Divgi TorqTransfer Systems Approves US Subsidiary and Announces Financial Results
Divgi TorqTransfer Systems Limited, the company, reported several key corporate approvals following its Board of Directors meeting held on May 25, 2026. The Board approved the audited financial statements for the quarter and the financial year ended March 31, 2026, along with the recommendation of a final dividend. Furthermore, the Board approved plans for the incorporation of a Wholly Owned Subsidiary (WOS) in the United States of America.Financial Results and Dividend Recommendation
The Board of Directors approved the Audited Financial Statements for the quarter and financial year ended March 31, 2026, alongside the Internal Audit report for the same period.The company recommended a final dividend of ₹ 3.27 per equity share, with the face value of the share being ₹ 5.00 each, for the financial year 2025-26. This dividend recommendation is subject to approval by the company's members at the ensuing Annual General Meeting (AGM). The dividend, if approved, is slated for payment or dispatch to shareholders within 30 days of the AGM approval.
Financial performance data for the quarter and year ended March 31, 2026, showed a Total Income of 3,751.71 million.
Statement of Financial Results (in million, unless stated otherwise)
| Particulars | 31-Mar-26 Audited | 31-Mar-25 Audited |
|---|---|---|
| Revenue from operations | 3,528.88 | 2,189.17 |
| Other income | 222.83 | 212.11 |
| Total Income | 3,751.71 | 2,401.28 |
| Total expenses | 3,124.22 | 2,071.24 |
| Profit before tax | 627.49 | 330.04 |
| Total tax expenses | 158.23 | 86.12 |
| Net profit for the year | 469.26 | 243.92 |
| Total comprehensive Income for the year | 466.37 | 243.81 |
The company also presented a summary of its balance sheet data:
Balance Sheet Data (in million)
| Particulars | As at March 31, 2026 | As at March 31, 2025 |
|---|---|---|
| Total Assets | 7,314.19 | 6,604.53 |
| Total Equity | 6,354.56 | 5,967.72 |
| Total Current Assets | 4,502.29 | 3,954.14 |
| Total Current Liabilities | 892.91 | 565.11 |
Strategic Expansion into United States
The Board also approved the incorporation of a Wholly Owned Subsidiary (WOS) in the United States of America. The Divgi TorqTransfer Systems Limited is positioned to serve as the holding company for this proposed Foreign WOS.The Foreign WOS is set to operate in the Automotive Industry, focusing on Advance Business Development, Sales, marketing, promotion, and distribution.
To support this expansion, the company plans to invest up to an aggregate amount not exceeding Rs 3 crores. This investment, which will involve subscribing to equity shares and/or any other class of shares of the Foreign WOS, will be used to strengthen the long-term capital base and fund working capital expenditure of the subsidiary.
Financial Highlights (Cash Flow and IPO Utilisation)
The company's cash flow statement for the year ended March 31, 2026, showed a Net cash flow generated from operating activities of 410.83 million.Cash Flow Statement Data
| Particulars | For the year ended March 31, 2026 | For the year ended March 31, 2025 |
|---|---|---|
| Net cash flow generated from operating activities -Total | 410.83 | 352.13 |
| Net cash (used) in investment activities - Total | (160.73) | (425.29) |
| Net cash flow from/ (used) in financing activities - Total | (89.26) | (88.22) |
| Net increase/ (decrease) in cash and cash equivalents | 160.84 | (161.38) |
IPO Proceeds Utilisation
The detailed utilisation of the Initial Public Offer proceeds shows that out of a total of 1696.62 million, the company utilized 969.19 million up to March 31, 2026, leaving 727.43 million unutilized. The main utilization areas were:
| Objects of the issue | Amount to be utilised as per prospectus | Utilisation upto 31/03/2026 | Unutilised upto 31/03/2026 |
|---|---|---|---|
| Funding capital expenditure requirements for the purchase of equipments/ machineries of our manufacturing facilities | 1507.07 | 779.65 | 727.42 |
| General corporate ourooses | 189.55 | 189.54 | 0.01 |
| Total | 1696.62 | 969.19 | 727.43 |
DIVGIITTS Stock Price Movement
Today, shares of Divgi Torqtransfer Systems Limited gained 5.28% to close at ₹748.00. The stock saw significant activity today, recording a total traded volume of 48,117 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.
Last edited by a moderator: