Delta Autocorp Limited — Q4 FY26

Delta Autocorp Limited Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=5-PiSy9kxkk Published: 10 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Delta AutoCO Limited H2FY26 earnings conference call. As a reminder, 0:10 10 seconds all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:18 18 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note this 0:26 26 seconds conference is being recorded. I now have a conference over to Miss Ruvie from Equid Bridge X. Thank you and over to you. 0:35 35 seconds Thank you and a very good afternoon to everyone. Welcome to the H2 FI26 earnings call of Delta Auto Comp Limited. From management team, we have 0:43 43 seconds with us Mr. Ankit Agarwal, managing director, Miss Priya Priyanka Agarwal, Chief Financial Officer and Director, 0:51 51 seconds Mr. Amun Alo, Vice President Marketing and Sales, Mr. Rishab Malik, AGM Finance, Mr. MKkesh snee a finance and 0:59 59 seconds accounts. The call will begin with opening remarks from the management after which we will open the floor for Q&A. With that I would now like to hand 1:06 1 minute, 6 seconds over the call to management for opening remarks. Thank you and over to you sir. 1:11 1 minute, 11 seconds Yeah thank you Rhy. Good afternoon everyone. I am Anka Sagarwal managing director of Delta Autocor Limited. On 1:19 1 minute, 19 seconds behalf of the entire Delta family, I would like to thank all our shareholders, investors, analysts, dealer partners, customers, employees, 1:27 1 minute, 27 seconds and stakeholders for joining us today and for your continued trust and support. FY26 was a year of strengthening the foundation of Delta 1:36 1 minute, 36 seconds AutoC and investing in capabilities that we believe will support the next phase of our growth journey. While financial 1:43 1 minute, 43 seconds performance remains an important measure of success, FY26 was equally about improving our product portfolio, 1:50 1 minute, 50 seconds enhancing engineering capabilities, strengthening retail execution, improving dealer economics, optimizing 1:58 1 minute, 58 seconds cost and developing the organizational capabilities required to scale the business sustainably over the coming years. 2:06 2 minutes, 6 seconds These efforts have helped create a leaner and more agile organization with stronger execution capabilities while 2:14 2 minutes, 14 seconds preserving the flexibility required to support future growth. Let me begin with our financial performance for FY26. The 2:22 2 minutes, 22 seconds company reported total income of 82.66 66 crores, AITA of 9.18 crores and 2:28 2 minutes, 28 seconds profit after tax of 6.91 cr resulting in an IITA margin of 11.11% and a PAT margin of 8.36%. 2:38 2 minutes, 38 seconds While revenue and profitability were lower compared to previous financial years, we remained profitable, 2:44 2 minutes, 44 seconds strengthened our liquidity uh position, improved working capital deficiency, reduced borrowing and continued 2:52 2 minutes, 52 seconds investing in the long-term development of the business. Our cash and bank balances increased from 32.78 cr to 2:59 2 minutes, 59 seconds 36.65 cr. During this year, trade receivables reduced from 16.61 cr to 12.46 46 cr reflecting tighter 3:08 3 minutes, 8 seconds collection processes and stronger working capital management. Short-term borrowing reduced significantly from 3.87 cr to 1.35 cr while our debt to equity ratio improved from 0.5 to 02. 3:22 3 minutes, 22 seconds Further on the business side the revenue for our two liter business that is especially the channel sales grow by 3:29 3 minutes, 29 seconds approximately 69% during the last financial year. We believe these indicators reflect the financial discipline with which the business 3:38 3 minutes, 38 seconds continues to be managed. However, when I reflect on FI26, I do not view it merely as a financial year. I view it as a year 3:45 3 minutes, 45 seconds in which we had laid important building blocks for the future. One of the most significant development during the year was strengthening of our product 3:53 3 minutes, 53 seconds portfolio across electric two wheelers and commercial mobility sector. Within electric two-wheeler segment, our 3:59 3 minutes, 59 seconds product pipeline includes now four new RTO approved scooters with such as Infinia, Ino, Jetster and Crossber. 4:09 4 minutes, 9 seconds During the year, we successfully completed these four new home creating a stronger foundation for future product launches and enabling us to cater a wide 4:18 4 minutes, 18 seconds range of customer requirements across urban and semi urban markets. With commercial mobility, we expanded our presence through Araat, which is our L5 4:28 4 minutes, 28 seconds passenger mobility platform and our L5 garbage collection vehicle platform while introducing Deltic Express in the 4:35 4 minutes, 35 seconds L5 passenger vehicle category. This has strengthened our participation across cargo, passenger, utility, sanitation, and institutional mobility applications. 4:47 4 minutes, 47 seconds Alongside portfolio expansions, we continued working towards improving product market fit across categories by combining customer feedback, dealer 4:55 4 minutes, 55 seconds insights, retail data, field observations, and engineering improvements. We are continuously refining our products to better align with evolving customer requirements and 5:03 5 minutes, 3 seconds market reality. At the same time, we also focus on strengthening our ability to create products. During FY26, we 5:11 5 minutes, 11 seconds established a dedicated in-house design studio and significantly strengthened our new product development function. 