Malaxmi Climate Resilience Platform Private Limited acquired a 52.56% stake in Chiraharit Limited through an off-market inter-se transfer on September 10, 2026.

The transaction involved the purchase of 2,87,99,990 equity shares from promoter Dr Tejaswini Yarlagadda at ₹8 per share. This move shifts majority control to Malaxmi, leaving Dr Yarlagadda with no remaining holding in the company.

Transaction Details

The acquisition was executed as an inter-se transfer between members of the promoter group. Malaxmi, identified as part of the promoter group, now holds the majority voting rights in Chiraharit Limited.

Regulatory Compliance

Chiraharit Limited filed the disclosure with BSE Limited on September 11, 2026, citing Regulation 29(1) and Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The acquisition is exempt from making an open offer under Regulation 10(1)(a)(iii) of the same regulations. A preliminary disclosure under Regulation 10(5) was filed with the stock exchange on August 31, 2026, within the mandated timeline. The filing confirms that all regulatory requirements for the substantial acquisition have been met.

Chiraharit reported a sharp contraction in profitability for FY26, with standalone net profit falling 93.75% year-on-year to ₹40.66 lakh. The decline followed a 6.17% drop in revenue from operations to ₹4,822.70 lakh, pressured by higher direct costs and employee expenses.

The company, which listed on the BSE SME Platform in October 2025, utilized IPO proceeds to significantly strengthen its balance sheet. Total debt reduced to ₹438.50 lakh, bringing the debt-to-equity ratio down to 0.13 from 0.47 in the prior year.

Financial Performance

Standalone revenue from operations declined to ₹4,822.70 lakh from ₹5,139.60 lakh in FY25. The drop was primarily driven by a 45.03% fall in service revenues to ₹1,009.66 lakh, partly offset by a 15.44% rise in product sales to ₹3,813.04 lakh.

Profit before tax (PBT) collapsed to ₹73.27 lakh from ₹872.01 lakh in the previous year. The margin compression was attributed to a shift in the revenue mix toward supply-heavy contracts with thinner margins, competitive pricing pressures, and an early onset of monsoons that shortened the pre-monsoon working window.

On a consolidated basis, net profit attributable to owners of the parent company stood at ₹9.10 lakh, compared to ₹602.29 lakh in FY25. Consolidated revenue was ₹5,485.83 lakh.

What the Numbers Show

The divergence between product and service revenue highlights a structural shift in the company's execution mix. While product sales grew 15.44%, service revenues—typically carrying higher margins—plunged 45.03%. This shift caused direct and other related expenses to absorb 81.72% of revenue, up sharply from 70.66% in FY25. This cost escalation alone accounted for approximately two-thirds of the decline in profit before tax, indicating that margin erosion was the primary driver of the earnings drop rather than top-line volume.

Operational Updates

The Board of Directors decided not to declare a dividend for FY26, opting to retain profits to strengthen the financial position and fund growth initiatives. The company has initiated backward integration into HDPE valves and fittings manufacturing and is developing robotic module cleaning systems for solar plants.

The 20th Annual General Meeting is scheduled for September 24, 2026, where shareholders will consider the re-appointment of Dr. Tejaswini Yarlagadda as a non-executive director.