Eternal Limited has filed its monitoring agency report with the stock exchanges regarding the utilization of proceeds from its qualified institutions placement (QIP) for the quarter ended March 31, 2026. The report, issued by ICRA Limited as the monitoring agency, confirms that the utilization of issuance proceeds is in line with the objects of the issue with no deviation observed. The disclosure was made pursuant to Regulation 173A of the SEBI (ICDR) Regulations, 2018 and Regulation 32 of the SEBI (LODR) Regulations, 2015.

The QIP issue was conducted between November 25 and November 28, 2024, involving the issuance of 33,64,73,755 equity shares of face value Rs 1 each at a price of Rs 252.62 per equity share. The issue size aggregated to Rs 8,500 crore, with net proceeds of INR 8,436.12 crore as per the placement document. ICRA Limited is monitoring the net proceeds of INR 8,436.12 crore for Q4 FY2026.

Utilization of Proceeds

The proceeds from the QIP were allocated across four primary objectives. The company has reported utilization across these categories as follows:

During Q4FY26 specifically, the company utilized Rs 217.98 crore towards general corporate purposes, which primarily covered employee benefit and other expenses of Eternal Limited and its subsidiaries. The cumulative utilization across all quarters reached Rs 5,599.08 crore, leaving Rs 2,837.04 crore unutilized as of March 31, 2026.

Deployment of Unutilized Proceeds

The unutilized proceeds of Rs 2,837.04 crore have been deployed in various financial instruments. The investments include fixed deposits with Kotak Mahindra Bank, Axis Bank, HDFC Bank, and ICICI Bank, corporate deposits with Mahindra & Mahindra Financial Services Limited, government securities, and various liquid funds. These investments have generated returns ranging from 6.30% to 8.14%, with total earnings of Rs 219.38 crore and a current market value of Rs 3,057.38 crore.

Implementation Status

All implementation projects are reported to be on schedule according to the monitoring agency report. The completion targets for all objects, including dark stores and warehouses setup, advertising and marketing initiatives, technology infrastructure investment, and general corporate purposes, are set for FY26-FY28. The company confirmed that there are no material deviations from the expenditures disclosed in the offer document, and all government and statutory approvals related to the objects have been obtained. No favorable or unfavorable events affecting the viability of these objects have been reported.

Eternal has announced an ambitious financial target, projecting to reach $1 billion in adjusted EBITDA by fiscal year 2029. This strategic milestone represents a significant growth objective for the company as it charts its path forward in the competitive market landscape.

Financial Growth Target

The company's management has set forth this substantial financial goal, indicating strong confidence in their business model and market positioning. The $1 billion adjusted EBITDA target by FY29 demonstrates Eternal's commitment to achieving substantial operational performance and profitability growth.

Strategic Implications

This announcement reflects the company's strategic vision and growth expectations over the medium to long term. The adjusted EBITDA metric, which excludes certain non-cash and one-time items, provides insight into the company's core operational profitability expectations. Achieving this target would represent a significant scaling of the business operations and market presence.

The timeline extending to FY29 suggests a methodical approach to growth, allowing sufficient time for strategic initiatives, market expansion, and operational improvements to materialize into the projected financial performance.