Valiant Laboratories Limited has announced that the funds raised through its rights issue have been appropriately utilized, according to the monitoring agency report for the quarter ended September 30, 2025. The report, prepared by India Ratings and Research Private Limited, confirms no deviation from the stated objectives of the rights issue.

Rights Issue Details

The company raised funds through a rights issue of 1,08,62,500 equity shares at INR 75 per share, with a face value of INR 10 each. The total amount raised was INR 8,146.88 lakhs.

Fund Utilization

The proceeds from the rights issue were utilized as follows:

Unutilized Funds

As of the reporting date, INR 270.00 lakhs of the raised funds remain unutilized. These funds have been deployed in fixed deposits with banks.

Corporate Governance

The monitoring agency report was reviewed by the Audit Committee and Board of Directors of Valiant Laboratories Limited, demonstrating the company's commitment to transparency and proper fund management.

General Corporate Purposes Breakdown

The funds allocated for general corporate purposes were utilized as follows:

It's worth noting that INR 880.83 lakhs of the vendor payments were made to Valiant Organics Limited, the ultimate holding company, for the purchase of raw materials.

Conclusion

The monitoring agency report confirms that Valiant Laboratories Limited has adhered to the stated objectives of its rights issue, with no deviations reported. This demonstrates the company's commitment to responsible financial management and transparency in its operations.

Valiant Laboratories Limited (VLL) has reported a significant turnaround in its financial performance for the second quarter of fiscal year 2026. The company, which operates in the chemicals manufacturing sector, has swung from a loss to a profit, demonstrating robust growth in revenue and improved operational efficiency.

Financial Highlights

For the quarter ended September 30, 2025, VLL reported the following standalone results:

The company's revenue from operations more than doubled, showing a significant year-over-year growth of 114.1%. This substantial increase in revenue contributed to the company's ability to turn its previous year's loss into a profit.

Profitability Improvement

VLL has shown a remarkable improvement in its bottom line, reporting a net profit of Rs 270.37 lakh in Q2 FY2026, compared to a net loss of Rs 609.05 lakh in the same quarter of the previous year. This turnaround indicates the company's successful efforts in cost management and operational efficiency.

Half-Yearly Performance

For the half-year ended September 30, 2025, VLL continued its positive trajectory:

• Revenue from operations stood at Rs 9,699.49 lakh
• Net profit reached Rs 161.32 lakh, compared to a loss of Rs 1,016.07 lakh in the corresponding period last year

Consolidated Results

The consolidated financial results, which include the performance of VLL's subsidiary Valiant Advanced Sciences Private Limited, also reflected a similar improvement:

• Q2 FY2026 consolidated net profit: Rs 270.52 lakh
• Q2 FY2025 consolidated net loss: Rs 607.02 lakh

Market Implications

The turnaround in VLL's financial performance may have positive implications for investor sentiment. The company's ability to significantly increase revenue and achieve profitability in a challenging economic environment could be viewed favorably by the market.

Conclusion

Valiant Laboratories' strong Q2 results demonstrate a significant improvement in its financial health. The company's ability to turn losses into profits and substantially increase its revenue positions it well in the chemicals manufacturing sector. However, as with any investment, stakeholders should consider broader market conditions and sector-specific challenges that may impact future performance.