Dhoot Transmission shares jump 8% after Q2 results

What happened

Dhoot Transmission reported Q2 revenue of ₹1,827 crore, up 61%, with 47% growth excluding the Multilink acquisition. Adjusted profit rose 30% to ₹162 crore, while its margin, or profit per sale, fell to 14.3% from 17.6% as copper and PVC costs increased.

Confirmed

Global impact / market context

Strong revenue and profit growth point to expanding business, but the lower margin shows higher copper and PVC costs are absorbing part of that growth. If these costs stay elevated, they could limit how much additional revenue becomes profit, even as the company’s electric-vehicle revenue rises.

Analyst inference

The results combine acquisition-supported growth with substantial revenue growth even after excluding Multilink, while profitability faced cost pressure. Electric-vehicle revenue rose 108% and made up 31% of total revenue, giving investors a growth signal alongside the warning that input costs reduced the profit earned per rupee of sales.

Analyst inference

What to watch

1. Check whether future results show copper and PVC costs easing or the company passing them through to customers; either change could affect the margin from sales. Analyst inference
2. Compare later revenue growth with profit growth and the 14.3% margin to see whether stronger sales are translating into improved profitability. Analyst inference
3. Watch whether electric-vehicle revenue continues growing and whether its share of total revenue changes from the reported 31%, as this could reshape the business mix. Analyst inference

Evidence

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