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 has delivered impressive financial performance for the third quarter and nine months ended December 31, 2025, showcasing strong operational efficiency and growth momentum across its business segments.

Financial Performance Highlights

The company's standalone financial results demonstrate robust growth across key metrics. Revenue from operations for Q3FY26 reached ₹1,132.97 crores, maintaining steady performance compared to ₹1,131.81 crores in the corresponding quarter of the previous year.

Nine-Month Performance Shows Strong Growth

The nine-month performance reveals the company's sustained growth trajectory. Total income for the nine months ended December 31, 2025, reached ₹3,418.19 crores compared to ₹3,504.32 crores in the previous year.

Segment-wise Performance Analysis

The company operates through two primary business segments: carbon materials and chemicals, and power generation. The carbon materials and chemicals segment contributed ₹1,128.87 crores to revenue in Q3FY26, while the power segment generated ₹21.52 crores.

Key Corporate Developments

During Q3FY26, the company successfully completed the conversion of warrants into equity shares. The company converted 10,349,000 warrants at ₹237 per warrant, increasing the paid-up equity share capital from 494,169,950 shares to 504,518,950 shares of face value ₹1 each.

The company also commenced trial production of its specialty carbon black expansion project at the Mahistikry Plant in December 2025. Commercial production is tentatively scheduled to begin by February 2026, which is expected to further strengthen the company's market position.

Financial Position and Ratios

The company maintains a strong financial position with improved key ratios. The debt-equity ratio stands at 0.18 times as of December 31, 2025, compared to 0.15 times in the previous year. The current ratio improved to 2.43 times, indicating strong liquidity position.

The company also issued commercial papers worth ₹300 crores during the quarter, with ₹100 crores due for redemption on March 4, 2026, and ₹200 crores due on March 26, 2026, both rated A1+ by ICRA.