💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 36.59% YoY to INR 42.13 Cr in H1 FY26. The B2G segment contributed INR 21 Cr, representing approximately 49.8% of total revenue, primarily driven by garbage cart deliveries. B2C remains the primary volume driver, while B2B is gaining traction through fleet adoption.

Geographic Revenue Split

While a full regional breakdown is not provided, a significant portion of B2G revenue was derived from Assam, which impacted margins due to a 4% increase in logistics expenses for that specific territory.

Profitability Margins

Net profit margin stood at 8.21% (INR 3.46 Cr) for H1 FY26. Operating margins slipped from 13% to 8.1% due to a 3% rise in marketing costs and a 4% rise in logistics. Blended COGS improved by 2%, employee costs reduced by 1%, and interest costs fell by 0.65%, partially offsetting the decline.

EBITDA Margin

EBITDA margin was 11% for H1 FY26, with an absolute EBITDA of INR 4.78 Cr. Management expects margins to stabilize between 8% and 10% going forward as they balance the mix between B2G, B2B, and B2C segments.

Capital Expenditure

The company raised INR 46 Cr through an IPO, of which INR 26 Cr remains unutilized in Fixed Deposits. Planned spending for FY26 and FY27 includes new product development, tooling, molds, and setting up a new three-wheeler paint capacity.

Credit Rating & Borrowing

Interest costs reduced by 0.65% in H1 FY26. Specific credit ratings are not disclosed, but the company is utilizing IPO proceeds to fund working capital for bulk orders, reducing reliance on external high-cost debt.

⚙️ Operational Drivers

Raw Materials

Specific raw materials like lithium-ion cells or steel are not named, but blended COGS represents a significant portion of the cost structure, which improved by 2% in H1 FY26 due to procurement efficiencies.

Capacity Expansion

Current sales volume was approximately 5,000 units for H1 FY26. Planned expansion includes a new three-wheeler paint capacity and tooling for upcoming models like the Infinia and Crossberg brands.

Raw Material Costs

COGS improved by 2% in H1 FY26. The company is focusing on procurement efficiencies and cost optimization to maintain a stable margin profile despite high market competition.

Manufacturing Efficiency

The company is working to remove variability in delivery and sales. It utilizes a subsidiary for battery manufacturing to support its 2-wheeler and 3-wheeler production.

Logistics & Distribution

Distribution costs increased by 4% in H1 FY26 specifically due to the geographical challenges of executing B2G orders in Assam.

📈 Strategic Growth

Expected Growth Rate

37%

Growth Strategy

Growth will be driven by the launch of the premium 'Crossberg' brand in Q4 FY26 (Feb 2026) targeting 25% margins, the introduction of new scooters (Infinia and Kylo), and the expansion of the dealer network with 7 new financing partners including Kotak Mahindra Bank.

Products & Services

Electric 2-wheelers (scooters like Infinia, Kylo), Electric 3-wheelers (garbage carts), and premium electric bikes under the Crossberg brand.

Brand Portfolio

Deltic, Crossberg, Infinia, Kylo.

New Products/Services

Launch of Crossberg premium brand in Feb 2026; upcoming scooters Infinia and Kylo are in the certification/readiness phase.

Market Expansion

Expansion of execution depth in key territories and strengthening the distribution network through new outlets and financing partners.

Market Share & Ranking

Not disclosed, but management claims to be among the few profitable players in a highly competitive segment.

Strategic Alliances

Onboarded 7 financing partners: Kotak Mahindra Bank, Punjab Kashmir Finance, Perfect Finance, Perpetuity Capital, CleverPay, Zebert Finance, and WePay.

🌍 External Factors

Industry Trends

The EV industry is seeing rising fleet adoption (B2B) and high competition. Deltic is positioning itself by diversifying across B2C, B2B, and B2G and moving into premium segments to counter margin compression seen in entry-level models.

Competitive Landscape

Intense competition is noted, with competitors like Zelio e-Mobility mentioned as benchmarks for growth (77% YoY). Deltic is focusing on 'fundamentals' over 'glossy presentations' to regain investor trust.

Competitive Moat

Moat is built on a diversified sales channel mix and a strong financing network (7 partners) which improves accessibility. Profitability in a segment where many are loss-making provides a sustainable base for expansion.

Macro Economic Sensitivity

The company is sensitive to the 'Bharat' market demand and the availability of retail financing, which is why 7 new partners were added to reduce capital hurdles.

Consumer Behavior

Increasing adoption of electric vehicles for both personal use (B2C) and commercial fleets (B2B/B2G) is driving volume growth.

Geopolitical Risks

Not disclosed, though domestic logistics for remote regions like Assam significantly impact the cost structure.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with product certification and regulatory approvals for new models like Infinia and Kylo before market rollout.

Environmental Compliance

Not disclosed in absolute INR, but the business is inherently aligned with green energy/EV regulations.

Taxation Policy Impact

Not disclosed, though the company is dealing with a show cause notice from a government department.

Legal Contingencies

The company has received a show cause notice from a department (value not disclosed). Management states they have successfully resolved 6-7 similar notices over the past 8-9 years and are working with a legal team to reply.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timeline for utilizing the remaining INR 26 Cr of IPO funds and the successful market reception of the premium Crossberg brand, which is critical for margin recovery.

Geographic Concentration Risk

High dependency on specific B2G orders (e.g., Assam) which can fluctuate and carry higher-than-average logistics costs.

Third Party Dependencies

Dependency on financing partners (Kotak, etc.) to drive retail volumes and on government bodies for B2G order consistency.

Technology Obsolescence Risk

The company is investing in R&D and new tooling to ensure products like Infinia remain competitive against high-growth rivals.

Credit & Counterparty Risk

Tighter credit controls are being implemented to maintain stable margins and manage working capital effectively.