Walchandnagar Industries Limited has filed its quarterly statement confirming no deviation in the use of proceeds raised through its preferential issue for the quarter ended December 31, 2025. The statement, submitted to stock exchanges on January 29, 2026, demonstrates the company's adherence to its original fund utilization plan as outlined in the Letter of Offer.

Fund Raising Details

The company raised Rs. 247.59 crores through the issue of fully convertible equity warrants on a preferential basis on November 03, 2023. The fund structure comprised Rs. 216.00 crores received from investors and Rs. 31.59 crores adjusted towards conversion of outstanding loans. ICRA Limited serves as the monitoring agency for the fund utilization.

Fund Utilization Breakdown

The proceeds have been allocated across five strategic objectives with specific utilization patterns:

Strategic Reallocation

The company implemented board-approved reallocations to optimize fund deployment. Rs. 4.00 crores was reallocated from capital expenditure to loan repayment, while Rs. 17.00 crores was shifted from capital expenditure to working capital requirements. Additionally, Rs. 21.00 crores from the capital expenditure allocation was utilized for loan repayment and working capital needs.

Compliance and Oversight

The Audit Committee reviewed the fund utilization in its meeting held on January 29, 2026, confirming compliance with regulatory requirements under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's auditors provided no adverse comments on the fund deployment strategy.

Current Status

As of December 31, 2025, the company has successfully utilized the raised funds according to its strategic priorities without any deviation from the approved objectives. The reallocations were executed through proper board resolutions, ensuring transparency and regulatory compliance throughout the process.

Walchandnagar Industries Limited has announced its unaudited financial results for the quarter ended December 31, 2025, showing a significant improvement in quarterly performance despite ongoing challenges in the nine-month period. The Board of Directors approved these results at their meeting held on January 29, 2026.

Financial Performance Overview

The company demonstrated a strong quarterly turnaround, moving from losses to profitability in Q3FY26. This improvement comes despite operational challenges faced during the year, including a lockout at the foundry plant that was resolved in November 2025.

Nine-Month Performance Challenges

While the quarterly results show improvement, the nine-month performance reflects the impact of operational disruptions experienced during the year.

Segment-Wise Performance

The company operates across three main segments: Heavy Engineering, Foundry and Machine Shop, and Others. Heavy Engineering continues to be the primary revenue contributor.

Q3FY26 Segment Revenue:

• Heavy Engineering: ₹7,404 lakhs (vs ₹4,278 lakhs in Q3FY25)
• Foundry and Machine Shop: ₹110 lakhs (vs ₹1,023 lakhs in Q3FY25)
• Others: ₹582 lakhs (vs ₹609 lakhs in Q3FY25)

Operational Developments

Several significant operational developments occurred during the quarter:

• Foundry Operations: The lockout at the company's foundry plant in Satara, Maharashtra was withdrawn on November 24, 2025, with manufacturing operations resuming from December 20, 2025
• ESOP Implementation: The company issued 15,609 equity shares under ESOP 2020 during the quarter, recognizing an expense of ₹23 lakhs
• Labour Code Impact: Exceptional items of ₹136 lakhs were recorded due to the implementation of new Labour Codes, including gratuity impact of ₹115 lakhs and compensated absences of ₹21 lakhs

Cost Structure Analysis

The company's cost management showed mixed results during Q3FY26:

The quarterly results reflect the company's resilience and ability to return to profitability despite facing operational challenges throughout the year. The resumption of foundry operations and improved performance in the Heavy Engineering segment contributed to the positive quarterly outcome.