WS Industries has filed its quarterly statement of deviation/variation in fund utilization for Q3 FY26, covering multiple preferential issues conducted during 2025. The Chennai-based company submitted the mandatory disclosure to stock exchanges on February 14, 2026, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Fund Raising Activities Covered

The statement encompasses three significant fund raising initiatives undertaken by the company:

The October 2025 preferential issue involved 20,00,000 equity shares allotted at Rs.100 per share, while the convertible warrants comprised 2,25,00,000 warrants allotted at Rs.100 per warrant, generating an upfront consideration of Rs.56.25 crores.

Fund Utilization Status

The company reported utilizing Rs.5.70 crores during the previous quarter ended September 30, 2025. However, the original timeline for fund utilization, as approved by shareholders at the Extra-Ordinary General Meeting held on May 2, 2024, expired on October 31, 2025.

Timeline Extension Proposal

W.S. Industries is proposing to extend the fund utilization timeline to October 31, 2027. This extension aligns with SEBI (ICDR) Regulations, 2018, which allows convertible warrants to be converted into equity shares within 18 months from allotment date. The last date for conversion of the current warrants is March 4, 2026.

Regulatory Approvals and Governance

The fund utilization statement has undergone proper corporate governance procedures:

• Audit Committee Review: The statement was reviewed by the Audit Committee
• Board Approval: Taken on record by the Board of Directors at their meeting on February 14, 2026
• Shareholder Approval Required: Timeline extension subject to approval at the 3rd Extra-Ordinary General Meeting of FY 2025-26 scheduled for February 20, 2026

Previous Shareholder Approvals

The company has maintained transparency through multiple shareholder meetings. Original objects of the issues were approved at the 1st Extra-Ordinary General Meeting held on July 25, 2025. Subsequently, variations in object-wise fund utilization were approved at the 2nd Extra-Ordinary General Meeting held on December 12, 2025, covering both the equity shares and convertible warrants allotted in October 2025.

WS Industries (India) Limited's board of directors has approved significant financial restructuring measures alongside the company's quarterly results for Q3 FY26. The board meeting held on 14th February 2026 addressed multiple strategic decisions including securities redemption and financial performance review.

Major Securities Redemption Approved

The board approved the redemption of substantial securities held by Trala Electromech Systems Private Limited, totaling Rs. 18.25 crore across two categories:

Both securities are unlisted and privately placed. The preference share holder has waived its entitlement to cumulative dividend up to the redemption date, meaning no dividend will be payable if redemption occurs on or before 31st March 2026. For the debentures, interest will be paid up to the actual redemption date according to original terms, provided redemption happens by 31st March 2026.

Q3 FY26 Financial Performance

The company's standalone unaudited financial results for the quarter ended 31st December 2025 showed mixed performance:

For the nine months ended 31st December 2025, the company reported revenue from operations of Rs. 70.67 crore compared to Rs. 199.37 crore in the corresponding period of the previous year. The net loss for the nine-month period was Rs. 0.53 crore, significantly improved from the Rs. 13.82 crore loss in the previous year.

Funding and Approval Requirements

The redemption of both preference shares and debentures will be funded through proceeds raised from the preferential issue of equity shares previously approved by shareholders. Both redemption proposals require approval at the 3rd Extra-Ordinary General Meeting of FY 2025-26 scheduled for 20th February 2026.

Consolidated Results and Subsidiaries

The consolidated financial results include performance from subsidiaries WSI Falcon Infra Projects Private Limited and WSI-P&C Verticals Private Limited. The consolidated revenue from operations for Q3 FY26 was Rs. 20.57 crore, with a net loss of Rs. 1.91 crore.

Recent Corporate Actions

During the quarter under review, the company issued 22,500,000 convertible warrants on 29th October 2025, receiving 25% upfront consideration. Additionally, 2,000,000 equity shares were allotted on the same date. In the previous quarter, the company had converted 535,120 convertible warrants into fully paid-up equity shares on 17th July 2025.