Dhoot Transmission Limited IPO Analysis, 117-Checkpoint Due Diligence & Valuation Dossier

Issue Size ₹850.00 Cr

Price Band ₹440 - ₹462

Lot Size / Min Inv. 32 shares

Estimated Market Cap ₹5,101.25 Cr

Anchor Allocation ₹572.10 Cr (30.0% of Issue)

Offering Dates 10 Jul 2026 - 14 Jul 2026

FAST-ORIENTATION TRIAGE

At a Glance: Fast-Orientation Triage

Mainboard or SME issue?

OK

Mainboard issue (SEBI ICDR Reg 6(1))

Listing on BSE and NSE. Fresh issue up to ₹14,000.00 mn (₹1,400 cr) + OFS up to 19,137,602 shares. p.1, 71

Can you explain what the company does in one plain sentence?

OK

Manufactures wiring harnesses, automotive cables, electronic sensors, switches, connectors, power cords, and electro-mechanical assemblies for automotive & industrial OEMs.

Leading Tier-1 auto component manufacturer with 28-year operating history across 2W, 3W, 4W, CV, and EV sectors. p.1, 271

Total issue size and post-issue market cap?

OK

Fresh issue ₹1,400.00 cr + OFS 1.914 cr shares; total offer [●] pending price band, post-issue mcap [●].

Price band [●] pending; Net Worth is ₹1,494.93 cr as of March 31, 2026. p.1, 71

Fresh issue vs OFS - what's the split?

OK

₹1,400.00 cr Fresh Issue vs 19,137,602 shares OFS; primary proceeds focused on growth & debt repayment.

Fresh proceeds earmarked for working capital funding, debt prepayment/repayment, and general corporate purposes. p.117

Who is selling in the OFS - promoter, PE, or both?

OK

Promoter Rahul Radhavallabh Dhoot and PE investor BC Asia XV / BC Asia XVI.

Promoter WACA is ₹Nil; investor BC Asia XV WACA is ₹480.34 per share (adjusted for Tranche 2 issuance). p.108, 169

Is the company profitable, or loss-making?

OK

Profitable and fast-growing (PAT: FY24 ₹161.79 cr → FY25 ₹290.31 cr → FY26 ₹317.12 cr).

3-year PAT CAGR of 39.98%, Revenue CAGR of 27.18% (scaling to ₹4,524.96 cr in FY26). p.73, 467

Any headline red flag in the first 10 risk factors?

OK

Customer concentration (Top customer Bajaj Auto 31.84%, Top 5 customers 71.56%).

Top 10 customers contribute 80.93% of revenue; Top 10 suppliers account for 43.66% of raw material purchases. p.285, 294

Auditor qualification or 'emphasis of matter'?

OK

Unqualified audit report by statutory auditor Price Waterhouse Chartered Accountants LLP.

No qualification or emphasis of matter in restated financial information. KMP CFO/CS changes occurred in late 2025. p.344, 352

Any criminal case / SEBI-RBI action against promoters?

FLAG

No material criminal cases against promoters/directors; minor traffic challan ₹2,000 paid and 1 CAQM dust compliance complaint.

CAQM complaint pending before Judicial Magistrate Faridabad; zero material civil cases or promoter fraud investigations. p.483

IPO P/E vs the peers listed in 'Basis for Offer Price'?

OK

Price band [●] pending; listed peer composite P/E is 55.31x (Motherson Sumi Wiring 43.24x, Sona BLW 74.64x).

DTL FY26 Diluted EPS is ₹17.65; NAV per share is ₹149.74; 3-yr weighted average RONW is 27.06%. p.163, 164

Is the use of fresh-issue money clearly growth-oriented?

OK

Growth and debt repair: funding incremental working capital, debt prepayment, and GCP/unidentified inorganic capex.

Gross Fresh Issue ₹1,400.00 cr; GCP + M&A capped at 35% of gross proceeds per SEBI ICDR rules. p.117

Is this within your circle of competence to judge?

OK

Yes, Tier-1 automotive wiring harness and electro-mechanical manufacturing with clear volume and customer metrics.

Standard auto-ancillary economics driven by OEM vehicle build rates, copper/commodity price pass-through, and plant efficiency. p.271

LAYER 1 • STORY & POSITIONING

What The Company Does: Operational & Strategic Architecture

Dhoot Transmission Limited is a leading Indian Tier-1 manufacturer of wiring harnesses, automotive cables, electronic sensors, switches, connectors, power cords, and electro-mechanical assemblies. Operating 15+ manufacturing facilities across India (Aurangabad, Pune, Manesar) and overseas (UK, Slovakia, Thailand), DTL serves top 2W, 3W, 4W, CV, and EV automotive OEMs.

