NACL Industries Limited has filed a monitoring agency report confirming that there was no deviation or variation in the utilization of proceeds from its Rights Issue for the quarter ended March 31, 2026. The company submitted the statement to the stock exchanges pursuant to Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pursuant to the approval of the Basis of Allotment, the company allotted 3,25,01,851 Rights Equity Shares on March 31, 2026.

The Rights Issue, which opened on December 22, 2025, raised a total amount of Rs 24,928.92 lakh. CRISIL Ratings Limited, acting as the monitoring agency, verified that the funds were utilized strictly in accordance with the objects stated in the Letter of Offer dated December 08, 2025. The report confirmed that the proceeds were deployed towards the repayment of borrowings, investment in a wholly-owned subsidiary, and general corporate purposes. Out of the total issue proceeds, an amount of Rs 666.91 lakh was credited to the Escrow Account on December 31, 2025, while the balance amount was received in the Escrow account during the period January 01, 2026 to January 03, 2026.

Utilization of Proceeds

The company provided a detailed breakdown of the fund utilization, indicating that the majority of the proceeds were directed towards debt repayment and subsidiary investment. The following table outlines the allocation and utilization of the funds as per the monitoring agency report:

For the repayment of borrowings, the funds were utilized towards repayment of a working capital demand loan to Axis Bank. For the investment in the wholly-owned subsidiary, NACL Spec-Chem Limited, funds were infused in the form of compulsory convertible debentures, which were further utilized towards repayment of term loans to HDFC Bank and Axis Bank.

Deployment of Unutilized Funds

As of March 31, 2026, the company reported an unutilized amount of Rs 3,079.97 lakh. These funds were temporarily deployed in fixed deposits with Axis Bank to generate returns. The investments yielded a return of 4.50% during the quarter, amounting to earnings of Rs 30.07 lakh. The market value of these fixed deposits as of March 31, 2026 stood at Rs 3,110.04 lakh.

General Corporate Purpose Utilization

During the quarter, the company utilized Rs 2,990.95 lakh for General Corporate Purpose (GCP). This included an investment of Rs 2,000.00 lakh in its subsidiary, NACL Spec-Chem Limited, via compulsory convertible debentures. Additionally, Rs 990.95 lakh was allocated for capital expenditure towards the maintenance and expansion of existing facilities. The Board of Directors approved this utilization on May 04, 2026.

As per the company's offer document dated December 08, 2025, the company had estimated to utilize Rs 4,553.19 lakh for General Corporate Purposes by Fiscal 2026. However, based on the Peer Reviewed Independent Chartered Accountant certificate and management undertaking, the company utilized Rs 2,990.95 lakh as at the end of Fiscal 2026, resulting in a delay in the implementation schedule. The company intends to utilize the unspent amount in a subsequent period, in line with the offer document's provision that unspent amounts from a scheduled fiscal year may be utilized in the subsequent fiscal year.

The Board of Directors of NACL Industries Limited, at its meeting held on May 04, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The statutory audit was conducted by M/s. S R Batliboi & Associates LLP, who issued an unmodified opinion on the financial results. The results were prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013. Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company subsequently filed a compliance notice on May 05, 2026, confirming that the audited standalone and consolidated financial results were published in 'Business Standard' (English edition) and 'Andhra Prabha' (Telugu edition). The notice was signed by N. Shankar, Chief Financial Officer, and addressed to BSE Limited and the National Stock Exchange of India Limited.

Standalone Financial Performance

On a standalone basis, NACL Industries recorded a turnaround for the full year ended March 31, 2026, posting a net profit after tax of ₹4,392 lakhs against a net loss in the corresponding prior year. Revenue from operations for the full year stood at ₹1,50,721 lakhs, while total income reached ₹1,51,530 lakhs. For the quarter ended March 31, 2026, the company reported a net loss after tax of ₹(205) lakhs on total income of ₹33,529 lakhs. On a quarterly basis, Q4 revenue stood at approximately ₹3.6 billion versus ₹2 billion in the same period of the prior year, reflecting strong year-on-year growth. Q4 EBITDA turned positive at ₹133 million compared to a loss of ₹739 million in the year-ago quarter, with an EBITDA margin of 3.68%.

