Hilltone Software reports fund utilisation for preferential issues

Hilltone Software & Gases Limited has reported the status of fund utilisation for proceeds raised through preferential issues for the quarter ended March 31, 2026. The company confirmed that there was no deviation or variation in the use of funds raised during the period. The disclosures were filed by Hital Shah, Whole-Time Director, detailing the deployment of capital across various business objectives.

Utilisation of August 2023 Issue

The company raised ₹8,31,66,000.00 on August 28, 2023, through a preferential issue. The entire amount has been fully utilised as of the reporting quarter. The funds were deployed across four primary heads: long-term working capital, business investment, repayment of loans, and issue expenses.

Sr.	Original Object	Funds Utilized	Remarks
1	Long-term Working Capital	32,86,700	Fully Utilized
2	Business Investment	6,05,33,488	Fully Utilized
3	Repayment of Loans	1,45,95,172	Fully Utilized
4	Issue Expenses	47,50,640	Fully Utilized

Utilisation of November 2025 Issue

A second preferential issue was conducted on November 29, 2025, raising ₹9,88,68,000. The company allocated these funds to its Gas Business, Engineering Division, and Software Division. As of March 31, 2026, a total of ₹5.05 crore has been utilised from this tranche, with no deviations from the original objects reported.

Sr.	Original Object	Original Allocation	Funds Utilised
1	Gas Business	2,16,00,000.00	98,00,000
2	Engineering Division	5,56,68,000.00	2,56,00,000
3	Software Division	2,16,00,000.00	1,51,00,000

The statement confirmed that the monitoring agency was not appointed for either issue, and the audit committee found no deviations requiring shareholder approval.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+9.67%	+0.63%	-2.33%	-40.23%	-7.87%	+131.04%

Hilltone Software and Gases Limited returned to profitability in the financial year ended March 31, 2026, reporting a net profit of ₹15.33 lakh compared to a net loss of ₹15.70 lakh in the previous year. The turnaround was supported by a significant increase in income from operations, which rose to ₹1,472.81 lakh from ₹752.49 lakh in FY25. The Board of Directors approved the audited financial results for the year and the half-year ended March 31, 2026, at a meeting held on May 30, 2026. The statutory auditors, M/s. Ashvin K Yagnik & Co., issued an unmodified opinion on the results.

Financial Performance

The company recorded income from operations of ₹1,472.81 lakh for FY26. This growth was primarily driven by the Engineering Department (Heat Exchanger) segment, which contributed ₹868.23 lakh in revenue, compared to nil in the previous year. The Gases segment reported revenue of ₹553.88 lakh, while the Software segment contributed ₹50.70 lakh.

For the quarter ended March 31, 2026, the company reported a net loss of ₹26.52 lakh. Income from operations for the quarter stood at ₹230.96 lakh.

Operational Metrics

Total expenditure for the year rose to ₹1,509.77 lakh from ₹789.27 lakh in the prior year. The company reported a basic and diluted earnings per share (EPS) of ₹0.12 for FY26, compared to a negative EPS of ₹0.14 in FY25. The paid-up equity share capital increased to ₹1,317.78 lakh as of March 31, 2026, from ₹1,093.08 lakh in the previous year.

Balance Sheet and Cash Flows

The total assets of the company increased to ₹2,685.48 lakh as of March 31, 2026, up from ₹1,750.27 lakh a year earlier. Cash and cash equivalents improved to ₹362.20 lakh from ₹158.35 lakh. The net cash generated from financing activities was ₹928.88 lakh, largely due to the issuance of share capital amounting to ₹988.70 lakh.