Dhoot Transmission posted strong growth in its first quarterly results since listing, helped by demand from electric and conventional vehicles, though operating margins fell.

The company's net profit for the June quarter rose 38% year-on-year, supported by a 50% jump in revenue. Growth was driven by demand across both electric and conventional vehicle segments, according to the results, the automaker components supplier's first earnings report since its market debut.

The gain on the top line came even as operating margins narrowed during the quarter, indicating that higher input or operating costs weighed on profitability despite the strong scale of revenue growth. Margins are a closely watched metric for auto component suppliers, where profitability depends heavily on raw material costs and pricing negotiated with vehicle manufacturers, making cost pass-through a recurring point of scrutiny in earnings reviews.

Dhoot Transmission recently completed its initial public offering and listed on Indian exchanges. The Q1 results mark the company's first financial disclosure to public shareholders since the listing, and form part of a busy period for Indian IPO activity, during which newly listed companies' opening results are often weighed as an early signal of post-listing performance.

The company supplies automakers serving both electric and conventional vehicle programs, segments that Indian automakers have been expanding as electrification gains policy and industry support.

Source: CNBC-TV18