Centum Electronics Limited has submitted its quarterly monitoring agency report for the utilization of proceeds raised through its Qualified Institutional Placement (QIP) for the quarter ended December 31, 2025. The report, prepared by CRISIL Limited as the monitoring agency, was filed in compliance with Regulation 173A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

QIP Issue Details and Proceeds

The company conducted its QIP during March 10-13, 2025, raising gross proceeds of Rs 2,100.00 million with net proceeds of Rs 2,006.80 million. The net proceeds were revised upward from the originally estimated Rs 1,999.47 million due to actual issue expenses being Rs 7.33 million lower than estimated.

Utilization Progress Across Objects

The monitoring report reveals the current status of fund utilization across the three stated objects of the QIP issue:

Deployment of Unutilized Funds

The company has deployed the unutilized proceeds of Rs 688.00 million in fixed deposits across multiple banks to ensure capital preservation and earn returns. The deployment strategy shows diversification across reputable banking institutions:

The total market value of these investments as of December 31, 2025, stood at Rs 697.82 million, including accrued interest of Rs 9.82 million.

Compliance and Monitoring Status

The monitoring agency report confirms no deviation from the disclosed objects of the issue. Key compliance highlights include:

• All utilization remains aligned with offer document disclosures
• No material deviations requiring shareholder approval
• No changes in means of finance for disclosed objects
• General corporate purposes utilization remains within the 25% limit of gross proceeds

During the reported quarter, the company utilized Rs 68.12 million toward capital expenditure for purchasing new equipment and machinery. The Board of Directors approved modifications in vendor arrangements and equipment purchases on February 14, 2026, while maintaining alignment with the original object of capital expenditure.

Regulatory Framework

The report was prepared in accordance with SEBI regulations and certified by M/s M A Narasimhan & Company, Chartered Accountants. CRISIL Limited, serving as the monitoring agency, confirmed that the report provides an objective view of proceeds utilization based on information provided by the issuer and reliable sources, though it does not constitute an audit or independent verification of the information provided.

Centum Electronics Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, reporting significant losses due to exceptional items related to subsidiary restructuring and operational exits. The company's Board of Directors approved the quarterly results and several strategic decisions during their meeting held on February 14, 2026.

Q3FY26 Financial Performance

The company reported a standalone net loss of Rs 1,777.94 million for the quarter ended December 31, 2025, primarily driven by exceptional items worth Rs 2,041.83 million. Revenue from operations increased to Rs 2,381.59 million compared to Rs 1,870.95 million in the corresponding quarter of the previous year.

For the nine months ended December 31, 2025, the company reported revenue from operations of Rs 6,280.00 million compared to Rs 5,010.15 million in the corresponding period of the previous year, representing a growth of 25.36%.

Major Restructuring Decisions

The Board approved significant restructuring initiatives affecting the company's international operations. The company decided to explore options for restructuring its material subsidiary, Centum T&S Group Société Anonyme (S.A.), France, including participation in court-supervised processes, sale or transfer of shares/investments, and divestment of business/assets.

Board Appointments and Corporate Actions

The Board approved the appointment of Mr. Ramesh Ramadurai (DIN: 07109252) as an Additional Director in the capacity of Independent Director for a term of five years, effective February 14, 2026, subject to shareholder approval. Mr. Ramadurai brings over 30 years of experience with 3M and currently serves as Managing Director of 3M India.

Exceptional Items Impact

The substantial exceptional items of Rs 2,041.83 million in Q3FY26 comprised provisions for investment in Centum T&S Group Société Anonyme (S.A.) amounting to Rs 1,537.83 million and provisions for trade receivables and advances to Canadian subsidiaries worth Rs 504.00 million. These provisions reflect the company's decision to discontinue operations in Canada and restructure its French operations.

Regulatory Compliance and Future Outlook

The financial results were prepared in compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's earnings conference call is scheduled for February 16, 2026 at 11:00 AM IST, which will provide additional insights into the quarterly performance and strategic initiatives.

The restructuring actions are part of Centum's broader strategy to simplify its global structure, enhance operational efficiency, and focus on high-margin areas in the Indian ESDM market, particularly in aerospace, defense, industrial, and medical electronics segments.