Delta Manufacturing Limited has announced the closure of its hard ferrite division located at Ambad, Nashik, following continuous operational losses. The Board of Directors approved this decision during their meeting held on December 23, 2025.

Financial Impact and Performance

The hard ferrite division's financial performance highlights the challenges that led to this closure decision. The division's key financial metrics demonstrate the extent of operational difficulties:

The division contributed 8.46% to the company's total turnover during the last financial year, generating revenue of ₹5.16 crores. However, the operational challenges resulted in substantial losses of ₹8.83 crores after tax in FY24-25, with the division's net worth standing at nil as of the end of the same period.

Reasons for Closure

The primary factors driving the closure decision center on technological and operational challenges. The division faced significant hurdles due to outdated technology and obsolete machinery, which contributed to the continuous losses. These technological limitations made it increasingly difficult for the division to maintain competitive operations and achieve profitability.

Closure Timeline and Process

The company has outlined a clear timeline for the closure process:

The closure is expected to be completed within a period of three months, spanning from January 2026 to March 2026. The company has indicated that no binding agreement has been entered for the sale of the division, and no specific mitigation steps have been outlined.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The Board meeting commenced at 4:00 p.m. and concluded at 5:00 p.m. on December 23, 2025, where directors considered and approved the closure decision. The company has notified both NSE and BSE about this development through official regulatory filings.

This strategic move represents Delta Manufacturing Limited's effort to streamline operations by discontinuing underperforming divisions that have been generating continuous losses due to technological obsolescence.

Delta Manufacturing Limited , a player in the hard ferrites and textile sectors, has reported a net loss for the quarter ended September 30, 2025, reflecting ongoing challenges in its key business segments.

Financial Performance

The company's consolidated revenue from operations for Q2 FY2026 stood at INR 1,414.86 crore, a slight decrease from INR 1,431.67 crore in the previous quarter. The consolidated net loss for the quarter widened to INR 239.53 crore, compared to a loss of INR 221.76 crore in Q1 FY2026.

Segment-wise Performance

Hard Ferrites Segment

The hard ferrites segment continued to face headwinds, reporting a loss of INR 170.07 crore for the quarter. Revenue from this segment was INR 34.68 crore, showing a marginal increase from the previous quarter's INR 26.85 crore.

Textile Segment

The textile segment showed some resilience, posting a profit of INR 47.31 crore. This segment contributed the majority of the company's revenue at INR 1,380.18 crore for the quarter.

Balance Sheet and Cash Flow

As of September 30, 2025, Delta Manufacturing's total assets stood at INR 6,533.71 crore. The company's cash and cash equivalents at the end of the period were INR 9.69 crore, indicating a tight liquidity position.

Management Commentary

Dr. Ram H. Shroff, Managing Director and Executive Vice Chairman, stated, "We continue to navigate challenging market conditions, particularly in our hard ferrites business. While our textile segment shows some positive signs, we are implementing strategic measures to improve overall performance and return to profitability."

Outlook

The company's board approved these unaudited financial results on November 13, 2025. The persistent losses in the hard ferrites segment and the overall negative bottom line suggest that Delta Manufacturing may face continued challenges in the near term.

Investors and stakeholders will be watching closely to see if the company's strategic initiatives can improve its performance in the coming quarters, particularly in the struggling hard ferrites segment.