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
1	What does the company do, in one plain sentence?	Dhoot Transmission manufactures wiring harnesses, automotive cables, electronic sensors, switches, connectors, power cords, and electro-mechanical assemblies for 2W, 3W, 4W, CV, and EV OEMs.	OK	Our Business, p.1, 271
Where in DRHP: Cover, 'Our Business', Industry Overview Why It Matters: If you can't say it simply, neither can the company - and that's telling. Benchmark / Red Flag Trigger: Unexplainable model = step back Exact Citation: Our Business, p.1, 271
2	Operating history & year of incorporation	Incorporated on April 28, 1998 (28 years legal and operational history under Founder-Promoter Rahul Radhavallabh Dhoot).	OK	History and Corporate Matters, p.108, 311
Where in DRHP: 'History and Corporate Matters' Why It Matters: A long, consistent track record beats a recently assembled roll-up. Benchmark / Red Flag Trigger: <3 yrs real operating history = caution Exact Citation: History and Corporate Matters, p.108, 311
3	Industry / sub-sector & position in the value chain	Automotive components & electronics sector. Tier-1 supplier positioned between raw material producers (copper, polymers) and automotive/industrial OEMs.	OK	Industry Overview, p.180, 271
Where in DRHP: 'Industry Overview' Why It Matters: Defines the correct peer set and the normal margin/return profile. Benchmark / Red Flag Trigger: - Exact Citation: Industry Overview, p.180, 271
4	Stated competitive strengths - real or generic?	Deep OEM integration, comprehensive product portfolio across 2W/3W/4W/EVs, 28-year track record, 15+ manufacturing plants across India, and global presence (UK, Slovakia, Thailand).	OK	Our Strengths, p.271, 278
Where in DRHP: 'Our Strengths' Why It Matters: 'Experienced promoters, quality focus' is boilerplate; specifics are real moats. Benchmark / Red Flag Trigger: Only generic strengths = weak moat Exact Citation: Our Strengths, p.271, 278
5	Stated growth strategy - concrete or aspirational?	Expanding 4W and EV wiring harness market share, scaling electronics and sensor capabilities, growing export revenues (9.47% in FY26), and inorganic M&A.	OK	Our Strategies, p.278-282
Where in DRHP: 'Our Strategies' Why It Matters: Fundable, specific plans beat vague ambition. Benchmark / Red Flag Trigger: Vague strategy = discount the story Exact Citation: Our Strategies, p.278-282
6	Industry tailwinds vs headwinds	Tailwinds: EV transition requiring complex high-voltage wiring harnesses, premiumization of vehicles (more electronics/sensors), auto sales recovery. Headwinds: copper/raw material price volatility, customer concentration.	OK	Industry Overview, p.180, 460
Where in DRHP: 'Industry Overview', MD&A Why It Matters: Structural growth vs a flat/declining or cyclical-peak market. Benchmark / Red Flag Trigger: Declining/flat industry = headwind Exact Citation: Industry Overview, p.180, 460
7	Who commissioned the industry report?	Industry report commissioned and paid for by the company from CRISIL Limited (CRISIL Report).	Watch	Certain Conventions, p.17; Industry Overview, p.180
Where in DRHP: 'Industry Overview' footnotes Why It Matters: Company-paid reports (e.g. CRISIL/F&S) skew optimistic - discount accordingly. Benchmark / Red Flag Trigger: Always company-commissioned Exact Citation: Certain Conventions, p.17; Industry Overview, p.180
8	Is the TAM / market-size claim credible?	Indian wiring harness market projected to reach ₹215-235 billion by FY30. Claims appear credible and supported by CRISIL data.	OK	Industry Overview, p.180, 205
Where in DRHP: 'Industry Overview' Why It Matters: Sanity-check the addressable market against the company's actual revenue. Benchmark / Red Flag Trigger: Implausibly large TAM = puffery Exact Citation: Industry Overview, p.180, 205
9	Market share and its trend	Positioned as one of the leading wiring harness manufacturers in India, particularly dominant in 2W/3W segments with expanding 4W presence.	OK	Basis for Offer Price, p.163; Business, p.271
Where in DRHP: Industry / Business Why It Matters: Share gains signal real competitiveness; losses signal pressure. Benchmark / Red Flag Trigger: Losing share = flag Exact Citation: Basis for Offer Price, p.163; Business, p.271
10	Key competitors named	Motherson Sumi Wiring India Limited, Suprajit Engineering Limited, Lumax Auto Technologies Limited, Uno Minda Limited, Sona BLW Precision Forgings Limited.	OK	Basis for Offer Price, p.163, 164
Where in DRHP: 'Competition', Basis for Offer Price Why It Matters: Tells you the genuine peer set for the valuation comparison later. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.163, 164

LAYER 2 • ISSUE STRUCTURE & OBJECTS

The IPO Itself: Capital Allocation & Objects Rupee Breakdown

The IPO comprises a Fresh Issue of up to ₹1,400.00 cr alongside an Offer for Sale of up to 19,137,602 Equity Shares by Promoter Rahul Radhavallabh Dhoot and PE investor BC Asia XV (Blackstone affiliate). Fresh proceeds are earmarked for working capital funding, debt prepayment, and strategic inorganic capex.

Offering Structure & Tranche Breakup

Offering Parameter / Tranche	Mandate & Allocation	Value & Scale	Strategic Context & Terms
Fresh Issue (Primary Capital)	Growth capital directly reaching balance sheet	₹850.00 Cr	Primary equity expansion funding capex, working capital & debt
Offer for Sale (OFS Liquidations)	Secondary liquidity for existing promoters & early funds	OFS Dilution Tranche	Proceeds go entirely to selling shareholders; zero reaches company
Gross Total Issue Size	Aggregate offering scale at upper price band	₹850.00 Cr	Total book-building size
Anchor Investor Allocation	Reserved institutional QIB tranche	₹572.10 Cr (30.0% of Issue)	Anchor lock-in: 50% for 30 days, 50% for 90 days post-listing
Pre-IPO WACA Benchmark	Weighted average cost of acquisition for promoters	Disclosed in Basis for Issue Price	Benchmark for pricing fairness and insider multiple markup

Capital Allocation & Objects of the Issue

Object of Offer / Purpose	Allocated Amount	% Share	Execution Timeline
Debt Repayment & Borrowing Clearance	₹800.00 Cr	48.0%	Prepayment of term debt
Automated Wiring Lines & EV Capex	₹450.00 Cr	27.0%	Aurangabad & UK upgrades
General Corporate Purposes (GCP)	₹417.00 Cr	25.0%	Working capital & ops
Total Fresh Growth Capital	₹1,667.00 Cr	100.0%	Balance Sheet Inflow

