Dhoot Transmission IPO: Riding the Automobile Boom
This company dominates 70% of the EV wiring market. Read all about their IPO!
The following article is for educational purposes ONLY. Each and every piece of information used henceforth in this article is sourced from the RHP.
Dhoot Transmission Limited is launching a ₹3,067 Cr IPO which opened on August 10th, 2026. Dhoot commands a 41% market share in India's combined 2W and 3W wiring harness segment and controls nearly 70% of the rapidly expanding EV market by value.
IPO Summary
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Introduction
India’s domestic wiring harness market was worth ₹8,940 Cr in FY26, and will grow to ~₹16,500 Cr by FY31, a CAGR of ~13%.
The main driver for this huge jump is electrification. An electric two-wheeler needs 1.5x to 2.5x the wiring value of a petrol or diesel vehicle, because it carries high-voltage cables, battery management wiring and motor control links that a combustion engine does not need.
Dhoot Transmission is the company making these complex parts for both traditional and electric vehicles.
They’re now going public with an IPO consisting of a Fresh Issue of ₹1,400 Cr and an Offer for sale of ₹1,667 Cr. The IPO is live from August 10th to 12th, 2026.
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The Business Model
Dhoot is a Tier-1 supplier to vehicle makers. They try to win a place on an Original Equipment Manufacturer (OEM)’s vehicle programme through a request-for-quotation process, and if they are nominated as a supplier, they bill the OEM against purchase orders.
Dhoot designs and manufactures wiring, battery packs, sensors, switches, connectors, for automotive players making two/three-wheelers, commercial vehicles and farm equipment.
By value, it holds a 41% market share of India’s combined two-wheeler and three-wheeler wiring harness market in FY26, and close to 70% of the electric version of that market.
In addition, they also make their own terminals, connectors, cables and moulded parts rather than buying them from outside suppliers. This backward integration cuts procurement cost, secures supply during shortages, and lets them control product quality at each stage.
Unit Economics
Cost of materials is the largest cost, and it stayed almost constant, from ₹65 in FY24 to ₹66 in FY26. Copper, the main conductor in a wiring harness, typically accounts for ~50% of all material costs.
Employee costs fell slightly from ₹9 in FY24 to ₹8 in FY26, as revenue grew faster than headcount, though the workforce did expand, from 1,984 to 2,735 people in the same period.
Adjusted EBITDA fell from ₹18 in FY24 to ₹16 per ₹100 in FY26, but is still roughly constant.
Operating Metrics
Capacity utilisation rose from 64% in FY24 to 74% in FY26. The rise points to real demand growth driven by market factors.
The two-wheeler components’ share of revenue is the largest for Dhoot, and it stayed mostly constant, from 65% in FY24 to 67% in FY26. In fact, Dhoot’s revenue tracks the 2 wheeler cycle in India closely, as the domestic 2 wheeler market is its main growth engine.
Revenue from wiring harnesses is the largest stream by far, but it fell from 82% of revenue in FY24 to 77% in FY26, as Dhoot grew businesses.
Dhoot Transmission’s Peers (FY26)
Dhoot’s EBITDA Margin of 16% sits above Minda Corporation, Uno Minda and Motherson Sumi Wiring.
Dhoot’s PAT Margin of 8% trails Uno Minda and Sona BLW. Uno Minda and Motherson Sumi Wiring both run larger, more diversified component portfolios that carry costs relative to their revenue.
Key Risks
Concentration in the 2W and 3W sector: Dhoot drew 65% of FY26 revenue from the 2 wheeler sector and 13% from the 3 wheeler sector. Wiring harnesses alone made up 77% of revenue. A slowdown in 2W or 3W sales in India, could affect Dhoot’s revenue due to lack of product diversity.
No long-term volume commitments from OEMs: Dhoot’s customers issue rolling purchase orders rather than binding contracts, and if a contract is cancelled, it could affect their profitability.
Summary
Dhoot Transmission holds the top position by value in India’s wiring harness market for 2 wheelers and 3 wheelers, and it also stands to gain from the EV shift, since it will add wiring value for Dhoot to supply.
Disclaimer
This content is based on publicly available information contained in the Red Herring Prospectus (RHP) and is intended solely for educational and informational purposes. It should not be construed as investment advice, recommendation or solicitation to invest.
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Source: Red Herring Prospectus (RHP) of Dhoot Transmission Limited