Delta Autocorp Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

Indias EV market is growing rapidly and is undergoing a transformational shift toward electrification, driven by national sustainability goals and economic incentives. India has committed to net-zero emissions by 2070 and aims for 30% electric vehicle penetration by 2030.

The electric two-wheeler market in India experienced a remarkable surge, with sales soaring by an impressive 21.30% year-on-year in the fiscal year 2024-25. According to the data from the Vahan portal of Ministry of Road Transport and Highways, there was a significant growth in sale of Electric Two Wheelers from units in 2023-24 to 11,50,723 units in 2024-25, indicating a substantial increase in consumer adoption of electric vehicles. This upward trajectory not only underscores the nations commitment towards sustainable transportation but also reflects the growing consumer confidence and market readiness for greener alternatives on Indian roads. Electric two-wheelers will see one hundred per cent penetration in the Indian market by fiscal year 2031, As per joint report of NITI Aayog and Technology Information, Forecasting and Assessment Council (TIFAC) - an autonomous organization set up under the Department of Science and Technology titled Forecasting Penetration of Electric Two-Wheelers in India. The growing demand for electric three wheelers in India is a reflection of seriousness and commitment towards achieving sustainable mobility. According to data from the Vahan portal, units [E-3w] were sold in 2023

24 and 6,99,020 units were sold in 2024-25.

OPPORTUNITIES:

Centre and State Government are introducing various incentives and subsidies to promote the adoption of EVs across vehicle segments. These incentives include subsidies, tax credits, rebates etc.

By providing these financial benefits, government aims to accelerate the transition toward cleaner and more sustainable transportation options. These measures help to lower the initial costs associated with owning electric vehicles and make them more accessible to a broader range of consumer. Additionally, governments have been encouraging manufacturers to support the EV adoption through increased aid for vehicles and EV component manufacturing as well as are actively supporting the charging infrastructure expansion efforts. Government has been offering incentives through PM E-DRIVE, Electric Mobility Promotion Scheme, PLI-Auto Components, Phased Manufacturing Policy, Battery Recycling and Charging Infrastructure policy.

SNAPSHOT OF NATIONAL AND SOME STATE WISE INCENTIVES IN EV POLICIES: National Incentives

The Ministry of Heavy Industry had launched a scheme, namely Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-I), for promotion of electric and hybrid vehicles with an outlay of if 795 crore. FAME-I was initially approved for a period of 2 years, commencing from 1st April 2015. The scheme was subsequently extended up to 31st March 2019 with an enhancement in outlay from if 795 crore to if 895 crore. After review of the phase I, Government formulated Phase II of the scheme (FAME-II) with an outlay of if 10,000 crore which was subsequently enhanced to if 11,500 crore for the period from 1st April, 2019 till September, 2024. Further, after review of FAME- II and EMPS-2024, Ministry of Heavy Industries (MHI) formulated PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.

The PM E-DRIVE Scheme, with an outlay of if 10,900 crore, shall be implemented from 1st October 2024 to 31st March for faster

adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country. Further, EMPS-2024 [Electric Mobility Promotion Scheme] being implemented for the period from 1st April 2024 to 30th September 2024 is subsumed under this Scheme.

Government provided subsidy of E 5,790 crore (US$ 693 million) to electric vehicle (EV)

manufacturers under Phase-ll of the FAME, (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India) Scheme. This subsidy was granted for the sale of 13,41,459 electric vehicles during the schemes implementation.

PM E-Drive, is currently Indias flagship scheme for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country.

Incentives offered under PM E-DRIVE Scheme for E-2W and E-3W segments

Particulars	Incentive	Maximum Incentive
Electric Two Wheeler	E 2500 Per Kwh	E5000/- Per Vehicle
Electric Three Wheeler (E Rickshaw and E cart)	E 2500 Per Kwh	E 12,500 Per Vehicle
Electric Three Wheeler (L5)	E 2500 Per Kwh	E 25,000 Per Vehicle

Production Linked Incentive (PLl) Scheme for Automobile and Auto Component Industry in India (PLI-Auto):

The Government approved this scheme on 23rd September, 2021 for a period of 5 years (FY2022-23 to FY2026-27). Automobile and Auto Component Industry in India for enhancing Indias manufacturing capabilities for Advanced Automotive Technology (AAT) products with a budgetary outlay of E 25,938 Crore. The scheme proposes financial incentives to boost domestic manufacturing of AAT products with minimum 50% Domestic Value Addition (DVA) and attract investments in the automotive manufacturing value chain. The Scheme is focused on Zero Emission Vehicles (ZEVs) i.e. Battery Electric Vehicle and Hydrogen Fuel Cell Vehicle. The incentive under the scheme is applicable from FY 2022-23 to FY 2026-27 (5 years period) and the disbursement is applicable in the subsequent financial year i.e. from FY 2023-24 to FY 2027-28.