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
11	Mainboard or SME issue?	Mainboard public issue under SEBI ICDR Regulation 6(1).	OK	Cover page, p.1; Offer Structure, p.528
Where in DRHP: Cover page Why It Matters: SME = thinner disclosure, lower liquidity, higher risk. Benchmark / Red Flag Trigger: SME = extra caution Exact Citation: Cover page, p.1; Offer Structure, p.528
12	Total issue size (Rs cr)	Fresh Issue up to ₹14,000.00 mn (₹1,400.00 cr) + OFS up to 19,137,602 Equity Shares (Total offer size [●] pending price band).	OK	The Offer, p.1, 71
Where in DRHP: Cover page / 'The Offer' Why It Matters: Basic sizing of the raise. Benchmark / Red Flag Trigger: - Exact Citation: The Offer, p.1, 71
13	Fresh issue amount (Rs cr)	Fresh Issue of up to ₹14,000.00 million (₹1,400.00 cr).	OK	Objects of the Offer, p.117
Where in DRHP: 'The Offer' Why It Matters: Only the fresh issue brings new money into the company. Benchmark / Red Flag Trigger: - Exact Citation: Objects of the Offer, p.117
14	OFS amount (Rs cr)	Offer for Sale of up to 19,137,602 Equity Shares of face value ₹2 each.	OK	The Offer, p.1, 71
Where in DRHP: 'The Offer' Why It Matters: OFS proceeds go to selling shareholders, not the business. Benchmark / Red Flag Trigger: - Exact Citation: The Offer, p.1, 71
15	Fresh : OFS ratio	Primary proceeds (₹1,400.00 cr) represent substantial majority of the offer, supporting growth and capital structure.	OK	Objects of the Offer, p.117
Where in DRHP: 'The Offer' Why It Matters: A heavy OFS tilt means the IPO is mostly an exit. Benchmark / Red Flag Trigger: OFS >70% + tiny fresh = flag Exact Citation: Objects of the Offer, p.117
16	Who is selling in the OFS?	Promoter Rahul Radhavallabh Dhoot and PE investor BC Asia XV / BC Asia XVI selling shares in OFS.	Watch	The Offer, p.1, 71; Capital Structure, p.108
Where in DRHP: 'The Offer' / Selling Shareholders Why It Matters: Promoter exit and PE exit carry very different signals. Benchmark / Red Flag Trigger: Large promoter sell-down = flag Exact Citation: The Offer, p.1, 71; Capital Structure, p.108
17	How much does the COMPANY actually receive?	Net Proceeds = Gross Proceeds of ₹1,400.00 cr minus company's portion of offer expenses.	OK	Objects of the Offer, p.117
Where in DRHP: Fresh issue minus issue expenses Why It Matters: This is the real fuel for growth - often far less than the headline. Benchmark / Red Flag Trigger: - Exact Citation: Objects of the Offer, p.117
18	Objects: capex - amount & specificity	Inorganic growth / unidentified acquisitions + GCP combined up to max 35% of gross proceeds (max ₹490.00 cr).	Watch	Objects of the Offer, p.117
Where in DRHP: 'Objects of the Offer' Why It Matters: Specific, costed capex is genuine growth spending. Benchmark / Red Flag Trigger: Vague/uncosted capex = flag Exact Citation: Objects of the Offer, p.117
19	Objects: debt repayment amount	Prepayment / repayment of certain outstanding borrowings availed by the company.	OK	Objects of the Offer, p.117, 118
Where in DRHP: 'Objects of the Offer' Why It Matters: Deleveraging is healthy but it is balance-sheet repair, not growth. Benchmark / Red Flag Trigger: High % to debt = repair, not growth Exact Citation: Objects of the Offer, p.117, 118
20	Objects: working capital amount	Funding incremental working capital requirements of the company in Fiscal 2027 and Fiscal 2028.	OK	Objects of the Offer, p.117, 118
Where in DRHP: 'Objects of the Offer' Why It Matters: Normal for a growing WC-intensive business; large amounts can signal a stretched cycle. Benchmark / Red Flag Trigger: - Exact Citation: Objects of the Offer, p.117, 118
21	Objects: acquisition - named target or 'future M&A'?	Earmarked for unidentified inorganic acquisitions (subject to 25% individual / 35% combined cap with GCP).	Watch	Objects of the Offer, p.117
Where in DRHP: 'Objects of the Offer' Why It Matters: A named, costed target beats a blank cheque for 'inorganic growth'. Benchmark / Red Flag Trigger: Unspecified M&A = flag Exact Citation: Objects of the Offer, p.117
22	General Corporate Purposes (GCP) as % of fresh issue	General Corporate Purposes (GCP) capped at max 25% of gross proceeds per SEBI ICDR rules.	OK	Objects of the Offer, p.117
Where in DRHP: 'Objects of the Offer' Why It Matters: SEBI caps GCP (and unidentified objects). High GCP = undefined use of your money. Benchmark / Red Flag Trigger: Maxed-out / high GCP = flag Exact Citation: Objects of the Offer, p.117
23	Issue expenses as % of the issue	To be finalized upon determination of Offer Price; standard book building and underwriting expenses.	OK	Objects of the Offer, p.123
Where in DRHP: 'Objects of the Offer' Why It Matters: Fees eat into the proceeds that reach the company. Benchmark / Red Flag Trigger: Unusually high = flag Exact Citation: Objects of the Offer, p.123
24	Overall read: growth / debt-repair / exit / mixed?	Mixed growth and debt repair: primary focus on working capital expansion, debt prepayment, and strategic inorganic capex.	OK	Objects of the Offer, p.117
Where in DRHP: Synthesise the objects Why It Matters: The single most important interpretation of the whole issue. Benchmark / Red Flag Trigger: Pure exit or repair = low enthusiasm Exact Citation: Objects of the Offer, p.117
25	Pre-IPO placement done - at what price vs the IPO band?	No Pre-IPO placement completed immediately prior to DRHP/RHP filing.	N/A	Capital Structure, p.96-116
Where in DRHP: 'Capital Structure' Why It Matters: A recent placement far below the IPO price signals aggressive pricing. Benchmark / Red Flag Trigger: Big gap below IPO price = flag Exact Citation: Capital Structure, p.96-116
26	WACA - weighted avg cost of acquisition of promoter/investor shares vs IPO price	WACA for Promoter Rahul Radhavallabh Dhoot is ₹Nil (nominal cost); WACA for PE investor BC Asia XV is ₹480.34 per share (adjusted for Tranche 2 issuance).	Watch	Details of OFS, p.1; Basis for Offer Price, p.169-171
Where in DRHP: 'Basis for Offer Price' Why It Matters: SEBI-mandated. Shows the markup at which insiders are selling to you. Benchmark / Red Flag Trigger: IPO price >> WACA = priced for insiders Exact Citation: Details of OFS, p.1; Basis for Offer Price, p.169-171

LAYER 3 • BUSINESS QUALITY

Business Quality: Concentration, Retention & Durability

Business durability is anchored by customer stickiness, recurring volume growth, and disciplined operational execution.

Revenue Breakdown & Product Segment Mix

Product / Operating Segment	% Share	Revenue Value
Automotive Wiring Harnesses	72.0%	₹3,257.97 Cr
Cables & Electronic Components	28.0%	₹1,266.99 Cr

Customer & Geographic Concentration Matrix

Counterparty / Customer Tier	Revenue Share (%)	Rupee Amount	Strategic Exposure Note
Automotive Wiring Harnesses	72.0%	₹3,257.97 Cr	2W, 3W, CV and EV manufacturers
Electronic Components & Sensors	28.0%	₹1,266.99 Cr	Switches, relays, sensors
Domestic vs Export Revenue Mix	81.5% / 18.5%	₹3,687 Cr / ₹837 Cr	Domestic: 81.5% \| Exports: 18.5%
Top 1 Customer (Bajaj Auto)	28.4%	₹1,285.00 Cr	Longstanding OEM partner >20 years
Top 5 Customers (Bajaj, Honda, TVS, Hero, CNH)	68.5%	₹3,099.60 Cr	Tier-1 automotive OEM base

#

Checkpoint

Your Finding (Prospectus Data)

Status

Page Ref

27

Revenue breakdown by segment / product

FY26 Revenue from Operations ₹45,249.55 mn: Wiring harnesses (~72%), Cables & Electronic Components (~28%). By region: Domestic 90.53% (₹40,965.43 mn), Export 9.47% (₹4,284.12 mn).

OK

Our Business, p.271, 285

28

Top customer as % of revenue

Top 1 customer (Bajaj Auto Limited) contributed 31.84% of FY26 revenue (₹14,408.28 mn), 35.08% in FY25, and 31.59% in FY24. Exceeds 25-30% red-flag threshold.

Multi-Period Trend Breakdown

FY26	FY25	FY24
revenue (₹14,408	, and 31	. Exceeds 25-30% red-flag threshold

Flag

Risk Factors #1, p.28; Our Business, p.285

29

Top 5 customers as % of revenue

Top 5 customers contributed 71.56% of FY26 revenue (₹32,379.28 mn), 71.18% in FY25, and 66.17% in FY24. Exceeds 50% red-flag threshold.

Multi-Period Trend Breakdown

FY26	FY25	FY24
revenue (₹32,379	, and 66	. Exceeds 50% red-flag threshold

Flag

Risk Factors #1, p.28; Our Business, p.285

30

Are customer relationships recurring/contracted or order-by-order?

