Himadri Speciality Chemical has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, prepared by ICRA Limited as the appointed monitoring agency, provides details on the utilization of proceeds from the company's preferential issue of warrants.

Issue Details and Proceeds

The preferential issue comprised warrants fully convertible into equity shares, with a total issue size of ₹341.82 crores. The issue involved 1,08,17,000 warrants priced at ₹316 each, generating net proceeds of ₹341.82 crores for the company.

Fund Utilization Progress

As of December 31, 2025, Himadri Speciality Chemical has utilized ₹151.40 crores from the total proceeds. The utilization is distributed across two primary categories as outlined in the original offer document.

During Q3 FY26, the company utilized ₹55.36 crores, primarily for capital expenditure projects. The capital expenditure allocation includes funding for new greenfield projects and brownfield expansion in existing units, either directly by the company or through its subsidiaries, joint ventures, or associates.

Deployment of Unutilized Funds

The company has deployed its unutilized proceeds of ₹190.41 crores across various financial instruments to optimize returns while maintaining liquidity. The majority of these funds, totaling ₹190.03 crores, are invested in mutual funds across multiple schemes.

Key Mutual Fund Investments:

• Mirae Asset Low Duration Fund: ₹25.00 crores
• Kotak Low Duration Fund: ₹25.00 crores
• DSP Ultra Short Fund: ₹20.00 crores
• Nippon Low Duration Fund: ₹20.00 crores
• Axis Treasury Advantage Fund: ₹20.00 crores
• Bandhan Ultra Short-Term Fund: ₹20.00 crores

The remaining ₹0.38 crores is maintained in the company's cash credit account for operational requirements.

Compliance and Monitoring

ICRA Limited, serving as the monitoring agency since March 15, 2024, confirmed that the utilization of proceeds aligns with the objects disclosed in the offer document. The report indicates no deviation from the stated purposes, with all expenditures being in line with the company's strategic objectives.

The monitoring agency noted that ₹0.47 crores was utilized as reimbursement for expenditure previously funded through internal accruals. The company maintains compliance with all regulatory requirements, with the report being made available on the company's website at www.himadri.com as mandated by SEBI regulations.

General Corporate Purpose Utilization

The entire amount of ₹82.87 crores allocated for general corporate purposes has been utilized for funding working capital requirements. No additional amount was deployed for general corporate purposes during Q3 FY26, indicating the company's focused approach to capital allocation.

The company's promoters include Mr. Shyam Sundar Choudhary, Mr. Anurag Choudhary, and Mr. Amit Choudhary, with the business operating in the specialty chemicals sector. The monitoring agency confirmed that there are no unfavorable events affecting the viability of the stated objects and no material information that could impact investor decision-making.

Himadri Speciality Chemical Limited delivered impressive financial results for Q3FY26, demonstrating strong operational efficiency and profitability growth despite challenging market conditions. The specialty chemicals manufacturer reported robust performance across key financial metrics for the quarter ended December 31, 2025.

Strong Quarterly Performance

The company's Q3FY26 results showcase significant improvement in profitability metrics. Net profit after tax surged 37.10% year-on-year to ₹194.58 crores from ₹141.94 crores in Q3FY25, reflecting enhanced operational efficiency and cost management.

Revenue from operations remained virtually flat at ₹1,132.97 crores compared to ₹1,131.81 crores in the corresponding quarter of the previous year. However, the company achieved significant margin expansion, with net profit margin improving to 17.17% from 12.54% in Q3FY25.

Nine-Month Performance Overview

For the nine months ended December 31, 2025, the company maintained strong profitability growth despite revenue headwinds. Net profit increased 41.10% to ₹564.00 crores from ₹399.83 crores in the corresponding period of FY25.

The revenue decline of 4.70% to ₹3,303.80 crores was offset by substantial improvement in operating margins, which expanded to 21.97% from 17.63% in the previous year.

Segment-wise Performance

The company operates through two primary business segments: carbon materials and chemicals, and power generation.

Carbon Materials and Chemicals

This core segment generated revenue of ₹1,128.87 crores in Q3FY26 compared to ₹1,125.65 crores in Q3FY25. Segment profit improved to ₹215.59 crores from ₹184.65 crores, reflecting better operational efficiency.

Power Segment

The power segment reported revenue of ₹21.52 crores versus ₹28.05 crores in Q3FY25. Segment profit declined to ₹17.79 crores from ₹25.19 crores in the corresponding quarter.

Major Corporate Developments

During Q3FY26, the company completed significant warrant conversions, strengthening its capital structure. The company converted 10,349,000 warrants into fully paid-up equity shares upon receipt of ₹237.00 per warrant, totaling ₹2,452.61 crores. This increased the paid-up equity share capital from 494,169,950 shares to 504,518,950 shares.

Operational Highlights

The company achieved several operational milestones during the quarter:

Financial Health Indicators

Key financial ratios demonstrate the company's robust financial position:

The company's balance sheet remains strong with a current ratio of 2.43 times and manageable debt levels. Net worth increased significantly to ₹4,436.92 crores from ₹3,489.59 crores in the previous year, primarily due to retained earnings and warrant conversions.