Monitoring Agency Report issued by ICRA Limited, Monitoring Agency for the quarter ended December 31, 2025

ICRA Limited, the Monitoring Agency, has filed its report on Honasa Consumer's use of IPO proceeds for Q3 FY2026. Of the net IPO proceeds of INR 350.492 crore, INR 284.361 crore has been utilized so far and INR 66.132 crore is still unutilized. The General Corporate Purpose (GCP) bucket is fully spent (INR 121.892 crore), while INR 35.011 crore remains unspent on advertising, INR 12.097 crore on new Exclusive Brand Outlets, and INR 19.023 crore on BBlunt salon expansion. A deviation was noted: INR 34.269 crore was inadvertently paid from the monitoring account for vendor payments during Q2 and Q3 FY2026, pushing GCP sub-utilization to 35% versus the 25% cap stated in the prospectus. The company has since replenished the amount on February 2, 2026 from internal accruals, and the Monitoring Agency now reports no deviation as of February 11, 2026. All four project categories remain on schedule, and the unutilized INR 66.789 crore is parked in fixed deposits with HDFC Bank, Unity Small Finance Bank, and Yes Bank earning between 2.75% and 8.75%.