Kingfa Science & Technology Reports No Utilization of Rs 500 Crore Preferential Issue Proceeds

Kingfa Science & Technology (India) Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, revealing that the company has not yet utilized any funds from its Rs 500 crore preferential issue. The report, prepared by CARE Ratings Limited as the monitoring agency, indicates that the entire amount remains deployed in fixed deposits and savings/current accounts.

Fund Allocation and Deployment

According to the report, the funds are allocated for five specific purposes:

Purpose	Allocation (Rs in crore)
Phase 2 factory building construction at Chakan, Pune	187.00
Office administration and R&D building at Chakan, Pune	44.00
Plant and machinery	102.00
Land acquisition for South India expansion	42.00
General corporate purposes	125.00
Total	500.00

As of September 30, 2025, the entire amount of Rs 500 crore remains unutilized, with Rs 499.90 crore placed in fixed deposits with Industrial and Commercial Bank of China Limited and Rs 0.10 crore in savings/current accounts.

Fund Deployment Details

The monitoring agency report provides a breakdown of the fixed deposits:

Instrument	Amount (Rs in crore)	Maturity Date	Return on Investment
Fixed deposit	19.90	06-10-2025	4.85%
Fixed deposit	30.00	27-10-2025	5.10%
Fixed deposit	30.00	17-11-2025	5.40%
Fixed deposit	65.00	19-12-2025	5.50%
Fixed deposit	70.00	16-02-2026	5.65%
Fixed deposit	40.00	20-04-2026	5.85%
Fixed deposit	110.00	06-07-2026	6.00%
Fixed deposit	135.00	06-10-2026	6.05%
Savings & Current Account	0.10	-	-
Total	500.00

Project Timeline and Approvals

All projects associated with the preferential issue have a targeted completion timeline of June 2027. The company reports that it has obtained the necessary government and statutory approvals as required for these projects.

Financial Performance

In addition to the monitoring agency report, Kingfa Science & Technology (India) Limited has released its unaudited financial results for the quarter and half-year ended September 30, 2025. Key highlights include:

Total income for Q2 FY2026 stood at Rs 46,848.01 lakhs, compared to Rs 41,937.07 lakhs in the same quarter of the previous year.
Net profit for the quarter was Rs 4,114.38 lakhs, up from Rs 3,725.77 lakhs in Q2 FY2025.
Earnings per share (EPS) for Q2 FY2026 was Rs 30.36, compared to Rs 30.76 in Q2 FY2025.

The company's board of directors also approved changes in the composition of certain board committees and amendments to the Related Party Transactions Policy in line with recent SEBI regulations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+6.81%	+4.19%	-4.35%	+31.59%	+21.76%	+635.50%

Kingfa Science & Technology (India) Limited has announced its financial results for the second quarter ended September 30, 2025, showing improvements in both revenue and profitability.

Financial Highlights

The company reported a net profit of 411.44 crore rupees for Q2, representing a 10.4% increase from 372.58 crore rupees in the same period last year. Revenue from operations rose to 4,656.89 crore rupees, up 11.5% from 4,183.28 crore rupees year-over-year.

Particulars (in crore rupees)	Q2 FY2026	Q2 FY2025	YoY Change
Revenue from Operations	4,656.89	4,183.28	+11.5%
Net Profit	411.44	372.58	+10.4%
EBITDA	606.00	558.00	+8.6%
EBITDA Margin	13.01%	13.35%	-34 bps

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to 606.00 crore rupees from 558.00 crore rupees in the previous year, showing a growth of 8.6%. However, the EBITDA margin saw a slight decrease to 13.01% from 13.35% in the corresponding quarter of the previous year.

Operational Performance

Kingfa Science & Technology, which manufactures modified thermoplastic compounds, has maintained its position as a single reportable segment in accordance with Ind AS 108. The company's performance reflects the ongoing demand for its products in various industries.

Balance Sheet Strength

As of September 30, 2025, Kingfa Science & Technology reported total assets of 17,346.07 crore rupees, a significant increase from 11,556.18 crore rupees as of March 31, 2025. This growth in assets indicates the company's expansion and investment activities.

Cash Flow and Liquidity

The company's cash and cash equivalents stood at 1,692.48 crore rupees at the end of the quarter, showing a substantial improvement in liquidity compared to 234.80 crore rupees at the end of the previous fiscal year.

Management Commentary

The company's board of directors approved the unaudited financial results in their meeting held on November 12, 2025. The results were reviewed by the Audit Committee before being presented to the board.

Corporate Governance Update

In the same board meeting, Kingfa Science & Technology also approved changes to the composition of certain board committees and amended its Related Party Transactions Policy to align with recent regulatory changes.

The company continues to focus on its core business of modified thermoplastic compounds, with the financial results indicating resilience in a competitive market environment.