5:18 5 minutes, 18 seconds For us, this was simply not about adding resources. It was about creating long-term capabilities. Historically, 5:25 5 minutes, 25 seconds the development of new vehicle platforms has largely been dominated by large OEMs with long development cycles and 5:32 5 minutes, 32 seconds substantial engineering budget. In many cases, developing a new scooter platform can easily take anywhere between 36 to 5:39 5 minutes, 39 seconds 48 months. Our objective, however, is to build it faster in a more agile and more efficient uh way. Over the last year, we 5:48 5 minutes, 48 seconds strengthened our engineering organization through selective hiring of experienced professionals from leading EV companies like Reol Motors, Okaya EV, 5:57 5 minutes, 57 seconds Bar Mobility, Blink Mobility and other participants within the EV ecosystem. 6:02 6 minutes, 2 seconds These additions have enhanced our capabilities across design, engineering, validation, sourcing, manufacturing, and commercialization. 6:11 6 minutes, 11 seconds As a result, we have we believe we have created a significantly stronger product development platform than we had a year 6:17 6 minutes, 17 seconds ago. A good example of this progress is our upcoming flagship scooter model. 6:23 6 minutes, 23 seconds Leveraging our design studio, engineering team and product development capabilities, we expect to bring read from concept to market in approximately 6:32 6 minutes, 32 seconds 24 to 26 months, significantly faster than traditional industry timelines while maintaining our focus on reliability, practicality and customer 6:40 6 minutes, 40 seconds relevance. Another important area of focus during FY26 was retail and market education. Over the year, we have 6:48 6 minutes, 48 seconds developed a strong understanding of har focus mobility market. One of the clearest lessons we have learned is that EV adoption is ultimately won at the 6:56 6 minutes, 56 seconds retail market. Customer needs confidence in the product, confidence in after sales support, confidence in financing availability and confidence in dealers standing behind the vehicle. 7:08 7 minutes, 8 seconds Accordingly, we strengthened both our retail and pre sales team across key markets during the year. At the same time, we started developing internal 7:16 7 minutes, 16 seconds software systems focused on improving dealer productivity, lead management, retail visibility, customer engagement, feed force effectiveness, retail 7:24 7 minutes, 24 seconds marketing and conversion tracking. Our objective is simple. Make every dealer more productive, every every lead more 7:32 7 minutes, 32 seconds traceable, every retail interaction more effective and every market more measurable. We believe technology should 7:39 7 minutes, 39 seconds improve not only the vehicle but also the ecosystem surrounding the vehicle. 7:45 7 minutes, 45 seconds Further during FY26 we continued strengthening our distribution network through a more selective and quality focused approach. We onboarded 7:53 7 minutes, 53 seconds approximately 120 leaders during the year while simultaneously undertaking rationalization exercise across underperforming locations resulting in 8:02 8 minutes, 2 seconds the exit of non-performing dealers primarily within the electric three dealer. More importantly, dealer 8:10 8 minutes, 10 seconds selection standards have become significantly stringent. We have introduced stronger due process, deeper mutual evaluation and improved market 8:18 8 minutes, 18 seconds assessment before onboarding new partner. Our objective is no longer simply to increase the deer count. Our objective is to build a healthier, more productive and more sustainable deal. 8:29 8 minutes, 29 seconds Another area that delivered uh encouraging progress during the year was our company's cocoa outlet and retail 8:37 8 minutes, 37 seconds model. The operating performance of our Eastern India Coco outlets improved materially during the year resulting in 8:44 8 minutes, 44 seconds stronger profitability while losses from our Delhi operations reduced significantly. These results have reinforced our confidence in Coco model 8:52 8 minutes, 52 seconds and validated several retail services financing and customer engagement initiative implemented over the past 12 months. 9:01 9 minutes, 1 second The learnings and operation improvements achieved through these locations provide a strong foundation for future expansion and long-term value. 9:11 9 minutes, 11 seconds As a result, we have become increasingly confident about expanding the KCO footprint across India. Recently we 9:18 9 minutes, 18 seconds announced a new coco room in through our wholly own 9:28 9 minutes, 28 seconds it combination of regional commerce religious tourism connectivity and increasing mobility demand. Importantly 9:35 9 minutes, 35 seconds our vision for locations extend far beyond reg. We increasingly view these locations as customer experience centers, service excellence center, 9:43 9 minutes, 43 seconds dealer training hubs and marketing laboratories, financing facilitation centers and operating models for future 9:51 9 minutes, 51 seconds expansion. The learning generated at these locations are continuously transferred back into a wider dealer network helping improve execution 9:59 9 minutes, 59 seconds standards across the ecosystem as additional cocoa locations mature and demonstrate sustainable economics. We intend to aggressively evaluate further 10:07 10 minutes, 7 seconds expansion opportunities across strategically important markets. 10:12 10 minutes, 12 seconds Alongside retail expansion, we also focus on strengthening dealer economics. 10:16 10 minutes, 16 seconds How one of the realities of EV industry is that the dealers cannot rely solely on retail train for long-term value. 10:22 10 minutes, 22 seconds Dealers need stronger service capabilities, technical expertise and additional customer touch points. Over the last few years, we have been 10:30 10 minutes, 30 seconds building structured training initiatives focused on diagnostic service repair and EV difficulty. 10:36 10 minutes, 36 seconds Our objective is to help dealers evolve into trusted EV service center capable of supporting multiple EV banks while 10:44 10 minutes, 44 seconds creating stronger customer relationship and improving long-term deal profitability. We believe this strength the entire ecosystem by improving 10:52 10 minutes, 52 seconds service quality, dealer economics and customer confidence related mobility. 