2 weeks ago
SJS and Divgi Pursue Auto Component Growth Beyond Volumes
Cars now contain many more screens, safety features and advanced systems than they used to.
This gives parts makers a chance to sell more valuable products in each vehicle.
SJS Enterprises focuses on displays, decorative parts and cockpit components.
Its content supplied per passenger vehicle has risen from about ₹1,200–1,500 to ₹3,500–5,000.
Divgi TorqTransfer Systems focuses on drivetrain parts such as transfer cases and transmissions.
Divgi’s sales and profits grew faster recently, helped by new transfer-case programmes.
It is also working on automatic transmissions and electric-vehicle drivetrain products.
SJS appears to offer a broader content-expansion opportunity, while Divgi could benefit more if its technology projects become large production programmes.
Both stocks already trade at valuations that reflect investor interest in their growth plans.
SJS Enterprises is raising content per vehicle through displays, premium surfaces, badges and cockpit components.
SJS’s revenue grew 24.5% year over year in Q1FY27, while its operating margin stayed near 29%.
Divgi TorqTransfer Systems reported 90.3% year-over-year revenue growth in Q1FY27, driven mainly by transfer-case programmes.
Divgi is developing automatic-transmission and electric-vehicle drivetrain technologies for domestic original equipment manufacturers.
SJS trades at 41.5 times trailing earnings, while Divgi trades at 61.4 times, according to data cited from Screener.in as of August 18, 2026.
- Who
- SJS Enterprises and Divgi TorqTransfer Systems, two Indian auto-component companies.
- What
- The companies are pursuing growth by supplying more valuable and technologically complex content per vehicle.
- Where
- The businesses serve the Indian automotive market and are expanding exports; Divgi programmes include vehicles exported to Indonesia.
- When
- The article discusses FY26, Q1FY27 results and valuations dated August 18, 2026; a Divgi AWD programme is scheduled to begin production in Q1FY28.
- Why
- Vehicles are becoming more feature-rich, creating opportunities for component suppliers to increase their value and content per vehicle.
SJS Content Expansion Case
Divgi Drivetrain Technology Case
Growth strategy
SJS Content Expansion Case
SJS is expanding its value per vehicle through premium aesthetics, displays, optical products and integrated cockpit assemblies.
Divgi Drivetrain Technology Case
Divgi is moving into larger and more technically complex drivetrain systems, including transfer cases, AWD systems and transmissions.
Visibility versus upside
SJS Content Expansion Case
The article presents SJS as having greater visibility because its content-expansion strategy is already reflected in rising kit values, revenue growth and margins.
Divgi Drivetrain Technology Case
The article presents Divgi as offering potentially greater upside if its transmission pipeline converts into firm OEM orders and scaled production.
Key risks to monitor
SJS Content Expansion Case
The main question is whether SJS can sustain its growth as its revenue base expands and newer product categories become more significant.
Divgi Drivetrain Technology Case
Investors need to track transmission-commercialisation, transfer-case ramp-ups and capacity utilisation.
Key facts
- SJS Q1FY27 revenue
- ₹261 crore, up 24.5% year over year.
- SJS Q1FY27 net profit
- ₹74 crore, compared with ₹35 crore a year earlier.
- SJS export target
- Management is targeting exports of 14–15% of revenue by FY28, versus 9.5% in FY26.
- Divgi Q1FY27 revenue
- ₹137 crore, up 90.3% year over year.
- Divgi Q1FY27 operating margin
- 27%, compared with 20% a year earlier.
- Divgi transfer-case programmes
- Two programmes for Mahindra & Mahindra and Tata Motors cover about 70,000 vehicles in total.
- Trailing P/E
- SJS: 41.5 times; Divgi: 61.4 times, according to Screener.in data cited as of August 18, 2026.
Sources
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