Kinetic Engineering Limited has filed its monitoring agency report for the quarter ended December 31, 2025, with BSE Limited, providing comprehensive details about the utilization of proceeds from its preferential issue. The report, prepared by CARE Ratings Limited as the monitoring agency, covers the company's Rs.166.84 crore preferential issue under SEBI regulations.

Issue Details and Structure

The company's preferential issue involved offering 1,03,56,725 fully convertible warrants to promoter and non-promoter groups at Rs.171 per warrant. However, the issue experienced undersubscription, with only 97,56,725 warrants receiving subscription, reducing the total issue size from the originally planned Rs.177.10 crore to Rs.166.84 crore.

Fund Utilization Progress

The monitoring agency report reveals that Rs.55.28 crore has been utilized by the end of Q3FY26, with Rs.10.82 crore utilized during the quarter. The company has received Rs.61.84 crore in total till December 31, 2025, through multiple tranches starting from March 2025.

Key Utilization Areas

The largest component of fund utilization has been the investment in subsidiary company Kinetic Watts and Volts Limited, where Rs.29.00 crore has been deployed through rights issue. The preference share redemption object has been fully completed with Rs.19.64 crore utilized. Payment of overdue liabilities shows substantial progress with Rs.4.82 crore utilized out of the allocated Rs.5.36 crore.

Working capital requirements saw Rs.1.82 crore utilization during the quarter, specifically for vendor payments. However, no funds were utilized for capex including solar projects or general corporate purposes during Q3FY26.

Deployment of Unutilized Proceeds

The company has maintained Rs.6.56 crore of unutilized proceeds in fixed deposits with Saraswat Co-op Bank, a scheduled bank under RBI regulations. These deposits are structured across three FDRs with varying maturity dates in January 2026.

Compliance and Monitoring Status

CARE Ratings Limited confirmed no deviations from the disclosed objects of the preferential issue. The monitoring agency noted that utilization of gross proceeds remains in line with the stated objects. The undersubscription impact was addressed through board approval for revised cost allocation on May 13, 2025.

The report indicates no major deviations from earlier monitoring reports and confirms that the means of finance changed only due to the undersubscription issue. All fund receipts and utilizations have been completed within the prescribed timelines, with some tranches completed ahead of schedule.

Kinetic Engineering Limited has announced its financial results for the third quarter, showing improved operational efficiency with a significant turnaround in EBITDA performance. The company's standalone results reveal strong operational improvements despite challenges in bottom-line profitability.

Financial Performance Overview

The company reported standalone revenue of ₹358M for the quarter, representing substantial growth from ₹289M in the corresponding period of the previous year. More notably, the company achieved a remarkable turnaround in EBITDA performance, posting a gain of ₹22M compared to a loss of ₹13M in the same quarter last year. This improvement translated to an EBITDA margin of 6.16% for the current quarter.

Operational Efficiency Gains

The significant improvement in EBITDA performance indicates enhanced operational efficiency and better cost management by the company. The turnaround from a ₹13M EBITDA loss to a ₹22M gain represents a positive swing of ₹35M, demonstrating the company's ability to optimize its operations despite market challenges.

Board Meeting and Results Approval

These results were considered and approved during the board meeting held on February 3, 2026, as previously scheduled. The meeting focused on reviewing the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

Regulatory Compliance

The results announcement follows the company's earlier notification to stock exchanges about the board meeting, made in accordance with Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The trading window restrictions that were implemented from January 1, 2026, for directors, key managerial personnel, designated employees, and connected persons, have now been lifted following the results disclosure.