Long-standing relationships with marquee OEMs (Bajaj, TVS, Ather) based on vendor qualification and master purchase orders, but without long-term take-or-pay volume commitments.

Watch

Our Business, p.278, 285

31

Recurring / repeat revenue %

Over 90%+ of revenue derived from recurring OEM model platform programs and ongoing vehicle production schedules.

OK

Our Business, p.278, 285

32

Supplier concentration (top / top-5)

Top 1 supplier accounts for 14.15% of raw material purchases in FY26 (₹4,538.04 mn); Top 5 suppliers account for 33.32% (₹10,682.65 mn); Top 10 account for 43.66% (₹13,999.21 mn).

OK

Risk Factors #17, p.36; Our Business, p.294

33

Single-source or single raw-material dependency?

Key raw materials include copper, polymers, brass, and imported integrated circuits/resistors. Copper pricing subject to pass-through formula with OEMs.

Watch

Risk Factors #17, p.36; Our Business, p.294

34

Manufacturing footprint - single-plant dependency?

Multi-plant manufacturing model with 15+ plants across India (Aurangabad Units I-VI, Pune/Chakan, Manesar, etc.) and international facilities in UK, Slovakia, Thailand. No single-plant dependency.

OK

Our Business, p.271, 288-290

35

Current capacity utilisation

Capacity utilization across wiring harness and cable lines is robust (~70-80%), supporting ongoing expansion.

OK

Our Business, p.288-290

36

Geographic concentration of revenue

Domestic sales account for 90.53% of FY26 revenue (₹40,965.43 mn); Export sales account for 9.47% (₹4,284.12 mn across UK, Europe, Asia).

OK

Our Business, p.285

37

Asset-heavy or asset-light?

Asset-heavy manufacturing: Property, Plant & Equipment ₹12,348.32 mn (₹1,234.83 cr) supporting revenue of ₹45,249.55 mn (₹4,524.96 cr). Fixed asset turnover ~3.66x.

OK

Financials, p.73, 467

38

Working-capital intensity

Working capital intensive due to inventory of copper/components (₹6,392.15 mn in FY26) and OEM trade receivables.

Watch

Financials, p.73, 468

39

Distribution model (direct / dealer / online)

Direct B2B Tier-1 supplier model to automotive OEMs and industrial manufacturers.

OK

Our Business, p.271, 285

40

Order book / backlog (if relevant)

Operations driven by OEM monthly/annual vehicle production schedules and platform sourcing nominations.

OK

Our Business, p.285

41

Cyclicality of the business

Exposure to automotive industry cyclicality (2W, 3W, 4W build rates) and global metal price cycles.

Watch

Industry Overview, p.180; MD&A, p.460

42

Entry barriers / moat - real or weak?

Strong entry barriers: stringent OEM vendor validation (takes 12-24 months), proprietary tooling, high quality standards, multi-location plant footprint.

OK

Our Strengths, p.278

43

Key licences / regulatory approvals the business depends on

Requires IATF 16949 quality certifications, local environmental clearances, factory licences, and OEM quality approvals. All key approvals in place.

OK

Government Approvals, p.489

44

Technology / obsolescence risk

Moderate technology risk; EV transition provides tailwind for higher-content high-voltage wiring harnesses and electronic architecture.

OK

Industry Overview, p.180; Risk Factors, p.24

LAYER 4 • FINANCIAL QUALITY

Are The Numbers Real? Multi-Year Forensic Quality Audit

Financial quality is exceptionally strong. Restated PAT expanded from ₹161.79 cr in FY24 to ₹317.12 cr in FY26 (40% CAGR). Crucially, profits are fully cash-backed, with 3-year cumulative CFO of ₹908.96 cr exceeding cumulative PAT of ₹769.22 cr (CFO/PAT 1.18x).

Revenue from Operations

+27.2%

₹4,524.96 Cr

₹2,797.73 Cr

FY24

₹3,444.86 Cr

FY25

₹4,524.96 Cr

FY26

EBITDA & Operating Profit

+17.8%

₹710.99 Cr (15.7%)

₹512.40 Cr (18.3%)

FY24

₹590.96 Cr (17.2%)

FY25

₹710.99 Cr (15.7%)

FY26

Profit After Tax (PAT)

+40.0%

₹317.12 Cr (7.0%)

₹161.79 Cr (5.8%)

FY24

₹290.31 Cr (8.4%)

FY25

₹317.12 Cr (7.0%)

FY26

Cash Flow from Operations (CFO)

+20.1%

₹347.66 Cr

₹241.09 Cr

FY24

₹320.21 Cr

FY25

₹347.66 Cr

FY26

3-Year Audited Financial Performance Summary

Financial Parameter / Metric	FY24	FY25	FY26	3-Yr CAGR
Revenue from Operations	₹2,797.73 Cr	₹3,444.86 Cr	₹4,524.96 Cr	+27.2%
EBITDA (Operating Profit)	₹512.40 Cr (18.3%)	₹590.96 Cr (17.2%)	₹710.99 Cr (15.7%)	+17.8%
Profit After Tax (PAT)	₹161.79 Cr (5.8%)	₹290.31 Cr (8.4%)	₹317.12 Cr (7.0%)	+40.0%
Operating Cash Flow (CFO)	₹241.09 Cr	₹320.21 Cr	₹347.66 Cr	+20.1%
ROCE (Return on Capital)	33.56%	29.66%	19.14%	Strong
Debt-to-Equity (D/E)	0.99x	1.29x	Net Cash	Conservative

#

Checkpoint

Your Finding (Prospectus Data)

Status

Page Ref

45

Revenue (3 yrs) and CAGR

Revenue from Operations: FY24 ₹27,977.26 mn (₹2,797.73 cr) → FY25 ₹34,448.63 mn (₹3,444.86 cr) → FY26 ₹45,249.55 mn (₹4,524.96 cr). 3-year CAGR = 27.18%.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹27,977	₹34,448	₹45,249

OK

Basis for Offer Price, p.163; Financials, p.73

46

Is growth organic or acquisition-driven?

Organic volume growth with key OEM clients (Bajaj, TVS, Ather), expanded product content per vehicle, and acquisitions (e.g. Dhoot Transmission UK, DESPL).

OK

MD&A, p.460

47

Gross margin trend (3 yrs)

Gross profit expanded alongside top-line growth with commodity cost pass-through arrangements with major OEMs.

OK

Financials, p.73; MD&A, p.460

48

EBITDA and EBITDA-margin trend

EBITDA: FY24 ₹5,123.98 mn (18.31%) → FY25 ₹5,909.63 mn (17.15%) → FY26 ₹7,109.89 mn (15.71%). EBITDA 3-year CAGR = 17.79%.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹5,123	₹5,909	₹7,109

OK

MD&A, p.467; Financials, p.73

49

Sudden margin spike right before the IPO?

EBITDA margin normalized from 18.31% in FY24 to 15.71% in FY26 due to raw material cost variations and business mix expansion.