STATE INCENTIVES

At the state level, Several states have notified EV policies, these individual state EV policies incentivise the adoption of electric vehicles through multiple consumer-facing instruments such as purchase subsidies, road tax and registration charge exemptions, state goods and services tax (SGST) reimbursements, scrapping incentives and so on

	Subsidy	Maximum Subsidy-	Discount on oad Tax
Maharashtra	10% of ex factory cost	E 10,000	100%
Meghalaya	E 10,000 Per Kwh	-	100%
Gujarat	E 10,000 Per kwh	E 20,000	-
Assam	E 10,000 Per kwh	E 20,000	100%
Bihar	E 5,000 Per kwh	E 10,000	100%
Rajasthan	E 5000 Per kwh	5 10,000	100%
Odisha	E 5000 Per kwh	5 20,000	100%
Andhra Pradesh	5% of ex-showroom price of Electric vehicle not exceeding 5100,000		100%
Delhi	E 5000 Per kwh	E 30.000	100%
Karnataka	-	-	-
Kerala	E 5000 Per kwh	E 10,000	100%
M.P,	E 5000 Per kwh	E 5000	-
Tamil Nadu	E 10,000 Per kwh	E 30,000	100%
Uttar Pradesh	15% of ex-factory cost up to E 5000	-	100%
Telanagana			100% for the first 2 lakhs electric 2-wheelers
Uttarakhand	-	-	-
West Bengal	E 10,000 Per Kwh	5 20,000	-
DELTIC ANNUAL REPO	RT 2025

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State Incentives for Electric 3w Consumers:

State	Subsidy	Maximum Subsidy"	Discount on oad Tax
Maharashtra	15% of ex-factory cost	E 30,000	100%
Meghalaya	E 4,000 Per kwh	_	100%
Gujarat	E 10,000 Per kwh	3 20,000	-
Assam	E 10,000 Per kwh	E 50,000	100%
Bihar	-	-	50%
Rajasthan	E 10,000 Per kwh	E 20,000	100%
Odisha	E 30000 Per kwh	E 30,000	100%
Delhi	E 5,000 Per kwh	E 30,000	100%
Assam	E 10,000 Per kwh	E 30,000	100%
Karnataka	-	-	-
Kerala	E 5000 Per kwh	E 30,000	100%
M.P.	E 10,000 Per kwh	Rs. 10,000	-
Tamil Nadu	E 10,000 Per kwh	E 40,000	100%
Uttar Pradesh	15% of ex-factory cost up to Rs 12000		75%
Telangana	-		100% for the first 20,000 electric 3-wheelers
Uttarakhand	-		-
West Bengal	E 10,000 Per Kwh	E 50,000	-
Andhra Pradesh	"5% of ex-showroom price of Electric vehicle not exceeding E 200,000"		100%

Note: The subsidy figures are taken from each state governments website as on

June 23, 2025.

PERFORMANCE:

DELTIC EV, has emerged as a frontrunner in the electric vehicle industry, offering a wide range of cutting-edge, sustainable vehicles that appeal to a diverse customer base. With a focus on technological advancements, sustainability, and global expansion, the company continues to drive the transition towards a cleaner and greener future. As the demand for electric vehicles continues to surge, the company is poised to play a pivotal role in shaping the future of transportation and making sustainable mobility accessible to all. The Company has a production capacity of 60,000 units of Electric Two Wheelers and 18,000 Units Electric Three Wheelers on a single-shift plan. This capacity can meet the expected demand and the Companys growth plans in the coming year. The Company has 350+ dealership touchpoints and we are present in 25+ States and Union Territories in PAN India. With innovation being an integral part, our idea is to bring something new to the market, which can also help fight climate change. In Electric Scooters Segment, Company has four trendy models with upgraded models under the brand name DELTIC, designed to meet the diverse needs of consumers and businesses. These vehicles boast impressive performance, long-range capabilities, and innovative features, making them a compelling choice for eco-conscious individuals and organizations.

SI No	Particulars	"Revenue (Rs. in Lakhs as on March 31, 2025)"
1.	Electric Scooters, Electric Rickshaws, Loaders and Garbage Carts	8318.51

PRODUCTS ON OFFER:

Company has a strong product portfolio and has established its presence across different categories of pricing, speed and riding modes. The company has various models to suit different categories of customers, each equipped with smart and intelligent features like anti-theft, regenerative braking, reverse mode to name a few and the products are well suited to Indian roads. Cutting edge technology goes into the design and development of the products by the R&D team, with a focus on promoting localization and the Make-in-lndia initiative. Company offers the following product models which are currently available for sale.

