Hi-Tech Pipes Limited has received a monitoring agency report from CRISIL Ratings Limited for the quarter ended December 31, 2025, regarding the utilization of proceeds from its Qualified Institutional Placement (QIP). The report, issued under Regulation 173A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, highlights a significant deviation in the deployment of unutilized funds.

QIP Issue Details and Fund Utilization

The company's QIP, conducted from October 07, 2024, to October 11, 2024, raised gross proceeds of Rs 5,007.89 million with net proceeds of Rs 4,732.89 million. The funds were allocated across three primary objectives:

Deviation in Fund Deployment

CRISIL has flagged a deviation in the company's deployment of unutilized proceeds. The monitoring agency noted that Hi-Tech Pipes invested Rs 560.19 million in "The Wealth Company Flexi Cap Fund," an equity mutual fund vulnerable to fluctuations in equity share prices. This investment contradicts the placement document's disclosure, which stated that unutilized funds would be deposited in scheduled commercial banks or temporarily invested in creditworthy instruments, including money market/mutual funds.

The report emphasizes that this equity mutual fund investment carries inherent risks, with the possibility that the principal value may decline below the invested amount if the fund's performance deteriorates.

Manufacturing Expansion Progress

During the quarter ended December 31, 2025, the company utilized Rs 289.81 million towards funding capital expenditure for manufacturing expansion. The expansion includes:

• Brownfield project: Expansion at existing Sanand, Gujarat unit with new Direct Forming Technology (DFT) Line of 100,000 MTPA capacity
• Greenfield project: New manufacturing unit at Sri City, Andhra Pradesh with DFT Line of 90,000 MTPA capacity and ERW plant of 30,000 MTPA capacity

The company changed several vendors for machinery purchases during the quarter due to operational and strategic reasons, which was approved by the Board of Directors on August 08, 2025.

Board Response and Corrective Measures

The Board of Directors has acknowledged CRISIL's observations and initiated appropriate measures for withdrawal of the equity mutual fund investment. The Board noted that as of February 11, 2026, the market value of the investment stood at Rs 569.86 million against the invested amount of Rs 560.19 million, with the principal amount remaining intact. The company has committed to redeploying the funds as per the offer document guidelines and prevailing regulations.

Regulatory Compliance

The monitoring report confirms that proceeds towards the stated objectives were utilized as per the placement document disclosures. However, the deviation in interim fund deployment has been specifically highlighted as non-compliant with the original disclosures. CRISIL has based its assessment on statutory auditor certificates, management undertakings, bank statements, and the final placement document dated October 11, 2024.

Hi-Tech Pipes Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, delivering record quarterly performance with strong revenue growth despite margin pressures. The Board of Directors approved the results in their meeting held on February 07, 2026.

Record Quarterly Performance Drives Growth

The company achieved its highest-ever quarterly performance with consolidated revenue from operations reaching ₹1,069.59 crore compared to ₹761.02 crore in the corresponding quarter of the previous year. This represents a substantial year-on-year increase of 41%, supported by strong volume growth and operational expansion. Total sales volumes increased by 10% to 1.36 lakh tonnes in Q3FY26 compared to 1.24 lakh tonnes in Q3FY25.

Nine-Month Performance Shows Consistent Growth

For the nine-month period ended December 31, 2025, Hi-Tech Pipes maintained steady growth momentum. Consolidated revenue from operations increased by 17% to ₹2,719.72 crore from ₹2,333.89 crore in the corresponding period last year. Total sales volumes grew by 4% to 3.85 lakh tonnes compared to 3.69 lakh tonnes in 9MFY25.

Margin Pressure Despite Volume Growth

While the company achieved record revenue and volume growth, profitability faced headwinds during the quarter. EBITDA per tonne decreased by 5% to ₹3,078 per MT in Q3FY26 compared to ₹3,238 per MT in Q3FY25. The decline in profitability was attributed to softer Hot Rolled Coil (HRC) prices, which impacted margins despite improved operational leverage.

Capacity Expansion and Strategic Developments

The company announced the commencement of commercial production at its Sanand Unit-2 Phase II and the Jammu (Kathua) facility, with the Sikandrabad facility expected to follow shortly. These expansions significantly enhance the company's scale and product mix, with installed capacity nearing 1 million tonnes. The Board also approved entering into a Non-Compete Agreement with Hi-Tech Flow Solutions Limited to clearly demarcate respective business domains.

Regulatory Compliance and Publication

In compliance with Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published its unaudited financial results in "Financial Express-English Edition" and "Jansatta-Hindi Edition" on February 08, 2026. The publications included Quick Response Code and webpage details for investor access to the financial results.

Management Commentary and Outlook

Chairman and Managing Director Ajay Kumar Bansal commented on the performance, stating that the company delivered its highest-ever quarterly performance with revenues growing 41% year-on-year. He noted that while EBITDA improved modestly, profitability was impacted by softer HRC prices. The management remains focused on strengthening operating leverage and improving margins, with demand supported by infrastructure, renewable energy projects, and export opportunities positioning the company for sustained long-term growth.

Earnings Conference Call Audio Available

The company has made available the audio recording of its earnings conference call held on February 07, 2026 at 04:00 P.M. (IST) to discuss the Q3FY26 financial results. The audio link can be accessed on the company's website for investors and stakeholders seeking detailed insights into the quarterly performance and management commentary.