10:57 10 minutes, 57 seconds Another encouraging development during the participation in the institution and government mobility programs. During the 11:04 11 minutes, 4 seconds period, Delta was selected as an Orient supplier under two government listed mobility procurement programs across eastern India covering both L3 and L5 11:13 11 minutes, 13 seconds category of three years. Together these programs cover approximately 340 vehicles including around 240 L5 11:21 11 minutes, 21 seconds electric garbage collection vehicles and 100 L3 electric passenger. 11:26 11 minutes, 26 seconds Based on current specification, these opportunities represent a potential supply value of approximately 8 to 10 cr with supplies expected to be executed 11:35 11 minutes, 35 seconds shortly subject to issuance of formal work orders and procurement schedule. 11:41 11 minutes, 41 seconds Importantly, the 240 unit L5 program represents our first institutional mobility opportunity in the L5 category 11:48 11 minutes, 48 seconds of electric and marks an important milestone in our commercial mobility journey. These opportunities span 11:55 11 minutes, 55 seconds sanitation, waste management, public utility services and last mile mobility application reflecting the growing adoption of electric mobility across 12:04 12 minutes, 4 seconds government and cities. Beyond Eastern India, we continue to actively participate in similar opportunities across northern and western India and we 12:11 12 minutes, 11 seconds remain encouraged by the expanding institutional mobility pipeline emerging within the sector. As we look ahead, we believe several initiative undertaken 12:20 12 minutes, 20 seconds over the last few years are now beginning to converge. While we remain ambitious about the opportunities ahead, we remain equally disciplined in our 12:27 12 minutes, 27 seconds approach. Growth will continue to be pursu pursued along with profitability, prudent capital allocation, working 12:34 12 minutes, 34 seconds capital discipline, cost optimization, and balance sheet strength. Looking back, FY26 was not simply a year of 12:42 12 minutes, 42 seconds financial performance. It was a year of cap capability creation. We strengthened our products. We strengthened our 12:49 12 minutes, 49 seconds engineering. We strengthened our retail infrastructure. We strengthened our ecosystem. We strengthened our execution capability. And most importantly, we 12:58 12 minutes, 58 seconds strengthened the organization for the future. Thank you once again for your continued trust and support. With that, I would now be happy to take your questions. 13:10 13 minutes, 10 seconds Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 13:18 13 minutes, 18 seconds and one on your touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 13:25 13 minutes, 25 seconds two. Participants are requested to use handset while asking a question. 13:31 13 minutes, 31 seconds Ladies and gentlemen, we will wait for a moment while the question cube assembles. 13:44 13 minutes, 44 seconds The first question comes on the line of Nishita Shangesha it's Safi Capital please go ahead. 13:52 13 minutes, 52 seconds Uh yes uh thank you for taking my question. Also I just wanted to understand what is our current audible position. 14:02 14 minutes, 2 seconds Right. So currently uh as you mentioned uh that approximately 8 to 10 cr uh 14:11 14 minutes, 11 seconds worth of orders we are expecting to uh be allotted to us very soon as we are already L1 in those tenders and another 14:21 14 minutes, 21 seconds 10 crores also we expect that we should be able to uh get the work order for that soon. So totally the order book 14:29 14 minutes, 29 seconds would be about 18 to 20 kores but that's the order book pipeline right those orders are not in our hand as of now is that correct? 14:39 14 minutes, 39 seconds Yeah. So those orders are not in our hand like um as we mentioned like two of the orders we are already in one we are 14:47 14 minutes, 47 seconds just waiting for the uh work order to be issued in our so that is there and another 10 crores of order uh worth of 14:56 14 minutes, 56 seconds orders we are already in the final stages of uh like I mean uh evaluation and uh confirmation process. 15:06 15 minutes, 6 seconds So yes, you are right. I mean, yeah, please go ahead. 15:10 15 minutes, 10 seconds So like the two uh government orders that we received for LT and L5 uh vehicles. So uh that that 15:19 15 minutes, 19 seconds [clears throat] those are the orders that we've already received, right? I I believe that order value is also around 8 to 10 crores. 15:26 15 minutes, 26 seconds So, so that is again like I mean we are L1 for those orders and we are expecting the work order very shortly because 15:34 15 minutes, 34 seconds there were some elections and government changes so that is why I mean we've not received the orders yet. 15:41 15 minutes, 41 seconds Okay. Okay. Understood. Uh my uh next question would be uh so uh we our revenue has been grown and exciting. 15:51 15 minutes, 51 seconds scientists wanted to understand what is the reason for that and even our margins have compressed quite a lot. So what are 15:59 15 minutes, 59 seconds the sustainable margins we can see going forward right? So uh yes so there were two major 16:08 16 minutes, 8 seconds uh factors that impacted growth during FY26. The first the most significant factor was like the government order of 16:15 16 minutes, 15 seconds about 20 cr rupees that we are expecting to be executed in the last year could not happen. 16:22 16 minutes, 22 seconds Uh so while we had visibility on these opportunities the government timelines were delayed. 