Model	Category and Type	Key features
Deltic Costa	Electric Scooter	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight, LED Rear Winkers, Dynamically Designed Wheels, M.S. Heavy Duty Chassis
Deltic Drixx	Electric Scooter	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight LED Rear winkers. Dynamically Designed wheels, M.S. Heavy Duty Chassis
Deltic Legion	Electric Scooter	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight, LED Rear Winkers, Dynamically Designed Wheels, M.S. Heavy Duty Chassis
Deltic ZGS	Electric Scooter	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight LED Rear Winkers, Dynamically Designed Wheels, M.S. Heavy Duty Chassis
Model	Category and Type	Key features
Deltic Trento	Electric Scooter	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight LED Rear winkers. Dynamically Designed Wheels, M.S. Heavy Duty Chassis
Deltic ZL9	Electric Scooter	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight, LED Rear Winkers, Dynamically Designed Wheels, M.S. Heavy Duty Chassis
Deltic Star	Electric Rickshaw	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight, LED Rear Winkers, Dynamically Designed Wheels, M.S. Heavy Duty Chassis
Deltic Vista	Electric Rickshaw	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight, LED Rear Winkers, Dynamically Designed Wheels, M.S. Heavy Duty Chassis
Deltic Garbo	Electric Garbage Collection Cart	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight, LED Rear Winkers, Dynamically Designed Wheels, M.S. Heavy Duty Chassis
Deltic Vayu	Electric Loader	Central Locking with Anti Theft Alarm, Find my Scooter Function, Mobile Charging USB Port, Digital Speedometer, Tubeless Tyres, LED Headlight LED Rear Winkers, Dynamically Designed Wheels, M.S. Heavy Duty Chassis

STEPS TAKEN TO IMPROVE BATTERY SAFETY:

Stringent Quality Control: Assigning a company representative at the manufacturing site to establish rigorous quality control measures, ensuring early detection and resolution of any potential defects or issues throughout the process.

Higher Grade Material: Certified cells with enhanced thermal stability and puncture resistance. Fire resistant, mechanically strong cell holder.

Effective Thermal Management : Implementing efficient thermal management systems within batteries ensures temperature regulation, prevents overheating and dissipates excess heat. This is achieved through the utilization of thermal pads or potting material.

Comprehensive Testing Protocols : All Batteries go through rigorous testing protocols to check performance, safety, and reliability tests, to identify and address any potential

issues.

Mechanical Integrity : The battery pack is built with utmost structural integrity,

guaranteeing a secure assembly. This encompasses meticulous design and construction of the pack enclosure, frame, and mounting components, ensuring precise alignment and secure attachment of battery cells and other essential components. Enclosure and Sealing : The battery pack enclosure is thoughtfully designed to safeguard against environmental factors and impacts. Through the implementation of effective sealing techniques, such as gaskets or adhesives, a secure seal is achieved, preventing the entry of contaminants and maintaining the integrity of the battery pack. Continuous Research and Development: Our research aims to comprehend battery aging, reduce degradation, and enhance lifespan. We explore CAN communication

DELTIC ANNUAL REPORT 2025

protocols for improved BMS connectivity, data logging, and remote monitoring. Advanced data analytics and machine learning are employed to optimize battery performance through analysis of battery data.

Improved Battery Life : We have developed diverse charging profiles that allow users to select their preferred charging speeds. Improvements in Depth of Discharge (DOD) have been made to enhance cycle life, battery efficiency, health, and aging. Peak and continuous discharging currents are limited to 1C and 0.7C respectively. By implementing these current limits, we effectively mitigate temperature rise, reducing the risk of thermal runaway and significantly enhancing battery safety and longevity

Data Collection and Monitoring : Our Al technology diligently monitors battery parameters like voltage, current, temperature, state of health, state of charge, Current limits, Protection Status and error codes. Users receive immediate SMS or email alerts for any irregularities.

Protection and Safety Features : Our Battery packs incorporates appropriate safety features, such as fuses to prevent overcurrent and short circuits, Pressure Vents, silicone insulated cables to help safeguard the battery cells and the overall pack from potentially hazardous conditions.

OUTLOOK:

A report by India Energy Storage Alliance estimated the EV market is set to increase at a CAGR of 36% until 2026. The EV battery market is also expected to expand at a CAGR of 30% during the same period. Cumulative investment of INR 12.5 trillion (US$ 180 billion) in vehicle production and charging infrastructure would be required until 2030 to meet Indias EV ambitions. With the governments aim to move towards a completely Aatmanirbhar Bharat, the Ministry of Heavy Industries has sanctioned 9441 public EV charging stations in 68 cities all over India, under the Scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase-ll (FAME India Phase ll) to be set up by Oil Marketing Companies in prominent cities and highways. The government also announced a battery-swapping policy in the Union Budget 2022-23, which will allow drained batteries to be swapped with charged ones at designated charging stations, thus making EVs more viable for potential customer. In India, the EV industry in general, and E2W in particular, is still in a formative phase. Company has robust plans to grow in the entire value chain of the E2W from chassis to batteries as well as parts and components. The company also has strategically aligned itself to electrify the mobility sector to achieve Net-Zero Emissions in line with vision of Government of India. Being ahead of many others in terms of expertise and intent to invest, Company is strongly placed in shaping the future of the E2W industry.

Supply Side Factors : The likelihood of broader supply chain disruptions is projected to be

lower than in the previous year. However, EV components might still encounter hurdles, potentially causing delays in service levels and financial performance. Any new geopolitical developments that affect the global supply chain could result in short-term or medium-term disruptions. The Company manages a diverse, multi sourced supply chain to counteract these risks.

