Delton Cables' record is mixed: the FY2025-26 audit report contains an Emphasis of Matter on charges or satisfactions yet to be registered with ROC, and the CARO report was adverse on physical verification of PPE in FY2022-23 and FY2021-22, with quarterly returns filed with banks subject to discrepancies disclosed in Note No. 48. A land revaluation in FY2025-26 increased the revaluation reserve by ₹240.03 crore, with deferred tax of ₹31.19 crore, net recognized in OCI, and the reserve is not distributable as dividend. The company's cumulative CFO of ₹-88 crore against PAT of ₹95 crore over nine years, with other income of ₹85 crore, yields a CFO/(PAT−other income) ratio of -9.13x, raising earnings quality concerns. Trade payables under supplier financing via TReDS stood at ₹107.37 crore as at 31 March 2026, up from ₹75.55 crore a year earlier.
Key findings
- Reported profit is not backed by cash, cumulative CFO of ₹-88 crore against ₹95 crore PAT over nine years
Major- Cumulative CFO was ₹-88 crore against PAT of ₹95 crore and other income of ₹85 crore, a CFO/(PAT−other income) ratio of -9.13x. FY2024-25 CFO was ₹-14.02 crore against PAT of ₹20.51 crore, and FY2023-24 CFO was ₹-27.26 crore against PAT of ₹14.66 crore. Exceptional items of at least 5% of PBT occurred in 5 of 10 years, with 7 years having any exceptional items. - Land revaluation added ₹240.03 crore to reserves via OCI in FY2025-26, masking weak underlying cash generation
Major- Freehold land was revalued during FY2025-26, increasing the revaluation reserve by ₹240.03 crore with deferred tax of ₹31.19 crore, net recognized in OCI, and the reserve is not distributable as dividend. The Board approved the change from historical cost to revaluation model under Ind AS 16, effective FY2025-26. An exceptional item of ₹10.29 crore was recognized on September 30, 2024 from HSIIDC for land at Dharuhera per Supreme Court order dated August 23, 2023. - Supplier-financing payables reached ₹107.37 crore in FY26, understating economic obligations while bank-filed statements disagree with books
Major- Trade payables under supplier financing via TReDS stood at ₹107.37 crore as at 31 March 2026, up from ₹75.55 crore a year earlier. Net financial debt was ₹137.31 crore as at 31 March 2026, up from ₹74.24 crore as at 31 March 2025. Quarterly statements filed with banks were not in agreement with books of accounts. - Family-controlled board repeatedly sought shareholder ratification for promoter remuneration, including waiver of recovery for pay without prior approval
Major- In FY2023-24, the Board sought a waiver of recovery of remuneration paid to Mr. Vivek Gupta (MD & CEO) of ₹3,10,000 p.m. basic plus HRA for August 1, 2023 to July 31, 2024, because prior shareholder approval had not been obtained. In FY2025-26, the average managerial remuneration increase was 75%, versus a 5% median employee increase. Mr. Vijender Kumar Gupta, aged around 83, required a special resolution for continuation as Whole Time Director in FY2022-23. - Seven consecutive clean audit opinions despite recurring ROC charge registration lapses and adverse CARO findings on PPE verification
Major- The FY2025-26 audit report contains an Emphasis of Matter on charges or satisfactions yet to be registered with ROC beyond the statutory period, with the opinion not modified. CARO clause 3(ii) on physical verification of PPE was adverse in FY2022-23 and FY2021-22: "Certain Property, Plant and Equipment were due for physical verification during the year and were not physically verified by management". CARO clause 3(ii) states quarterly returns filed with banks agree with books "subject to discrepancies disclosed in Note No. 48" in FY2025-26, FY2024-25, and FY2023-24. - Revenue grew nearly sevenfold in five years but receivables from state utilities and EPC contractors are not being realised on time
Minor- Management identifies "delays in realisation of receivables and retention monies from State distribution utilities and EPC contractors elongating working capital cycle" as a threat in FY2025-26. Revenue grew from ₹272 crore in FY2023 to ₹986 crore in FY2026. Receivable days were 87.50 in FY2026, 82.69 in FY2025, and 87.19 in FY2024. - Contingent liabilities are modest and shrinking, with the largest contingent item an asset, \~₹6.25 crore expected from HSIIDC
Minor- Total contingent liabilities fell from ₹6.97 crore as at 31 March 2021 to ₹5.52 crore as at 31 March 2022. The company received enhanced compensation of ₹10.29 crore on 30 September 2024 from HSIIDC and anticipates an additional receivable of approximately ₹6.25 crore, treated as a contingent asset. On 8 August 2025, an appeal was allowed in favour of the company, setting aside a Show Cause Notice dated 18 December 2013 demanding Central Excise Duty. - Statutory auditor unchanged for seven years with rising fees, while cost and secretarial auditors changed
Minor- Bansal & Co LLP signed the standalone audit reports for FY2019-20, FY2021-22, FY2023-24, and FY2025-26, with partner names changing from Siddharth Bansal to S.K. Bansal to Amit Kumar Singh. Statutory auditor fees rose from ₹12.50 lakhs in FY2019-20 to ₹25.80 lakhs in FY2025-26. Cost auditor changed from M/s. J. Chandra & Associates for FY2023-24 to M/s. MM & Associates for FY2024-25.
What to watch
- Shareholder vote on continuation of Mrs. Shriya Gupta and Ms. Isha Gupta as Vice Presidents with remuneration up to ₹7.50 lakhs/month effective October 1, 2026.
- Shareholder vote on re-appointment of Mr. Vijendra Kumar Gupta and Mr. Vivek Gupta for 5 years from August 2025.
- Receipt of the additional contingent asset of approximately ₹6.25 crore from HSIIDC for enhanced land compensation, pending further proceedings for rectification of interest calculation as disclosed in the FY2025-26 Annual Report.
- Outcome of the execution petition filed on 9 July 2024 before the City Civil Court, Chennai against BGR Energy Systems Ltd for enforcement of the ₹25.57 lakh arbitration award.
- Registration of the Mercantile Bank Limited charge satisfaction of ₹30 lakhs with ROC, as flagged in the FY2024-25 audit report Emphasis of Matter.
- Resolution of the FY2025-26 Emphasis of Matter on Note No. 50 regarding charges or satisfactions yet to be registered with ROC beyond the statutory period.
- Resolution of the working capital quarterly return discrepancies disclosed in Note No. 48, as flagged in the FY2025-26 CARO report.
- Revaluation model for land under Ind AS 16 effective FY2025-26, future revaluation movements and any distributable surplus implications to be disclosed in subsequent annual reports.
Bottom line: This is a disclosed and audited record with real cash conversion problems, as cumulative operating cash flow was negative against positive profits, and the risk sits in the gap between clean audit opinions and recurring compliance lapses, which sets both the tone and the trajectory. Read the cash flow statement and the CARO clauses with that in mind, and note that the ₹240 crore revaluation reserve is not distributable as dividend, while trade payables under supplier financing stood at ₹107.37 crore as at 31 March 2026, up from ₹75.55 crore a year earlier.