Kinetic Engineering Limited (KEL) has submitted its monitoring agency report for the quarter ended September 30, 2025, prepared by CARE Ratings Limited. The report indicates no deviation from the stated objectives of the company's preferential issue of warrants.

Key Highlights

• Total funds raised: Rs. 61.84 crore (out of planned Rs. 166.84 crore)
• Funds utilized during the quarter: Rs. 34.46 crore
• Unutilized funds: Rs. 29.63 crore (deployed in fixed deposits)

Fund Utilization Breakdown

Issue Details and Utilization

Kinetic Engineering initially planned to raise Rs. 177.10 crore through a preferential issue of warrants. However, due to undersubscription by non-promoter allottees, the total issue size was reduced to Rs. 166.84 crore. The company has received Rs. 61.84 crore till September 30, 2025, with the remaining amount expected within 18 months from the date of allotment of share warrants.

The report highlights that Rs. 34.46 crore has been utilized during the quarter. Significant allocations include Rs. 19.64 crore for redemption of preference shares, Rs. 4.82 crore for payment of overdue liabilities, and Rs. 20.00 crore for investment in the subsidiary company, Kinetic Watts and Volts Limited.

Unutilized Funds

The unutilized funds of Rs. 29.63 crore have been deployed in fixed deposits with Saraswat Co-op Bank, earning an annual return of 4.75%. The details are as follows:

Revised Allocation

The board of directors approved a revised cost allocation on May 13, 2025, following the undersubscription. The revised allocation adjusts the amounts for working capital requirements and general corporate purposes.

Monitoring Agency Comments

CARE Ratings Limited, acting as the monitoring agency, has reported no deviation from the stated objectives of the issue. The agency noted that the funds received from the issue proceeds were utilized towards equity investment in the subsidiary company via a rights issue, as per the objects of the issue.

Compliance and Disclosure

Kinetic Engineering has filed this report in compliance with Regulation 32(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has assured that all government and statutory approvals related to the objects have been obtained.

As the preferential issue proceeds continue to be utilized, investors and stakeholders will be keenly watching the company's progress in achieving its stated objectives and the impact on its financial performance.

Kinetic Engineering Limited (KEL), a leading Indian automotive manufacturing company, has reported a profit for the quarter ended September 30, 2025. The company's financial results, approved by its Board of Directors on November 12, 2025, reveal positive performance both on standalone and consolidated bases.

Financial Highlights

KEL reported the following key figures for Q2 FY26:

Subsidiary Performance

The consolidated results include the performance of KEL's subsidiary, Kinetic Watts & Volts Limited (KWV). The electric vehicle arm has shown significant progress, achieving several milestones:

• Received ARAI homologation certificate and completed testing
• Inaugurated its first showroom on October 16, 2025
• Plans to commence deliveries of the Kinetic DX at the end of November 2025

Expansion and Future Outlook

KWV has reported strong bookings and is accelerating its nationwide expansion:

• Issued over 50 Letters of Intent (LOIs) in key cities across India
• Targets sales of 5,000 units by March 2026, potentially adding ₹50.00 crores to consolidated sales
• Aims to sell 60,000 units in FY 2026-27, with a projected top-line of ₹600.00 crores from the subsidiary alone

Strategic Investments

KEL has made strategic moves to strengthen its position:

• Infused ₹9.00 crores to increase its shareholding in KWV to 80%
• Issued 2,09,000 convertible warrants at ₹71.00 per warrant to M/s Transaction Square LLP and Ms. Sai Geeta Penumeta, which were converted to equity shares
• Invested ₹1.90 crores in its subsidiary company

Manufacturing Capabilities

The company has enhanced its manufacturing capabilities:

• Inaugurated a state-of-the-art robotic chassis line
• Revamped its paint shop and added new metal pressing facilities
• Currently producing chassis for the E-Luna and Kinetic DX EV

Management Commentary

Mr. Ajinkya Firodia, Vice Chairman of Kinetic India, stated, "This quarter marks a significant step forward in our journey. The response to KWV has been exceptional, with bookings far exceeding projections, reflecting the deep trust in the Kinetic brand and the proven reliability of our products."

KEL's focus on electric mobility and strategic investments in manufacturing capabilities position it well for future growth. The company's profitable financial base, strong demand outlook, and expanding EV distribution footprint suggest potential for sustainable growth and long-term value creation for its stakeholders.

Investors and market watchers will be keen to see how KEL's expansion plans and the performance of its EV subsidiary unfold in the coming quarters.