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 has issued a comprehensive press release detailing its strategic restructuring initiatives, including the discontinuation of Canadian operations and planned restructuring of French subsidiaries. The company's Board of Directors approved these significant decisions as part of a broader strategy to simplify global structure and enhance operational efficiency.

Exit from Canadian Operations

Pursuant to Board approval granted on December 19, 2025, the company has discontinued operations of its Canada-based subsidiaries. The affected entities include Centum E&S (Centum Equipment's ET Systems), Canada and Centum T&S (Centum Technologies ET Solutions), Canada.

Centum has completed measures to stop further losses from these entities and has initiated closure-related actions in compliance with applicable local laws. This exit reflects disciplined capital allocation and a clear focus on value-accretive growth.

French Subsidiary Restructuring Plans

The Board has approved initiating actions relating to Centum T&S Group Société Anonyme (S.A.), France, and its underlying subsidiaries. The company will evaluate multiple restructuring options including divestment, sale or transfer of businesses, and judicial reorganisation (redressement judiciaire), in accordance with applicable local regulations.

In line with prudent accounting practices, the company has already recognised impairment of goodwill and certain intangible assets relating to this subsidiary in its consolidated financial statements. The investment carrying value has been fully provided for in the standalone financial statements, with these provisions disclosed as exceptional items in the financial results for the quarter and nine months ended December 31, 2025.

Strategic Focus and Growth Areas

Despite these restructuring actions, Centum Electronics continues to experience robust growth in its core ESDM business in India, particularly across the aerospace, defence, industrial, and medical electronics segments. The company remains focused on high-reliability electronics products and services, moving up the value chain in defence, aerospace, and space systems with differentiated solutions in radar, satellite, and electronic warfare areas.

Management Commentary

Commenting on the development, Nikhil Mallavarapu, Joint Managing Director, Centum Electronics Limited, said: "These actions reflect a clear and deliberate strategy to simplify our global structure and sharpen our focus on core, high-value ESDM opportunities. By decisively addressing non-performing overseas operations, we are strengthening our balance sheet, improving return metrics and freeing up capital to invest in areas where we see strong, long-term growth potential."

He further added: "India's high-reliability electronics markets present a compelling multi-year opportunity. With a streamlined portfolio, strong fundamentals and disciplined execution, Centum is well positioned to scale its business, move up the value chain and deliver sustainable value to customers and shareholders."

Investor Engagement and Financial Information

The Results and Earnings Presentation for the quarter ended December 31, 2025, prepared under Ind AS, along with segment information, are available in the Investor Relations section of the company's website. The earnings conference call will be held on Monday, February 16, 2026 at 11:00 AM (IST) to discuss the company's performance.

Management believes that adequate provisions have been made and does not expect any further material financial impact beyond what has already been recognised. These initiatives collectively reinforce Centum's ambition to be a trusted long-term partner to global and domestic customers while creating sustainable value for shareholders.