Nature of the Event

The Board of Directors of Mishtann Foods Limited held a meeting on November 04, 2026, and approved the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. This is pursuant to Regulation 29 and 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting commenced at 03:30 PM IST and concluded at 04:30 PM IST.

Key Quantitative Figures

Standalone Financial Results (Rs. in Lakhs)

  • Quarter Ended September 30, 2026: Revenue from operations: ₹1,931.95; Other income: ₹1.45; Total revenue: ₹1,933.40; Total expenses: ₹1,801.60; Profit before tax: ₹131.80; Tax expense: ₹37.96; Net profit: ₹93.84.
  • Half-Year Ended September 30, 2026: Revenue from operations: ₹3,760.90; Other income: ₹4.15; Total revenue: ₹3,765.05; Total expenses: ₹3,555.25; Profit before tax: ₹209.80; Tax expense: ₹65.99; Net profit: ₹143.82.
  • Comparative Figures (Quarter): September 30, 2025: Revenue from operations: ₹6,911.65; Other income: ₹1.34; Total revenue: ₹6,912.99; Total expenses: ₹6,762.29; Profit before tax: ₹150.70; Tax expense: ₹50.32; Net profit: ₹100.38.
  • Comparative Figures (Half-Year): September 30, 2025: Revenue from operations: ₹13,990.56; Other income: ₹4.78; Total revenue: ₹13,995.34; Total expenses: ₹13,694.19; Profit before tax: ₹301.15; Tax expense: ₹106.56; Net profit: ₹194.59.
  • Earnings per share (EPS): Basic and diluted EPS for Q2 FY26 is ₹0.01, for H1 FY26 is ₹0.01.
  • Paid-up equity share capital: ₹10,776.13 lakhs (face value Re. 1/- each).

Consolidated Financial Results (Rs. in Lakhs)

  • Quarter Ended September 30, 2026: Revenue from operations: ₹1,931.95; Other income: ₹1.45; Total revenue: ₹1,933.40; Total expenses: ₹1,802.60; Profit before tax: ₹130.80; Tax expense: ₹37.96; Net profit: ₹92.84.
  • Half-Year Ended September 30, 2026: Revenue from operations: ₹3,760.90; Other income: ₹4.15; Total revenue: ₹3,765.05; Total expenses: ₹3,557.33; Profit before tax: ₹207.72; Tax expense: ₹65.99; Net profit: ₹141.74.
  • Comparative Figures (Quarter): September 30, 2025: Revenue from operations: ₹38,646.82; Other income: ₹1.34; Total revenue: ₹38,648.16; Total expenses: ₹29,053.22; Profit before tax: ₹9,594.94; Tax expense: ₹50.32; Net profit: ₹9,544.62.
  • Comparative Figures (Half-Year): September 30, 2025: Revenue from operations: ₹77,252.19; Other income: ₹4.78; Total revenue: ₹77,256.97; Total expenses: ₹59,339.51; Profit before tax: ₹17,917.46; Tax expense: ₹106.56; Net profit: ₹17,810.90.
  • EPS: Basic and diluted EPS for Q2 FY26 is ₹0.01, for H1 FY26 is ₹0.01.
  • Paid-up equity share capital: ₹10,798.83 lakhs (face value Re. 1/- each).

Assets and Liabilities (Standalone as of September 30, 2026)

  • Total assets: ₹62,880.22 lakhs
  • Non-current assets: ₹676.96 lakhs (Property, plant and equipment: ₹241.69 lakhs; Investments: ₹22.83 lakhs; Loans: ₹400.35 lakhs; Deferred tax assets: ₹12.08 lakhs)
  • Current assets: ₹62,203.26 lakhs (Inventories: ₹295.38 lakhs; Trade receivables: ₹61,853.70 lakhs; Cash and cash equivalents: ₹9.23 lakhs; Other current assets: ₹44.95 lakhs)
  • Total equity and liabilities: ₹62,880.22 lakhs
  • Equity: ₹29,363.09 lakhs (Share capital: ₹10,776.13 lakhs; Other equity: ₹18,586.96 lakhs)
  • Non-current liabilities: ₹4,925.01 lakhs (Borrowings)
  • Current liabilities: ₹28,592.12 lakhs (Borrowings: ₹471.63 lakhs; Trade payables: ₹23,181.53 lakhs; Other financial liabilities: ₹4,858.90 lakhs; Provisions: ₹80.06 lakhs; Other current liabilities: Not specified)

Cash Flow Statement (Standalone for Half-Year Ended September 30, 2026)

  • Net cash from operating activities: ₹824.09 lakhs
  • Net cash used in investing activities: ₹0
  • Net cash used in financing activities: ₹(823.92) lakhs
  • Net increase in cash and cash equivalents: ₹0.17 lakhs
  • Cash and cash equivalents at beginning: ₹9.06 lakhs
  • Cash and cash equivalents at end: ₹9.23 lakhs

Auditor's Qualifications

The auditor, H Thakkar & Co. LLP (Firm Registration No. W100891), represented by Vishal Doshi (Partner, Membership No. 176288), issued a qualified review report for both standalone and consolidated financial results. Key qualifications include:

1. SEBI Notice: Interim Order cum Show Cause Notice dated December 5, 2024, alleging fictitious sales and purchase transactions from FY2017-18 to FY2023-24, and misutilisation of rights issue proceeds of ₹4,990.00 lakhs. Management denies allegations and is pursuing legal remedies.

2. Audit Trail: Company has not implemented accounting software with audit trail feature as mandated under Rule 3(1) of the Companies (Accounts) Rules, 2014. Management intends to implement from Q3 FY2027.

3. Expected Credit Loss: No provision for expected credit loss on trade receivables of ₹61,853.70 lakhs (standalone) and ₹2,34,298.48 lakhs (consolidated). Management is evaluating recoverability.

4. GST Demand: Order from GST Department for period July 2017 to July 2022, demanding ₹20,684.38 lakhs including penalties. Company deposited ₹200.00 lakhs under protest and filed a writ petition in Gujarat High Court on April 30, 2025.

5. Income Tax: Unpaid income tax provision of ₹5,191.83 lakhs as of March 31, 2026, and liability of ₹166.89 lakhs for FY2025-26, plus disputed demand of ₹11,744.00 lakhs pending adjudication.

6. Going Concern: Material uncertainty exists due to regulatory proceedings, trade receivables, and tax litigations, but financial statements prepared on going concern basis based on management assessment.

Management's Views

  • SEBI Notice: Management denies all allegations and is pursuing legal remedies.
  • Audit Trail: Due to volume of data, implementing audit trail is challenging, but management intends to implement from Q3 FY2027.
  • Trade Receivables: Management is evaluating the possibility of recoverability.
  • GST Demand: Company has filed writ petition and seeks to quash the order.
  • Income Tax: Management believes liability will not hamper operations and is taking legal steps; has financial resilience to offset liability.

Other Entities

  • Subsidiary: Grow and Grub Nutrients FZ-LLC, incorporated in UAE on April 19, 2023. Its unaudited financial statements for period January 1, 2026 to March 31, 2026 are included in consolidation, certified by management but not audited.

Additional Information

  • The financial results were reviewed by the Audit Committee and approved by the Board.
  • The company has only one reportable business segment as per Ind AS 108.
  • Previous quarter's figures have been re-grouped/re-arranged where necessary.
  • Financial results prepared in accordance with Ind AS as prescribed under Companies Act, 2013.
  • The results are available on the company's website www.mishtann.com.