Coromandel Engineering Company Limited confirmed on August 12, 2026, that there has been no deviation or variation in the use of proceeds from its preferential allotment of equity shares for the quarter ended June 30, 2026. The disclosure was made pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company raised ₹6,60,76,092 through the allotment of 16,49,840 equity shares on May 8, 2025. For the quarter under review, Coromandel Engineering utilized ₹13,110.89 from these funds. The proceeds were allocated towards general corporate purposes, upcoming projects, and the execution of bank guarantees, performance guarantees, and advances related to projects.

Utilization Details

The following table outlines the financial details of the fund raising and utilization:

Regulatory Compliance

The statement confirming no deviation in the utilization of proceeds was reviewed and approved by the Audit Committee at its meeting held on August 12, 2026. G V Manimaran, Chairman and Managing Director, and A K Babu Ismath Razack, Chief Financial Officer, signed off on the disclosure.

The company stated that no approval is required to vary the objects of the issue as stated in the offer document, as there has been no deviation. Consequently, no comments from auditors were applicable.

Coromandel Engineering Company Limited coromandel engineering company returned to profitability in the first quarter of FY26, reporting a net profit of ₹32.89 lakh for the period ended June 30, 2026. This marks a significant turnaround from the net loss of ₹72.51 lakh recorded in the corresponding quarter of FY25.

The Chennai-based construction firm saw its revenue from operations jump 78.9% year-on-year to ₹1,536.45 lakh, up from ₹859.01 lakh in Q1FY25. However, the cost structure expanded in tandem with revenue, with total expenses rising to ₹1,503.57 lakh from ₹852.69 lakh in the prior year period. Sub-contracting expenses accounted for the largest share of costs at ₹1,036.16 lakh, while materials consumed stood at ₹215.30 lakh.

What the Numbers Show

A key divergence in the quarterly performance lies in the tax treatment compared to the previous year. While the company posted a pre-tax profit of ₹32.89 lakh in Q1FY26, it incurred a current tax expense of ₹78.83 lakh in Q1FY25 despite posting a pre-tax loss of ₹6.32 lakh. This prior-year tax charge significantly deepened the net loss to ₹72.51 lakh in Q1FY25. In the current quarter, no current or deferred tax expense was recorded, allowing the pre-tax profit to flow directly to the bottom line as net profit.

Balance Sheet and Cash Flow Signals

The company’s balance sheet reflects stable borrowing levels, with non-current borrowings remaining unchanged at ₹995.00 lakh and current borrowings slightly decreasing to ₹1,027.69 lakh from ₹1,037.54 lakh as on March 31, 2026. Cash and cash equivalents declined to ₹19.36 lakh from ₹29.58 lakh at the end of FY26, reflecting operating cash outflows partially offset by direct tax refunds.

Operating activities generated a net cash inflow of ₹57.49 lakh, aided by a direct tax refund of ₹57.49 lakh, although cash generated from operations before taxes was negative at ₹63.85 lakh. Investing activities contributed ₹20.55 lakh, primarily from the sale of property, plant, and equipment.

Corporate Governance Updates

During its meeting on August 12, 2026, the Board of Directors approved the unaudited financial results reviewed by M/s. CNGSN & Associates LLP, the statutory auditors. The Board also noted the re-appointment of Dr. Ennarasu Karunesan as Non-Executive Director, who retires by rotation. Dr. Karunesan brings over 35 years of experience in infrastructure and maritime sectors.

The company scheduled its 78th Annual General Meeting for September 29, 2026, to be conducted via Video Conferencing/Other Audio Visual Means. Ms. Vidhya Sivakumar of M/s. Vidhya & Associates was appointed as the Scrutinizer for the meeting.