Azad Engineering has received its quarterly monitoring agency report from CARE Ratings Limited for the quarter ended December 31, 2025, regarding the utilization of proceeds from its ₹700.00 crore Qualified Institutional Placement (QIP) issue. The report provides a comprehensive overview of fund deployment and progress on stated objectives.

QIP Issue Overview

The QIP issue details reflect the following parameters:

Fund Utilization Progress

As of December 31, 2025, the company has utilized ₹493.66 crore towards the objects of the placement. The monitoring agency confirmed that all utilization remains aligned with disclosures in the offer document, with no material deviations observed.

During the quarter, the company utilized ₹109.03 crore towards capital expenditure and ₹7.92 crore towards issue expenses, with all payments made through the monitoring account.

Deployment of Unutilized Proceeds

The remaining ₹206.34 crore has been strategically deployed across various fixed deposits and monitoring accounts:

The total interest earned on unutilized proceeds during the quarter amounted to ₹2.50 crore.

Implementation Timeline and Board Comments

The monitoring agency noted that 61.5% of the amount allocated for capital expenditure has been spent, leading to potential delays compared to the original placement document timeline. However, the Board of Directors clarified that the timing of utilization remains aligned with business requirements and stated QIP objects.

The company explained that actual outlay alignment considers business performance, availability of technology-driven mechanization, procurement timelines, and growth projections. During this period, Azad Engineering has demonstrated strong growth trajectory and procured certain plant and machinery with different technological specifications using sources other than QIP proceeds.

Monitoring Agency Assessment

CARE Ratings Limited confirmed no deviations from the objects stated in the offer document and no major deviations from earlier monitoring reports. All government and statutory approvals related to the objects have been obtained. The monitoring agency emphasized that the deferment in fund utilization is attributable solely to timing considerations without any change in objects or end-use of QIP proceeds.

Azad Engineering Limited has announced its unaudited financial results for the third quarter ended December 31, 2025, demonstrating robust operational performance. The Board of Directors approved these results at their meeting held on February 13, 2026, in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations 2015.

Q3FY26 Financial Performance

The company delivered strong financial results for the quarter ended December 31, 2025, showing significant growth across key metrics compared to the previous year.

Nine Months Performance

For the nine months ended December 31, 2025, the company maintained its growth trajectory with substantial improvements in all financial parameters.

Consolidated Results

The consolidated financial results, including subsidiaries Azad VTC Private Limited and Azad Prime Private Limited, showed similar positive trends with Q3FY26 consolidated revenue reaching ₹1,587.19 Mn and net profit of ₹347.17 Mn.

Earnings Conference Call Recording

Following the financial results announcement, the company organized an earnings conference call on February 14, 2026, to discuss the Q3FY26 unaudited standalone and consolidated financial results. The company has now made the audio recording of this conference call available to stakeholders.

The audio recording link was communicated to BSE Limited and National Stock Exchange of India Limited under Regulation 30 compliance requirements. G. Pranneth Abhishek, Company Secretary, Compliance Officer and Head Legal, signed the communication digitally on February 14, 2026.

Board Meeting and Compliance

The Board Meeting commenced at 5:00 PM IST and concluded at 5:59 PM IST on February 13, 2026. The company submitted comprehensive documentation including unaudited standalone and consolidated financial results along with limited review reports from statutory auditors M S K A & Associates LLP to both BSE Limited and National Stock Exchange of India Limited.

QIP Fund Utilization

As of December 31, 2025, the company has utilized ₹4,936.60 Mn out of the ₹7,000.00 Mn raised through Qualified Institutional Placement, with ₹3,227.10 Mn deployed for capital expenditure and ₹1,562.10 Mn for general corporate purposes.