This Company Holds 75-80% of India’s TFT Cluster Market

40% share in 2W instrument clusters, DICVS demerger creating Pricol Autotech, plastics business doubling, EV electronics content rising 

There is a quiet but important technology shift happening inside every two-wheeler and commercial vehicle sold in India — the analog instrument cluster is giving way to TFT digital displays, connected vehicle systems and e-cockpit architectures.

Pricol, a Coimbatore-based automotive component manufacturer established in 1975, holds approximately 40% of the domestic two-wheeler cluster market and 75-80% of the TFT cluster segment specifically.

It supplies Bajaj Auto, TVS Motor, Hero MotoCorp, Tata Motors, Ashok Leyland and VE Commercial Vehicles, among others. And it is about to undergo a structural transformation — demerging its Driver Information and Connected Vehicle Solutions business into a separately listed entity called Pricol Autotech.

Axis Securities initiates coverage with a BUY rating and a target price of Rs 935, implying 22% upside from the current market price of Rs 765.

The Demerger 

The proposed demerger of the DICVS business into Pricol Autotech is the most important near-term development at Pricol — and the most important valuation catalyst.

DICVS contributed Rs 2,425 crore, or 61.2% of FY26 consolidated revenue, housing instrument clusters, TFT displays, connected vehicle solutions, e-cockpit, infotainment, telematics, battery management systems and sensors.

Under the scheme, shareholders will receive one Pricol Autotech share for every one Pricol share held — creating two separately listed businesses with the same shareholding structure but sharper strategic focus and independent capital allocation.

“Subject to regulatory, NCLT and shareholder approvals, the demerger should enable sharper capital allocation, better business visibility and potential value unlocking through independent valuation of the two businesses,” the Axis Direct report states.

The sum-of-parts value unlocking that typically follows a demerger of this nature — where a fast-growing, technology-intensive business is separated from a more stable industrial business and valued independently — is the event that most investors will watch closely as the approvals process moves forward.

The Technology Story — TFT Displays and EV Electronics

Pricol’s competitive position in instrument clusters rests on a combination of proprietary technology, in-house R&D, long-standing OEM relationships and the high switching costs inherent in safety-critical automotive electronics.

A cluster is not a commodity — it requires homologation, software integration with the vehicle’s ECU architecture and regulatory certification before it can be changed, creating multi-year programme relationships that are difficult for a competitor to displace.

The content-per-vehicle expansion story is the growth driver. As two-wheelers premiumise — moving from analog to TFT to fully connected e-cockpits — the value of Pricol’s product per vehicle rises. EV architecture accelerates this further, as electric vehicles require battery management systems, motor controllers and telematics in addition to the display cluster.

“The shift towards TFT displays, connected clusters, e-cockpit, infotainment, telematics and sensors, along with 2W premiumisation and rising EV electronics content, is increasing content per vehicle,” the report notes.

The Plastics Acquisition 

The Rs 215 crore acquisition of Sundaram Auto Components’ injection-moulding business has emerged as a meaningful diversification engine beyond the core electronics business.

The acquired business generated Rs 923 crore in revenue and Rs 37.4 crore in profit in FY26, with revenue expected to double over the medium term.

The customer base has broadened beyond TVS Motor to include Ather Energy, Autoliv, Hanon, Mobis India, Continental and Seoyon Automotive — a set of names that spans domestic EV players and global Tier-1 suppliers, providing export platform potential alongside domestic growth.

Pricol is simultaneously expanding wallet share across its existing OEM relationships.

Bajaj Auto, Hero MotoCorp, Suzuki Motorcycle India, Honda Motorcycle and Scooter India, Yamaha Motor India, Tata Motors, Ashok Leyland, JCB, Volvo Group, Harley-Davidson, BMW Motorrad and Ducati are all cited as wallet expansion opportunities.

This is a customer list that spans domestic mass market through global premium, providing the portfolio diversity that insulates the business against single-OEM concentration.

Q1FY27 — Strong Start 

The most recent quarterly data validates the growth trajectory. Revenue grew 23.5% year-on-year in Q1FY27, supported by demand across key product segments.

Axis Securities expects this momentum to continue as digital cluster penetration deepens, the plastics business scales and new global OEM programmes begin contributing.

“Growth is expected to be driven by digital/TFT cluster penetration, scaling of the plastics business, rising EV content and new global OEM programs, with margins supported by operating leverage and cost efficiencies,” the report states.

Scorecard

Pricol is a business sitting at the intersection of two structural trends — the premiumisation of Indian two-wheelers driving higher electronics content per vehicle, and the electrification of the same vehicles driving further content expansion through BMS, telematics and connected systems. The demerger of DICVS into Pricol Autotech is the near-term catalyst that should force independent valuations of both businesses.