Exicom Tele-Systems , a key player in the electric vehicle (EV) charging and critical power solutions sector, has reported progress on its IPO and rights issue fund utilization while also approving a significant $40 million fundraising initiative.

Fund Utilization Report

Exicom Tele-Systems Limited submitted monitoring agency reports from CARE Ratings for fund utilization from its Rs 400.00 crore IPO and Rs 259.41 crore rights issue for the quarter ended September 30, 2025. Key points from the report include:

IPO Proceeds

• Rs 45.60 crore remains unutilized
• The company received board approval to extend the utilization timeline to March 31, 2026
• Key utilizations:
  • Rs 32.24 crore for manufacturing facility setup
  • Rs 20.65 crore for working capital
  • Rs 6.03 crore for R&D activities

Rights Issue Proceeds

• Rs 56.73 crore invested in wholly-owned subsidiary for Tritium business operations
• Rs 55.00 crore for loan repayments
• Rs 3.49 crore for general corporate purposes
• Rs 2.44 crore for issue expenses

Financial Performance

The company reported:

• Total operating income of Rs 213.53 crore
• PBILDT of negative Rs 30.37 crore
• Revenue was impacted by slowdown in telecom equipment industry and subdued EV sales
• Margins were compressed due to industry moderation and initial costs from Tritium acquisition

New Fundraising Approval

Exicom Tele-Systems' board has approved a $40 million fundraising initiative aimed at:

1. Fueling expansion activities, potentially including:

   • Enhancing production capabilities
   • Expanding market reach
   • Investing in research and development

2. Supporting the company's journey to reach EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) break-even

Strategic Implications

This fundraising initiative carries several important implications:

1. Financial Stability: By aiming for EBITDA break-even, the company is positioning itself for improved financial stability.

2. Market Competitiveness: The expansion activities could enhance Exicom Tele-Systems' competitiveness in the rapidly evolving EV charging and critical power solutions market.

3. Investor Confidence: The board's approval for such a significant fundraising effort may signal confidence in the company's business model and growth prospects.

Industry Context

Exicom Tele-Systems' moves come at a time when the EV charging infrastructure sector is experiencing rapid growth and increasing competition. The critical power solutions segment also continues to be vital for various industries, underlining the importance of the company's diversified portfolio.

Looking Ahead

As Exicom Tele-Systems moves forward with its fundraising plan and continues to utilize its IPO and rights issue proceeds, stakeholders will be keenly watching how the company deploys the capital and progresses towards its strategic objectives. The company's ability to effectively utilize these funds and achieve its goals will be critical in determining its long-term success and market position in the competitive landscape of EV charging and critical power solutions.

Exicom Tele-Systems , a leading player in EV charging and critical power solutions, reported quarterly results for Q2 FY26, with significant revenue growth despite consolidated losses. The company's financial results showcase robust top-line expansion coupled with ongoing profitability challenges.

Revenue Growth

Exicom's standalone revenue grew 54% year-over-year to Rs 228.40 crore in Q2 FY26. The Critical Power business segment expanded by 53% YoY, while the EV chargers segment grew by 55% YoY on a standalone basis.

Segment Performance

Critical Power Business

The Critical Power segment showed strong performance, contributing to the overall revenue growth. The company has commenced deliveries for the BharatNet project and secured large orders for Lithium-ion batteries worth Rs 60.00 crore.

EV Charging Business

The EV Charging segment witnessed robust momentum, achieving the highest-ever AC charger sales by volume (20,000 units) and revenue during the quarter.

Financial Results

Despite the strong standalone performance, consolidated results showed losses:

These losses were primarily attributed to Tritium's ongoing financial challenges.

On a standalone basis, however, the company reported positive results:

Operational Highlights

• Export revenue contributed 11% of total quarterly revenue, primarily from Africa and Southeast Asia markets.
• The new Hyderabad manufacturing facility is in the final stages of completion, with trial runs planned shortly.

Future Outlook

While Exicom faces near-term challenges with consolidated results due to Tritium's losses, the company views this as a potential long-term growth driver. The strong standalone performance and ongoing expansion initiatives position Exicom for continued growth in the EV charging and critical power solutions markets.

As Exicom navigates through its expansion phase, investors will be closely watching how the company balances its growth initiatives with profitability improvements in the coming quarters.