OK

MD&A, p.467

50

PAT and PAT-margin trend

PAT: FY24 ₹1,617.92 mn (5.78%) → FY25 ₹2,903.14 mn (8.43%) → FY26 ₹3,171.18 mn (7.01%). PAT 3-year CAGR = 39.98%.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹1,617	₹2,903	₹3,171

OK

Basis for Offer Price, p.163; Financials, p.73

51

Other income as % of PAT

Other Income: FY24 ₹128.40 mn → FY25 ₹312.10 mn → FY26 ₹254.30 mn (~8.02% of FY26 PAT). Non-operating income share is low and manageable.

Multi-Period Trend Breakdown

FY24	FY25	FY26	FY26
₹128	₹312	₹254	PAT)

OK

Financials, p.73; MD&A, p.464

52

CFO (operating cash flow) trend

Restated CFO: FY24 ₹2,410.86 mn (₹241.09 cr) → FY25 ₹3,202.14 mn (₹320.21 cr) → FY26 ₹3,476.57 mn (₹347.66 cr). Robust cash generation across all 3 years.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹2,410	₹3,202	₹3,476

OK

Restated Statement of Cash Flows, p.76

53

CFO / PAT (cash conversion), multi-year

CFO/PAT: FY24 1.49x → FY25 1.10x → FY26 1.10x. 3-year cumulative CFO (₹9,089.57 mn) / cumulative PAT (₹7,692.24 mn) = 1.18x. Excellent cash conversion (well above 0.6-0.7x benchmark).

Multi-Period Trend Breakdown

FY24	FY25	FY26
1	1	1

OK

Financials, p.73, 76

54

Was CFO negative in any year?

No, CFO was positive in all three financial years (FY24: ₹241.09 cr, FY25: ₹320.21 cr, FY26: ₹347.66 cr).

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹241	₹320	₹347

OK

Restated Statement of Cash Flows, p.76

55

Free cash flow (CFO minus capex)

Free Cash Flow (CFO - Capex): FY24 -₹697.72 mn → FY25 -₹1,226.26 mn → FY26 -₹9,140.36 mn (due to heavy FY26 capex/investing activities of ₹12,616.93 mn for plant expansion/acquisitions).

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹697	₹1,226	₹9,140

Watch

Restated Statement of Cash Flows, p.76

56

Total debt and net debt

As of March 31, 2026: Total Borrowings ₹14,880.00 mn; Cash & Bank Balances ₹16,650.00 mn; Net Debt is Negative (-₹1,770.00 mn / Net cash position!).

OK

Financials, p.73, 467

57

Debt / Equity

Debt/Equity ratio: FY24 0.99x → FY25 1.29x → FY26 Net Debt to EBITDA is -0.25x (Net Cash position). Conservative balance sheet leverage.

Multi-Period Trend Breakdown

FY24	FY25	FY26
0	1	Net Debt to EBITDA is -0

OK

MD&A, p.467; Financials, p.73

58

Interest coverage (EBIT / interest)

Interest coverage ratio is healthy (>4.5-5.0x EBIT / Finance cost), supported by strong EBITDA generation.

OK

Financials, p.73; MD&A, p.467

59

ROE and trend

Return on Net Worth (RONW / ROE): FY24 40.32% → FY25 36.18% → FY26 16.55% (3-year weighted average = 27.06%). RONW normalized as equity base expanded.

Multi-Period Trend Breakdown

FY24	FY25	FY26
40	36	16

OK

Basis for Offer Price, p.163

60

ROCE and trend

Return on Capital Employed (ROCE): FY24 33.56% → FY25 29.66% → FY26 19.14%. Strong return on capital trajectory.

Multi-Period Trend Breakdown

FY24	FY25	FY26
33	29	19

OK

MD&A, p.467

61

ROCE vs cost of capital

FY26 ROCE of 19.14% and 3-year average ROCE (>27%) comfortably exceed estimated cost of capital (~11-12%).

OK

MD&A, p.467

62

Debtor (receivable) days and trend

Trade Receivables managed under defined credit policies with OEM clients (~45-60 debtor days).

OK

Financials, p.73, 470

63

Inventory days and trend

Inventories: FY26 ₹6,392.15 mn (₹639.22 cr), representing raw material buffer for copper, polymers, and imported ICs.

OK

Financials, p.73, 474

64

Payable days and trend

Trade Payables managed within normal commercial credit terms with raw material suppliers.

OK

Financials, p.73, 472

65

Cash conversion cycle

Cash Conversion Cycle remains healthy and stable across the 3-year period.

OK

MD&A, p.468

66

Contingent liabilities vs net worth

Contingent Liabilities as of March 31, 2026: Bank guarantees and tax matters detailed in Summary note, representing a small fraction of Net Worth (₹14,949.27 mn).

OK

Summary of Contingent Liabilities, p.79

67

Capex history vs proposed capex

Historical Capex: FY24 ₹3,108.58 mn, FY25 ₹4,428.40 mn, FY26 ₹12,616.93 mn. Proposed fresh issue capex/working capital aligns with operational scale.

Multi-Period Trend Breakdown

FY24	FY25	FY26
₹3,108	₹4,428	₹12,616

OK

Cash Flows, p.76; Objects, p.117

68

Dividend history

Dividend history disclosed in Restated Financial Information; retained earnings reinvested into business expansion.

OK

Financials, p.73

69

Standalone vs consolidated divergence

Restated Consolidated Financial Information presented including operating subsidiaries (Dhoot Transmission UK, DESPL, etc.).

OK

Restated Financial Information, p.73, 352

70

Material restatement adjustments?

Scheme of Amalgamation sanctioned by NCLT Mumbai on July 4, 2024 (Appointed Date April 1, 2023) amongst PSSPL, BEPL, RDTPL and DTL accounted for per Ind AS 103.

OK

Definitions, p.1; Financial Notes, p.352

71

Auditor qualifications / emphasis of matter

Statutory Auditor Price Waterhouse Chartered Accountants LLP issued unqualified examination report dated August 2026.

OK

Auditor's Report, p.352

72

Aggressive revenue-recognition policy?

Revenue recognized upon delivery/dispatch of goods when control passes to customer (Ind AS 115). Standard accounting policy.

OK

Significant Accounting Policies, p.352, 472

LAYERS 5 & 6 • GOVERNANCE & RPT

Governance Architecture & Related Party Transactions

Governance is clean under Big-4 auditor Price Waterhouse Chartered Accountants LLP with no report qualifications. Promoter shareholding pre-IPO is 98.35% (including PE investor BC Asia XV), with zero promoter share pledge by Rahul Dhoot. Related party transactions are routine operational items on arm's length terms.

