DELTAMAGNT - Delta Manufact.

📊 NSE: DELTAMAGNT 🏢 Electronics - Components 📅 Last Updated: 12/13/2025 21:28

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations for H1 FY26 was INR 29.32 Cr, representing a 27% decline from INR 40.17 Cr in H1 FY25. The Hard Ferrites segment contributed INR 29.32 Cr in H1 FY26, while the Textile segment results improved from a loss of INR 1.07 Cr to a profit of INR 0.79 Cr YoY.

Geographic Revenue Split

Not disclosed in available documents, though the company notes performance was affected by slowdowns in both domestic and global markets.

Profitability Margins

Profitability has severely declined; PAT margin worsened by 76% from (10.65)% in FY24 to (18.79)% in FY25. PBT margin similarly dropped 76% to (18.87)% in FY25 due to higher raw material costs and an inability to pass these costs to the unorganized sector.

EBITDA Margin

EBIDTA Margin was (4.32)% in FY25, a 73% deterioration from (2.50)% in FY24, reflecting operational pressure from a liquidity crunch and increased compliance costs.

Capital Expenditure

The company is planning to ramp up incremental machinery and manpower specifically for the textile trim segment to meet expected demand growth, though specific INR figures for planned CAPEX are not disclosed.

Credit Rating & Borrowing

Not disclosed in available documents; however, finance costs for H1 FY26 were INR 1.44 Cr, a 33.6% decrease from INR 2.17 Cr in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Ceramic powder and general raw materials for hard ferrites and magnets; raw material costs for continuing operations were INR 11.50 Cr in H1 FY26, representing 40.4% of continuing revenue.

Capacity Expansion

The company is expanding capacity in the textile trim segment by adding machinery and manpower to capitalize on the white goods component ecosystem in India.

Raw Material Costs

Raw material costs for continuing operations rose 7% YoY to INR 11.50 Cr in H1 FY26 from INR 10.74 Cr, despite a decline in revenue, indicating significant margin pressure.

Manufacturing Efficiency

Inventory turnover improved by 8% to 1.73 in FY25, and debtors turnover improved by 6% to 3.60, indicating better working capital efficiency despite losses.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth will be driven by restructuring the product portfolio toward technologically advanced components, scaling the textile trim segment, and pursuing a strategy to become net debt-free within 3 years through cost reduction and working capital optimization.

Products & Services

Hard ferrites, textile trims, permanent magnets, ferrite cores, and ceramic powder.

Brand Portfolio

DMG (Delta Manufacturing Group), MMG India, Arrow Textiles.

New Products/Services

Technologically advanced components and sub-systems intended to replace traditional products; specific revenue contribution % not disclosed.

Market Expansion

Focusing on global presence and the Indian electronics manufacturing hub, particularly in the white goods sector.

Strategic Alliances

The company is focusing on partnerships and Joint Ventures (JVs) to capitalize on emerging opportunities; currently has a Joint Venture that contributed a loss of INR 1.50 Cr in H1 FY26.

🌍 External Factors

Industry Trends

The industry is shifting toward a robust component ecosystem for electronics and white goods in India; the company is positioning itself by moving from traditional products to advanced components.

Competitive Landscape

Competition includes the unorganized sector, which is currently struggling with higher compliance costs, potentially allowing DML to capture market share through restructuring.

Competitive Moat

The company relies on its long-standing history (incorporated 1982) and its shift toward specialized textile trims and advanced ferrite components to create a competitive niche.