Delta Autocorp Limited reported a total income of INR82.66 crores, EBITDA of INR9.18 crores, and profit after tax of INR6.91 crores for the financial year ended March 31, 2026. The company's EBITDA margin stood at 11.11%, while the PAT margin was 8.36%. Despite a decline in revenue and profitability compared to the previous year, the company strengthened its liquidity position, with cash and bank balances increasing from INR32.78 crores to INR36.65 crores, and reduced short-term borrowings from INR3.87 crores to INR1.35 crores.

The management attributed the revenue degrowth to delays in the execution of a government order worth approximately INR20 crores and a broader industry slowdown in the electric three-wheeler segment. However, the two-wheeler business, specifically channel sales, grew by approximately 69% during the year. The company also faced a one-time expense of INR1.58 crores, which impacted profitability.

Financial Performance

Operational Highlights and Future Guidance

Looking ahead to FY27, Delta Autocorp provided a revenue guidance of approximately INR105 crores. This projection includes an expected INR60 crores from the two-wheeler channel business, INR20 crores from government business, INR15 crores from the three-wheeler business, and INR8 crores to INR10 crores from spare parts revenue. The company further targets revenues of INR150 crores to INR155 crores for FY28 and INR210 crores for FY29.

The company plans to incur a capital expenditure of INR8.5 crores to INR10 crores in FY27, primarily focused on new product development, including the flagship scooter model 'Reed'. Additionally, Delta Autocorp has been selected as an OEM supplier for government-led electric mobility procurement programs covering approximately 340 vehicles, representing a potential supply value of INR8 crores to INR10 crores. The company continues to expand its product portfolio with four new RTO-approved scooters and L5 category vehicles to strengthen its market position.

Delta Autocorp Limited reported a 22% decline in net profit to ₹656.02 lakh for the year ended March 31, 2026, primarily due to a ₹158 lakh provision for fraud. Revenue from operations fell 4.2% to ₹7,966.32 lakh from ₹8,318.51 lakh in the previous year. Total income decreased 1.5% to ₹8,273.69 lakh. The Board of Directors approved the audited standalone and consolidated financial results at a meeting on May 29, 2026.

The company disclosed a manipulation of funds by an official who diverted payments amounting to ₹158 lakh to vendors and transporters by impersonating a legitimate vendor. This fraud occurred during FY26 and the preceding year. The company accounted for the amount by creating a provision for doubtful advances, which reduced profit after tax (PAT) by ₹158 lakh. Of the total fraud amount, ₹36.06 lakh related to FY25 and was reported as a prior period item.

Total expenses for the year rose to ₹7,379.64 lakh from ₹7,269.25 lakh. Other expenses increased significantly to ₹1,254.81 lakh from ₹649.74 lakh. Finance costs decreased to ₹4.09 lakh from ₹21.30 lakh. Earnings per share (EPS) for the year stood at ₹4.29, down from ₹5.49 in the previous year.

On the balance sheet, total assets increased to ₹8,936.67 lakh as of March 31, 2026, from ₹8,490.02 lakh a year earlier. Shareholders' funds rose to ₹7,990.98 lakh, driven by an increase in reserves and surplus to ₹6,462.01 lakh. Cash and cash equivalents improved to ₹3,659.73 lakh from ₹3,278.11 lakh.

IPO Proceeds Utilisation

The company partially utilised the proceeds from its Initial Public Offer (IPO) of ₹5,054.40 lakh. As of March 31, 2026, ₹2,341.40 lakh had been utilised, leaving ₹2,313 lakh unutilised and held in fixed deposits. Funds were deployed towards working capital requirements, general corporate purposes, and new product development, while expenditure for setting up an electric three-wheeler fabrication plant remained unutilised.

Auditor's Report and Subsidiary Status

Statutory auditors Padam Dinesh & Co and V. Singhi & Associates issued an unmodified opinion on the financial results. However, they drew attention to the fraud noted in the financial results. Additionally, the auditors highlighted that the subsidiary, Electrofine Motors Private Limited, had a negative net worth of ₹7.51 lakh as of March 31, 2026, with current liabilities exceeding current assets, indicating a material uncertainty regarding its ability to continue as a going concern.