A meeting of the Board of Directors of Milkfood Limited was held on Monday, 26th October, 2026, commencing at 2:00 PM and concluding at 3:00 PM at the company's registered office at 5th Floor, 91, Bhandari House, Nehru Place, New Delhi-110 019.

Key Board Approvals and Disclosures

1. Approval of Un-Audited Financial Results

The Board approved and took on record the Un-audited Standalone Financial Results for the quarter and half year ended September 30, 2026, along with the Limited Review Report issued by the statutory auditors, Madan & Associates. The results were prepared in accordance with Indian Accounting Standards (Ind AS).

2. Statement on Utilization of Preferential Issue Proceeds

The Board reviewed and noted the Statement of Deviation(s)/Variation(s) for the utilization of proceeds raised through the preferential issue of 22,00,000 convertible warrants. It was confirmed that there has been no deviation or variation from the stated object of utilizing the funds for working capital requirements. This statement was submitted pursuant to Regulation 32 of the SEBI Listing Regulations and SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. An auditor's certificate confirming the proper utilization was also noted (Annexure-3).

Detailed Financial Performance (Standalone)

(All figures in ₹ Lakhs)

Quarter Ended September 30, 2026 (Q2 FY27)

  • Revenue from Operations: ₹10,114
  • Other Income: ₹4
  • Total Income: ₹10,118
  • Total Expenses: ₹9,900
  • Profit Before Tax (PBT): ₹218
  • Exceptional Items (Share-based payments): ₹23
  • Profit Before Tax after exceptional items: ₹195
  • Total Tax Expense: ₹63 (comprising Current Tax ₹41 and MAT Credit Recognition ₹22)
  • Net Profit for the Quarter: ₹132
  • Earnings Per Share (Basic & Diluted): ₹0.52

Half Year Ended September 30, 2026 (H1 FY27)

  • Revenue from Operations: ₹18,236
  • Other Income: ₹93
  • Total Income: ₹18,329
  • Total Expenses: ₹18,060
  • Profit Before Tax (PBT): ₹269
  • Exceptional Items: ₹46
  • Profit Before Tax after exceptional items: ₹223
  • Total Tax Expense: ₹70
  • Net Profit for the Half Year: ₹153
  • Earnings Per Share (Basic & Diluted): ₹0.60

Comparative Performance

The company showed a significant turnaround compared to the same periods last year (PY):

  • Q2 PY (30.09.2025): Net Loss of ₹(786) Lakhs
  • H1 PY (30.09.2025): Net Loss of ₹(855) Lakhs

Balance Sheet Highlights (as of 30.09.2026)

  • Total Assets: ₹39,598 Lakhs
  • Equity Share Capital: ₹1,280 Lakhs (Face Value ₹5 per share)
  • Other Equity: ₹21,200 Lakhs
  • Total Equity: ₹22,419 Lakhs
  • Non-Current Liabilities: ₹5,062 Lakhs
  • Current Liabilities: ₹12,117 Lakhs

Cash Flow Statement (H1 FY27)

  • Net Cash from Operating Activities: ₹2,827 Lakhs
  • Net Cash used in Investing Activities: ₹(1,785) Lakhs
  • Net Cash used in Financing Activities: ₹(1,045) Lakhs
  • Net decrease in Cash & Cash Equivalents: ₹(3) Lakhs

Notes to Accounts and Emphasis of Matter by Auditors

The statutory auditors, Madan & Associates, issued an unmodified review report but drew attention to the following notes as an 'Emphasis of Matter':

1. Trade Receivables: A claim of ₹78 Lakhs (including interest) has been filed with a Resolution Professional against an entity facing insolvency. ₹22 Lakhs has already been provided/written off. Trade receivables of ₹133 Lakhs outstanding for over two years are considered recoverable by management.

2. Advances: Unconfirmed advances to suppliers (₹461 Lakhs) and employees (₹26 Lakhs) from earlier years are considered recoverable. A provision of ₹8 Lakhs already exists.

3. Exceptional Item: ₹46 Lakhs (H1) represents a share-based payment expense accounted for as per Ind AS-102.

4. Other Income: Includes ₹80 Lakhs fair value gain on reinstatement of biological assets (trees/plantation).

5. Capitalization: Expenses of ₹173 Lakhs were capitalized in Capital Work-in-Progress for a qualifying project.

6. GST Disputes:

  • An appeal is pending before the CGST Tribunal, Ludhiana, against a demand of ₹1,896 Lakhs plus penalty for the Patiala plant. The next hearing is on 26.11.2026.
  • An appeal is pending before the GST Appellate Tribunal concerning interest receivable of ₹199 Lakhs on a GST refund for the Moradabad plant.

7. Contingent Liabilities: Claims not acknowledged as debts amount to ₹4,579 Lakhs.

Preferential Warrant Issuance and Fund Utilization

  • The company allotted 22,00,000 convertible warrants on September 7, 2026, at an issue price of ₹30 per warrant (aggregating ₹660 Lakhs).
  • An upfront subscription of 25% (₹7.50 per warrant, aggregating ₹165 Lakhs) was received by the allotment date.
  • An additional advance of ₹170 Lakhs was received by September 30, 2026, making total proceeds received ₹335 Lakhs.
  • As certified by the auditors, ₹334.50 Lakhs of these proceeds were transferred to the company's cash credit account for working capital requirements, with only ₹0.50 Lakhs unutilized as of September 30, 2026. There was no deviation from the stated object.