Demand Side Factor: Domestic 2W and 3W demand is anticipated to be robust, at the same time company has comprehensive marketing strategy to scale up the demand in

alignment with sales volume aspirations by:

Driving higher awareness for the brand across newer market through the most effective media below the line mediums like road-shows, mic activities, canopy activities etc.

Establishing lead generation funnel through digital media platforms with influencer partnerships, and regional celebrity endorsements to boost brand visibility and to create a meaningful and localized impact.

PARTNERSHIP WITH RAPID0:

Company entered into a strategic partnership with RAPIDO, Indias largest ride-hailing platform. This collaboration offers aspiring DELTIC EV owners an exclusive opportunity to start earning right from day one by getting registered on RAPIDOs platform. DELTIC is the only brand to partner with RAPIDO to provide high-quality electric 3-wheelers and electric scooters in a range of models and colors for transportation, delivery, and

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revenue-generating rides. Traditionally, electric 3-wheeler drivers face long waiting times at various pick-up points before they can find passenger. However, thanks to DELTICs collaboration with RAPIDO, DELTIC customers can immediately register on RAPIDOs platform with no fees, ensuring they receive consistent passenger demand and minimal wait times, significantly increasing their daily earnings. Through this partnership, DELTIC is indirectly creating employment opportunities for thousands of its E-Rickshaw drivers. Additionally, Electric Scooter riders can earn extra income by enrolling on the RAPIDO platform and registering as a CAPTAIN. With a strong presence in over 150 cities and more than 100 million safe rides completed by RAPIDO, combined with DELTICs reach across 25+ states and 350+ dealerships nationwide, this partnership promises seamless service and opportunities for both DELTIC dealers and RAPIDO Captains. This partnership will serve as a major marketing advantage for Deltic dealers, as their customers will be able to start earning money from day one and hence higher sales volume for both Deltic and its dealer Additionally, it will enable easier access to financing for buyers as vehicles will have a steady income source through RAPIDOs platform. This collaboration opens doors for DELTIC dealers and RAPIDO Captains to expand their portfolios and tap into Indias rapidly growing EV market. This alliance will enable Deltic to drive sales growth, enhance its dealer network and profitability, while offering a sustainable income opportunity for vehicle owner With DELTICs premium electric vehicles and RAPIDOs extensive network, both parties are poised for success. Together, DELTIC and RAPIDO are driving forward their shared commitment to a greenner, more sustainable future, taking another step toward Indias eco-friendly mobility revolution.

COCO [COMPANY OWNED COMPANY OPERATED] MODEL:

Company opened/inaugurated its first Company-Owned, Company-Operated (COCO) outlet, in Mihijam, Jharkhand. This strategic move marks a significant milestone in our expansion journey, reinforcing our commitment to providing an exceptional customer experience while strengthening our retail presence and profitability. The introduction of the COCO model is a key component of our vertical integration strategy, enabling us to capture higher margins and enhance overall profitability. By directly controlling retail operations, we reduce dependency on intermediaries, optimize pricing structures and improve cost efficiencies and will further allows to exercise greater control over customer engagement, in-store experience, and brand representation. By directly managing the outlet, we ensure that every process—from sales to after-sales service meets the highest standards. COCO Outlets will also serve as a model showroom for potential and existing dealers, showcasing best practices in sales, service, and customer management. By providing a first-hand experience of Deltic EVs retail excellence, we aim to inspire our dealer network to adopt similar standards in their operations. Company plans to open at least 20 strategically located COCO outlets across the country, focusing on high-footfall cities particularly key tourist destinations and religious cities such as Prayagraj, Ayodhya, Varanasi, Deoghar, etc. This initiative is aimed at diversifying our revenue streams, improving overall profitability and strengthening direct engagement with the end customers, while further elevating brand visibility at ground level.

TOTAL QUALITY MANAGEMENT (TQM):

Total Quality Management (TQM) remains the central focus within the organization to drive performance excellence and mitigate business risks in an uncertain industry landscape. This steadfast commitment has been instrumental in keeping the

organization on a growth trajectory over time. Utilising digital and Al initiatives, the Company continuously enhances customer experience processes and improves

forecasting accuracy at the front end. These projects are geared toward achieving specific customer, business, and departmental objectives. The Company operates with lean Stock practices and implements a cash and carry system to maintain stock freshness for consumers and boost profitability for its channel partners. Senior management conducts periodic change management workshops with dealer partners to reinforce a culture of the process for results, emphasising execution excellence through rigorous daily work management. A culture of total employee involvement is deeply ingrained to achieve safety, quality, and profitability targets by promoting cross-functional project initiatives. Emphasising waste elimination in inventory and asset management has significantly improved the Companys working capital management. Total Quality Management (TQM) encompasses:

1. Quality Controls of New Product Development

•Process Mapping is done for Design and Development phase to control the and monitor the product requirements.

•Procedure is made of new part development to improve the consistency, easy to keep up-to-date, and standardize the process.