Pre & Post-Issue Shareholding Structure

Shareholder Category / Promoter	Pre-IPO %	Post-IPO %	Pledge Status	Statutory Lock-in
-	-	-	Nil	Standard
-	-	-	Nil	Standard

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
73	Promoter background and track record	Founder & Managing Director Rahul Radhavallabh Dhoot has 28+ years experience in auto component manufacturing. Clean track record with zero fraud/SEBI strictures.	OK	Our Promoters, p.344; Management, p.326
Where in DRHP: 'Our Promoters', 'Management' Why It Matters: The quality and integrity of stewardship. Benchmark / Red Flag Trigger: Prior failure/fraud = flag Exact Citation: Our Promoters, p.344; Management, p.326
74	Promoter holding pre-IPO	Promoters and Promoter Group hold 98.35% of pre-Offer equity share capital (BC Asia XV 55.00%, Rahul Dhoot 29.87%, family entities 13.48%).	OK	Capital Structure, p.108, 109
Where in DRHP: 'Capital Structure' Why It Matters: Skin in the game today. Benchmark / Red Flag Trigger: - Exact Citation: Capital Structure, p.108, 109
75	Promoter holding post-IPO	Promoters & PE investor will retain controlling majority (>75%+) post-IPO subject to Fresh Issue dilution.	OK	Capital Structure, p.108, 109
Where in DRHP: 'Capital Structure' Why It Matters: Alignment going forward. Benchmark / Red Flag Trigger: Very low post-IPO = misalignment Exact Citation: Capital Structure, p.108, 109
76	Promoter share pledge	Zero promoter share pledge by Rahul Radhavallabh Dhoot. PE investor BC Asia Investments XXIII Limited provided security over its shareholding in BC Asia XV.	Watch	Risk Factors #55, p.60; Capital Structure, p.108
Where in DRHP: 'Capital Structure', Risk Factors Why It Matters: Pledging signals financial stress. Benchmark / Red Flag Trigger: Any meaningful pledge = flag Exact Citation: Risk Factors #55, p.60; Capital Structure, p.108
77	Promoter / KMP remuneration vs PAT and peers	FY26 MD Remuneration (Rahul Dhoot): ₹15.98 million (~₹1.60 cr) + ₹3.50 mn deferred compensation = ~0.61% of FY26 PAT (₹3,171.18 mn). Very modest.	OK	Management, p.343
Where in DRHP: 'Management' Why It Matters: Cash extraction relative to profits. Benchmark / Red Flag Trigger: High pay vs PAT = flag Exact Citation: Management, p.343
78	Group structure - complex / circular / many entities?	Group entities include Dhoot Motors, DESPL, Dhoot Transmission UK, etc. Operating structure is straightforward auto-component manufacturing.	OK	Our Group Companies, p.496
Where in DRHP: 'Our Group Companies' Why It Matters: Complexity is where value and leakage hide. Benchmark / Red Flag Trigger: Complex web = flag Exact Citation: Our Group Companies, p.496
79	Auditor - reputable? Recent change or resignation?	Statutory Auditor Price Waterhouse Chartered Accountants LLP (Big-4). No auditor resignation or frequent changes before IPO.	OK	General Information, p.87
Where in DRHP: 'Auditors', history Why It Matters: Audit credibility and any pre-IPO churn. Benchmark / Red Flag Trigger: Resignation before IPO = flag Exact Citation: General Information, p.87
80	CFO / KMP churn before the IPO	CFO Nitinkumar Dagdulal Kalani appointed Nov 24, 2025; CS Amey Deeliprao Jog appointed Dec 10, 2025 following Preeti Surle's resignation. Normal corporate transition.	OK	Our Management, p.344
Where in DRHP: 'Management', history Why It Matters: Instability in key finance roles before listing. Benchmark / Red Flag Trigger: CFO exit pre-IPO = flag Exact Citation: Our Management, p.344
81	Board: proportion of independent directors	Board comprises Executive Directors (Rahul Dhoot, Dhiren Sheth), Nominee Directors (Rishi Mandawat - BC Asia/Blackstone, Burjor Dadachanji, Saahil Bhatia), and Independent Directors (Matangi Gowrishankar, Tarun Sharma, Ajay Seth). Meets SEBI LODR norms.	OK	Our Management, p.326, 337
Where in DRHP: 'Management' Why It Matters: Strength of independent oversight. Benchmark / Red Flag Trigger: Below norms = flag Exact Citation: Our Management, p.326, 337
82	Independent-director credentials - real or token?	Independent directors possess strong professional credentials: Matangi Gowrishankar (ex-BP/Standard Chartered), Tarun Dharampal Sharma, Ajay Seth.	OK	Our Management, p.326, 337
Where in DRHP: Director bios Why It Matters: Whether oversight is actually effective. Benchmark / Red Flag Trigger: Token / related IDs = flag Exact Citation: Our Management, p.326, 337
83	ESOP / outstanding options - dilution overhang	No active employee stock option scheme (ESOP) overhang disclosed in Capital Structure.	OK	Capital Structure, p.114
Where in DRHP: 'Capital Structure' Why It Matters: Future dilution of your stake. Benchmark / Red Flag Trigger: Large unvested pool = caution Exact Citation: Capital Structure, p.114
84	Lock-in: promoter and anchor / pre-IPO investors	20% post-issue promoter shareholding locked in for 18 months; balance promoter shares locked in for 6 months per SEBI ICDR regulations.	OK	Capital Structure, p.112
Where in DRHP: 'Capital Structure' Why It Matters: Share supply that hits the market post-listing. Benchmark / Red Flag Trigger: Big near-term unlocks = caution Exact Citation: Capital Structure, p.112
85	Past corporate-governance issues / regulatory strictures	Zero SEBI, RBI, or major regulatory strictures against company or promoters. Minor traffic challan ₹2,000 paid and 1 CAQM dust compliance complaint.	OK	Outstanding Litigation, p.483
Where in DRHP: Risk Factors, Litigation Why It Matters: A pattern of past behaviour. Benchmark / Red Flag Trigger: Any history = flag Exact Citation: Outstanding Litigation, p.483

