Deep Diamond India Limited Reports Fund Utilization Deviations for Q3 FY26 Quarter

Deep Diamond India Limited has submitted its quarterly compliance report to BSE Limited, disclosing deviations and variations in the utilization of funds raised through its rights issue for the quarter ended December 31, 2025. The report, filed under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, reveals significant changes in the company's fund deployment strategy. Rights Issue Details and Fund Raising The company successfully raised ₹39,97,76,000 through a rights issue completed on October 06, 2025. The funds were originally intended for specific corporate purposes, including the acquisition of Oasis Ceramics Private Limited and general corporate expenses. Parameter Details Mode of Fund Raising Rights Issue Date of Fund Raising October 06, 2025 Amount Raised ₹39,97,76,000 Reporting Quarter December 31, 2025 Shareholder Approval Date January 22, 2026 Fund Utilization Deviations The company reported deviations in fund utilization, which required shareholder approval received on January 22, 2026. The primary deviation involves a strategic shift from the original acquisition plan to equity investments in other companies. Key Changes in Fund Allocation Original Object Modified Object Original Allocation (₹ Lakhs) Modified Allocation (₹ Lakhs) Funds Utilized (₹ Lakhs) Acquisition of Oasis Ceramics Private Limited Investment in Equity Shares/Securities 3,000.00 3,747.56 2,250.00 General Corporate Purposes General Corporate Purposes 962.76 201.34 201.34 Issue Expenses Issue Expenses 35.00 48.86 48.86 Specific Deviations and Explanations The company identified two main areas of deviation: Investment Strategy Change: Rights issue proceeds totaling ₹22.50 crores were utilized towards investment in equity shares, representing a variation from the original acquisition objective. The remaining amount of ₹14.98 crores from the modified allocation has been allocated for future use, constituting an approved change in object. Excess Issue Expenses: The company exceeded its original allocation for issue expenses by ₹13.86 lakhs, representing a 39.60% deviation from the planned ₹35.00 lakhs to actual utilization of ₹48.86 lakhs. Regulatory Compliance and Approvals The audit committee has reviewed and approved both the variation and deviation, subject to ratification and approval by the company's shareholders. The company received the necessary shareholder approval on January 22, 2026, legitimizing the changes in fund utilization strategy. Audit Committee Comments: The committee approved the variations subject to shareholder ratification, while auditors provided no additional comments on the deviations. Corporate Governance The statement was signed by Narayan Singh Rathore, Managing Director (DIN: 10900646), and filed from the company's corporate office in Udaipur on February 13, 2026. The company maintains its registered office in Mumbai and operates under CIN: L24100MH1994PLC082609. The remaining funds from the modified general corporate purposes allocation of ₹7.61 crores were either utilized towards the modified investment object or kept in bank deposits for future deployment according to the revised objectives approved by shareholders. Deep Diamond India Limited announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, demonstrating exceptional performance across key financial metrics. The Board of Directors approved these results at their meeting held on February 11, 2026. Financial Performance Highlights The company delivered outstanding results for Q3FY26, with significant improvements across all major parameters compared to the corresponding quarter of the previous year. Metric Q3FY26 Q3FY25 Change Revenue from Operations ₹50.00 lakhs ₹0.00 lakhs - Other Income ₹371.41 lakhs ₹21.74 lakhs +1,608% Total Income ₹421.41 lakhs ₹21.74 lakhs +1,838% Net Profit ₹319.76 lakhs ₹0.84 lakhs +37,971% Basic EPS ₹0.22 ₹0.00 - Nine-Month Performance For the nine-month period ended December 31, 2025, the company maintained strong momentum with substantial year-over-year growth. Parameter 9M FY26 9M FY25 Growth Revenue from Operations ₹400.00 lakhs ₹80.91 lakhs +394% Total Income ₹805.80 lakhs ₹130.17 lakhs +519% Net Profit ₹581.97 lakhs ₹44.59 lakhs +1,205% Basic EPS ₹0.40 ₹0.09 +344% Business Segment Analysis The company operates in two primary segments: pharmaceutical business and jewellery business. During Q3FY26, revenue was generated entirely from the pharmaceutical segment at ₹50.00 lakhs, while the jewellery business recorded no revenue. The pharmaceutical business contributed ₹10.29 lakhs to segment results, while other income of ₹371.41 lakhs significantly boosted overall profitability. Capital Structure and Rights Issue During the year, Deep Diamond India Limited successfully raised ₹39.98 crores through a rights issue of 9,61,00,000 equity shares at face value of ₹1 each with a premium of ₹3.16 per share. The paid-up equity share capital increased to ₹1,441.50 lakhs from ₹480.50 lakhs in the previous year. Reserves and surplus excluding revaluation reserves stood at ₹4,646.51 lakhs. Corporate Developments The company is pursuing the acquisition of Oasis Ceramics Pvt. Ltd. under the Corporate Insolvency Resolution Process before the National Company Law Tribunal. The total consideration amounts to ₹32 crores, with ₹2 crores paid on April 24, 2025. The company has filed an application seeking extension of time for payment of the balance consideration due to timing of rights issue proceeds. Fund Utilization and Auditor's Emphasis The auditors highlighted that proceeds from the rights issue have been utilized for purposes other than originally stated. The company invested ₹26.51 crores in equity shares, ₹2.01 crores for general corporate purposes, with the remaining amount kept in fixed deposits. This deviation was approved by shareholders in an Extraordinary General Meeting held on January 22, 2026. Dividend Declaration The Board of Directors declared an interim dividend of ₹0.1 per share for FY 2025-26 at their meeting held on October 31, 2025, reflecting confidence in the company's financial performance and future prospects. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. 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