Dhoot Transmission Bets Big on India’s EV Boom

Core News & Key Facts

Dhoot Transmission is looking to turn India’s electric two-wheeler transition into its next major growth engine as the Maharashtra-based auto-component maker heads through its ₹3,070 crore initial public offering. The company, which supplies wires, cables and electrical components for scooters and motorcycles, has become an important part of India’s two-wheeler manufacturing ecosystem.

The IPO, backed by investors including Bain Capital, BlackRock and Abu Dhabi’s sovereign wealth fund, was fully subscribed early on the second day of its three-day bidding period. Dhoot’s attraction lies less in its established business and more in the additional content required as vehicles become increasingly electronic and electric.

The company generated roughly ₹4,500 crore in revenue and around ₹400 crore in profit in FY26. Two-wheelers account for about 65% of its sales, making the evolution of India’s scooter market particularly important to its future.

Context & Statements

Dhoot benefited significantly from the introduction of BS VI emission standards, which increased the electronic content required in internal-combustion-engine vehicles. According to managing director Rahul Dhoot, the shift from carburettors to electronic fuel injection created greater demand for sensors and related electrical systems.

Electric vehicles could offer another significant opportunity. Dhoot’s IPO filing indicates that an electric two-wheeler requires substantially more wiring and cable content than a BS VI vehicle. EVs can require high-voltage cables, battery interconnects, motor-control links and additional circuits.

The company’s numbers reflect this transition. Between FY24 and FY26, Dhoot’s sales increased by 60%, while the contribution of EVs to revenue rose from 16% to 24%. Manufacturing capacity utilisation also improved from around two-thirds to approximately three-quarters during the same period.

Impact & What’s Next

India’s electric two-wheeler market is therefore central to Dhoot’s growth strategy. One in 12 two-wheelers sold in FY26 was electric, while the company expects the proportion could reach at least one in four new two-wheelers within five years.

Dhoot counts TVS Motor Company and Bajaj Auto among its customers, giving it exposure to two manufacturers that are prominent in India’s electric scooter market. However, the company’s prospects remain particularly linked to scooters because battery-powered motorcycles are yet to become mainstream.

The business began in the late 1990s from a family-run automobile dealership in Chhatrapati Sambhajinagar. Its current IPO represents a significant transition from that legacy business toward a future shaped by electrification.

For investors, the central question is whether India’s EV adoption can translate into sustained higher component content and revenue for Dhoot Transmission. The company’s recent growth suggests that transition is already underway, but its longer-term performance will depend on how quickly electric two-wheelers become mainstream.