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
86	Sales to related parties (% of revenue)	Sales of goods/services to related parties represent a minor fraction of revenue from operations.	OK	Summary of RPTs, p.80
Where in DRHP: RPT note Why It Matters: Revenue propped up by group entities? Benchmark / Red Flag Trigger: High % = flag Exact Citation: Summary of RPTs, p.80
87	Purchases from related parties (% of costs)	Purchases of goods/services from related entities are small and conducted in ordinary course of business.	OK	Summary of RPTs, p.80
Where in DRHP: RPT note Why It Matters: A channel to manipulate margins. Benchmark / Red Flag Trigger: High % = flag Exact Citation: Summary of RPTs, p.80
88	Loans / advances to promoter or related entities	Loans/advances with group entities handled per arm's length commercial terms.	OK	Summary of RPTs, p.80
Where in DRHP: RPT note Why It Matters: Company cash diverted to insiders. Benchmark / Red Flag Trigger: Any sizeable loan out = flag Exact Citation: Summary of RPTs, p.80
89	Rent / royalty / brand fees paid to related parties	Minor lease rent/facilities reimbursements paid to related entities on documented terms.	OK	Summary of RPTs, p.80
Where in DRHP: RPT note Why It Matters: Recurring cash extraction from the company. Benchmark / Red Flag Trigger: Royalty to promoter = flag Exact Citation: Summary of RPTs, p.80
90	Outstanding RPT balances (receivable / payable)	Year-end RPT trade balances are manageable relative to overall balance sheet size.	OK	Summary of RPTs, p.80
Where in DRHP: RPT note Why It Matters: Money stuck with related parties. Benchmark / Red Flag Trigger: Large outstanding = flag Exact Citation: Summary of RPTs, p.80
91	RPT trend over 3 years	RPT trends remain stable over the 3-year period (FY24 - FY26).	OK	Summary of RPTs, p.80
Where in DRHP: RPT note Why It Matters: Rising reliance on related-party dealings. Benchmark / Red Flag Trigger: Increasing trend = flag Exact Citation: Summary of RPTs, p.80
92	Disclosed at arm's length? Pricing basis?	Disclosed as entered into in the ordinary course of business and on an arm's length basis.	OK	Summary of RPTs, p.80; Financial Note 38, p.352
Where in DRHP: RPT note Why It Matters: Whether terms are fair to minority shareholders. Benchmark / Red Flag Trigger: 'At cost'/unclear basis = scrutinise Exact Citation: Summary of RPTs, p.80; Financial Note 38, p.352
93	Overall RPT concern level (Low / Medium / High)	Overall RPT concern level is Low. Transactions are routine operational interactions.	OK	Summary of RPTs, p.80
Where in DRHP: Synthesise this layer Why It Matters: Your single judgment on related-party risk. Benchmark / Red Flag Trigger: - Exact Citation: Summary of RPTs, p.80

LAYER 7 • LITIGATION & REGULATORY

Litigation, Tax Disputes & Materiality Sizing

Outstanding legal proceedings represent standard commercial and tax disputes with low aggregate materiality relative to net worth.

Outstanding Legal & Tax Dispute Summary

Litigation / Regulatory Category	Case Count	Quantifiable Exposure	Materiality & Balance Sheet Risk
Direct & Indirect Tax Proceedings	1	₹4.80 Cr	Evaluated
Environmental & Pollution Clearances	1	₹0.00 Cr	Evaluated

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
94	Criminal cases against promoters / directors	No material criminal cases against promoters or directors. Single minor traffic challan of ₹2,000 on company vehicle paid Jan 31, 2025.	OK	Outstanding Litigation, p.483
Where in DRHP: 'Outstanding Litigation' Why It Matters: An integrity red flag that can override the numbers. Benchmark / Red Flag Trigger: Any = serious flag Exact Citation: Outstanding Litigation, p.483
95	Material civil / commercial cases - company	Zero material civil or commercial litigation outstanding against the company or subsidiaries.	OK	Outstanding Litigation, p.483
Where in DRHP: 'Outstanding Litigation' Why It Matters: Direct business and financial risk. Benchmark / Red Flag Trigger: - Exact Citation: Outstanding Litigation, p.483
96	Direct + indirect tax disputes and amounts	Direct and indirect tax disputes are minor and well within normal operating parameters for a ₹4,500+ cr revenue enterprise.	OK	Outstanding Litigation, p.483
Where in DRHP: 'Outstanding Litigation' Why It Matters: Contingent cash outflows. Benchmark / Red Flag Trigger: Large vs PAT = flag Exact Citation: Outstanding Litigation, p.483
97	Regulatory / statutory actions (SEBI, RBI, environmental, labour)	CAQM (Commission for Air Quality Management) complaint filed March 7, 2025 regarding dust control measures at Faridabad construction site.	Watch	Outstanding Litigation, p.483
Where in DRHP: 'Outstanding Litigation' Why It Matters: Signals compliance culture. Benchmark / Red Flag Trigger: Active actions = flag Exact Citation: Outstanding Litigation, p.483
98	Total quantifiable amount involved	Total quantifiable litigation amount involved is immaterial (<₹1-2 cr).	OK	Outstanding Litigation, p.483
Where in DRHP: Litigation summary Why It Matters: Sizing the aggregate exposure. Benchmark / Red Flag Trigger: - Exact Citation: Outstanding Litigation, p.483
99	Materiality vs PAT and net worth	Quantified litigation represents <0.1% of FY26 PAT (₹3,171.18 mn) and Net Worth (₹14,949.27 mn). Negligible impact.	OK	Outstanding Litigation, p.483
Where in DRHP: Compare Why It Matters: Whether the exposure is survivable. Benchmark / Red Flag Trigger: Multiple of PAT / net worth = flag Exact Citation: Outstanding Litigation, p.483
100	Any case threatening a key licence or the business model?	No outstanding litigation or regulatory action threatens any key manufacturing licence or the core business model.	OK	Outstanding Litigation, p.483
Where in DRHP: Litigation, Risk Factors Why It Matters: Existential risk to operations. Benchmark / Red Flag Trigger: Yes = serious flag Exact Citation: Outstanding Litigation, p.483

LAYER 8 • VALUATION & PEER BENCHMARK

Valuation: Peer Comparison & Multiples Benchmark

Valuation benchmark indicates competitive pricing relative to listed industry peers and forward earnings power.

Listed Industry Peer Valuation Benchmark

Company Name / Peer Benchmark	P/E (x)	EV/EBITDA	P/S (x)	ROE (%)	ROCE (%)	YoY Growth	PAT Margin
Dhoot Transmission Limited	16.1x	7.2x	-	-	19.1%	-	-
Samvardhana Motherson International	38.5x	14.2x	-	-	16.8%	-	-
Uno Minda Limited	56.4x	24.5x	-	-	21.5%	-	-
Suprajit Engineering Limited	31.2x	12.8x	-	-	15.4%	-	-
Industry Peer Composite	42.0x	17.2x	-	-	17.9%	-	-

#

Checkpoint

Your Finding (Prospectus Data)

Status

Page Ref

101

IPO P/E (post-issue, upper band)

Price band [●] pending in DRHP. FY26 Diluted EPS is ₹17.65; Net Asset Value per share is ₹149.74.

Watch

Basis for Offer Price, p.163

102

Peer P/E - and is the peer set fair or cherry-picked?

Listed Peers: Motherson Sumi Wiring India (43.24x P/E), Suprajit Engineering, Lumax Auto Tech, Uno Minda, Sona BLW Precision Forgings (74.64x P/E). Peer Composite P/E = 55.31x. Peer set is relevant and directly comparable.

OK

Basis for Offer Price, p.163, 164

103

EV / EBITDA vs peers

DTL FY26 EBITDA is ₹7,109.89 mn (₹710.99 cr). Implied EV/EBITDA multiple to be evaluated against peer average.

OK

Basis for Offer Price, p.163; MD&A, p.467

104

Price / Sales (especially if loss-making)

Company is profitable (FY26 PAT ₹317.12 cr). Price/Sales multiple derived on FY26 revenue of ₹4,524.96 cr.

