Covidh Technologies Ltd has submitted its quarterly monitoring agency report for Q3FY26 ended December 31, 2025, detailing the utilization of proceeds from its Rs. 8.08 crore rights issue. The report, prepared by Infomerics Valuation and Rating Limited as the appointed monitoring agency, confirms compliance with regulatory requirements under SEBI ICDR Regulations.

Rights Issue Details and Utilization

The company's rights issue, which opened on November 3, 2025, and closed on November 10, 2025, comprised 80,85,530 fully paid-up equity shares of face value Rs. 10 each at an issue price of Rs. 10 per share. The issue was offered to eligible shareholders in the ratio of 23 rights equity shares for every 1 fully paid-up equity share held as on the record date of October 24, 2025.

Fund Deployment Status

During Q3FY26, the company utilized Rs. 0.47 crore exclusively for issue-related expenses, leaving Rs. 7.61 crore unutilized. These expenses primarily comprised statutory and transaction-related costs, including legal advisor fees, NSDL and CDSL charges, registrar and transfer agent fees, professional fees, advertisement expenses, and other ancillary costs directly attributable to the issue.

Planned Objectives and Timeline

The company has earmarked Rs. 5.06 crore for financing working capital requirements to support scaling operations in its technology and software consulting business model. The funds are intended to address longer receivable cycles and project-based billing requirements, including funding receivables, meeting operational expenses, supporting marketing initiatives, and maintaining adequate liquidity.

An additional Rs. 2.02 crore has been allocated for general corporate purposes, subject to the 25% cap of gross issue proceeds as per SEBI ICDR regulations. These funds may be deployed for capital expenditure, meeting unforeseen business contingencies, funding routine operational expenses, and other business purposes as approved by the Board.

Regulatory Compliance and Future Deployment

The monitoring agency confirmed no deviations from the objects disclosed in the offer document and reported that all requisite statutory and regulatory approvals have been obtained. The unutilized amount of Rs. 7.61 crore has been transferred to Kotak Mahindra Bank current account and remains available for utilization starting Q4FY26.

Management has indicated that implementation of the stated objects and corresponding utilization of the remaining proceeds are expected to occur in Q4FY26, aligning with the financial year 2025-2026 timeline mentioned in the letter of offer. The company's promoter is Mr. Ganapa Narsi Reddy, and the business focuses on technology-enabled services including software development, digital solutions, and IT consulting for domestic and international corporate clients.

Covidh Technologies Limited announced its unaudited financial results for the third quarter of FY26 ended December 31, 2025, revealing a net loss of ₹28.20 lakhs despite generating operational revenue for the first time in recent quarters. The Board of Directors approved these results at their meeting held on February 10, 2026, pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company's Q3 FY26 performance showed mixed signals with the commencement of revenue generation offset by increased operational expenses. The following table summarizes the key financial metrics:

Revenue and Income Analysis

Covidh Technologies recorded revenue from operations of ₹19.32 lakhs in Q3 FY26, marking a significant development as the company had no operational revenue in the corresponding quarters of previous periods. Other income contributed ₹0.25 lakhs, bringing total income to ₹19.57 lakhs for the quarter.

Expense Structure

The company's expense profile was dominated by other expenses, which surged to ₹47.09 lakhs in Q3 FY26 compared to ₹6.65 lakhs in Q3 FY25. Employee benefit expenses stood at ₹0.68 lakhs for the quarter. Total expenses reached ₹47.77 lakhs, significantly higher than the ₹6.65 lakhs recorded in the corresponding quarter of the previous year.

Nine-Month Performance

For the nine-month period ended December 31, 2025, the company reported the following performance:

Earnings Per Share and Capital Structure

The company's earnings per share (EPS) for Q3 FY26 stood at ₹-2.02 compared to ₹-2.06 in Q3 FY25. The paid-up equity share capital increased significantly to ₹840.90 lakhs as of December 31, 2025, from ₹32.34 lakhs in the previous year, indicating a substantial capital infusion during the period.

Corporate Governance and Compliance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors in compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Indian Accounting Standards 34 (Ind AS-34) for Interim Financial Reporting. GMKS & Co, Chartered Accountants, conducted the limited review of these financial results, confirming compliance with applicable accounting standards and regulatory requirements. The company filed these results with BSE Limited under scrip code 534920.