Rexpro FY26 net profit falls 72% to ₹225.17 lakh

Rexpro Enterprises Limited reported a 72% decline in net profit to ₹225.17 lakh for the financial year ended March 31, 2026, compared to ₹801.10 lakh in the previous year. Revenue from operations fell 25% to ₹7,361.71 lakh from ₹9,830.30 lakh in FY25. The company's Board of Directors approved the audited standalone and consolidated financial results for the year and half-year ended March 31, 2026, at a meeting held on May 28, 2026.

The statutory auditor, Mittal Agarwal & Company, issued an unmodified opinion on the financial results. For the year ended March 31, 2026, the company reported a total income of ₹7,654.40 lakh, down from ₹9,876.44 lakh in the prior year. Total expenses decreased to ₹7,334.56 lakh from ₹8,806.82 lakh. The basic earnings per share (EPS) stood at ₹2.01, significantly lower than ₹9.43 in the previous year.

Financial Performance

Metric	FY26 (₹ in Lakhs)	FY25 (₹ in Lakhs)
Revenue from operations	7,361.71	9,830.30
Total Income	7,654.40	9,876.44
Total Expenses	7,334.56	8,806.82
Net Profit	225.17	801.10
Basic EPS	₹2.01	₹9.43

On a consolidated basis, the company reported a net profit of ₹219.83 lakh for FY26, down from ₹801.10 lakh in FY25. Consolidated revenue from operations stood at ₹7,368.92 lakh, compared to ₹10,658.82 lakh in the previous year. The consolidated results include the financials of subsidiaries Progulf Warehousing Solutions LLP and Rex Lusso Private Limited.

IPO Proceeds Utilization

The company, which listed its shares following an Initial Public Offer (IPO) in FY25, provided an update on the utilization of issue proceeds. Out of the gross proceeds of ₹4,712.50 lakh, the company utilized ₹2,873.90 lakh as of March 31, 2026. The funds were primarily used for funding working capital (₹1,000 lakh), general corporate expenses (₹584 lakh), and the purchase of equipment and factory renovation (₹1,013.40 lakh). A sum of ₹1,838.60 lakh remains pending utilization.

Unutilized proceeds amounting to ₹2,000 lakh were deployed in fixed deposits with The Cosmos Co-op Bank Ltd, yielding a return of 7.50%. The company noted a delay in the implementation of the 'Purchase of Equipment and Renovation of Factory' object, which was originally scheduled for completion by March 31, 2025, but is now delayed by 12 months and continuing.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-5.00%	+4.37%	-3.02%	-30.45%	-54.86%	-62.39%

REXPRO Enterprises has submitted its Monitoring Agency Report for the quarter ended March 31, 2026, to the National Stock Exchange of India (NSE). The disclosure was made in compliance with Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was reviewed by Acuité Ratings and Research Limited. The report covers the utilization of proceeds from the company's public issue, which opened on January 22, 2025, and closed on January 24, 2025, with a total issue size of INR 47.13 Cr.

Utilization of Issue Proceeds

The monitoring agency confirmed that the means of finance for the disclosed objects have not changed, and no material deviations from the expenditures disclosed in the Offer Document were observed. As of the half-year ended March 2026, the company has utilized a total of INR 28.74 Cr. out of the raised capital. The deployment of funds across various objects is detailed below:

Object:	Amount Proposed (INR Cr.)	Amount Utilized (INR Cr.)	Unutilized Amount (INR Cr.)
Purchase of Equipment and Renovation of Factory	25.00	10.13	14.87
Funding of Working Capital Requirements	10.00	10.00	Nil
Pursuing Inorganic Growth	3.52	-	3.52
General Corporate Expenses	5.84	5.84	Nil
Fresh Issue Expenses	2.77	2.77	Nil
Total	47.13	28.74	18.39

Deployment of Unutilized Funds

The unutilized proceeds totaling INR 18.386 Cr. have been invested in fixed deposits with The Cosmos Co-op Bank Limited, generating a return of 7.50% per annum. The specific deployment of these idle funds is outlined in the following table:

Instrument:	Amount Invested (INR Cr.)	Maturity Date	Earning (INR Cr.)	Market Value (INR Cr.)
Fixed Deposit - The Cosmos Co-op Bank Limited	5.000	July 07, 2027	0.026	5.000
Fixed Deposit - The Cosmos Co-op Bank Limited	5.000	July 07, 2027	0.026	5.000
Fixed Deposit - The Cosmos Co-op Bank Limited	5.000	July 07, 2027	0.026	5.000
Fixed Deposit - The Cosmos Co-op Bank Limited	3.386	July 07, 2027	0.017	3.386
Total	18.386		0.094	18.386

Delays in Implementation

The report highlights delays in the implementation of specific objects. The purchase of equipment and renovation of the factory, initially scheduled for completion by March 31, 2025, has faced a delay of 400 days as of the report date. The company's Board of Directors stated that the delay is primarily due to changes and upgradation in technology, requiring multiple rounds of vendor discussions to evaluate suitable technological solutions aligned with evolving industry standards. The vendor is currently in the process of finalizing the upgraded technology, and the object will be carried forward to FY 2026-27.

Additionally, the object for pursuing inorganic growth, which had a target completion date of March 31, 2026, has been delayed by 35 days. The company had planned to acquire 76% equity in a company engaged in the customized furniture manufacturing segment but could not conclude the transaction due to commercial considerations and other mutually relevant factors. The company intends to continue exploring suitable acquisition opportunities in the customized furniture manufacturing segment, subject to commercial viability and mutually agreeable terms.

General Corporate Purpose Utilization

The monitoring agency also confirmed the utilization of funds allocated under General Corporate Purpose (GCP). The entire INR 5.84 Cr. earmarked under this head was deployed for making payments to vendors in the ordinary course of business, as verified through documents including the Statutory Auditors Certificate issued by M/s Mittal Agarwal & Co.