Research note — 8 August 2026. Educational only, not investment advice. Figures below are from Dhoot’s offer disclosures unless noted.
Executive view
Dhoot is the most data-rich of this set. It is a scaled supplier of integrated wiring harnesses, electronics, EV systems and automotive switches. The investment case has genuine strengths: FY26 revenue of INR 4,524.96 crore, 22 manufacturing plants, 74.26% capacity utilisation and EV revenue equal to 24.17% of total revenue. The tension is equally clear: revenue grew rapidly while EBITDA, PAT, RoCE and reported ROE all declined.
Operating numbers that matter
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue (INR crore) | 2,797.73 | 3,444.86 | 4,524.96 |
| Revenue growth | 31.60% | 23.13% | 31.35% |
| EBITDA margin | 18.31% | 17.15% | 15.71% |
| PAT margin | 10.67% | 10.19% | 8.70% |
| RoCE | 33.56% | 29.66% | 19.14% |
| Reported ROE | 39.88% | 35.60% | 16.30% |
The bar chart embedded in the overview post captures the headline: top-line strength is real, but the margin and return trend requires an explanation. The company notes that a late-March equity infusion had not yet been deployed and presents higher adjusted return metrics excluding it. That adjustment is useful context, but it should not erase the operating-margin trend.
Why the business can be attractive
Wiring harnesses are safety- and reliability-critical, qualify over long vehicle programmes and can benefit from rising electrical/electronic content. Dhoot’s FY26 2W revenue was INR 2,962.70 crore, 3W revenue INR 581.78 crore and other segments INR 980.48 crore. EV content provides a growth runway, while manufacturing scale and OEM relationships can create entry barriers.
Why the valuation is not automatically cheap
The reported INR 829–871 band values FY26 EPS at 33.98x–35.70x. The RHP shows a selected peer composite of 55.31x, with Motherson Sumi Wiring at 43.24x and Sona BLW at 74.64x as of 31 July 2026. A peer discount may look attractive, but different businesses earn different multiples. The market will focus on customer concentration, product complexity, EV profitability, balance-sheet quality and sustained returns—not merely a comparison-table average.
Offer and balance-sheet analysis
The reported offer has a roughly INR 1,400 crore fresh issue and INR 1,666.9 crore OFS. Fresh proceeds for debt reduction and capacity can be constructive. The investor should map the exact use of funds, existing debt, maturity profile, interest costs, capex schedule and the expected utilisation path. Capacity expansion is valuable only if OEM programmes are awarded, margins survive and working capital does not expand faster than profit.
Critical RHP questions
- How concentrated are sales among the top five OEMs and vehicle platforms?
- What protection exists against copper, resin and other raw-material volatility?
- What is the difference between EV revenue growth and EV gross-margin growth?
- How much FY26 margin change reflects mix, pricing, start-up costs or normalisation?
- What free cash flow remains after capacity expansion and customer-specific tooling?
Conclusion
Dhoot merits serious analysis rather than a simplistic “discount-to-peer” conclusion. The bullish case is that current scale, EV content and utilisation create a durable platform whose returns recover as new capacity matures. The bearish case is that growth has become more capital intensive and less profitable. The final decision should be driven by the evidence on margin recovery and cash returns.