Bhagiradha Chemicals & Industries has announced the complete utilization of its preferential issue proceeds, marking a significant milestone in the company's expansion plans. The agrochemical manufacturer has successfully deployed the entire Rs 341.18 crore raised through fully convertible warrants, as reported in its latest financial disclosure.

Funding Allocation and Utilization

The company's board of directors, in a meeting held on November 10, 2025, confirmed that 100% of the funds raised have been utilized as of June 30, 2025. The proceeds were primarily directed towards two key objectives:

1. Capital expenditure for a new manufacturing unit
2. Working capital requirements

Breakdown of Fund Raising

The preferential issue was executed in three tranches:

Project Details

The majority of the funds have been allocated to the company's wholly-owned subsidiary, Bheema Fine Chemicals Private Limited, for setting up a new manufacturing unit in Kadechur Industrial area, Yadgir district, Karnataka. This project encompasses:

• Construction of production blocks
• Acquisition and erection of plant and machinery
• Creation of other utilities and assets
• Potential purchase or setup of a solar power plant

Additionally, Rs 21.18 crore has been earmarked for working capital requirements and preliminary expenses related to the new project.

Regulatory Compliance

The company has adhered to regulatory requirements, with the utilization of funds being in line with the objects approved by shareholders in the EGM notice dated October 11, 2023, and the subsequent Postal Ballot Notice dated March 05, 2024.

Monitoring and Oversight

With the full utilization of funds, Bhagiradha Chemicals has concluded its engagement with the Monitoring Agency. The board has approved the cessation of oversight from the quarter ending September 30, 2025, as the purpose of the fund raise has been achieved.

Financial Implications

The successful deployment of these funds is expected to enhance Bhagiradha Chemicals' manufacturing capabilities and operational efficiency. However, the company has not provided specific projections on the financial impact of these investments.

This strategic allocation of capital underscores Bhagiradha Chemicals' commitment to expanding its production capacity and strengthening its position in the agrochemical sector.

Bhagiradha Chemicals & Industries Limited (BCIL) has reported a mixed set of financial results for the second quarter. The agrochemical company saw an increase in revenue but experienced a significant decline in EBITDA compared to the same period last year.

Revenue Growth

BCIL reported a consolidated revenue from operations of ₹14,009.72 crore for Q2, marking a substantial increase from ₹10,372.80 crore in the corresponding quarter of the previous year. This represents a year-on-year growth of approximately 35%.

Profit and EBITDA Performance

The company's consolidated net profit for the quarter stood at ₹550.43 crore, slightly higher than the ₹544.09 crore reported in the same quarter of the previous year. However, BCIL experienced a significant decline in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The EBITDA for Q2 was reported at ₹15.5 crore, down from ₹97.1 crore in the same quarter of the previous year, marking a substantial decrease of about 84%.

EBITDA Margin

Despite the sharp decline in EBITDA, the company's EBITDA margin showed improvement. The EBITDA margin for Q2 increased to 10.75% from 9.36% in the corresponding quarter of the previous year.

Financial Position

As of September 30, Bhagiradha Chemicals reported the following key financial metrics:

Capital Expenditure and Expansion

The company has been actively investing in its growth. BCIL reported significant capital work in progress, amounting to ₹37,736.36 crore as of September 30. This substantial investment indicates the company's focus on expanding its manufacturing capabilities and infrastructure.

Utilization of Preferential Issue Proceeds

In a notable development, Bhagiradha Chemicals has fully utilized the proceeds from its preferential issue of convertible warrants. The company raised a total of ₹341.18 crore through this issue, which has been completely deployed for the approved objectives, including funding capital expenditure for a new manufacturing unit under its wholly-owned subsidiary, Bheema Fine Chemicals Private Limited.

Conclusion

Bhagiradha Chemicals' Q2 results present a mixed picture. While the company has achieved significant revenue growth, the sharp decline in EBITDA may be a concern for investors. However, the improvement in EBITDA margin and substantial investments in capital expenditure indicate the company's efforts to enhance its operational efficiency and manufacturing capabilities for future growth.

Investors and market analysts will likely keep a close watch on how these investments translate into financial performance in the coming quarters, particularly in terms of profitability and margin expansion.