J.G. Chemicals Limited has filed its quarterly monitoring agency report for Q3 FY26 with the National Stock Exchange and BSE Limited, fulfilling regulatory requirements under SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Monitoring Agency Report Overview

ICRA Limited, serving as the monitoring agency, prepared the report dated February 10, 2026, covering the quarter and nine months ended December 31, 2025. The report confirms that the utilization of IPO proceeds remains aligned with the objects outlined in the company's prospectus, with no material deviations observed.

IPO Proceeds Utilization Status

The specialty chemicals manufacturer's IPO, which opened on March 05, 2024, and closed on March 07, 2024, raised INR 165.000 crore through fresh issue of equity shares. As of December 31, 2025, the company has utilized INR 126.362 crore of the total proceeds, leaving INR 38.638 crore unutilized.

Fund Deployment and Management

The unutilized proceeds of INR 38.938 crore have been deployed in fixed deposits with HDFC Bank and Kotak Mahindra Bank, earning returns ranging from 4.25% to 7.10%. The total market value of these investments, including accrued interest, stands at INR 40.005 crore as of December 31, 2025.

The monitoring agency noted that while fund utilization remains compliant with prospectus objectives, actual spending for the R&D Centre setup does not correspond with originally proposed vendor specifications. However, ICRA acknowledged the company's flexibility to deploy equipment and machinery according to business requirements as stated in the offer document.

Regulatory Compliance and Timeline

All major objects remain on schedule according to the original timeline outlined in the prospectus. The debt repayment for material subsidiary BDJ Oxides Pvt. Ltd. has been completed, while other objects including working capital funding and R&D Centre establishment are progressing as planned through FY26-FY27.

The company utilized INR 23.266 crore for general corporate purposes, specifically for procurement of new land for a manufacturing unit during Q1 FY26. Issue-related expenses of INR 15.274 crore have been substantially completed, with only INR 0.402 crore remaining unutilized from the allocated INR 15.676 crore.

JG Chemicals Limited, India's largest zinc oxide manufacturer, has reported a 4% year-on-year growth in consolidated revenue for the second quarter of fiscal year 2026, reaching Rs. 220.00 crores. The company also maintained a healthy EBITDA margin of 9.94% during the period.

Financial Performance

For Q2 FY26, JG Chemicals achieved the following financial results:

Dahej Expansion Project

JG Chemicals is making significant progress on its Rs. 100.00 crore greenfield expansion project in Dahej, Gujarat. Key highlights of the project include:

• Total capacity: 40,000 metric tons per annum of zinc chemicals
• Phase-1 commissioning: Expected in H1 FY27
• Revenue potential: Rs. 900.00 crores (once fully operational)
• Target markets: Ceramics, specialty chemicals, agro-chemicals, and tyre industries

Business Outlook

The company is optimistic about its growth prospects, citing several positive factors:

1. Increased demand from the tyre industry, expected to grow 7-8% annually
2. Expansion into non-rubber applications, aiming to increase their share from 15% to 30% in 4-5 years
3. Growing demand for zinc oxide in pharmaceuticals, cosmetics, and personal care segments
4. Development of a new recycled rubber product for the tyre industry, with trials set to begin in Q4 FY26

Management Commentary

Anirudh Jhunjhunwala, Managing Director and CEO, stated, "Our Dahej facility will significantly strengthen our presence in Western India and deepen our reach in the ceramic, specialty chemical, agro and tyre business sectors."

Anuj Jhunjhunwala, Whole-Time Director and CFO, added, "With logistics stabilizing and zinc prices showing improvement, we expect margins to be much better in the coming quarters."

The company's focus on sustainability and recycling continues to be an integral part of its operations, positioning JG Chemicals as a preferred supplier for high-performance applications in various industries.

As JG Chemicals moves forward with its expansion plans and diversification strategy, the company appears well-positioned to capitalize on the growing demand for zinc oxide across multiple sectors in India and internationally.