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Wired for growth– a play on India’s 2W/3W electrification boom..

Dhoot Transmission Ltd. (Dhoot), incorporated in 1998 and headquartered in Pune, Maharashtra, is one of India's leading E&E (electrical & electronics) companies, engaged in designing and manufacturing critical wiring harnesses integrating sensors, controllers, switches, connectors, junction boxes, and highvoltage interconnection systems. It serves leading 2W, 3W, PV, CV, and offhighway OEMs, holding ~41% market share in 2W/3W wiring harnesses and ~70% in EV 2W/3W wiring harnesses, with 22 facilities across India and abroad. Wiring harnesses drive ~77% of revenue, with growing contributions from battery packs, sensors, and controllers.

* India's wiring harness market is expected to grow at a healthy 12 to 14% CAGR, rising from about Rs 8,940cr in FY26 to over Rs 16,000cr by FY31, led by increasing EV adoption and higher wiring content per vehicle.(Source: CRISIL).

* Dhoot delivered a robust ~27% revenue CAGR over FY24–26, reaching Rs 4,525 Cr in FY26, powered by strong 2W/3W volume growth, rising EV content, and capacity expansion.

* Dhoot benefits from a favourable policy environment, supported by government initiatives such as the PLI scheme, PM E-DRIVE, and state-level incentives and policies, providing a supportive regulatory backdrop for continued growth.

* Dhoot's strategic focus on the premium 2W category (150cc and above) commands superior kit value per vehicle, supporting margin sustainability as premiumization trends continue to strengthen in the Indian two-wheeler market.

* The company has strong return ratios, with 3 yr Avg. ROE of 35% and ROCE of 29%, showcasing efficient utilization of the capital.

* The total debt stood at Rs 918cr in FY26 (D/E at 0.4x), and upon utilisation of net proceeds from the IPO for debt repayment (~Rs 767cr), the debt-to-equity ratio will be negligible.

* At the upper price band of Rs 871, Dhoot is valued at ~42.7x FY26 P/E and appears reasonable compared to its peers. Backed by a dominant market position (~41% share in 2W/3W wiring harnesses, ~70% in EV 2W/3W) built on strong OEM relationships with Bajaj Auto, TVS, Honda, and Royal Enfield, along with a favourable industry outlook, ongoing capacity expansion, and planned debt reduction from IPO proceeds, Dhoot is poised for strong growth. Given its strong fundamentals and favorable outlook, we recommend “Subscribe” for short-to mediumterm investors.

Purpose of IPO

The offer consists of Fresh Issue of Rs1,400cr and Offer for Sale (OFS) of Rs1666.9cr. Net proceeds will be used for debt repayment, funding subsidiaries to reduce their borrowings, setting up new wiring harness plants in Haryana and Tamil Nadu, and pursuing acquisitions and general corporate purposes.

Key Risks

• Margin compression: EBITDA margin fell from 18.31% to 15.71% and PAT margin from 10.7% to 9.2% (FY24–FY26), driven by rising input, employee, and depreciation costs.

• High client concentration: Top 5 customers account for ~72% of FY26 revenue, posing a key relationship-dependency risk.

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SEBI Registration Number: INH200000345