Coromandel Engineering reports no deviation in fund use for Q4FY26

Coromandel Engineering Company Limited has confirmed there is no deviation or variation in the use of proceeds from a preferential allotment of equity shares for the quarter and year ended March 31, 2026. The company raised ₹6,60,76,092 through the allotment of 16,49,840 equity shares on May 8, 2025. The funds were allocated towards general corporate purposes, upcoming projects, and execution of bank guarantees, performance guarantees, and advances for projects.

The Audit Committee reviewed and approved the utilization statement at its meeting held on May 25, 2026. The disclosure was made to BSE Limited pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statement of utilization for the quarter ended March 31, 2026, indicates that funds utilized during the period amounted to ₹5,14,199.54. There was no deviation in the objects or purposes for which the funds were raised, nor was there any deviation in the amount of funds actually utilized as against what was originally disclosed.

Utilization of Issue Proceeds

Name of the issuer & ISIN	Mode of Fund Raising	Type of instrument / Date of raising funds	Amount Raised	Funds Utilized during the quarter	Any Deviation (Yes/No)
Coromandel Engineering Company Limited INE312J01012	Preferential Issue	Equity / 8 May 2025	6,60,76,092	5,14,199.54	No

Details of Fund Allocation

Particulars	Remarks
Name of the listed entity	Coromandel Engineering Company Limited
Mode of fund raising	Preferential Issue
Type of instrument	Equity
Date of raising funds	As tabulated above
Amount raised during the quarter I of 2025-26	Rs. 6,60,76,092
Report filed for quarter ended	31 March 2026
Is there a deviation/variation in use of funds raised?	No
Whether any approval is required to vary the objects of the issue stated in the prospectus/offer document?	No

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.99%	-14.35%	-19.63%	+27.78%	+15.31%	+139.01%

Coromandel Engineering Company Limited reported a net profit of ₹16.88 lakh for the financial year ended March 31, 2026, reversing the net loss of ₹95.98 lakh recorded in the previous year. Revenue from operations for the year stood at ₹4,308.84 lakh, a significant increase from ₹3,128.89 lakh in FY25. The board of directors approved the audited standalone financial results at its meeting held on May 25, 2026.

The statutory auditors, M/s. CNGSN & Associates LLP, included an emphasis of matter paragraph in their report regarding delays in the remittance of statutory dues. Specifically, delays were observed in the payment of Goods and Services Tax (GST), Tax Deducted at Source (TDS), Employees' Provident Fund (EPF), and Employees' State Insurance (ESI) contributions. Additionally, TDS for the months of February and March remained unpaid as of the reporting date.

Financial Performance

The company's total income for FY26 rose to ₹4,325.14 lakh from ₹3,130.77 lakh in the prior year. Total expenses also increased to ₹4,308.26 lakh compared to ₹3,226.75 lakh in FY25, driven largely by sub-contracting expenses which surged to ₹2,653.30 lakh from ₹756.75 lakh. Profit before exceptional items and tax improved to ₹16.88 lakh from a loss of ₹95.98 lakh.

Metric	FY26 (₹ in lakh)	FY25 (₹ in lakh)
Revenue from Operations	4,308.84	3,128.89
Total Expenses	4,308.26	3,226.75
Net Profit for the Year	16.88	41.49
Earnings Per Share (Basic)	0.00	0.12

Auditor's Observations

The auditors also drew attention to unpaid dues to Micro, Small and Medium Enterprises (MSMEs), including interest, aggregating to ₹10,05,21,229. These payments remain unpaid beyond the due dates prescribed under the Micro, Small and Medium Enterprises Development Act, 2006. The auditors noted that owing to the voluminous nature of transactions, a comprehensive verification of GST and Input Tax Credit (ITC) claims was difficult, necessitating reliance on internal audit reports.