Azad Engineering Limited used Rs 621.76 crore of QIP proceeds

Azad Engineering had utilised Rs 621.76 crore of Rs 700 crore in qualified institutional placement (QIP) proceeds by September 30, 2026, leaving Rs 78.24 crore unutilised, according to its fund-utilisation table. Capital expenditure accounted for Rs 449.46 crore of deployment, while Rs 156.21 crore went to general corporate purposes.

How much of Azad Engineering's QIP money was used?

Azad Engineering had used Rs 621.76 crore, or 88.82% of the Rs 700 crore raised, as of September 30, 2026. The remaining Rs 78.24 crore was the net unutilised balance reported in the fund-utilisation table accompanying the consolidated unaudited financial results.

The QIP allocation covered three stated objects: capital expenditure, general corporate purposes and issue expenses. Of the Rs 78.24 crore left, Rs 75.54 crore was allocated to capital expenditure and Rs 2.70 crore to issue expenses, while no amount remained for general corporate purposes.

Where did Azad Engineering use the QIP proceeds?

Azad Engineering used its largest QIP amount, Rs 449.46 crore, to fund and part-fund capital expenditure. This represented 85.61% of the Rs 525 crore originally allocated to that object, which was both the largest intended use and the largest remaining use of the placement proceeds at September 30, 2026.

General corporate purposes received the full Rs 156.21 crore provided for in the placement document. This differed from the capital-expenditure allocation, where Rs 75.54 crore remained unused at September 30, 2026 after Rs 449.46 crore of utilisation.

Azad Engineering also reported Rs 16.09 crore of utilisation for issue expenses against an allocation of Rs 18.79 crore. The Rs 2.70 crore balance in this category represented 3.45% of the total Rs 78.24 crore that remained unutilised.

When did Azad Engineering raise the Rs 700 crore QIP?

Azad Engineering raised Rs 700 crore through a QIP during the quarter ended March 31, 2025. It issued and allotted 5,468,750 equity shares with a face value of Rs 2 each to eligible qualified institutional buyers under the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements Regulations, 2018.

The placement document allocated Rs 525 crore to capital expenditure, Rs 156.21 crore to general corporate purposes and Rs 18.79 crore to issue expenses. The September 30, 2026 disclosure therefore measures actual use against those original object-wise allocations rather than reporting additional uses for the funds.

Azad Engineering reported one primary reportable segment under Indian Accounting Standard 108: manufacture and sale of high-precision and original equipment manufacturer (OEM) components. The filing does not split the Rs 449.46 crore used for capital expenditure by plant, product, customer or subsidiary.

Where is Azad Engineering's unutilised QIP balance held?

Azad Engineering said the net unutilised QIP proceeds of Rs 78.24 crore were temporarily invested in deposits with commercial banks as of September 30, 2026. Interest earned on those deposits was held in the monitoring account or fixed deposits, according to the disclosure.

The Rs 78.24 crore QIP balance is not necessarily identical to any one consolidated balance-sheet line. As of September 30, 2026, Azad Engineering reported Rs 76.00 crore in bank balances other than cash equivalents and Rs 11.557 crore in cash and cash equivalents, but did not identify how much of either balance related specifically to unutilised QIP proceeds.

The issue-expense disclosure included a separate Rs 2.426 crore payment from Azad Engineering's current account for QIP expenses, including Goods and Services Tax (GST). That amount was awaiting reimbursement from the monitoring agency account and was explicitly excluded from the Rs 16.09 crore utilisation reported for issue expenses.

What do Azad Engineering's September 2026 results show alongside the QIP deployment?

Azad Engineering reported consolidated revenue from operations of Rs 190.935 crore for the quarter ended September 30, 2026, compared with Rs 145.625 crore for the quarter ended September 30, 2025. Revenue for the half year ended September 30, 2026 was Rs 363.534 crore, compared with Rs 282.717 crore in the corresponding prior-year half year.

Property, plant and equipment rose to Rs 974.798 crore at September 30, 2026 from Rs 763.231 crore at March 31, 2026, while capital work-in-progress declined to Rs 212.490 crore from Rs 256.682 crore. These movements provide context for the capital-expenditure object, although the filing does not directly reconcile them with the Rs 449.46 crore of QIP utilisation.

Net cash used in operating activities was Rs 43.624 crore for the period ended September 30, 2026, compared with Rs 75.890 crore used in the corresponding 2025 period. Investing activities used Rs 42.669 crore in the 2026 period, while financing activities generated Rs 73.258 crore, leaving cash and cash equivalents of Rs 11.557 crore at September 30, 2026.

Conclusion

Azad Engineering had deployed 88.82% of its Rs 700 crore QIP proceeds by September 30, 2026. Capital expenditure accounted for Rs 449.46 crore of the use, while the entire Rs 156.21 crore general-corporate-purpose allocation had been utilised, leaving the majority of the Rs 78.24 crore balance attached to capital expenditure.

The next item to watch is the use of the Rs 75.54 crore still allocated to capital expenditure and the Rs 2.70 crore remaining for issue expenses. Azad Engineering also disclosed that net unutilised funds were temporarily held in commercial-bank deposits, while Rs 2.426 crore of QIP expenses paid from its current account awaited reimbursement from the monitoring agency account.