Epack Prefab Technologies Limited has filed its quarterly monitoring agency report for Q3FY26 with stock exchanges, covering the utilization of proceeds from its Rs. 300 crore initial public offering. The report, prepared by CARE Ratings Limited and dated February 11, 2026, provides detailed insights into how the company deployed IPO funds during the quarter ended December 31, 2025.

IPO Proceeds Utilization Overview

During Q3FY26, Epack Prefab Technologies utilized Rs. 102.48 crore from its IPO proceeds across multiple objectives. However, CARE Ratings noted a significant operational issue regarding fund management. The monitoring agency observed that Rs. 11.72 crore was utilized from the company's current account rather than designated IPO proceeds accounts, resulting in fund comingling.

Objective-wise Fund Deployment

The company's IPO proceeds were allocated across five primary objectives, with varying levels of utilization during the quarter:

Manufacturing Expansion Projects: The company made progress on two key manufacturing initiatives. For the expansion of existing manufacturing facility at Mambattu (Unit 4) in Andhra Pradesh, Rs. 23.89 crore was utilized during Q3FY26, with Rs. 14.76 crore from the monitoring account and Rs. 9.13 crore from current account. The original allocation for this project was Rs. 58.17 crore.

Debt Repayment: The company completed the full repayment objective during Q3FY26, utilizing the entire allocated Rs. 70.00 crore for repayment and prepayment of certain borrowings.

Share Issue Expenses: Rs. 8.59 crore was utilized towards share issue expenses from the original allocation of Rs. 14.82 crore. This utilization came from multiple sources: Rs. 2.54 crore from allotment account, Rs. 4.51 crore from monitoring account, and Rs. 1.54 crore from current account.

Investment of Unutilized Proceeds

The company has invested its unutilized IPO proceeds of Rs. 197.52 crore primarily in fixed deposits across multiple banks:

Monitoring Agency Observations

CARE Ratings highlighted that the fund comingling restricted their ability to directly verify and ascertain utilizations, as IPO proceeds were mixed with other cash flows. The monitoring agency relied on management certificates and CA certificates dated February 6, 2026, from Talati And Talati LLP for verification of Q3FY26 utilizations.

The report confirmed no deviation from stated objectives, with the range of deviation marked as not applicable. All utilizations were deemed consistent with disclosures in the offer document, and no material deviations requiring shareholder approval were identified.

Project Timeline Status

Most objectives remain on track with their March 31, 2026 completion timeline. The new manufacturing facility at Ghiloth Industrial Area and the Mambattu expansion project are both ongoing as per schedule. The debt repayment objective has been completed, while general corporate purposes and share issue expenses continue as planned with no reported delays.

EPack Prefab Technologies has maintained its revenue guidance for the financial year ending March 2026 despite facing project delays in the October-December quarter. The Uttar Pradesh-based pre-engineered building and prefabricated construction company expects a strong finish to FY26 as delayed projects have resumed operations.

Revenue Guidance and Q4 Outlook

The company has maintained its full-year revenue guidance despite the sequential decline experienced in Q3. Key financial projections include:

Managing Director and CEO Sanjay Singhania explained that projects delayed in the third quarter due to site readiness issues have now resumed. Design approvals have been completed and manufacturing has already started, positioning the company for improved execution in the current quarter.

Business Performance Metrics

Despite the sequential decline in Q3, the company demonstrated strong year-on-year growth across business segments:

The company also carried finished goods inventory worth approximately ₹35-40 crore that could not be billed during the quarter, which is expected to contribute to Q4 revenue recognition.

Operating Margins and Financial Health

EPack Prefab's margin performance reflects the impact of project delays while maintaining overall stability:

Singhania noted that the second half of the financial year typically performs better than the first half, supporting the company's optimistic Q4 outlook. The company currently maintains a market capitalisation of approximately ₹2,291.31 crore.

Project Recovery and Execution

The resumption of delayed projects marks a significant turning point for the company's near-term performance. With design approvals now in place and manufacturing activities underway, EPack Prefab is positioned to execute its substantial order book effectively. The strong order book of ₹1,115 crore provides substantial revenue visibility, supporting the company's confidence in meeting its full-year guidance despite the Q3 challenges.