16:28 16 minutes, 28 seconds Uh so uh based on the current understanding uh I would say we remain optimistic that 16:35 16 minutes, 35 seconds like the remaining 8 to 10 crores out of the 20 crores should mature in due course. The second major factor relates 16:43 16 minutes, 43 seconds to the three-wheer business which has historically been an important contributor to our revenues. So the three-wheer industry is currently 16:50 16 minutes, 50 seconds undergoing a significant transition across the market. customers, dealer and fleet operators are increasing the shift 16:58 16 minutes, 58 seconds from L3 vehicles to L5 vehicles. So whenever such transactions occurs, purchasing behavior tends to be more 17:06 17 minutes, 6 seconds cautious. Customers are defering their purchase decision. Dealers are becoming more selective in stocking and market 17:13 17 minutes, 13 seconds demand has become slightly unable. So this trend has not been unique to Delta and has been visible across the broader three-heer industry. 17:23 17 minutes, 23 seconds In addition, I would like to say every industry goes through demand and supply cycles and the electric three dealer 17:30 17 minutes, 30 seconds industry uh is no exception. After several years of continuous strong growth, the industry is currently 17:37 17 minutes, 37 seconds witnessing a situation where supply appears to be higher than demand resulting in increased competition and uh pressure across the market. However, 17:46 17 minutes, 46 seconds we believe that this is a normal business cycle rather than a structural issue. Over time, supply and demand would tend to rebalance leading to 17:54 17 minutes, 54 seconds healthier and a more sustainable operating environment. So we remain confident in the long-term prospect of electric cleaner market and particularly 18:03 18 minutes, 3 seconds in the opportunities emerging within the having said that I would say that there were some encouraging developments 18:12 18 minutes, 12 seconds during the year like I mean uh based on customer feedback market conditions we 18:18 18 minutes, 18 seconds selectively corrected the prices across scooter categories by approximately 5 to 6%. While this had a short-term impact 18:26 18 minutes, 26 seconds on realization, we believe improving product market and driving retail growth was more more important than protecting short-term pricing and the results have been encouraging. 18:37 18 minutes, 37 seconds So, our two-wheeler business especially the channel sales business has grown by 69% during this financial year compared to the last financial year. Yeah. 18:48 18 minutes, 48 seconds Okay. And so like this uh slowdown in three industry and the timing pressure that you just mentioned is that the 18:55 18 minutes, 55 seconds reason for margin compression or like is something else also dragging down our margins and what are the sustainable margins that we can see going forward? 19:05 19 minutes, 5 seconds Can it be in the range of uh 10% or is it going to stay in the similar range of 7 8%. 19:14 19 minutes, 14 seconds So actually this year the profitability was also impacted by a one time uh uh 19:20 19 minutes, 20 seconds like expense of 1.58 K. So we so that is a one time thing and we do not expect it 19:26 19 minutes, 26 seconds to uh be like there uh going forward and yes the apart from that the margins 19:34 19 minutes, 34 seconds have compressed because like we have been offering uh incentives and other things to our existing dealers. So that 19:43 19 minutes, 43 seconds is why the margins has compressed a little there and going forward we expect the margins to be in the 8 to 10% uh uh range. 19:58 19 minutes, 58 seconds Okay. Okay. And uh my next question would be on so you mentioned that our revenue was impacted because we uh 20:06 20 minutes, 6 seconds couldn't uh like execute the 20 cr government order. So uh do we expect to execute that in FY27 20:16 20 minutes, 16 seconds and is [clears throat] that a part of the order book pipeline that you mentioned or the order book pipeline is excluding this 20 cr execution? 20:24 20 minutes, 24 seconds No. So the orderable pipeline is including this 20 K execution that we currently I mean uh have and we 20:34 20 minutes, 34 seconds definitely uh expect that the uh entire 20 should be executed in F7. 20:44 20 minutes, 44 seconds Okay. Okay. I see. And uh like uh do we see any kind of capeex in FY27? 20:54 20 minutes, 54 seconds So uh we are incurring significant capex in new product development. 21:00 21 minutes So uh as I mentioned uh during my opening speech so we are focusing on building a flagship scooter which is 21:08 21 minutes, 8 seconds called read and typically any scooter development has a timeline of like 24 to 27 months. So we have already completed 21:16 21 minutes, 16 seconds like 15 months for that. So in the next 12 months that scooter would be uh launched in the market. So yes there 21:26 21 minutes, 26 seconds will be capex pertaining to the development of molds, development of lights, development of chassis, development of battery. So those capex 21:34 21 minutes, 34 seconds is expected like that kind of capeex is expected. Can you uh quantify the capex? 21:40 21 minutes, 40 seconds Yes. So uh the capeex would be in the tune of like 9 to 10 cr rupees or I 21:47 21 minutes, 47 seconds would say 8 and a half to 10 cr rupees and fy 27 pertaining to new product development specifically. 21:57 21 minutes, 57 seconds Uh right right also uh if you could build some sort of guidance for topline and 27 uh that would be really helpful. 22:06 22 minutes, 6 seconds So currently we we are around the runway of 80 crores. Can we see us reaching 100 or 120 of top line? 22:17 22 minutes, 17 seconds Yeah. So uh we are expecting a top line of approximately 105 cr for the next uh 22:24 22 minutes, 24 seconds for FY27 and primarily we believe like about 60 cr of 22:32 22 minutes, 32 seconds the top line would come from the two dealer channel business 20 cr from the government business that we have uh that 22:39 22 minutes, 39 seconds we discussed about uh 15 cr or from the free media 22:45 22 minutes, 45 seconds business and about 8 to 10 crores on the uh spare part revenue. 22:53 22 minutes, 53 seconds We are expecting about 9 of 105 crores. 