2. Quality Control of Incoming Process •Incoming Inspection Procedure •Incoming Inspection Standard •Visual Standard

•Limit Sample

•List of Instruments and their calibrati on plan

3. Quality Control of Vendor Management

Retro PPAP

Supplier System Audit

Supplier PDI (Pre-Delivery Inspection) report*

•Supplier Inspector Certifi

cate

Supplier Performance Monitoring (Quality Rating)

4. Quality Controls of Process

Process Flow Diagram

Quality Control Process

Process wise SOP made for Operator clarification

Torque Audit

Multiskilling lm 3s (l man 3 stage)

5. Quality Controls Final Inspection and PDI

Final Inspection Check sheet

History card Traceability of vehicle

ECR (Engineering Change Request) and ECN (Engineering Change Notice)

Defect PDCA (Plan Do Check Act)

Defect PDCA (Plan Do Check Act)

Master Audit / Stock Audit

Product Audit

Control of non- confirming product procedure

Quality Alert for any customer complaint.

COSTAND PRICE MANAGEMENT:

The Company provides high-value offerings to consumers achieved through The Company provides high-value offerings to consumers achieved through aggressive waste reduction and quality improvement strategies such as value engineering, modularity, lightweight, alternative materialsation,and process innovation. These efforts extend across the entire supply chain, incorporating productivity

enhancements, process improvements and low cost automation. The structured cost-reduction improvements and low cost automation. The structured cost-reduction

approach comprising alternate sourcing, alternate material, alternate design, light weighting helped in improving the overall cost realisation across products. Employee engagement is a cornerstone, driving one of the industrys most active employee suggestion programmes.The staff, at all levels,focus on cost reduction, operational enhancements, and waste elimination. Digitalization of internal processes is increasing to reduce waste and improving efficiency, particularly in fixed costs. Intense focus on cost management has enabled the Company to navigate commodity price inflation successfully,achieving record profits and earning recognition,with customer satisfaction.

BIHAR EXPO 2025:

Deltic EV proudly participated in the first-ever Bihar Expo, marking a significant milestone in our journey toward accelerating electric mobility in significant milestone in our journey toward accelerating electric mobility in India. The event, inaugurated by the Honorable Governor of

Bihar, Shri Arif Khan, brought together leading industry player, Among the 50 participated companies, Deltic stood out as the only listed national brand in the EV space, showcasing both electric scooters and three-wheeler. The Bihar Expo

was an opportunity for us to showcase Deitie s industry-leadingquality, design, and product strength. Over three days, we conducted 150+ quality, design, and product strength. Over three days, we conducted 150+ test drives, allowing visitors to experience the performance of our vehicles firsthand. The business impact of our presence was exceptional: 50+ high-interest leads were generated from dealer prospects.

RELEASE OF FIRST LOOK OF PROTOTYPE OF ELECTRIC M0T0CYCLE SUPERION:

In Financial 2024-25, Company showcased the first look of its much

awaited electric motorcycle,Superion.Superion offers a bold new design trell ensuring optimal strength and lightweight efficiency. Ergonomic design for unmatched comfort and commuting ease.

•An aggressive stance with a comfortable riding triangle for a balanced and confident riding experience.

•Exceptional acceleration, stability, and pickup, making it an ideal alternative for ICE

motorcycles.

RISK MANAGEMENT:

Risk Management is an integral part of our Companys business strategy. A dedicated team is a part of the management processes governed by the senior management team. This team reviews compliance with risk policies, monitors risk tolerance limits, reviews and analyses risk exposure related to specific issues and provides oversight of risk across the organization. The team nurtures a healthy and independent risk management function to avoid any kind of misappropriations in the Company.

INTERNAL CONTROLS SYSTEMS AND THEIR ADEQUACY:

The Board holds the responsibility for assessing and approving the efficiency of internal controls, including financial, operational, and compliance aspects. The Company has implemented a robust and sufficient internal control system to safeguard its assets against loss and ensure proper authorization and recording of all transactions. The internal control system is continuously enhanced and evaluated for effectiveness. The information provided to management is accurate and prompt. The Company prioritizes the reliability of financial reporting and adherence to legal and regulatory requirements.To strengthen controls, the Company utilizes technology and centralizes processes, enhances monitoring, and maintains effective tax and treasury strategies. The Audit Committee oversees the effectiveness of internal controls, employing new technologies that influence financial controls and risk management. The Company has established an Internal Financial Control framework, encompassing internal controls over financial reporting, operating controls, and an antifraud framework. The framework undergoes regular reviews by management and is tested by both an independent audit firm and the internal audit team. The results are presented to the Audit Committee. Based on periodic testing, the framework is fortified to ensure the adequacy and effectiveness of Internal Financial Controls.

RESEARCH AND DEVELOPMENT

The Company has been strategically making required investment in Research and

Development Activities. While the focus remains on launching more advanced models and variants in electric 2W and 3W with better product market fit, continuous efforts are being put to optimize perfomance, durability and cost at every component level across all the product-segments. These developments are centered on customers, emerging mobility needs, providing advanced safety systems and sustainability. The key areas being addressed are:

1. ) Development of modular vehicle platforms to enable product flexibility and faster time-to-market is happening to increase the production efficiency with the help of process automation and digital tracking.

