Synopsis: Divgi TorqTransfer Systems Limited has secured an exclusive five-year order from a leading Indian OEM to supply All-Wheel Drive (AWD) system components for upcoming SUV models. The order covers approximately 6,000 units annually and is expected to commence from Q1 FY28, strengthening the company’s long-term revenue visibility.
Shares of Divgi TorqTransfer Systems Limited are likely to remain in focus after the company announced that it has secured an exclusive order from an existing leading Indian Original Equipment Manufacturer (OEM) for its All-Wheel Drive (AWD) system business.
Divgi TorqTransfer Systems Limited has a total market capitalization of approximately Rs. 2,672.64 crore. The company’s shares were trading at Rs. 873.90 apiece on the stock exchange, up by 2.01 percent during the session. The stock has gained 1.34 percent over the last five trading sessions, while it has gained 23 percent over the last month. The stock touched a 52-week high of Rs. 896 and a 52-week low of Rs. 572.30.
According to the company’s press release, Divgi TorqTransfer Systems will supply Interactive Torque Management (ITM) Assemblies, Electronic Control Units (ECUs), and Power Transfer Unit (PTU) Assemblies for the OEM’s upcoming All-Wheel Drive variants of its mid-sized and full-sized SUV models. The program involves an annual supply of approximately 6,000 units over a five-year period, with production expected to commence from Q1 FY28.
The order is strategically significant as it marks the OEM’s first Front-Wheel Drive (FWD)-based All-Wheel Drive variant for its internal combustion engine (ICE) vehicle platform. Divgi will provide a fully integrated drivetrain solution, including hardware as well as embedded control systems, leveraging its proprietary NexTrac platform that combines software-controlled torque management, electromagnetic actuation, and precision clutch modulation technologies.
Management stated that the award reflects the customer’s continued confidence in Divgi’s engineering capabilities, product performance, and execution expertise. The company believes increasing consumer preference for enhanced driving dynamics, off-road capability, and vehicle performance is driving higher adoption of AWD technologies across the SUV segment.
From an investor’s perspective, the order provides improved long-term business visibility as the supply agreement extends over five years. The exclusive nature of the award also strengthens Divgi’s position as a key supplier of critical drivetrain technologies to leading automotive manufacturers, while creating opportunities for future platform expansions.
India’s passenger vehicle market continues to witness rising demand for SUVs, which now account for more than half of domestic passenger vehicle sales. Premium SUV variants equipped with advanced drivetrain technologies such as AWD systems are becoming increasingly popular as customers seek improved safety, performance, and versatility across diverse driving conditions.
Incorporated in 1964, Divgi TorqTransfer Systems Limited is a leading manufacturer of automotive drivetrain systems, transmission components, and four-wheel-drive technologies. The company supplies drivetrain solutions to major OEMs, including Mahindra & Mahindra, Tata Motors, Toyota Kirloskar, BorgWarner, and Force Motors, and has over five decades of expertise in developing advanced transmission and torque transfer technologies.
The latest exclusive order strengthens Divgi TorqTransfer Systems’ position in India’s growing SUV segment and could support long-term revenue growth as demand for advanced drivetrain technologies continues to increase.
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