22:57 22 minutes, 57 seconds Okay. Okay. And thank you so much for answering all the questions. Thank you. 23:05 23 minutes, 5 seconds The next question comes in the line of AID but with MIT engineers. Please go ahead. 23:12 23 minutes, 12 seconds Yeah, my question is regarding the revenue breakup. Now when you compare to FY26 with FY25 there is a degro in the 23:20 23 minutes, 20 seconds three-wheer that you said that it's basically the entire market is facing but uh spare part in FY25 I I think in 23:29 23 minutes, 29 seconds IPO year uh you reported a 17 cr spare part sales it's now down to 5.64 64 K. 23:36 23 minutes, 36 seconds So first question is it was the IPO window tracing suggested by the merchant banker or there is some structural change. 23:47 23 minutes, 47 seconds Okay. And uh can you tell me your second question also Mr. B? 23:50 23 minutes, 50 seconds Yeah the second question is regarding the your POS the value mobility which recently listed in FI24. Up to FI24 you both were almost 8,500 crores company. 24:02 24 minutes, 2 seconds you are in the same sector uh but you know they grown they are growing at a caggr of 80 to 85 percentage now the 24:12 24 minutes, 12 seconds revenue touched 330 crores the pet is 28 crores they are getting the aggressive growth even the valuation and the uh 24:19 24 minutes, 19 seconds good people are investing the even the investors are generating wealth and on the other hand we as a investor now really feeling that we have done a 24:28 24 minutes, 28 seconds blunder by investing in a company because the company is not growing at all all the time you know we are you know the management is coming and uh 24:36 24 minutes, 36 seconds telling us you know some interesting stories but you know nothing happening you know so the second question is why when peers can grow at 82 85%age in this 24:45 24 minutes, 45 seconds uh you know sector we are you know not growing with even 35 cr rupees you know in our bank account still we are not 24:53 24 minutes, 53 seconds growing so please you know tell us the mentality of the management what management wants to do and uh now is 25:00 25 minutes there any real you know growth uh our company can achieve in the future so we can even also create the value wealth because the investor are losing you know 25:09 25 minutes, 9 seconds considerable the uh only 25%age of the total investment amount now remaining I think you must uh take cognance of it 25:18 25 minutes, 18 seconds and I think uh you could reply in a proper manner thank you so uh to answer your first question 25:27 25 minutes, 27 seconds regarding so uh I see the market there are probably two 25:34 25 minutes, 34 seconds reasons for the decline in spark. First the effort business has become significant more over the last few years 25:42 25 minutes, 42 seconds across the industry margins have come under pressure as several new orient and customers who used to previously parts 25:50 25 minutes, 50 seconds to larger intermediaries like us have increasingly shifted towards direct procurement models because the margins are shift sinking. So this has reduced 25:59 25 minutes, 59 seconds both the size of the opportunity and the profitability of the business. Secondly, I would say a small portion of the decline is linked to the slowdown in the 26:08 26 minutes, 8 seconds LP squeezer segment uh uh business since fair demand is naturally correlated with 26:15 26 minutes, 15 seconds the price and activity of the retail purchase. Lower sales and reduced market activity in the entry category is also contributed to it. 26:23 26 minutes, 23 seconds So having said that we continue to view after sales service and spare part availability as an important component of customer ownership experience. focus 26:32 26 minutes, 32 seconds relates to ensuring strong service support for customers while simultaneously strengthening our core retail business and expanding into newer 26:40 26 minutes, 40 seconds opportunities such as the L5 commercial mobility marketing and uh as I mentioned uh during my 26:48 26 minutes, 48 seconds speech also like uh we have been training our dealers to do service of other brands EVs also where 26:57 26 minutes, 57 seconds they are struggling with service that is naturally in increasing the verified revenue for the company as well as the viability of our detail. 27:07 27 minutes, 7 seconds So I hope I have answered your uh first part of the question properly. 27:13 27 minutes, 13 seconds Secondly, uh I understand uh your concern regarding the growth and I respect it like I mean uh when we see 27:22 27 minutes, 22 seconds that some of our peers have done exceedingly well uh in the market and we have immense 27:29 27 minutes, 29 seconds respect for them. So uh so see what we are focusing currently is uh just give me a second. 27:44 27 minutes, 44 seconds Yeah. So uh what see we have focused more on developing our engineering and 27:52 27 minutes, 52 seconds product development capability with with the launch of our design studios with the launch of our uh like I mean the 28:00 28 minutes engineering and design capability that we have built I mean is something that only the top 10 15 OM in the country 28:07 28 minutes, 7 seconds have today. So we are focusing on uh product creation 28:13 28 minutes, 13 seconds and uh I believe that I mean so uh so uh I would say that I mean one 28:22 28 minutes, 22 seconds of the most important changes has been our understanding of the like product market fit also in this year. 28:30 28 minutes, 30 seconds So uh Ammon would you like to add to this? 28:35 28 minutes, 35 seconds So yes, actually uh like uh not really going heavy on the distribution strategy. the C was completely focused 28:42 28 minutes, 42 seconds on being more like you know product focused and also in the name of marketing like uh with the current line of products instead of that like in uh 28:51 28 minutes, 51 seconds in terms of like territory expansion everything we were waiting for the right set of scooters so that we could go all in and have a sustainable growth like we 28:59 28 minutes, 