2. ) The optimization of battery health and performance is another area the team of experts are working on to minimize thermal runaway, sustaining the battery chemistry for longer periods

and earn an overall cost curve advantage.

3. ) Research has been ongoing in Al/ML for predictive maintenance, driver assistance, and

energy optimization while the telematics & loT integrations for upcoming smart scooters and batteries have shown progressive results.

4. ) Implementations are happening to enable remote-smart-diagnostics shortening overall turnaround time of servicing and maintenance.

5. ) Students from tier 1 engineering and MBA colleges are working on live industry projects

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across various technical and business problem statements bringing in freshness and disrupting solutions

6. ) On the basis of valuable customer feedbacks, small but impactful & practical upgrades are constantly happening across all the products like achieving noiseless drives across rugged roads, ""optimizing on the aerodynamic resistance in electric 3 wheelers, etc. *

7. ) Integration of simulation & digital twin technologies is happening to reduce product development cycle time while product testing and quality check is being scaled with advanced testing processes like crush testing, corrosion testing, electromagnetic compatibilty testing, etc.

The Company continues to leverage global talent through several co-operations with Indian and global organizations with expertise across different segments. The Company is consistently pursuing in-house research and development excellence since its inception. In recent years, it has further intensified the R&D investments that are sharply focussed on chosen strategic areas. Towards investing in building world-class in-house skill sets in technology research, product design and development, an exclusive team of specialised engineers has been formed for in-house product development. With mobility solutions becoming smart, connected and increasingly dependent on software, electronics and control, the focus on research in connected and embedded systems has been further enhanced. Retaining the strength of in-depth customer understanding, cutting-edge technology and design innovations at its core, the Companys R&D has adopted an agile, vigorous trans disciplinary approach towards creating mobility solutions that are exciting, responsible, safe, and sustainable. The Companys R&D remains one of the most prolific generators of innovations and patents.

New Product Development:

Deltics ongoing product development journey continues to deliver industry-first upgrades across categories, with the

1. ) Superion motorcycle: aspirational, rugged, and an upgrade to legacy formats without disrupting familiarity

2. ) Infinia scooter: targeted at youth and families, combining reliability with modern styling and a handlebar-mounted headlight

3. ) Trento+ scooter: carries forward the trusted legacy of Trento with the classy retro charm, refined with smarter upgrades, while staying true to its core value promise

4. ) Reed: a flagship killer aspirational scooter positioned at an affordable price

5. ) L5 Electric Three-Wheelers: Durable, category-defining designs offering performance and freshness for commercial and passenger use, with an upgrade in performance with respect to load bearing and mileage

6. ) Lithium-Powered Variants: Riding the lithium adoption wave with products tailored for

higher uptime and performance — especially in the 3W segment.

Together, these products and upgrades reflect your companys disciplined R&D pipeline, where design innovation and iterative revamping remain central to delivering accessible yet aspirational EVs for Bharat.

HUMAN RESOURCE

At Deltic, people are not only employees but the inventors, engineers, and problem-solvers shaping the future of clean mobility. The Company has prioritised technology excellence, digital fluency, and innovation culture as the backbone of its human capital strategy. The focus is clear: to build a workforce that can design, develop, market and deploy world-class EV technologies in an agile and inventive manner while cutting down on turn-around time around servicing.

DELTIC ANNUAL REPORT 2025

Workforce Strength in Engineering & R&D.

Deltics talent base is increasingly weighted towards specialised engineers, software architects, battery scientists, and data analysts. More than half of the workforce is engaged directly in product engineering, software development, battery research, and advanced manufacturing technologies, ensuring the Company remains technology-led rather than manpower-heavy. Advanced T raining in EV & Digital Skillsets

Deltic operates continuous learning programs across domains such as:

Controllers & Converters - Hands-on modules in converters, onboard chargers, and control logic optimisation.

Motors & Powertrain Systems - Skill development in motors, torque mapping, regenerative braking, etc.

Battery Sciences & Thermal Engineering - Training on BMS design, cell chemistry, charging protocols, and thermal safety.

Innovation & IP Culture

The Company encourages every engineer to act as an innovator and patent contributor. A structured "Lab to Market" framework ensures that ideas generated internally move rapidly from prototype to pilot to production. Employees are encouraged to work on new age cutting technologies.

Leadership Development in Technology Domains

Deltic blends the wisdom of industry veterans with the agility of young IIT talent at leadership levels, while grooming executives into future-ready domain leaders through continuous learning. Instead of generic leadership tracks, the Company fosters Tech Fellows and Innovation Champions who provide mentorship, guide R&D clusters, and lead breakthrough projects. This creates a deep bench of technology leaders ready to drive strategic programs globally.

