Wired for India’s EV surge
DTL leads 2/3W wiring harness with 41% share, and ~70% in E-2/3W. Non- wiring harness portfolio of battery packs, sensors, controllers & chargers that posted 49% CAGR in FY23-26 allows DTL to capture widening E&E TAM. EVs form 24% of revenue; to reach 33% by FY29E as E-2W hit inflection point (+81% YoY in 4MFY27, 11% penetration in Jul’26). Higher WH content in E- 2/3W vs ICE and rising electronics content provide long-term growth visibility. A structured apprentice recruitment machinery optimizes labour costs at 700-800bps below MSUMI. This along with backward integration into connectors, switches & sensors since FY23 sharpens cost edge, enabling market share gains and margin expansion. We see inorganic potential to tap into the 4W E&E space which can open up large TAM. Expect PAT CAGR of 31% over FY26-29. DCF-based TP of ₹1,598 implies 42x FY28E P/E; 6% above sector average given fuel-agnostic portfolio vs mixed exposure for sector, category leadership, cost edge and rising TAM.
