Detailed Narrative
FY25 Performance and Strategic Shift
Delta Autocorp reported a net profit after tax of INR 8.39 crores and an EBITDA of INR 11.81 crores for FY25, with an EBITDA margin of 14.06%. The company sold 13,006 EVs and expanded its dealer network to 315 across 25 states. Management noted that while H1 FY25 was slower, H2 was decisive, emphasizing a product-first approach and partnerships. The broader EV two-wheeler segment experienced a deceleration, growing 15% YoY in FY25 compared to 39% in FY24.
FY26 Growth Outlook and Targets
For FY26, Deltic projects a revenue growth of 35-40%, targeting INR 110-120 crores in revenue. Unit sales are expected to reach 16,000-17,000 EVs. The company aims to maintain EBITDA and PAT margins at approximately 14% and 10% respectively, despite planned investments in team expansion, marketing, and branding. This growth will be supported by new product launches and an expanded distribution network.
Product Development and Market Expansion
Deltic received RTO approvals for two new scooters, Infinia and Trento Plus, and for an L3 Lithium E-Rickshaw. The company is gearing up to launch two highly anticipated products, the electric scooter Reed and the electric motorcycle Superion, with the electric bike targeted for Q3 FY26. Additionally, Deltic plans to open 20 new company-operated (COCO) showrooms in high-footfall cities, focusing on Tier 2 and Tier 3 markets, and is developing 5 new products (3 two-wheeler, 2 three-wheeler) using IPO funds.
Order Book and Strategic Partnerships
The company has a B2G order book of approximately 1500 vehicles, valued at INR 23-24 crores, to be executed in FY26. An LOI for 360 B2B vehicles has also been received from a Southern India-based EV rental company, with more B2B LOIs expected. Deltic has partnered with Rapido to enable sustainable earnings for its customers, allowing dealers to onboard customers as captains and providing income channels in both three-wheeler and two-wheeler segments.
Capital Allocation and IPO Funds Utilization
The majority of the INR 21.32 crores raised from the IPO will be allocated to the development of 5 new products and setting up a new fabrication and paint plant (INR 4.4 crores). The fixed investment for 20 new COCO showrooms is estimated at INR 80 lakhs. Management clarified that IPO funds are being deployed on a milestone-based payment structure and that the company is net debt-free, not foreseeing significant debt in FY26. They are also actively evaluating potential acquisitions to accelerate growth.
Operational Strategy and Import Content
Deltic emphasizes its manufacturing capabilities, controlling design, engineering, and technology while using vendors for components. The company stated that only 6.7% of its total material purchase is imported, primarily electronic components, with the rest sourced locally. Management highlighted their focus on customer service, spare parts availability, and educating the market on EV repair, aiming for 20-25% growth in spare parts revenue in FY26.