Kiri Industries Limited has submitted a monitoring agency report from CRISIL Ratings, detailing the utilization of proceeds from its recent preferential issue of convertible warrants. The report, covering the quarter ended September 30, 2025, provides insights into how the company has allocated the funds raised.

Preferential Issue Details

Kiri Industries conducted a preferential issue from September 27 to October 15, 2024, raising a total of Rs 492.02 crores. Out of this, the company has received Rs 398.88 crores to date.

Fund Utilization

The company has utilized Rs 396.25 crores of the received funds across five key objectives:

Remaining Funds

The balance of Rs 2.63 crores from the received funds is currently held in fixed deposits.

Future Proceeds

An additional Rs 93.14 crores is expected from warrant holders, who have 18 months from the allotment date to convert their warrants into equity shares.

Monitoring Agency Assessment

CRISIL Ratings, acting as the monitoring agency, reported no deviations from the disclosed objectives for fund utilization. This indicates that Kiri Industries is adhering to its stated plans for the preferential issue proceeds.

Implications

The strategic allocation of funds across various objectives suggests that Kiri Industries is focusing on strengthening its financial position, managing working capital, addressing legal matters, and supporting group companies. The substantial allocation towards debt repayment and working capital requirements, in particular, may indicate efforts to improve the company's operational efficiency and financial flexibility.

Investors and stakeholders may view this transparent reporting positively, as it demonstrates the company's commitment to utilizing the raised funds in line with its stated objectives.

Kiri Industries Limited (KIL), a leading manufacturer of dyes and intermediates, has released its financial results for the second quarter of fiscal year 2026, showcasing resilience in a challenging market environment while advancing its strategic diversification into copper smelting and fertilizer production.

Q2 FY26 Financial Highlights

KIL reported consolidated revenue of Rs. 213.44 crore for Q2 FY26, marking a 6% sequential growth and a 23% year-over-year increase. The company's standalone revenue stood at Rs. 194.62 crore, up 8% quarter-on-quarter and 34% year-over-year.

The company's EBITDA for the quarter was impacted by significant non-recurring legal and professional costs associated with the ongoing DyStar matter, resulting in a negative EBITDA of Rs. 13.05 crore.

Operational Performance

Despite global macroeconomic uncertainties and input-cost fluctuations, Kiri Industries maintained operational discipline and strategic focus. The company optimized its product mix in the specialty chemicals segment and implemented cost-rationalization measures.

The segment contribution mix for Q2 FY26 reflects an increasing share from Dyes Intermediates and Basic Chemicals:

DyStar Case Update

The company provided an update on the DyStar case, noting that the purchaser failed to fulfill conditions precedent for the transaction by the extended long-stop date of November 3, 2025. The receiver has further extended the long-stop date to December 1, 2025, subject to an additional deposit payment.

Strategic Expansion: Copper and Fertilizer Integration

Kiri Industries is advancing its diversification strategy through its subsidiary, Indo Asia Copper Limited (IACL). The company is developing an integrated copper smelter and fertilizer complex in Jafrabad, Gujarat, with the following key features:

1. Copper Project:

   • 5 Lakh TPA copper smelter
   • Products: Copper cathodes, wire rods, tubes, and precious metals

2. Fertilizer Project:

   • Utilizes sulphuric acid by-product from copper smelting
   • Products: Phosphoric acid, DAP, and various NPK fertilizers

The project, with an estimated cost of Rs. 10,661 crore, is progressing steadily:

• Land acquisition partially completed
• Environmental clearances obtained
• Basic engineering completed; detailed engineering in progress
• Key machinery orders placed
• Construction phase initiated

This strategic expansion aligns with India's self-reliance agenda and positions Kiri Industries to capture growth opportunities in both the copper and fertilizer sectors.

Outlook

Manish Kiri, Managing Director of Kiri Industries, commented on the results: "Despite temporary headwinds, our core business remains resilient. We are excited about the progress in our copper and fertilizer project, which represents a significant step in our diversification strategy. This expansion will not only create new revenue streams but also contribute to India's self-reliance in critical sectors."

Kiri Industries remains focused on disciplined execution, strategic diversification, and long-term value creation, guided by principles of resilience, responsibility, and sustainable growth.

Note: This article contains forward-looking statements based on current expectations and projections. Actual results may differ materially from those anticipated.