59 seconds now have four RTO scooters in our pipeline named infinia jester crossber and so with the these kind of pipelines 29:08 29 minutes, 8 seconds we see that we can participate in the you know sustained growth in the RTO segment also we uh saw that the decline in the L3 was coming. So we already like 29:17 29 minutes, 17 seconds as we have notified launched uh L5 across all the three categories like the loadbearing cap uh u segment, the 29:24 29 minutes, 24 seconds passenger segment and even the garbage segment. So uh sir I'll just be uh specific on the part that you can see 29:31 29 minutes, 31 seconds the growth in terms of engineering capability in terms of product development also and not just R&D happening in the company. So uh it's 29:40 29 minutes, 40 seconds part of a long-term strategy and even in the name of marketing instead of going ATL heavy or uh spending on branding we have been strengthening our retail 29:49 29 minutes, 49 seconds capabilities and individual dealer sustainability. 29:53 29 minutes, 53 seconds So just these are the pointers I would like to thank you sir uh Mr. Amit I would 30:02 30 minutes, 2 seconds request you to please come back in the queue for further questions. Thank you. 30:07 30 minutes, 7 seconds The next question comes from the line of Canel Savla with Art Invest. Please go ahead. 30:15 30 minutes, 15 seconds Hi, good afternoon. Thanks for the opportunity. Am I audible, sir? Yes, you're audible. Good afternoon. 30:22 30 minutes, 22 seconds Yeah. Yeah. Okay. Uh point by point, uh there was a showcase notice published on 28th of February, uh 2026. Any update of 30:31 30 minutes, 31 seconds that? Because after that there is no update about the film. 30:36 30 minutes, 36 seconds Okay. So, uh I think the showcase notice pertaining to uh the one we received on 20th February 2026 was pertaining to an 30:46 30 minutes, 46 seconds uh dispute regarding or classification dispute regarding GST notification. 30:54 30 minutes, 54 seconds So actually we have won an exactly similar case uh from the very same department uh 31:01 31 minutes, 1 second while we were an LLC. So I mean uh like I mean and we have again received the notice like for the duration then we 31:08 31 minutes, 8 seconds were a private limited company. So uh I think that is well covered actually. So Rish is it the same case like which like 31:16 31 minutes, 16 seconds I mean that you received on 28th February 2026 or is it different? 31:22 31 minutes, 22 seconds Uh yes sir it's the same case and uh we already replied to the department and waiting for them. 31:28 31 minutes, 28 seconds Okay. So we are waiting for the order to comment. Yeah. 31:33 31 minutes, 33 seconds waiting for the positive order because you already received positive order for the exact same matter. Yeah. During. 31:41 31 minutes, 41 seconds Got uh coming to number of units uh what was the two wheeler and three wheeler 31:48 31 minutes, 48 seconds previous year and current year which you had uh given the results unit wise. 31:56 31 minutes, 56 seconds Yeah. tell you just give me 32:04 32 minutes, 4 seconds can you uh just let us know the number or yeah just uh I mean check what I'm 32:11 32 minutes, 11 seconds saying is absolutely correct so in terms of unit the two wheeler segment our total sales was about 11,844 32:21 32 minutes, 21 seconds units and you want a comparison with last year also yeah yeah previous year also Previous year it was 10,299 32:29 32 minutes, 29 seconds units when we uh include both uh the white label OEM opportunities as well as 32:37 32 minutes, 37 seconds channel 3 and if I break down the channel sales number for this financial year was 10,454 32:44 32 minutes, 44 seconds units compared to 5,824 units last year whereas the OE business 32:51 32 minutes, 51 seconds the white labeling business the quantity this year was 1390 compared to 4475 last year. 32:59 32 minutes, 59 seconds And then coming to uh like the three years the overall number this year uh 33:08 33 minutes, 8 seconds is uh triple to9 unit last year it was 33:19 33 minutes, 19 seconds 3722 unit. 33:22 33 minutes, 22 seconds Okay. So there is maybe a 20% degrowth in three-wheeler. Uh more more than that. Okay. What about the 33:30 33 minutes, 30 seconds bike which you were planning to bring in? Uh apart from scooters uh there were some 33:39 33 minutes, 39 seconds positive maybe developments heading there. So any regarding that? 33:45 33 minutes, 45 seconds Yes. So uh the primary reason why we did not launch the motorcycle was prioritization on capital allocation. 33:52 33 minutes, 52 seconds Over the last year we believe that the most immediate opportunities for Delta were in the RTO of scooter segment and commercial mobility particularly the 34:01 34 minutes, 1 second emerging L5 category as the electric three market began transitioning from L3 to L5. Accordingly, we consciously 34:08 34 minutes, 8 seconds prioritize the development and homeloation of multiple scooter models and L5 vehicle platforms allowing us to capitalize on opportunities that we 34:17 34 minutes, 17 seconds believe were more immediate, scalable and commercially attractive. 34:21 34 minutes, 21 seconds However, I mean uh I would say that uh it should not be interpreted interpretated as a lack of focus on the motorcycle. The motorcycle program has 34:30 34 minutes, 30 seconds continued to progress badly. A significant portion of the cooling and mold development activities has already been completed with four out of the five 34:39 34 minutes, 39 seconds major light molds completed and the final mold currently under development. 34:43 34 minutes, 43 seconds Upon completion of this phase, the product will move through testing, validation, homeogation and commercialization. 