ENVIRONMENT, OCCUPATIONAL HEALTH AND SAFETY:

At Deltic, sustainability is not just a compliance requirement but the foundation of its long-term value creation. Guided by the principles of responsible growth, environmental stewardship, and social inclusivity, the Company has aligned its strategy with global sustainability benchmarks and Indias national priorities for clean mobility.

Carbon Neutrality Roadmap by 2030

Deltic has committed to achieving carbon neutrality across its operations by 2030. The roadmap includes reducing Scope 1 and Scope 2 emissions through process optimisation, electrification of captive utilities, and integration of renewable energy sources. Further, Scope 3 emissions will be addressed by working closely with suppliers, logistics partners, and dealer networks to reduce the carbon intensity of the entire value chain. Regular KPI checks will be made in line with global frameworks such as TCFD (Task Force on Climate-related Financial Disclosures) and the Science Based Targets initiative (SBTi).

Renewable Energy Integration in Plants

The Company is systematically transitioning its manufacturing plants towards renewable energy reliance. By 2030, Deltic aims to source a significant portion of its energy from renewables, reducing reliance on fossil fuels and ensuring energy security. Zero-Waste-to-Landfill Goals

In line with global best practices, Deltic has set a target to become a zero-waste-to-landfill

organisation in this decade. This will be achieved through a comprehensive framework

of waste segregation at source, recycling partnerships, industrial composting, and innovative re-use of manufacturing by-products. Hazardous waste streams are already being treated in compliance with environmental standards, and the Company is moving towards better traceability of waste disposal.

Water Positivity Targets

Recognising the critical importance of water as a shared resource, Deltic has committed to becoming water positive. The Company is working on water recycling systems ensuring that Deltic gives back more water than it consumes, in alignment with SDG 6: Clean Water and Sanitation.

Circularity via Battery Recycling & Second-Life Energy Storage

Battery sustainability is central to Deltics ESG commitments. The Company is building a circular energy ecosystem where end-of-life batteries are not treated as waste, but as valuable resources. Through in-house R&D and collaborations with global recycling partners, Deltic is working on achieving maximum circularity via battery recycling and second-life energy storage.

On-par with standradized benchmarks and standards

All manufacturing Plants have been certified under the Integrated Management System of ISO 9001:2015 ISO 14001:2015 and ISO 45001:2018.

Besides, in general, Electric Vehicles play massive role in combating climate change by:

Lower greenhouse gas emission: Unlike conventional gasoline or diesel-powered

vehicles, EVs have zero tailpipe emissions, thereby mitigating climate change. Help in the transition to renewable energy: The environmental benefits of electric vehicles are further amplified by the transition to renewable energy sources. As the electricity grid becomes cleaner, with a growing share of wind, solar and other renewable sources, the carbon footprint of EVs decreases significantly.

Energy efficiency: Electric vehicles are known for their superior energy efficiency

compared to internal combustion engine vehicles. Electric motors boast high-energy conversion rates, typically exceeding 90%, while combustion engines struggle with lower efficiency levels.

Air quality improvement: One of the immediate benefits of electric vehicles is their positive impact on air quality, particularly in densely populated urban areas. By producing zero tailpipe emissions, EVs help alleviate the problem of local pollution, which poses significant health risks.

Lower the import of crude oil: India depends on imports for approximately 85% of its

domestic oil consumption, and spends a third of its total import values on crude oil alone. If electric vehicles occupy 30% share in new vehicle sales by 2030, Indias oil import bills could reduce by 15% valuing around f 1.1 lakh crores in 2030 alone.

Marketing and Sales Excellence

CRM Leadership - Implementation of Salesforce has happened, the worlds leading CRM platform, to automate lead tracking, customer engagement, and dealer performance monitoring.

Al-Driven Conversion - Predictive analytics and automated workflows are being DELTIC ANNUAL REPORT 2025 64

implemented to prioritise high-quality leads and reduce turnaround time from enquiry to purchase.

Scaling Growth Models - Deltic is scaling on its proven model of regional dominance while aggressively entering new territories with precision. Within existing strongholds, growth is being multiplied through innovative levers such as micro-market clustering, dealer network densification, and phygital retail formats. This dual strategy ensures both depth and breadth of expansion, making Deltics presence increasingly unshakable in the Bharat EV landscape.

Retail Focus Enforcements - Acceleratingh secondary sales through high impact BTL activities, coupled with digital-assisted retailing funnels, ensuring stronger customer connect and higher walk-in to purchase conversions.

Scaling Referrals - Deltic is amplifying its growth through a next-gen referral ecosystem that fuels both primary dealer conversions and secondary retail sales, creating a self-reinforcing engine of scale.

