Delphi World Money Q3 FY26 turns profitable, flags regulatory risks and auditor red flags

Delphi World Money Limited reported a return to profit in Q3 FY26 despite a drop in revenue, even as auditors raised concerns over related-party transactions and ongoing regulatory and legal challenges.

Delphi World Money Limited has reported its unaudited financial results for the quarter ended December 31, 2025 (Q3 FY26), showing a turnaround to profitability amid regulatory scrutiny and qualified audit opinions. The company’s board approved the results on February 21, 2026.

During the quarter, revenue from foreign exchange operations declined to ₹42.20 million from ₹53.48 million a year earlier, while total income fell 31% year-on-year to ₹120.35 million. Despite the revenue contraction, the company posted a net profit after tax of ₹2.36 million, compared with a loss of ₹58.29 million in Q3 FY25, supported by cost controls and restructuring measures.

For the nine months ended December 31, 2025, Delphi World Money reported total income of ₹433.04 million and net profit of ₹73.94 million, marking a notable improvement in overall performance.

A key development during the quarter was the successful completion of a rights issue, through which the company raised ₹997.65 crore by issuing 52.23 lakh equity shares at ₹191 each. Part of the proceeds was used to increase its stake in Ebix Travels Private Limited to 43.23% via a preferential allotment of ₹810 million, strengthening its presence in the travel services segment.

However, the results were accompanied by qualified opinions from statutory auditor T R Chadha & Co LLP. The auditors flagged inter-corporate deposits of ₹38.14 crore extended by Ebix Travels to the ultimate holding company, Eraaya Lifespaces Limited, citing lack of sufficient documentation and the absence of prior shareholder approval for a material related-party transaction.

The company is also dealing with regulatory action from the Directorate of Enforcement, which has imposed penalties totaling ₹329.07 million for alleged FEMA violations. Delphi World Money said these matters relate to the pre-acquisition period and are covered by indemnities from former promoters.

In addition, a legal challenge filed by Bull Value Incorporated VCC Sub-Fund has questioned the company’s rights issue and restructuring moves. The Delhi Commercial Court has directed all parties to maintain status quo pending further proceedings.

On a consolidated basis, total income for Q3 FY26 stood at ₹720.59 million, with the travel services segment contributing ₹525.44 million following the acquisition of control over Ebix Travels. Consolidated net profit attributable to owners was ₹2.10 million.

Looking ahead, the board has approved the next phase of growth across travel, hospitality, and allied businesses, while seeking shareholder approvals through a postal ballot for key strategic initiatives.