Financial Performance Highlights (Standalone)

  • Revenue from Operations: ₹41,293 Lakhs (FY25: ₹44,776 Lakhs)
  • Other Income: ₹7,166 Lakhs (FY25: ₹188 Lakhs) - includes significant one-time items
  • Total Income: ₹48,459 Lakhs (FY25: ₹44,964 Lakhs)
  • Profit Before Tax: ₹5,709 Lakhs (FY25: ₹758 Lakhs) - 653% increase
  • Profit After Tax: ₹4,429 Lakhs (FY25: ₹452 Lakhs) - 880% increase
  • EPS (Basic): ₹18.17 (FY25: ₹1.86)
  • EPS (Diluted): ₹17.30 (FY25: ₹1.86)

Key One-Time Items Impacting Profitability

1. Sale of Moradabad Unit: Profit of ₹4,759 Lakhs recognized on sale of property/unit located at Village Agwanpur, Moradabad, Uttar Pradesh for ₹130 Cr (₹13,000 Lakhs). The carrying amount was ₹8,241 Lakhs.

2. Revaluation of Patiala Land: Surplus of ₹3,197 Lakhs recognized through profit and loss (instead of Revaluation Reserve) based on valuation by certified chartered engineers. Fair value determined at ₹7,097 Lakhs vs carrying amount of ₹3,900 Lakhs.

3. Depreciation Reversal: ₹251 Lakhs due to retrospective revision of useful life of vehicles from 6 to 8 years from FY2019-20 onwards.

4. Write-offs: Net write-offs of ₹390 Lakhs (packing/stores/husk/advances) and biological assets write-off of ₹189 Lakhs related to Moradabad plant.

Operational Metrics

  • Cash Profit: ₹6,425 Lakhs (FY25: ₹1,468 Lakhs)
  • Finance Cost: ₹1,376 Lakhs (FY25: ₹1,083 Lakhs)
  • Depreciation & Amortization: ₹716 Lakhs (FY25: ₹710 Lakhs)
  • Employee Benefits Expense: ₹2,382 Lakhs (FY25: ₹2,358 Lakhs)

Capital Structure Changes

  • Paid-up Capital: Remained at ₹1,219 Lakhs (2,43,78,180 equity shares of ₹5 each) during FY26
  • Post-Year-End ESOP Allotment: On 22nd June 2026, allotted 12,18,000 equity shares under Milkfood Limited Employee Stock Option Plan 2024 at exercise price of ₹5 per share. Post-allotment paid-up capital became ₹12,79,80,900 divided into 2,55,96,180 equity shares.
  • Preferential Issue Proposal: Board approved preferential allotment of up to 22,00,000 convertible warrants at ₹30 each (₹5 face value + ₹25 premium) to non-promoter/public category. Members approved via EGM on 27th July 2026.

Subsidiary Update

MFL Trading Private Limited, a wholly-owned subsidiary, ceased to exist after its name was struck off from the Register of Companies on 20th January 2026 pursuant to an application filed on 15th October 2025. Consequently, consolidated financial statements were not required for FY26.

Dividend Policy

No dividend recommended for FY26 as profits are being retained for business expansion programs.

Auditor Qualifications

The Statutory Auditors, Madan & Associates, issued a modified opinion with qualifications regarding:

1. Revaluation of Land (₹3,197 Lakhs) credited to profit instead of Revaluation Reserve

2. Retrospective re-evaluation of useful life of vehicles overstating profit by ₹251 Lakhs

3. Share-based expense of ₹318 Lakhs netted against other income instead of employee benefit expense

The Board of Directors responded that there is no impact on "Other Equity" except ₹251 Lakhs on account of re-evaluation of useful life of asset.

Key Corporate Developments

1. Asset Sale: Executed Asset Purchase Agreement dated 16th January 2026 for sale of Moradabad unit (land, buildings, plant & machinery) for ₹130 Cr, approved by members in AGM held on 25th September 2025.

2. Board Changes:

  • Mrs. Jyotsna Bhatnagar appointed as Independent Director for 5 years from 12th August 2025
  • Mr. Sudhir Avasthi re-appointed as Managing Director for 5 years from 1st July 2026 to 30th June 2031
  • Mrs. Gita Bawa completed her tenure as Independent Director on 29th May 2026

3. ESOP Scheme Implementation: Granted 12,18,000 options under ESOP 2024 plan, initially granted on 27th January 2025 but reissued on 20th June 2025 after grantees returned options citing unattractive terms.

Liquidity and Borrowings

  • Current Ratio: 1.69 (FY25: 1.19)
  • Debt-Equity Ratio: 0.48 (FY25: 0.64)
  • Total Borrowings: ₹10,717 Lakhs (₹2,687 Lakhs non-current + ₹8,030 Lakhs current)
  • Working Capital Limits: From State Bank of India and Canara Bank secured by current assets and fixed assets

Related Party Transactions

All transactions conducted on arm's length basis. Significant transactions include electricity expenses reimbursement to Jagatjit Industries Ltd (₹14 Lakhs), rent payments (₹64 Lakhs), and interest paid on inter-corporate loan to Ispace Developers Pvt Ltd (₹478 Lakhs).

Corporate Governance Compliance

Company maintains all mandatory committees (Audit, Nomination & Remuneration, Stakeholders Relationship, CSR). Held 7 Board meetings and 1 Independent Directors meeting during FY26. Complied with all SEBI LODR regulations.

CSR Activities

Spent ₹15.20 Lakhs on contribution to Prime Minister's National Relief Fund against obligation of ₹15.19 Lakhs (2% of average net profit).

Contingent Liabilities

₹4,364 Lakhs (FY25: ₹3,874 Lakhs) primarily comprising:

  • GST demands: ₹3,796 Lakhs (Patiala plant) + ₹490 Lakhs (Moradabad plant)
  • Sales tax deposits: ₹71 Lakhs
  • Other claims: ₹7 Lakhs

Subsequent Events

1. ESOP allotment on 22nd June 2026

2. Preferential issue proposal approved by Board on 30th June 2026 and members on 27th July 2026

3. Application filed with BSE for in-principle approval for preferential issue on 3rd July 2026