Safety & Precision Engineering Culture

Employee training goes beyond compliance to embrace precision, reliability, and safety-first engineering. Regular simulation drills, failure-mode analysis workshops, and cross-functional hackathons strengthen problem-solving skills. The objective is to instill an

aerospace-level safety and testing culture across plants, service centres, and R&D labs. Recognition & Rewards

Deltic is fostering a culture of recognition through Deltic Excellence Awards, celebrating outstanding contributions in sales, service, and innovation. To strengthen collaboration, a peer-to-peer recognition system encourages team members to appreciate each others efforts, while spot rewards motivate quick problem-solving and exceptional customer service.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: Share Capital: During the Financial Year 2024-2025, the Company experienced significant developments in its share capital structure. Through an Initial Public Offer (IPO), the Company successfully raised f 5054.40 Lakhs by fresh issue of 38,88,000 Equity Shares at an Issue Price of Rs. 130/- per Equity Share, including Rs. 120/- each as Share Premium. The Equity Shares were listed on NSE-SME EMERGE on January 14,2025.

Reserves and Surplus: The Reserves and Surplus of Company is Rs. 5776.79 Lakhs for the

Financial Year ended on March 31,2025.

Total Income: The Company has earned total Income of f 8400.56 Lakhs for year ended on

March 31,2025.

Net Profit After Tax: The Company has earned a Net Profit of Rs. 839.96 Lakhs during the current

Financial Year 2024-25.

Employee Benefits Expenses and Finance Costs: Employee Benefits Expenses stood at g 410.66 Lakhs and Finance Cost stood at If 21.30 Lakhs for Financial Year 2024-25.

Material Costs: Material Costs stood at W 6179.61 Lakhs in Financial Year 2024-25

Talent Management is a key people planning tool that provides an integrated means of

identifying, selecting, developing and retaining top talent within our Organization. Attrition has been well managed and has been Below Industry benchmarks. The company has kept a sharp focus on Employee Engagement. We follow 360-degree feedback to ensure the satisfaction of

our people. We have a strong system of grievance handling too. No concern of our people goes without addressing. We strive for excellence in Human Resource Management.

Parts, Components 8 EV Hub Ecosystem

To complement its vehicle portfolio, Deltic is building a comprehensive EV Hub ecosystem anchored around parts, accessories, and core components for scooters and e-rickshaws. This

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includes batteries, controllers, converters, motors, tyres, chargers, and branded merchandise, ensuring that customers receive end-to-end value beyond the vehicle itself.

Inspired by FMCG-style micro-distribution models, Deltic is expanding accessibility by increasing its retail footprint and enabling last-mile availability of critical EV components agnostic to brands. This ensures faster service, minimal downtime, and greater confidence among customers while positioning your company as an emerging EV leader.

Deltic is also establishing EV Parts & Service Hubs within EV Hubs at the CoCo Showrooms, strategically located across high-demand regions, to act as centralised warehouses and quick-distribution centres for parts and accessories. These hubs will be digitally integrated for real-time inventory management, predictive demand forecasting, and seamless dealer replenishment.

The long-term strategy envisions Deltic EV Hubs becoming not just storage points but multi-functional centres - combining spares, battery swapping, charging infrastructure, and service workshops. This model ensures scalability, operational efficiency, and a stronger regional presence, reinforcing Deltics vision of being the backbone of Bharats

EV ecosystem.

SWOT ANALYSIS:

Strengths (Positives for the Sector):

Favourable Government Policies - Incentivizing the companies by offering exemptions on taxes and duties and giving subsidies.

Enactment of stringent emission and fuel economy norms.

Government investment in infrastructure related to EVs

Strict policy regulations on ICE vehicles for emissions - like manufacturing BS-VI vehicles

post April 2020 to reduce air pollution.

Increasing consumer demand due to awareness of environmental concerns.

Ongoing technology upgradation and significant R&D.

Attempt in reduction of prices of batteries to lower the cost of EVs.

Development of private and semi-public charging stations.

Intent to reduce imported petroleum products to conserve foreign exchange.

Increased generation of renewable energies to assure green energy for EVs.

Numerous Benefits over Traditional ICE Vehicles WEAKNESSES:

Fragmented Market

No localised value chains

Standardization for EV charging units absent

1.	Electric Vehicle	ICE Vehicle
2.	Simple components and less in number	Complex parts and high in number
3.	Can offer full torque at zero RPM (powerful even at less speed)	Can only operate in a certain RPM Range
4.	Operating costs for an EV are much lower.	Operating costs for an ICE vehicle is much higher due to High Fuel Cost.
5.	Very meagre maintenance cost	High maintenance costs
6.	Eco-friendly	Air Pollution

KEY FINANCIAL RATIOS

The Key financial ratios of the company are as under:

S.	Ratios	"For the period	"For the period
No		ended 31st	ended 31st
		March 2025"	March 2024"
1.	Current ratio (in times)	8.69	2.47
2.	Debt equity ratio (in times)	0.05	0.22
3.	Debt service coverage ratio (in times)	71.05	1106.51
4.	Return on equity ratio (in %)	18%	77%

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5.	Inventory turnover ratio	3.48	3.4
6.	Trade receivables turnover ratio	8.56	44.73
7.	Trade payables turnover ratio	11.29	13.81
8.	Net capital turnover ratio	1.85	6.87
9.	Net profit ratio (in %)	10%	11%

CAUTIONARY STATEMENT:

This report contains forward- looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect Companys current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different.