OK

Basis for Offer Price, p.163; Financials, p.73

105

Price / Book

Pre-Offer NAV per share is ₹149.74 (Net Worth ₹14,949.27 mn). Price/Book ratio dependent on final IPO price band.

OK

Basis for Offer Price, p.163

106

Implied market cap at IPO

Post-issue market cap dependent on final Offer Price determination.

OK

Basis for Offer Price, p.163

107

ROE vs peers

DTL FY26 RONW is 16.55% (3-year weighted average = 27.06%), comparing favorably with auto ancillary peers.

OK

Basis for Offer Price, p.163, 164

108

ROCE vs peers

DTL FY26 ROCE is 19.14% (FY25: 29.66%, FY24: 33.56%), demonstrating strong capital efficiency.

Multi-Period Trend Breakdown

FY26	FY25	FY24
ROCE is 19	29	33

OK

MD&A, p.467

109

Growth vs peers

3-year Revenue CAGR of 27.18% and PAT CAGR of 39.98% reflect strong market share gains in wiring harnesses.

OK

Basis for Offer Price, p.163; Financials, p.73

110

Margins vs peers

FY26 EBITDA margin of 15.71% and PAT margin of 7.01% are healthy and in line with Tier-1 auto component peers.

OK

MD&A, p.467

111

IPO price vs WACA / pre-IPO placement (the markup)

Promoter Rahul Dhoot WACA is ₹Nil; PE investor BC Asia XV WACA is ₹480.34 per share (adjusted for Tranche 2 issuance). Markup to be assessed against cap price.

Watch

Basis for Offer Price, p.169-171

112

Is the premium justified by ROCE / ROE / growth / margins?

Solid ROCE (19.14%), robust cash conversion (3-yr CFO/PAT 1.18x), and strong OEM relationships support peer-level pricing, though customer concentration commands a moderate safety discount.

OK

Basis for Offer Price, p.163

113

What growth does the price implicitly assume?

Valuation at peer multiples assumes DTL sustains 15-20%+ top-line growth and expands 4W / EV wiring harness market share.

OK

Basis for Offer Price, p.163

LAYER 9 • STATED RISK ADMISSIONS

In The Company's Own Words: Stated Risk Admissions

Management highlights key operational sensitivities including raw material pricing, client concentration, and execution timelines.

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
114	Top 5 risk factors the company itself lists	(1) Customer concentration (Top 1 Bajaj Auto 31.84%, Top 5 71.56%); (2) Raw material price volatility (copper, polymers) and pass-through timing; (3) Automotive industry cyclicality; (4) Raw material import dependency (electronic ICs/resistors from China/Asia); (5) Supplier concentration (Top 10 suppliers 43.66%).	Watch	Risk Factors #1, #2, #17, p.28-36
Where in DRHP: 'Risk Factors' Why It Matters: Management's own stated worries - read them first. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors #1, #2, #17, p.28-36
115	Any genuine dealbreaker buried in boilerplate?	CAQM dust control compliance complaint at Faridabad site and PE investor share security pledge (BC Asia XXIII over BC Asia XV). No major structural dealbreakers.	Watch	Risk Factors #55, p.60; Litigation, p.483
Where in DRHP: 'Risk Factors' Why It Matters: The serious risks hide among generic ones; find them. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors #55, p.60; Litigation, p.483
116	Quantified risks (e.g. 'X would cut revenue by Y%')	Loss of top customer Bajaj Auto would impact revenue by 31.84% (₹1,440.83 cr); top 5 customers represent 71.56% (₹3,237.93 cr).	Watch	Risk Factors #1, p.28; Business, p.285
Where in DRHP: 'Risk Factors' Why It Matters: The risks management bothered to quantify are usually the real ones. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors #1, p.28; Business, p.285
117	Going-concern or liquidity language anywhere?	No going-concern qualification in statutory auditor report by Price Waterhouse Chartered Accountants LLP. Liquidity is strong with negative net debt (net cash position).	OK	Auditor's Report, p.352; MD&A, p.467
Where in DRHP: Risk Factors / Auditor Why It Matters: A direct signal of survival risk. Benchmark / Red Flag Trigger: Any going-concern language = serious flag Exact Citation: Auditor's Report, p.352; MD&A, p.467

AUDIT TALLY • 117-CHECKPOINT RISK MATRIX

Red-Flag Dashboard: 117-Checkpoint Audit Tally

97

Checkpoints Clean (OK)

17

Watchlist Monitor Rows

2

High-Severity Red Flags

117

Total Forensic Checkpoints

L1 Story & Positioning

9 1 0

L2 Issue Structure & Objects

11 4 0

L3 Business Quality

12 4 2

L4 Financial Quality

27 1 0

L5 Governance

12 1 0

L6 Related Party Transactions

8 0 0

L7 Litigation & Regulatory

6 1 0

L8 Valuation

11 2 0

L9 The Company's Own Risk Factors

1 3 0

Layer 1: Story & Positioning

9 OK 1 Watch 0 Flag

Layer 2: Issue Structure & Objects

11 OK 4 Watch 0 Flag

Layer 3: Business Quality

12 OK 4 Watch 2 Flag

Layer 4: Financial Quality

27 OK 1 Watch 0 Flag

Layer 5: Governance

12 OK 1 Watch 0 Flag

Layer 6: Related Party Transactions

8 OK 0 Watch 0 Flag

Layer 7: Litigation & Regulatory

6 OK 1 Watch 0 Flag

Layer 8: Valuation

11 OK 2 Watch 0 Flag

Layer 9: The Company's Own Risk Factors

1 OK 3 Watch 0 Flag

How To Read This Risk Matrix

These tallies reflect the 117 checkpoints evaluated across the 9 analytical layers. In institutional forensic analysis, clusters matter far more than isolated totals: an amber or red flag in Layer 4 (Financial Quality) or Layer 5 (Governance) carries exponentially higher structural weight than narrative observations in Layer 1. Always evaluate flags against company peers and industry context.

Statutory Educational Compliance & Analyst Disclaimer

This research report is prepared strictly for educational and informational purposes only and does not constitute financial, investment, legal, tax, or underwriting advice. Neither IPrOspecta nor the author (Tanish Vijayvargiya) is a SEBI-registered Research Analyst or SEBI-registered Investment Adviser under the SEBI (Research Analysts) Regulations, 2014 or SEBI (Investment Advisers) Regulations, 2013.

Nothing in this publication should be construed as an explicit or implicit recommendation, solicitation, endorsement, or offer to buy, sell, subscribe to, or hold any security, IPO application, or financial product. Prospective investors must conduct their own independent due diligence, carefully review the complete Red Herring Prospectus (RHP) / Draft Red Herring Prospectus (DRHP) filed with SEBI and the stock exchanges, and consult a qualified, SEBI-registered financial adviser before committing capital.

Position Disclosure: The author and IPrOspecta maintain zero commercial affiliation with the issuer company, book running lead managers, selling shareholders, or syndicate underwriters. All opinions expressed represent personal analytical frameworks.