Sigachi Industries Limited announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, pursuant to SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The Board of Directors approved these results at their meeting held on February 14, 2026.

Board Meeting and Regulatory Compliance

The Board meeting was conducted through video conference, commencing at 12:00 Noon and concluding at 3:40 p.m. on February 14, 2026. The directors considered and approved the unaudited financial results along with limited review reports for both standalone and consolidated accounts under Regulation 33 of SEBI (LODR) Regulations, 2015.

Quarterly Financial Performance

For the quarter ended December 31, 2025, the company reported mixed financial performance compared to the previous year.

Nine Months Performance Analysis

The nine months period ended December 31, 2025 showed significant challenges for the company's financial performance.

Consolidated Financial Results

The consolidated results for the quarter ended December 31, 2025 showed revenue from operations of ₹11,720.75 lakhs compared to ₹13,941.68 lakhs in the corresponding quarter of the previous year. The consolidated net profit for the quarter was ₹162.19 lakhs versus ₹2,059.61 lakhs in Q3 FY25.

Fund Utilization Status

The company provided updates on the utilization of funds from its public issue proceeds:

Auditor's Review and Fire Incident Impact

Yelamanchi & Associates, Chartered Accountants, conducted the limited review of the financial results. The auditors noted a fire accident at the company's Pashamylaram factory premises in June 2025, which caused a loss of ₹117.07 crores. The company is currently managing the aftermath, including insurance reimbursements and compensation payments to affected parties.

Sigachi Industries Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, revealing significant challenges in the execution of its fundraising objectives. The comprehensive report, prepared by CARE Ratings Limited as the monitoring agency, provides detailed insights into the utilization of proceeds from the company's convertible share warrants issue.

Issue Overview and Fund Shortfall

The monitoring agency report covers the convertible share warrants issue worth Rs. 286.45 crore, conducted through private placement between July 27, 2023, and August 10, 2023. However, a significant shortfall has emerged, with Rs. 68.63 crore not received from warrant holders within the stipulated timeline.

Fund Utilization Progress

Despite the shortfall, the company has achieved complete utilization of the funds received across most objectives. The monitoring agency confirmed that Rs. 217.82 crore has been fully utilized by Q3FY26 across various strategic initiatives.

Timeline Deviations and Compliance Issues

The report identifies minor timeline deviations in fund utilization. While proceeds were originally required to be utilized by September 2025, an unutilized balance of Rs. 0.43 crore was subsequently utilized in Q3FY26 by November 19, 2025, representing a 19-day delay. Notably, the company did not obtain board approval for this timeline extension.

Additionally, the monitoring agency noted that funds of Rs. 16.75 crore transferred from the monitoring agency account to inter-corporate deposits were not received back within the stipulated period. However, internal accruals were utilized to meet the issue objectives.

Impact of Fire Incident

A major fire incident at the Hyderabad facility in Q1FY26 has significantly impacted the company's expansion plans. The monitoring agency specifically noted that this unfavorable event is expected to adversely affect planned capital expenditure and expansion initiatives, which are now unlikely to progress as originally envisaged.

Promoter Investment Shortfall

The report reveals that promoters have not fully met their investment commitments. Of the envisaged promoter investment of Rs. 135.72 crore, 41% of the funds (Rs. 56.77 crore) have not been infused by the promoters, representing a significant shortfall in the planned financing structure.

Regulatory Compliance

The monitoring agency confirmed that all government and statutory approvals related to existing plants in Gujarat are in place. However, Sigachi Industries may require fresh approvals for the manufacturing plant to be reconstructed in Hyderabad following the fire incident.

The report concludes that while there are no material deviations in terms of fund deployment objectives, the combination of warrant holder payment delays, fire incident impact, and promoter investment shortfall may materially affect investor decision-making going forward.