Avantel Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations regarding the utilization of funds raised through its rights issue. The report, prepared by CARE Ratings Limited as the monitoring agency, provides a comprehensive overview of how the company has deployed the Rs. 80.91 crore raised through the rights issue.

Rights Issue Fund Utilization Progress

During Q3FY26, Avantel Limited utilized Rs. 16.43 crore from the rights issue proceeds, bringing the total utilization to Rs. 54.65 crore since the issue completion. The funds were primarily deployed towards the establishment of a new manufacturing facility for electronics, antennas, and connectors for commercial, defense, and aerospace applications.

Object-wise Fund Deployment

The rights issue proceeds are being utilized across four main objectives as outlined in the original offer document. The manufacturing facility project has seen significant progress with Rs. 33.76 crore utilized out of the allocated Rs. 53.85 crore.

The new manufacturing facility is being established at Survey No. 243 in Kondaparva Village, Visannapeta Mandal, NTR District, Andhra Pradesh, for the design, development, and manufacturing of electronics, antennas, and connectors.

Monitoring Agency Assessment

CARE Ratings Limited, serving as the monitoring agency, confirmed that there were no deviations from the objects stated in the offer document. The agency verified that all utilization aligned with the disclosed purposes and no material deviations were observed compared to earlier monitoring reports.

Key monitoring findings include:

• All proceeds utilized as per offer document disclosures
• No material deviations requiring shareholder approval
• No changes in means of finance for disclosed objects
• No unfavorable events affecting project viability

Deployment of Unutilized Funds

The remaining Rs. 26.26 crore of unutilized proceeds has been strategically deployed in fixed deposits and monitoring accounts to ensure capital preservation while earning returns.

Project Timeline and Compliance

Both ongoing projects - the manufacturing facility and GSaaS infrastructure establishment - are scheduled for completion by March 31, 2026, as per the original offer document timeline. The monitoring agency noted no delays in implementation, with projects proceeding as planned.

The submission of this quarterly monitoring report demonstrates Avantel Limited's commitment to regulatory compliance and transparent fund utilization, providing stakeholders with clear visibility into the deployment of rights issue proceeds across stated business objectives.

Avantel Limited has announced its unaudited financial results for the third quarter ended December 31, 2025, revealing a challenging performance with significant declines in both revenue and profitability compared to the previous year. The Board of Directors approved these results during their meeting held on January 25, 2026.

Standalone Financial Performance

The company's standalone operations showed a marked deterioration in Q3FY26 performance. Revenue from operations declined substantially, while profitability was significantly impacted across all key metrics.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, also reflected similar declining trends, with the company facing headwinds across its operational metrics.

Consolidated Results and Segment Performance

On a consolidated basis, which includes subsidiary iMeds Global Private Limited, the company reported Q3FY26 revenue of ₹5,171.58 lakhs compared to ₹7,068.08 lakhs in Q3FY25. Consolidated net profit for the quarter stood at ₹274.35 lakhs versus ₹2,008.07 lakhs in the previous year.

The company operates through two distinct business segments:

• Communications and Signal Processing Products: Manufacturing wireless front end, satellite communication, embedded systems, and related services
• Healthcare Services: Manufacturing disposable skin staplers, removers, and oxygen concentrators through subsidiary operations

Employee Stock Option Plan and Corporate Actions

During Q3FY26, Avantel allotted 4,97,410 equity shares of face value ₹2 each to eligible employees under the Avantel Employee Stock Option Plan, 2023. Employee benefit expenses included ₹177.19 lakhs related to this stock option plan for the quarter and ₹502.16 lakhs for the nine-month period.

Key Financial Highlights

The company's expense structure showed mixed trends during Q3FY26. While cost of materials consumed decreased to ₹2,274.76 lakhs from ₹2,828.95 lakhs in Q3FY25, other expenses increased significantly to ₹1,396.49 lakhs from ₹924.17 lakhs. Finance costs rose to ₹177.26 lakhs compared to ₹101.91 lakhs in the corresponding previous quarter.

Depreciation and amortization expenses increased substantially to ₹483.16 lakhs from ₹295.19 lakhs, reflecting the company's continued investment in infrastructure and technology capabilities. The results were reviewed by statutory auditors Grandhy & Co., Chartered Accountants, and approved by the Audit Committee before being taken on record by the Board of Directors.