Ellenbarrie Industrial Gases Limited has made significant strides in utilizing the proceeds from its Initial Public Offering (IPO), according to the company's latest monitoring agency report for the quarter ended September 30, 2025. The report, issued by CRISIL Ratings Limited, reveals that the company has deployed 67% of the net proceeds, marking substantial progress in its expansion and debt reduction plans.

Key Highlights of IPO Proceeds Utilization

• Total Utilization: Out of the total net proceeds of Rs 3,704.51 million, Ellenbarrie Industrial Gases has utilized Rs 2,479.76 million, leaving Rs 1,224.75 million unutilized.
• Debt Repayment: The company has fully repaid Rs 2,100.00 million in outstanding borrowings, as planned in the IPO objectives.
• Expansion Project: For the air separation unit project at the Uluberia-II plant, Rs 234.53 million has been spent on civil work, installation, and machinery purchases out of the allocated Rs 1,045.00 million.
• General Corporate Purposes: Rs 145.23 million has been used for various corporate purposes, including IT needs, plant maintenance, brand building, and the acquisition of a Bengaluru entity.

Breakdown of Fund Utilization

Additional Details

• Issue Expenses: Rs 114.71 million has been utilized for payments to merchant bankers and legal counsels.
• Unutilized Funds: The remaining Rs 1,405.53 million is deployed in fixed deposits and bank accounts, earning returns between 6.85% to 7.00%.
• Compliance: The monitoring agency found no deviations from disclosed objectives and confirmed that proceeds were utilized as per the offer document.

Strategic Initiatives

The company's utilization of funds for general corporate purposes includes several strategic initiatives:

1. Strengthening marketing capabilities (Rs 6.32 million)
2. Meeting IT needs and plant maintenance (Rs 26.05 million)
3. Brand building exercises (Rs 0.73 million)
4. Acquiring assets for serving customers (Rs 59.10 million)
5. Strategic acquisition of an entity in Bengaluru (Rs 53.03 million)

Future Outlook

Ellenbarrie Industrial Gases appears to be on track with its expansion plans and financial management strategies. The full repayment of outstanding borrowings is expected to strengthen the company's balance sheet, while the ongoing investments in the air separation unit project and other strategic initiatives are likely to support future growth.

The company's disciplined approach to fund utilization, as evidenced by the monitoring agency report, suggests a focus on long-term value creation and operational efficiency. As Ellenbarrie Industrial Gases continues to deploy the remaining IPO proceeds, investors and industry observers will be keen to see how these investments translate into market expansion and financial performance in the coming quarters.

Note: All financial figures are based on the monitoring agency report dated November 11, 2025, for the quarter ended September 30, 2025.

Ellenbarrie Industrial Gases Limited , a key player in the industrial gases sector, has reported a mixed set of financial results for the second quarter of the fiscal year 2025-26. The company saw an increase in net profit despite a decline in revenue, showcasing improved operational efficiency.

Financial Highlights

Ellenbarrie Industrial Gases reported a net profit of 367.17 crore rupees for the quarter ended September 30, 2025, marking a significant increase of 23.83% compared to 296.52 crore rupees in the same period last year. This growth in profit came despite a 5.84% year-on-year decline in revenue from operations, which stood at 891.73 crore rupees for Q2 FY2025-26.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter decreased to 334.80 crore rupees from 362.20 crore rupees in the corresponding quarter of the previous year. Consequently, the EBITDA margin compressed by 71 basis points to 37.54% from 38.25% year-over-year.

Segment-wise Performance

Ellenbarrie Industrial Gases operates in two primary segments:

1. Gases, related products & services
2. Project Engineering

The gases segment, which includes the manufacture and supply of industrial gases and by-products, continued to be the major revenue driver. It contributed 879.33 crore rupees to the total revenue in Q2 FY2025-26, compared to 797.00 crore rupees in the same quarter last year.

The project engineering segment, which involves design, engineering, supply, installation, and commissioning of air separation units (ASUs), saw a significant decline in revenue. It contributed 12.40 crore rupees in Q2 FY2025-26, down from 150.08 crore rupees in Q2 FY2024-25.

Balance Sheet and Cash Flow

As of September 30, 2025, Ellenbarrie Industrial Gases reported total assets of 11,460.40 crore rupees, an increase from 8,459.66 crore rupees as of March 31, 2025. The company's equity share capital stood at 281.87 crore rupees, with a face value of 2 rupees per share.

The company generated net cash of 659.23 crore rupees from operating activities during the six months ended September 30, 2025, demonstrating strong operational cash flow.

Recent Developments

Ellenbarrie Industrial Gases completed its Initial Public Offer (IPO) during the quarter ended September 30, 2025. The IPO comprised a fresh issue of 10,000,000 equity shares and an offer for sale of 11,313,130 equity shares by selling shareholders, with shares listed on the National Stock Exchange of India Limited and BSE Limited on July 1, 2025.

The company has also acquired the manufacturing facilities of M/s Truair Industrial Gases in Bengaluru for a consideration of 54.00 crore rupees, which may contribute to future growth and expansion.

Despite the challenges in revenue growth, Ellenbarrie Industrial Gases' improved profitability and strategic initiatives position it for potential growth in the coming quarters.