Company Overview

Mukand Limited (BSE: 500460, NSE: MUKANDLTD) has issued comprehensive disclosures including its 88th Annual General Meeting notice and detailed financial results for FY 2025-26, showcasing exceptional financial performance driven by strategic asset monetization.

Financial Performance Highlights

Standalone Results (FY25-26 vs FY24-25 in ₹ crore):

  • Total Income: ₹5,336.44 (FY25: ₹4,703.19)
  • EBIDTA: ₹720.21 (FY25: ₹259.49)
  • Profit Before Tax: ₹550.13 (FY25: ₹94.81)
  • Profit After Tax: ₹634.69 (FY25: ₹86.95) - representing a 630% increase
  • EPS: ₹43.92 (FY25: ₹6.02)

The dramatic profit surge was primarily driven by ₹535.62 crore surplus from land monetization at Dighe, Kalwe (16.34 acres) and Sinnar, Nashik district, recognized in Other Income.

Dividend Declaration and Capital Actions

The Board recommended:

  • Equity dividend of ₹3 per share (30%) including special payout of ₹1 (10%) celebrating 100 years of Bajaj Group
  • 8% dividend on Cumulative Redeemable Preference Shares
  • Record date for dividend: August 7, 2026; payable on or before August 26, 2026

Special business includes seeking approval for ₹500 crore NCD issuance via private placement to fund capital expenditure and general corporate purposes.

Corporate Restructuring Completed

Slump Sale: Completed transfer of Industrial Machinery Division to wholly-owned subsidiary Mukand Heavy Engineering Limited for ₹45.78 crore consideration, resulting in ₹0.53 crore capital reserve. Assets transferred included Property, Plant & Equipment (₹6.44 crore), Inventories (₹16.72 crore), and Trade Receivables (₹49.13 crore).

Demerger: National Company Law Tribunal approved demerger of Stainless Steel Cold Finished Bars and Wires Undertaking from Mukand Sumi Metal Processing Limited into Mukand Limited, effective from May 12, 2025.

Consolidated Financial Metrics

Key Ratios (FY26 vs FY25):

  • Return on Equity: 48.88% (8.18%)
  • Debt Service Coverage Ratio: 4.99 (1.96)
  • Net Debt Equity Ratio: 1.09 (1.61)
  • Current Ratio: 1.38 (1.12)
  • Net Profit Ratio: 11.05% (1.44%)

Segment Performance (₹ crore):

  • Specialty Steel Segment: ₹675.39 profit (₹213.70)
  • Industrial Machinery Segment: ₹(10.36) loss (₹(38.42))
  • Customer concentration: Two group customers accounted for ₹3,228.27 crore in Steel Segment sales

Risk Management and Capital Structure

Interest Rate Risk: ₹1,400 crore in variable rate borrowings; 100 bps rate change impacts PAT by ₹10.48 crore

Foreign Exchange Exposure: Minimal unhedged exposure of ₹0.0105 crore across USD, EURO, and other currencies

Capital Structure: Paid-up equity capital of ₹144.51 crore with promoter holding at 74.70%. Credit rating maintained at CRISIL BBB+/Stable for term loans and A2 for bank guarantees.

AGM Details and Corporate Governance

  • 88th AGM scheduled for August 12, 2026 via video conferencing
  • E-voting period: August 9-11, 2026
  • Board composition: 6 Directors (2 Executive, 4 Non-Executive including 3 Independent)
  • Only minor regulatory penalty of ₹5,000 by NSE for delayed RPT disclosure

Subsidiaries and Investments

The Group comprises:

  • Mukand Sumi Metal Processing Limited (wholly-owned)
  • Mukand Heavy Engineering Limited (wholly-owned)
  • Mukand Sumi Special Steel Limited (joint venture with Sumitomo Corporation)
  • Hospet Steels Limited (joint venture with 39% holding)

Regulatory Compliance and Disclosures

Comprehensive disclosures include audited financial statements, corporate governance reports, business responsibility sustainability report, and secretarial audit. The company has complied with SEBI Listing Regulations and maintains robust corporate governance practices with minimal regulatory infractions.