Monitoring Agency Report for the December 31, 2025
DCXINDIA · price
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CARE Ratings has submitted the Monitoring Agency Report for DCX Systems covering both its Rs. 400 crore IPO and Rs. 500 crore QIP. Of the IPO proceeds, Rs. 321.54 crore out of Rs. 373.03 crore has been utilized, leaving Rs. 51.49 crore unspent (mostly in the General Corporate Purposes bucket, now planned for working capital use after a September 2025 board approval). For the QIP, only Rs. 209.72 crore of the Rs. 486.65 crore raised has been deployed, with the entire Rs. 200 crore earmarked for joint ventures and subsidiaries still unutilized. The JV (ELTX Systems, incorporated in October 2025, land allotted in Coimbatore) is expected to receive funds in three tranches over the next three years, pushing full deployment to FY28. The unutilized amounts of both issues are parked in fixed deposits with HDFC and Axis Bank. The report also flags a consolidated net loss of Rs. 9 crore in Q2FY26, largely driven by a Rs. 16.35 crore loss at the Israel-based subsidiary Niart Systems, which is still in product development.
No fresh deviation from stated objects has been reported, but shareholders should note the significant delay in deploying the Rs. 200 crore QIP funds meant for JVs/subsidiaries, which now stretches to FY28, and the continuing losses at Niart Systems that are keeping group profitability under pressure. The slow pace of utilization and subsidiary-level losses may weigh on investor sentiment, though idle funds are earning interest in fixed deposits.