VRAJ Iron and Steel Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations. The report, prepared by CARE Ratings Limited as the appointed monitoring agency, provides a comprehensive overview of the company's IPO proceeds utilization and project implementation status.

IPO Proceeds Utilization Overview

The company raised ₹171 crore through its Initial Public Offering conducted from June 26, 2024, to June 28, 2024. As of December 31, 2025, the monitoring report shows substantial utilization of the raised funds across various objectives.

Project Implementation Status

The expansion project at the Bilaspur plant has shown mixed progress across different components. The company successfully completed the prepayment of term loan borrowings as planned, utilizing the full allocated amount of ₹70.00 crore.

Plant Completion Timeline

Implementation Challenges

The monitoring report highlights specific challenges affecting project timelines. The captive power plant experienced a 2-month delay beyond its January 2025 target, completing in March 2025 due to delayed supply from suppliers. The billet plant implementation faces more significant delays, with the exact number of delay days not ascertainable as the project remains ongoing.

According to the Board of Directors' comments in the report, the billet plant delays stem from two primary factors:

• Delayed supply from suppliers
• Heavy rainfall in the operational region

Financial Management

The company demonstrates efficient fund management with minimal unutilized proceeds. The remaining ₹0.25 crore is maintained in a monitoring account with HDFC Bank, earning interest on the deposited amount. The actual IPO issue expenses amounted to ₹18.40 crore against the projected ₹18.70 crore, with the saved ₹0.30 crore redirected toward general corporate purposes as disclosed in the offer document.

Regulatory Compliance

CARE Ratings Limited, serving as the monitoring agency, confirmed no deviations from the objects stated in the offer document. The report indicates that all government and statutory approvals related to the project objectives have been obtained, including the Consent to Operate (CTO). The monitoring agency found no material deviations requiring shareholder approval and noted no changes in the means of finance for the disclosed objects.

The company maintains its focus on the iron and steel sector, with promoters including Vijay Anand Jhanwar, Kusum Lata Maheshwari, and several private limited companies in the group structure.

VRAJ Iron and Steel Limited announced its unaudited financial results for the third quarter ended December 31, 2025, alongside a significant infrastructure expansion decision. The steel manufacturing company reported mixed quarterly performance while securing board approval for a major renewable energy project.

Financial Performance Overview

The company's standalone financial results for Q3FY26 showed revenue from operations of ₹1,464.28 million compared to ₹1,198.76 million in the corresponding quarter of the previous year. Net profit after tax stood at ₹9.97 million for the quarter, significantly lower than ₹74.97 million reported in Q3FY25.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company demonstrated strong revenue growth with operations generating ₹4,177.16 million compared to ₹3,220.24 million in the corresponding period of the previous year. However, net profit after tax decreased to ₹155.05 million from ₹319.33 million in the same period last year.

Total expenses for the nine-month period reached ₹4,031.06 million, with cost of materials consumed being the largest component at ₹3,347.83 million. Depreciation and amortisation expenses increased significantly to ₹159.06 million from ₹42.52 million in the previous year.

Solar Power Plant Expansion

The Board of Directors approved the establishment of a 21 MW solar power plant for captive consumption at the Bilaspur division. This strategic initiative represents a significant step toward sustainable energy adoption and operational cost optimization.

Strategic Rationale and Impact

The solar power project aims to reduce dependence on conventional power sources while optimizing energy costs and supporting sustainable environmental development. The company expects the initiative to help reduce carbon emissions and improve energy efficiency. Additionally, the use of renewable energy will enable the company to qualify for future green steel standards and enhance its competitiveness in the market.

During the current quarter, the company capitalized a 15 MW solar plant, which led to higher depreciation charges under the Income Tax Act. This resulted in negative provision for taxation for the quarter due to increased depreciation benefits.

Consolidated Results

The consolidated financial results, which include the company's associate Vraj Metaliks Private Limited, showed revenue from operations of ₹1,464.28 million for Q3FY26. Consolidated net profit after tax was ₹10.97 million for the quarter, with the share of profit from associates contributing ₹1.00 million. For the nine-month period, consolidated net profit reached ₹164.38 million with associates contributing ₹9.33 million.