34:49 34 minutes, 49 seconds So I would say we remain excited about the opportunity in the motorcycle segment. But yes, I mean it will take some time for us to launch the 34:57 34 minutes, 57 seconds motorcycle. Moreover, it's a performance motorcycle, sports motorcycle. So it would be in uh expecting in this current financial year. 35:06 35 minutes, 6 seconds So we are actually targeting and trying to launch it by uh end of this financial year. 35:13 35 minutes, 13 seconds Okay. Okay. Okay. Uh so my last question this fraud of uh uh 1.58 crores 35:21 35 minutes, 21 seconds um uh see every year there is something or the other and the previous question also was regarding that. See uh you said 35:30 35 minutes, 30 seconds that you are uh maybe putting money and in development rather than marketing and distribution 35:37 35 minutes, 37 seconds but at the end of the day the shareholder or the owner it's what's coming in the bottom line. So uh see 35:48 35 minutes, 48 seconds maybe uh 25% of the capital remaining of the IPO price and still around 40 50 crores lying idle of not utilizing that. 35:58 35 minutes, 58 seconds So uh maybe I got your answer that you don't focus and you developing your products and now so what can we expect 36:06 36 minutes, 6 seconds in 20 FI27 number of units which you are planning to or maybe having a target. So 36:14 36 minutes, 14 seconds earlier you said from 80 crores you are planning 105 crores. So okay that may 36:20 36 minutes, 20 seconds seem a 25 30% growth but uh still if you cover and compare with other companies 36:28 36 minutes, 28 seconds of three year or a five year growth pattern maybe we are still lacking majorly on that if you even say you got 36:36 36 minutes, 36 seconds a 105 or 110 cr sales even after spending this whole year in development and this and that um again 36:46 36 minutes, 46 seconds getting a maybe 10% margin. So we are nowhere near the competition sir. 36:53 36 minutes, 53 seconds Correct. Correct. No, I totally understand your concern. I totally understand your concern. So uh as uh I 37:02 37 minutes, 2 seconds mentioned earlier development of any new product about 24 to 27 months at the minimum 37:10 37 minutes, 10 seconds right typically the larger OEM they take about 36 to 48 months. So uh I understand the growth has been slower 37:18 37 minutes, 18 seconds compared to the market but I can assure you one thing that we are uh today we are a much much better organization we 37:27 37 minutes, 27 seconds are much agile we much leaner than before and uh what we are doing today so it will give us rich dividends and like 37:36 37 minutes, 36 seconds a sustainable uh like I mean growth going forward. So uh I understand like I 37:44 37 minutes, 44 seconds mean you feel that the 25 to 30% growth would be uh slightly lower but I mean let me give you a sense of the number that we'll be doing in FY 27 28 and 29. 37:56 37 minutes, 56 seconds So FY27 as I mentioned we'll be targeting about 105 crores of FY 28 the 38:03 38 minutes, 3 seconds target is about 150 to 155 cr of revenue. FY uh 29 we targeting almost 38:10 38 minutes, 10 seconds 210 crores of revenue. So yes I mean uh like we are taking some time here but uh 38:19 38 minutes, 19 seconds going forward I'm very confident that like uh the growth would be much faster and 38:26 38 minutes, 26 seconds much steeper compared to what we are targeting currently. 38:31 38 minutes, 31 seconds Yeah, hope managements try to do because still getting a 30% growth and we miss the opportunity where the competition is 38:38 38 minutes, 38 seconds growing at 50 80%. And uh where we have a degrowth or a no growth. So if you 38:45 38 minutes, 45 seconds calculate three years then again we stand nowhere sir. Thanks and best of luck for the management in the year. Thank you. 38:52 38 minutes, 52 seconds Yeah just wanted to add one small thing here. See uh in the two dealer segment as I mentioned we have grown by 69% where there was a good scope 3 39:01 39 minutes, 1 second unfortunately didn't perform this year but totally understand your concern and we'll be working on it like I mean uh and like I'm sure like in the long term 39:10 39 minutes, 10 seconds you'll get that growth that everyone is expecting from Thank you. Thank you. Thank you. 39:20 39 minutes, 20 seconds Thank you. The next question comes from the line of AU Thiagi with Hakong Capital. Please go ahead. 39:28 39 minutes, 28 seconds Hey. Hi. Hi. Uh first off, congrats on the set of fair results that we got. Uh just wanted to understand here when 39:36 39 minutes, 36 seconds you're talking about uh the capex that you've done over the year and what you're also planning what sort of output do we expect from there in terms of 39:43 39 minutes, 43 seconds revenue, what is the capex to revenue that you're looking at for you know across the sections that you're working on? 39:50 39 minutes, 50 seconds Right. So um yeah hi Ariish so uh I get your question so uh I mean the capeex uh 39:59 39 minutes, 59 seconds like that we'll be doing in this financial year right you are asking the ratio of kex to revenue yeah 40:06 40 minutes, 6 seconds how much would we be able to make so um I would say like as I mentioned that 40:14 40 minutes, 14 seconds in this financial year we would be putting about somewhere between 8.5 to 10 cr rupees in kex which is primarily going into development of new products. 40:24 40 minutes, 24 seconds So, uh the product will be launched like in Q1 of next financial year and we expect that there's going to be a 40:31 40 minutes, 31 seconds significant growth because of that in FY28. 40:35 40 minutes, 35 seconds So to quantify as I mentioned the numbers the overall turnover would be about 150 155 for FI28. 40:46 40 minutes, 46 seconds This is fine because see last last week also you had mentioned some 100 cr revenue for FI 26. So it's fine if things don't work out like we would just 40:54 40 minutes, 54 seconds prefer if you're candidate with us. So just wanted to understand what would be a reasonable you know uh capex to revenue and how much are we spending in 41:02 41 minutes, 2 seconds distributing that product as well and how much are we planning to invest in the distribution as well for that product. 