The following table summarises key standalone financial metrics:

Consolidated Financial Performance

On a consolidated basis, NACL Industries reported a net profit after tax of ₹1,457 lakhs for the year ended March 31, 2026, compared to a net loss of ₹(8,140) lakhs for the year ended March 31, 2025. Consolidated revenue from operations for the full year stood at ₹1,58,446 lakhs, with total income of ₹1,58,727 lakhs. For the quarter ended March 31, 2026, the consolidated net loss after tax narrowed significantly to ₹9 million compared to a loss of ₹500 million in the year-ago quarter, on total income of ₹36,256 lakhs.

The consolidated results encompass NACL Industries Limited as the holding company, six wholly owned subsidiaries — NACL Spec-Chem Limited, NACL Multichem Private Limited, LR Research Laboratories Private Limited, NACL Agri-Solutions Private Limited, Nagarjuna Agrichem (Australia) Pty Limited, and NACL Industries (Nigeria) Limited — and one associate, Nasense Labs Private Limited.

Rights Issue and Exceptional Items

During the year, the company completed a rights issue of 32,501,851 fully paid-up equity shares of face value ₹1 each at a price of ₹76.7 per share (including a premium of ₹75.7 per share), aggregating up to ₹24,771 lakhs (net of issue expenses of ₹158 lakhs). The proceeds were earmarked for repayment of debt of ₹18,700 lakhs and general corporate purposes of ₹6,071 lakhs, with an unutilised amount of ₹3,080 lakhs deposited in an earmarked bank account pending utilisation for general corporate purposes. Equity shares were allotted on December 31, 2025.

The Board also noted exceptional items during the year ended March 31, 2026, pertaining to the discontinuation of certain products under development and other investments. The exceptional item for the year ended March 31, 2025 of ₹2,926 lakhs pertained to a favourable ruling related to the company's insurance claim proceeding.

Balance Sheet Highlights

As at March 31, 2026, the standalone total assets stood at ₹1,38,089 lakhs compared to ₹1,12,849 lakhs as at March 31, 2025. Total equity on a standalone basis increased to ₹73,540 lakhs from ₹46,148 lakhs, reflecting the impact of the rights issue completed during the year. On a consolidated basis, total assets were ₹1,36,393 lakhs as at March 31, 2026, with total equity at ₹68,292 lakhs. The paid-up equity share capital stood at ₹2,342 lakhs as at March 31, 2026 for both standalone and consolidated financials.

The following table presents key balance sheet figures:

Cash Flow Summary

On a standalone basis, net cash used in operating activities for the year ended March 31, 2026 was ₹(10,421) lakhs, compared to net cash generated of ₹44,867 lakhs in the prior year. Net cash used in investing activities stood at ₹(18,606) lakhs, while net cash generated from financing activities was ₹23,514 lakhs, primarily driven by proceeds from the rights issue of ₹24,929 lakhs. Standalone cash and cash equivalents at the end of the period stood at ₹211 lakhs. On a consolidated basis, net cash used in operating activities was ₹(10,414) lakhs, with cash and cash equivalents at period end of ₹269 lakhs.

Corporate Governance and Key Managerial Changes

The Board approved several significant corporate governance actions at its May 04, 2026 meeting:

• 39th Annual General Meeting: Convening of the AGM on Wednesday, July 22, 2026.
• Company Secretary — Resignation: Mr. Satish Kumar Subudhi (FCS: 9085) resigned as Company Secretary and Compliance Officer with effect from the close of business hours on May 04, 2026.
• Company Secretary — Appointment: Mr. Rajesh Mukhija (FCS: 4607) was appointed as Company Secretary and Compliance Officer with effect from May 05, 2026. Mr. Mukhija brings extensive experience in legal advisory, corporate governance, and regulatory compliance, having previously served as Company Secretary and Compliance Officer of Coromandel International Limited, among other senior roles.
• CHRO — Resignation: Mr. Srinivas C. R. resigned as Chief Human Resources Officer and Senior Managerial Personnel.
• Head HR — Appointment: Mr. N. R. Vishwanathan, who has more than 25 years of experience in HR leadership, was appointed as Head – Human Resources & Admin and recognised as Senior Managerial Personnel.
• Foreign Subsidiary Closures: In-principle approval was accorded for the closure of Nagarjuna Agrichem (Australia) Pty. Limited and NACL Industries (Nigeria) Limited, both wholly owned foreign subsidiaries.