Desh Rakshak Aushdhalaya Limited Reports No Deviation in Use of Preferential Issue Proceeds for Q3 FY26

Desh Rakshak Aushdhalaya Limited has filed a statement with BSE Limited confirming no deviation in the use of proceeds from its preferential allotment for the quarter ended December 31, 2025. The ayurvedic and herbal product manufacturer submitted the compliance report on February 13, 2026, pursuant to Regulation 32 of SEBI Listing Regulations. Preferential Issue Details The company raised funds through the allotment of equity shares on preferential basis, with specific terms outlined in the regulatory filing. Parameter: Details Number of Shares Allotted: 12,60,000 equity shares Face Value: Rs. 10 per share Issue Price: Rs. 22 per share Premium: Rs. 12 per share Total Amount Raised: Rs. 2,77,20,000 Date of Fund Raising: September 09, 2025 Fund Utilization Status The company allocated the raised funds across two primary objectives, both of which have been utilized according to the original plan without any deviation. Original Object: Original Allocation Funds Utilised Status Working Capital Requirements: Rs. 2,07,90,000 Rs. 2,07,70,000 No Deviation General Corporate Purposes: Rs. 69,30,000 Rs. 69,30,000 No Deviation Regulatory Compliance The statement was prepared in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The Audit Committee reviewed and approved the fund utilization statement at its meeting held on February 13, 2026. The company confirmed that there is no deviation in the objects or purposes for which the funds were raised, no deviation in the amount of funds actually utilized as against what was originally disclosed, and no change in terms of the contract referred to in the fund raising document. Company Background Desh Rakshak Aushdhalaya Limited, established in 1901, is a manufacturer of ayurvedic and herbal products based in Haridwar, Uttarakhand. The company is listed on BSE with scrip code 531521 and operates under CIN L33119UR1981PLC006092. Managing Director Tosh Kumar Jain signed the regulatory filing confirming the proper utilization of preferential issue proceeds. Desh Rakshak Aushdhalaya Limited, a manufacturer of ayurvedic and herbal products, announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The Board of Directors approved these results in their meeting held on February 13, 2026, at the company's registered office in Haridwar, Uttarakhand. Quarterly Financial Performance The company's Q3 FY26 performance showed a decline compared to the corresponding quarter of the previous year. Revenue from operations decreased by 26% year-on-year, while profitability also contracted during the period. Metric Q3 FY26 Q3 FY25 Change (%) Revenue from Operations ₹139.73 lakhs ₹187.88 lakhs -26% Total Revenue ₹139.73 lakhs ₹189.97 lakhs -26% Net Profit ₹9.34 lakhs ₹11.99 lakhs -22% Basic EPS ₹0.16 ₹0.27 -41% The company reported no other income during Q3 FY26, compared to ₹2.09 lakhs in Q3 FY25. Total expenses for the quarter amounted to ₹130.39 lakhs, down from ₹177.98 lakhs in the previous year. Nine-Month Performance Analysis For the nine-month period ended December 31, 2025, Desh Rakshak Aushdhalaya's financial metrics reflected similar trends observed in the quarterly results. Parameter 9M FY26 9M FY25 Variance Revenue from Operations ₹365.11 lakhs ₹414.98 lakhs -12% Total Revenue ₹365.11 lakhs ₹417.07 lakhs -12% Net Profit ₹26.72 lakhs ₹35.78 lakhs -25% Basic EPS ₹0.47 ₹0.81 -42% Cost Structure and Expenses The company's expense breakdown for Q3 FY26 showed variations across different categories. Cost of materials consumed increased significantly to ₹50.75 lakhs from ₹15.81 lakhs in the previous quarter, while employee benefits expense remained relatively stable at ₹25.40 lakhs. Expense Category Q3 FY26 Q3 FY25 Cost of Materials Consumed ₹50.75 lakhs ₹85.23 lakhs Employee Benefits ₹25.40 lakhs ₹26.84 lakhs Finance Cost ₹5.72 lakhs ₹8.09 lakhs Depreciation ₹10.40 lakhs ₹10.95 lakhs Other Expenses ₹38.12 lakhs ₹46.87 lakhs Capital Structure Enhancement The company successfully completed a preferential issue during the period, which significantly enhanced its capital base. The paid-up equity share capital increased to ₹569.83 lakhs from ₹443.83 lakhs in the previous year. Key Details of Preferential Issue: Number of shares allotted: 12,60,000 equity shares Face value per share: ₹10.00 Issue price: ₹22.00 per share Total amount raised: ₹2,77,20,000 Allotment date: September 9, 2025 Trading approval: October 27, 2025 Regulatory Compliance and Audit The financial results were reviewed by statutory auditors Anil Jain and Co., Chartered Accountants, who issued an unmodified opinion on the quarterly and nine-month results. The company confirmed no pending investor complaints as of December 31, 2025, maintaining compliance with SEBI regulations. The results were prepared in accordance with applicable accounting standards and disclosed under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 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. 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