41:11 41 minutes, 11 seconds Right. So uh I would say that like I mean uh the additional revenue from that I mean you can say would be about like 41:19 41 minutes, 19 seconds 50 cr rupees uh on a capeex of say like 10 cr rupees that we have invested in the product. 41:26 41 minutes, 26 seconds Yeah or 10 to 11 cr that we would have invested on that particular product till that point of time. So yeah, so it would 41:33 41 minutes, 33 seconds be about 50 cr rupees and marketing like I mean we are doing marketing very uh pragmatically as an mentioned we are not 41:41 41 minutes, 41 seconds focusing on becoming a brand focusing on becoming an uh becoming a brand in 300 41:48 41 minutes, 48 seconds we are there so we want to originate from there and then build up like we are moving bottom up. 41:56 41 minutes, 56 seconds Got it. I think how much that thanks for the explanation. uh how much are we uh investing in the Koko branch and how 42:04 42 minutes, 4 seconds much are we making in revenue for the uh for each of the branches that we've set up? I mean I understand some are not like fully developed yet but for those that are working sorry uh you're talking about the coco. 42:15 42 minutes, 15 seconds Yeah. Yeah. The coco branches. 42:17 42 minutes, 17 seconds Yeah. So, Coco branches we have like for setting it up like three outlets combined like I mean we have put about 42:25 42 minutes, 25 seconds uh 9 to 10 lakh rupees of capital in it and the revenue last year was about 1.3 42:32 42 minutes, 32 seconds cr from these cookos and this year in itself like I mean I think in these two months we've already 42:40 42 minutes, 40 seconds done a significant revenue I believe more than uh 40% of revenue what we did last Okay. So 42:48 42 minutes, 48 seconds we have already achieved from these uh two outlets in these two months time. 42:55 42 minutes, 55 seconds Thank you sir. Uh Mr. Aush I would request you to please come back in the queue for further questions. 43:01 43 minutes, 1 second Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. 43:11 43 minutes, 11 seconds The next question comes from the line of Sanjay with Ram group. Please go ahead. Hello. 43:19 43 minutes, 19 seconds Hello. 43:31 43 minutes, 31 seconds Right. 43:54 43 minutes, 54 seconds Right. So 44:10 44 minutes, 10 seconds from already. Okay. 44:16 44 minutes, 16 seconds [clears throat] 44:16 44 minutes, 16 seconds Question regarding buyback at company level. 44:37 44 minutes, 37 seconds So IP 44:53 44 minutes, 53 seconds IP 45:13 45 minutes, 13 seconds electric mobility market. 45:38 45 minutes, 38 seconds It's a very long Don't fight every day. 46:17 46 minutes, 17 seconds I think Capitalific 46:48 46 minutes, 48 seconds requirement, trading window restriction, comp or unpublished price sensitive information depend 47:03 47 minutes, 3 seconds and focus longterm shareholders value. 47:11 47 minutes, 11 seconds So we are evaluating all options and We do that. 47:57 47 minutes, 57 seconds productriven driven marketrivenue I'm seek 48:06 48 minutes, 6 seconds ultimately 48:30 48 minutes, 30 seconds focus and 48:41 48 minutes, 41 seconds Auto basically autom Eve M3 49:13 49 minutes, 13 seconds longm Thank you sir. Mr. I would request you 49:22 49 minutes, 22 seconds to please come back in the queue for further questions. 49:25 49 minutes, 25 seconds The next question comes from the line of Ashok Sha with please go ahead. 49:32 49 minutes, 32 seconds Hello. Hello Ash. 49:38 49 minutes, 38 seconds Good afternoon. uh sir regarding this uh our valuation and everything so what 49:45 49 minutes, 45 seconds problem does the company faces to give buyback offer because one of the theme also gave the buyback offer at 20% 49:54 49 minutes, 54 seconds valuation so why can't you give because we have a very very very long-term plan so till that fund is not required and 50:03 50 minutes, 3 seconds again a shareholder can come again to subscribe for the uh right issue so currently we are holding lots of cash in our bank account. 50:14 50 minutes, 14 seconds Excuse me. No, that is a fair question. 50:17 50 minutes, 17 seconds Uh so I would firstly say that it is important to understand that the decision relating to company buyback involves several considerations like 50:26 50 minutes, 26 seconds capital allocation priorities growth opportunities regulatory requirements and long-term interest of all shareholders. As I mentioned earlier 50:33 50 minutes, 33 seconds that the electric mobility industry remain highly competitive and we are completely separate Sorry, sorry to stop 50:40 50 minutes, 40 seconds sir. What's our bank balance and what's the fund requirement for the current year? 50:46 50 minutes, 46 seconds Right. So, what is the bank exactly? And uh 50:53 50 minutes, 53 seconds requirement requirement for this current year is 50:57 50 minutes, 57 seconds about like 8.5 to 10 cr rupees and 51:04 51 minutes, 4 seconds uh the current bank balance as on 31st March is 36 cr 51:11 51 minutes, 11 seconds bance 25 cr we are holding for the 5% bank interest rate and you don't want to give it back to the investor. What's the reason? 51:31 51 minutes, 31 seconds Simple private market. 52:00 52 minutes L3 auto flagship 52:15 52 minutes, 15 seconds expedite like we want to expedite all the like I mean development. 52:20 52 minutes, 20 seconds We do not want to be constrained for cash and every quarter board. 52:29 52 minutes, 29 seconds So opportunity will definitely do something whatever is possible. 52:39 52 minutes, 39 seconds Thank you sir. Ladies and gentlemen, that was the last question for today. I now have the conference over to Mr. Ruby for closing comments. 52:50 52 minutes, 50 seconds On behalf of Delta Autocop and Equid Advisor, I would like to thank everyone for taking the time to join today's conference call. Should you have any 52:58 52 minutes, 58 seconds further queries, please feel free to connect with us at info@ equidex.com. Thank you everyone. 53:06 53 minutes, 6 seconds Thank you. 53:09 53 minutes, 9 seconds Thank you. On behalf of Equidex, that concludes this conference. Thank you for joining us. And you may now disconnect your line. Thank you.