RDB Rasayans Reports No Deviation in IPO Fund Utilization for Q3 FY26

RDB Rasayans Limited has submitted its quarterly compliance report to BSE Limited, confirming no deviation in the utilization of IPO proceeds for the quarter ended December 31, 2025. The filing was made in accordance with Regulation 32 of SEBI (LODR) Regulations, 2015, which mandates listed companies to report any variations in the use of funds raised through public offerings. IPO Fund Details and Allocation The company's Initial Public Offering was conducted from September 21, 2011, to September 23, 2011, raising a total amount of ₹35.55 crore. The funds were allocated across three primary objectives as outlined in the original prospectus. Fund Allocation Details: Original Allocation Funds Utilized Capital Expenditure: 2780.83 Lacs 1045.77 Lacs General Corporate Purpose: 501.29 Lacs 498.49 Lacs Issue Expenses: 272.88 Lacs 192.11 Lacs Capital Expenditure Objectives The primary use of IPO proceeds was designated for capital expenditure to enhance manufacturing capacity by 7450 MTPA through the establishment of Unit-II. This represents the largest component of the fund allocation, with an original allocation of 2780.83 lacs, of which 1045.77 lacs has been utilized to date. Regulatory Compliance Status The quarterly statement confirms that there has been no deviation or variation in the use of raised funds. The company explicitly stated "No" to the question regarding deviation/variation in fund usage, indicating full compliance with the original fund utilization plan approved during the IPO process. Compliance Parameters: Status Deviation/Variation in Fund Use: No Monitoring Agency Required: Not Applicable Shareholder Approval for Changes: Not Applicable Audit Committee Comments: - Auditor Comments: - Fund Utilization Categories As per SEBI regulations, deviation or variation in fund utilization can occur in three forms: deviation in the objects or purposes for which funds were raised, deviation in the actual amount utilized versus originally disclosed amounts, or changes in contract terms referenced in the fund raising documents. RDB Rasayans reported no issues in any of these categories. The statement was signed by Sandeep Baid, Whole Time Director & CFO, and submitted to the Department of Corporate Services at BSE Limited on February 10, 2025, ensuring timely regulatory compliance. RDB Rasayans Limited has delivered impressive financial performance for the third quarter of FY26, with net profit surging 43.5% year-on-year despite facing revenue headwinds. The company's board approved the unaudited standalone financial results for the quarter and nine months ended December 31, 2025, during a meeting held on February 10, 2026. Strong Profit Growth Amid Revenue Decline The company's financial performance presents a mixed picture for Q3FY26. While revenue from operations declined to ₹2,571.42 lacs from ₹2,726.81 lacs in the corresponding quarter of the previous year, the company managed to significantly improve its bottom line through effective cost management and higher other income. Financial Metric Q3FY26 Q3FY25 Change (%) Revenue from Operations ₹2,571.42 lacs ₹2,726.81 lacs -5.7% Other Income ₹636.46 lacs ₹509.59 lacs +24.9% Total Income ₹3,207.88 lacs ₹3,236.40 lacs -0.9% Net Profit ₹823.75 lacs ₹574.03 lacs +43.5% EPS (₹) ₹4.65 ₹3.24 +43.5% Nine-Month Performance Shows Robust Growth The nine-month performance demonstrates the company's resilience and operational efficiency. Net profit for the nine months ended December 31, 2025, reached ₹2,789.88 lacs, representing a substantial 46% increase from ₹1,910.93 lacs in the corresponding period of the previous year. Nine-Month Metrics FY26 FY25 Change (%) Revenue from Operations ₹8,779.41 lacs ₹11,906.09 lacs -26.3% Total Income ₹10,673.60 lacs ₹13,543.28 lacs -21.2% Net Profit ₹2,789.88 lacs ₹1,910.93 lacs +46.0% EPS (₹) ₹15.75 ₹10.79 +46.0% Cost Management and Operational Efficiency The company's improved profitability can be attributed to effective cost management across various expense categories. Total expenses for Q3FY26 decreased to ₹2,104.42 lacs from ₹2,434.03 lacs in Q3FY25, reflecting a 13.5% reduction. Key cost components showed favorable trends: Cost of material consumed decreased to ₹1,460.69 lacs from ₹1,824.30 lacs Employee benefits expenses increased marginally to ₹322.14 lacs from ₹309.42 lacs Finance costs reduced significantly to ₹2.17 lacs from ₹4.34 lacs Other expenses rose to ₹406.26 lacs from ₹353.58 lacs IPO Fund Utilization and Corporate Developments The company provided an update on the utilization of IPO proceeds totaling ₹3,555.00 lacs. As of December 31, 2025, ₹1,736.37 lacs have been utilized across various purposes, with the remaining ₹1,818.63 lacs deployed in fixed deposits and mutual funds. IPO Fund Utilization Allocated Amount Utilized Amount Plant & Machinery ₹2,391.27 lacs ₹900.39 lacs General Corporate Purpose ₹501.29 lacs ₹498.49 lacs Issue Expenses ₹272.88 lacs ₹192.11 lacs Total ₹3,555.00 lacs ₹1,736.37 lacs Additionally, the company received a Provisional Certificate on January 8, 2026, under the Settlement of Dispute scheme for West Bengal Entry Tax, making a payment of ₹29.26 lacs against a provision of ₹36.69 lacs. Financial Position and Outlook RDB Rasayans maintains a stable financial position with paid-up equity share capital of ₹1,771.48 lacs. The company's total comprehensive income for Q3FY26 stood at ₹831.80 lacs, including other comprehensive income of ₹8.05 lacs. The results were reviewed by the audit committee and approved by the board of directors, with statutory auditors providing a clean limited review report confirming compliance with applicable accounting standards and regulatory requirements. 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