IKIO Technologies Limited has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations. The report provides a comprehensive overview of the utilization of proceeds from the company's Initial Public Offer (IPO) conducted in June 2023.

IPO Proceeds Utilization Status

The monitoring agency report, prepared by CRISIL Ratings Limited, reveals that IKIO Technologies utilized Rs 163.69 million during the third quarter of FY26. The company's cumulative utilization stands at Rs 2,721.77 million from the total revised net proceeds of Rs 3,261.41 million, leaving Rs 539.64 million unutilized.

Object-wise Fund Deployment

The IPO proceeds were allocated across three primary objectives. The repayment of borrowings worth Rs 500.00 million has been fully completed during the quarter ended June 30, 2023. For investment in wholly owned subsidiary IKIO Solutions Private Limited, the company has utilized Rs 1,583.99 million out of the allocated Rs 2,123.12 million, leaving Rs 539.13 million pending. General corporate purposes have seen utilization of Rs 637.78 million against the allocated Rs 638.29 million.

Investment of Unutilized Funds

The company has deployed the unutilized proceeds in fixed deposits with HDFC Bank, earning returns ranging from 6.15% to 7.55%. The total amount invested in various fixed deposits is Rs 537.63 million, which has generated earnings of Rs 25.29 million as of December 31, 2025. The market value of these investments stands at Rs 563.42 million.

Regulatory Compliance and Approvals

The monitoring agency confirmed that all government and statutory approvals related to the objects have been obtained. These include approvals from Noida Authority for building layout, consent to establish, electrical load sanction from UP Electricity Board, and factory license from the Industrial Department. The company has also obtained necessary approvals for its leased premises at Plot No-6, Sector-156, Gautam Buddha Nagar, where commercial production commenced on March 20, 2024.

Implementation Timeline

The report indicates a delay in the complete utilization of funds allocated for the subsidiary investment, which was originally scheduled for completion by Fiscal 2025. The company has confirmed that the remaining net proceeds will be utilized in subsequent periods in accordance with applicable laws on or before March 31, 2027. The delay is attributed to procurement challenges, operationalization of assets, and obtaining necessary approvals and licenses.

Monitoring Framework

CRISIL Ratings Limited continues to serve as the monitoring agency, appointed to oversee the utilization of IPO proceeds as per the Monitoring Agency Agreement dated April 18, 2023. The report confirms no deviations from the disclosed objects and no material changes in the means of finance for the stated objectives.

IKIO Technologies Limited announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating solid operational performance across both consolidated and standalone metrics. The Board of Directors approved the results at their meeting held on January 31, 2026, along with important leadership restructuring in subsidiary companies.

Strong Profitability and Margin Expansion

The company delivered impressive profitability metrics for Q3 FY26, with EBITDA reaching ₹218 million compared to ₹149 million in the corresponding quarter of the previous year. The EBITDA margin expanded significantly to 15.03% from 12.23% year-on-year, reflecting improved operational efficiency and cost management.

Consolidated Financial Performance

The company's consolidated operations showed strong performance for the third quarter of FY26. Total income reached ₹1,485.48 million, comprising revenue from operations of ₹1,455.88 million and other income of ₹29.60 million. Revenue from operations grew 19.81% year-on-year from ₹1.22 billion in Q3 FY25.

For the nine months ended December 31, 2025, consolidated revenue from operations stood at ₹4,299.41 million with net profit after tax of ₹240.32 million, compared to ₹3,735.92 million revenue and ₹330.89 million profit in the corresponding period of the previous year.

Standalone Financial Results

On a standalone basis, the company reported revenue from operations of ₹441.65 million for Q3 FY26, with total income of ₹479.79 million including other income of ₹38.14 million. Net profit after tax for the quarter was ₹37.01 million.

Leadership Changes in Subsidiaries

The Board approved significant leadership restructuring in the company's wholly owned material subsidiaries to ensure compliance with the Companies Act, 2013:

IPO Proceeds Utilization

The company provided an update on the utilization of its IPO proceeds totaling ₹3,261.41 million. As of December 31, 2025, ₹2,721.77 million has been utilized, with ₹539.64 million remaining for future deployment.