Jyoti Structures Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations regarding the utilization of proceeds from its Rights Issue II. The report, prepared by CARE Ratings Limited as the monitoring agency, provides a comprehensive overview of fund deployment during Q3FY26.

Rights Issue Overview and Subscription Details

The company's Rights Issue was conducted from February 17, 2025 to March 10, 2025, with an original issue size of ₹499.09 crore. However, due to undersubscription, the issue received only 92.11% subscription, resulting in a revised issue size of ₹459.69 crore. The board resolution dated May 06, 2025 approved the reallocation of funds across various objects due to this undersubscription.

Fund Utilization During Q3FY26

During the quarter ended December 31, 2025, Jyoti Structures utilized ₹78.18 crore from the rights issue proceeds. This brought the total cumulative utilization to ₹399.82 crore, leaving ₹59.88 crore unutilized as of December 31, 2025.

Specific Utilization Breakdown

The major utilization during Q3FY26 included ₹43.31 crore towards fixed deposits as margin against letters of credit (₹37.13 crore) and bank guarantees (₹6.18 crore), along with ₹0.53 crore for bank charges and commissions. Under general corporate purposes, the company deployed ₹17.39 crore for salary payments and ₹16.92 crore for vendor payments.

Deployment of Unutilized Proceeds

The remaining ₹59.88 crore is deployed across different instruments:

Monitoring Agency Observations

CARE Ratings Limited reported no deviations from the objects disclosed in the offer document. However, the monitoring agency highlighted several concerns including the impact of undersubscription on object viability and a significant decline in share price of around 58% over the 12 months ending December 31, 2025. The current share price is approximately 47% lower than the issue price.

The monitoring agency noted that the company has transferred issue proceeds from the monitoring account to various current accounts, resulting in comingling of funds. The assessment relied on management declarations and chartered accountant certificates from M/s. SARC & Associates dated January 21, 2026.

Compliance and Timeline Status

All utilizations during Q3FY26 were in accordance with the disclosures in the offer document and the revised cost of objects approved by the board. The company has obtained necessary government and statutory approvals related to the objects. Most objects are progressing as per the timeline, with completion targeted by March 31, 2026, and no significant delays reported in implementation.

Jyoti Structures Limited has delivered impressive financial performance in Q3FY26, showcasing strong growth across key metrics. The power transmission infrastructure company announced its unaudited financial results for the quarter and nine months ended December 31, 2025, reflecting robust operational execution and market demand.

Strong Revenue Growth Drives Performance

The company's revenue performance demonstrated exceptional momentum during the quarter. Revenue from operations reached ₹208.96 crores in Q3FY26, representing a substantial 52% increase from ₹137.35 crores in the corresponding quarter of the previous year.

Nine-Month Performance Reflects Sustained Growth

The nine-month period ending December 31, 2025, further reinforced the company's strong performance trajectory. Revenue from operations for the nine-month period reached ₹515.72 crores, marking a remarkable 55% growth compared to ₹333.14 crores in the corresponding period last year.

Operational Efficiency and Cost Management

The company maintained effective cost management while scaling operations. Cost of materials consumed increased to ₹119.74 crores in Q3FY26 from ₹47.73 crores in Q3FY25, reflecting higher business volumes. Employee benefit expenses rose to ₹19.84 crores from ₹14.87 crores, indicating workforce expansion to support growth.

Total expenses for the quarter reached ₹198.61 crores compared to ₹127.17 crores in the previous year, resulting in a profit before tax of ₹15.46 crores versus ₹11.47 crores.

Employee Stock Option Scheme Implementation

The company successfully completed the allotment of 1,91,000 equity shares under the JSL ESOS 2021 scheme during the quarter. Key details of the allotment include:

Financial Position and Capital Structure

The company's paid-up equity share capital stood at ₹238.69 crores as of December 31, 2025, compared to ₹180.23 crores in the corresponding period last year. The increase reflects the impact of equity allotments under the employee stock option scheme.

Basic earnings per share for Q3FY26 was ₹0.1429 compared to ₹0.1361 in Q3FY25, while diluted earnings per share reached ₹0.1426 versus ₹0.1317 in the previous year.

Board Approval and Regulatory Compliance

The Board of Directors approved these unaudited standalone and consolidated financial results at their meeting held on January 23, 2026. The statutory auditors, SARC & Associates, conducted a limited review of the financial results and issued an unmodified opinion. The company has made appropriate disclosures under SEBI regulations and maintained compliance with listing requirements on both BSE and NSE exchanges.