Rajputana Stainless leaves Rs 18.57 crore expansion unspent

Rajputana Stainless Limited had deployed none of its Rs 18.57 crore IPO allocation for capital expenditure at its Panchmahal facility as of September 30, 2026, leaving the full amount unutilised. In contrast, Rajputana Stainless had used Rs 96.01 crore of its Rs 98 crore borrowing-repayment allocation by that date.

How much Panchmahal expansion money remains unspent?

Rajputana Stainless reported that the full Rs 18.57 crore allocated for capital expenditure, or capex, for expansion at its Panchmahal facility remained unutilised on September 30, 2026. The IPO-proceeds table records no amount used against this purpose during the period covered by the unaudited results.

The Panchmahal allocation was the largest individual unutilised use in the proceeds statement. Total unutilised proceeds were Rs 21.58 crore at September-end, meaning the Rs 18.57 crore expansion allocation accounted for most of the disclosed unused balance.

The September 30, 2026 filing does not state why spending on the facility had not started, list equipment to be acquired, or give a commissioning schedule. Rajputana Stainless describes its business as manufacturing long and flat stainless-steel products, including billets, forging ingots, rolled black bar, rolled bright bar, flat and patti, within a single reportable segment under Indian Accounting Standard 108.

Which IPO uses had Rajputana Stainless largely completed?

Rajputana Stainless had largely completed its disclosed uses for borrowing repayment and general corporate purposes by September 30, 2026. It used Rs 96.01 crore of the Rs 98 crore allocated to repayment or prepayment of borrowings, leaving Rs 1.99 crore, and used Rs 44.46 crore of the Rs 44.64 crore allocated to general corporate purposes, leaving Rs 18.15 lakh.

The utilisation pattern differs sharply between debt reduction and the Panchmahal project. While the borrowing-repayment allocation was substantially deployed, no utilisation was reported against the Rs 18.57 crore expansion allocation at the same reporting date.

Rajputana Stainless also used Rs 24.14 crore of its Rs 24.99 crore issue-expense allocation, leaving Rs 84.32 lakh unutilised. The IPO-proceeds statement separately shows no unutilised balance under the offer-for-sale line, although an offer for sale does not represent new capital raised by the company.

The results note says the initial public offer, or IPO, completed during the year ended March 31, 2026 included a fresh issue of 1.47 crore equity shares aggregating to Rs 178.73 crore and an offer for sale of 62.50 lakh shares aggregating to Rs 76.25 crore. Rajputana Stainless listed its equity shares on BSE Limited and National Stock Exchange of India Limited on March 19, 2026.

Where were Rajputana Stainless's unutilised proceeds held?

Rajputana Stainless said Rs 21.23 crore of its unutilised proceeds was temporarily invested in fixed deposits, including interest earned, as of September 30, 2026. It also reported Rs 16.13 lakh in its monitoring account and Rs 86.43 lakh in its escrow account.

The filing does not identify which of these accounts held the specific Rs 18.57 crore reserved for Panchmahal expansion. It also does not provide fixed-deposit maturities, interest rates, or a release date for funds intended for the project.

Cash and cash equivalents were Rs 2.01 crore at September 30, 2026, compared with Rs 102.43 crore at March 31, 2026. That balance-sheet change occurred during a six-month period in which Rajputana Stainless reported Rs 12.16 crore of purchases of property, plant and equipment, intangible assets and investment property in investing cash flows.

What changed in Rajputana Stainless's operating results and assets?

Rajputana Stainless reported revenue from operations of Rs 359.81 crore for the quarter ended September 30, 2026, compared with Rs 306.54 crore in the preceding quarter and Rs 269.96 crore in the September 2025 quarter. Revenue for the six months ended September 30, 2026 was Rs 666.35 crore, up from Rs 501.53 crore in the corresponding six months of 2025.

Profit before tax was Rs 31.89 crore in the September 2026 quarter, versus Rs 27.24 crore in the June 2026 quarter and Rs 17.43 crore a year earlier. For the six-month period, profit before tax rose to Rs 59.13 crore from Rs 32.32 crore, while profit after tax increased to Rs 43.90 crore from Rs 24.41 crore.

Property, plant and equipment stood at Rs 77.66 crore at September 30, 2026, compared with Rs 69.30 crore at March 31, 2026. Capital work in progress was Rs 3.97 crore at September-end, down from Rs 4.35 crore at March-end, and the filing does not link either balance specifically to the unspent Panchmahal allocation.

Does Rajputana Stainless disclose when Panchmahal spending will begin?

Rajputana Stainless does not disclose a spending timetable, project milestone or completion target for the Panchmahal expansion in the September 30, 2026 results note. The quantified project disclosure is limited to the Rs 18.57 crore allocation and nil utilisation through that date.

The unaudited results were reviewed and recommended by the audit committee and approved by the board on October 2, 2026. Because the statement covers only the quarter and six months ended September 30, 2026, a subsequent utilisation disclosure would be required to show whether the company has begun deploying the expansion funds.

The cash-flow statement records a Rs 95.10 crore increase in trade receivables during the six months ended September 30, 2026, while inventories decreased by Rs 7.59 crore. These working-capital movements provide context for the period's cash flows but do not establish a Panchmahal construction or procurement schedule.

Conclusion

Rajputana Stainless had used most of the IPO amounts identified for debt repayment, general corporate purposes and issue expenses by September 30, 2026, but had not used any of the Rs 18.57 crore set aside for Panchmahal expansion. The company reported six-month revenue of Rs 666.35 crore and property, plant and equipment of Rs 77.66 crore, yet the filing does not connect those operating or asset changes to the earmarked project.

The next utilisation disclosure should show whether Rajputana Stainless has started using the Panchmahal allocation, whether the Rs 21.23 crore temporarily placed in fixed deposits has changed, and whether management provides a project timetable. Investors can also watch capital work in progress, which was Rs 3.97 crore at September 30, 2026, and the total unutilised-proceeds balance of Rs 21.58 crore.