Kilitch Drugs (India) Limited has submitted its quarterly monitoring agency report for Q3FY26 to stock exchanges, demonstrating compliance with SEBI regulations regarding the utilization of funds raised through its rights issue. The report, dated February 10, 2026, was prepared by Infomerics Valuation and Rating Limited and covers the quarter ended December 31, 2025.

Rights Issue Details and Fund Utilization

The company had raised Rs. 49.92 crore through a rights issue conducted from July 23, 2025, to August 21, 2025, issuing 13,98,463 equity shares at Rs. 357 per share (including a premium of Rs. 347.00). After accounting for issue-related expenses, the net proceeds available for utilization stood at Rs. 49.45 crore.

Project Progress and Fund Deployment

During Q3FY26, the company utilized Rs. 22.05 crore towards capital expenditure for its Greenfield project at Pen, Maharashtra. The cumulative utilization for this primary object has reached Rs. 40.35 crore out of the allocated Rs. 47.00 crore.

Monitoring Agency Assessment

Infomerics Valuation and Rating Limited, serving as the monitoring agency, reported no deviations from the objects stated in the offer document. The agency confirmed that all utilization has been in accordance with the disclosures made in the prospectus. The company's statutory auditors, M/s. C. Sharat & Associates, Chartered Accountants, verified the fund utilization and confirmed no deviation or variation in the use of raised funds.

Unutilized Fund Management

The company has deployed its unutilized proceeds of Rs. 8.49 crore prudently in fixed deposits with Kotak Mahindra Bank, earning a return of 6.35% per annum with maturity on August 29, 2026. The monitoring agency noted that the market value of these investments stood at Rs. 8.74 crore at the end of Q3FY26, reflecting accrued interest.

Project Timeline and Compliance

The Greenfield project at Pen, Maharashtra, remains on track with no reported delays. The project is designed to enhance the company's manufacturing capacity to meet growing demand across domestic and international markets, as the existing Navi Mumbai facility operates at near full capacity. The monitoring agency confirmed that all necessary government and statutory approvals have been obtained, and the project implementation continues as per the timeline specified in the offer document.

Kilitch Drugs (India) Limited , a prominent pharmaceutical company, has reported mixed financial results for the quarter ended September 30, 2025, while successfully completing a significant rights issue to fund its expansion plans.

Quarterly Performance

The company reported a consolidated net profit of Rs. 4.97 per share for the quarter ended September 30, 2025. However, on a standalone basis, Kilitch Drugs faced challenges, reporting a net loss of Rs. 5.27 per share for the same period.

Financial Highlights

Despite the challenges, Kilitch Drugs saw a year-on-year increase in net sales from Rs. 4,747.49 lakhs in Q2 FY2025 to Rs. 4,892.45 lakhs in Q2 FY2026. However, the company experienced a slight decline in net profit, from Rs. 861.18 lakhs to Rs. 804.00 lakhs during the same period.

Successful Rights Issue

A key highlight of the quarter was the completion of a rights issue, which raised Rs. 4,992.51 lakhs. The company issued 13,98,463 fully paid-up Equity Shares at a price of Rs. 357 per share, including a premium of Rs. 347 per share. The proceeds are primarily earmarked for funding capital expenditure at their Greenfield Project in Pen.

Balance Sheet Strengthening

The rights issue has significantly bolstered Kilitch Drugs' financial position. As of September 30, 2025, the company's consolidated balance sheet shows:

• Total Assets: Rs. 39,865.53 lakhs (up from Rs. 31,278.38 lakhs as of March 31, 2025)
• Equity Share Capital: Rs. 1,748.08 lakhs (increased from Rs. 1,608.23 lakhs)
• Other Equity: Rs. 24,817.79 lakhs (up from Rs. 18,624.68 lakhs)

Future Outlook

The successful completion of the rights issue provides Kilitch Drugs with the necessary capital to pursue its expansion plans, particularly the Greenfield Project. This strategic move may potentially strengthen the company's market position and production capabilities in the coming quarters.

While the standalone results show some challenges, the consolidated performance and the influx of capital from the rights issue indicate that Kilitch Drugs is positioning itself for future growth. Investors and stakeholders will likely be watching closely to see how the company utilizes these funds and navigates the evolving pharmaceutical landscape.