JK Tyre & Industries Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, detailing the utilization of proceeds from its Qualified Institutions Placement (QIP). The report, prepared by India Ratings & Research Private Limited as the appointed monitoring agency, confirms compliance with regulatory requirements under SEBI regulations.

QIP Issue Details and Progress

The company's QIP, conducted from December 19, 2023 to December 22, 2023, raised ₹500.00 crores through the issuance of 1,44,92,749 equity shares at ₹345.00 per share. The monitoring agency reported no deviation from the stated objects of the issue during the quarter.

Fund Utilization Breakdown

The company allocated the QIP proceeds across three primary objectives. Capital expenditure for manufacturing facility expansion and development received the largest allocation, with ₹350.00 crores earmarked for this purpose. During the quarter, ₹74.24 crores was utilized for capital expenditure, bringing total utilization in this category to ₹292.17 crores, leaving ₹57.83 crores unutilized.

General Corporate Purpose Utilization

For general corporate purposes, the company utilized ₹37.11 crores during the quarter specifically for reducing working capital borrowings. The monitoring agency noted that while debt was reduced, the sanctioned working capital limits remained unchanged. The allocation for general corporate purposes increased from the original ₹116.10 crores to ₹116.60 crores due to savings in QIP issue expenses.

Deployment of Unutilized Funds

The company has invested unutilized QIP proceeds totaling ₹163.28 crores in fixed deposits with HDFC Bank, generating returns between 5.90% and 7.76%. The investments are structured across multiple fixed deposits with varying maturity dates in January 2026.

Implementation Timeline

The monitoring agency confirmed that all objects of the QIP are progressing according to the original timeline, with completion expected by the end of March 2026. No delays have been reported in the implementation of any stated objectives. The company maintains its commitment to utilize the remaining funds for working capital requirements and complete the capital expenditure program within the stipulated timeframe.

The monitoring agency report emphasizes that all utilization remains in accordance with disclosures made in the placement document, with no material deviations observed. The systematic deployment of funds across the stated objectives demonstrates the company's adherence to its capital allocation strategy as outlined during the QIP issuance.

JK Tyre & Industries Ltd has announced board approval for a major capacity expansion initiative worth Rs 1,130 crore, targeting increased production of commercial and passenger vehicle tyres. The board meeting, concluded on February 6th, 2026, approved the expansion under SEBI Regulation 30 disclosure requirements.

Expansion Details and Investment

The capacity expansion encompasses three key tyre categories across multiple manufacturing facilities. The company plans to increase production of Truck & Bus Radial (TBR) tyres, All Steel Light Truck Radial (ASLTR) tyres, and Passenger Car Radial (PCR) tyres by 6.5%.

Manufacturing Facilities and Product Focus

The expansion will be implemented across three strategic locations to enhance the company's manufacturing footprint:

• Vikrant Tyre Plant (VTP): TBR and ASLTR tyre production expansion
• Laksar Tyre Plant (LTP): TBR tyre manufacturing enhancement
• Banmore Tyre Plant (BTP): PCR tyre capacity addition

The current capacity of 204 lakh tyres per annum includes capacity additions already under implementation, indicating the company's ongoing commitment to scaling operations.

Financing Strategy

The Rs 1,130 crore investment will be funded through a combination of internal accruals and debt financing. This financing approach reflects the company's balanced capital structure strategy while supporting significant growth investments.

Market Rationale and Industry Outlook

The company cited robust demand across tyre categories in the Indian market as the primary driver for this expansion. The strategic initiative aims to increase JK Tyre & Industries' market presence in the automotive tyre sector, capitalizing on favorable industry conditions.

With capacity utilization already exceeding 90%, the expansion addresses immediate market demand while positioning the company for sustained growth in the commercial and passenger vehicle segments.