improvements up to or including more than 30 percent compared to conventional gasoline ICE configurations,” Divgi said.
In the electric vehicle segment, Divgi TorqTransfer Systems is developing a new transmission platform for a leading EV OEM with an accelerated development timeline. “Right from an RFQ to an SOP, we will do the entire program development within less than 12 months,” said Satvinder Singh Sabharwal, Chief Growth Officer, with volume ramp-up expected in the second half of FY26.
Divgi TorqTransfer Systems Limited designs and manufactures drivetrain solutions including transfer cases, transmission systems, and precision components for automotive OEMs in India and international markets, covering internal combustion, hybrid, and electric vehicle applications.