Milkfood Limited has announced the replacement of its earlier property sale agreement with a fresh agreement for the disposal of its 20.084-acre property at Village Agwanpur, Moradabad, Uttar Pradesh, for Rs. 130 Crores. The company informed the BSE on March 25, 2026, about this significant transaction under Regulation 30 of SEBI listing regulations.

Property Sale Agreement Details

The fresh agreement to sell was executed on March 24, 2026, replacing the earlier agreement dated January 16, 2026. The property will be sold to multiple buyers including M/s Bareilly Dairies Limited, Ms. Poonam Aggarwal, Mr. Amit Aggarwal, Ms. Shally Aggarwal, and Mr. Mool Chand Aggarwal.

Financial Impact and Revenue Contribution

The property has been a significant revenue contributor for Milkfood Limited. During FY 2024-25, the property generated substantial income for the company.

Transaction Structure and Compliance

The company has confirmed that the transaction maintains full regulatory compliance and transparency. Key aspects of the deal structure include:

• The buyers are not related to the promoters, promoter group, or group companies
• The transaction does not fall under the ambit of Related Party Transactions
• None of the promoters, directors, key managerial persons, or their relatives have any direct or indirect interest in the transaction
• The sale is conducted outside any scheme of arrangement

Utilization of Sale Proceeds

Milkfood Limited has outlined a clear strategy for deploying the Rs. 130 Crores proceeds from the property sale. The net sale proceeds will be strategically allocated toward:

• Reduction of existing borrowings
• Business development activities of the company

The transaction represents a significant asset monetization move by Milkfood Limited, converting a property asset that contributed 16.73% of its turnover into liquid resources for debt reduction and growth initiatives. The completion timeline of April 15, 2026, indicates a swift execution of the disposal process.

Milkfood Limited has announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with quarterly profits but nine-month losses. The dairy products company, which operates primarily in ghee and milk powder segments, reported these results following board approval on February 13, 2026.

Quarterly Financial Performance

The company's third quarter performance showed improvement in profitability despite revenue challenges. Key quarterly metrics demonstrate the company's operational dynamics during the period.

Nine-Month Performance Analysis

The nine-month results revealed contrasting trends, with the company facing operational challenges that resulted in overall losses for the period.

Operational Expenses and Cost Structure

The company's expense management showed varied patterns across different cost categories. Cost of materials consumed for Q3FY26 was ₹7,573 lakhs compared to ₹10,361 lakhs in Q3FY25. Employee benefits expense increased to ₹711 lakhs from ₹590 lakhs year-over-year. Finance costs rose significantly to ₹367 lakhs from ₹116 lakhs in the corresponding quarter of the previous year.

For the nine-month period, total expenses amounted to ₹24,714 lakhs compared to ₹28,712 lakhs in the previous year, reflecting the company's cost management efforts despite revenue pressures.

Key Corporate Developments

Several significant corporate actions and regulatory matters shaped the company's performance during the period:

• Asset Disposal: The company entered into an Asset Purchase Agreement dated January 16, 2026, to sell identified assets of its Moradabad Unit, following special resolution approval on September 25, 2025

• Employee Stock Option Plan: Granted 12,18,000 stock options with fair value of ₹409 lakhs to eligible employees and directors under the "Milkfood Ltd Employee Stock Option Plan 2024" on June 20, 2025

• GST Matters: Facing demands totaling ₹1,896 lakhs from CGST Commissioner Appeals, Ludhiana, with additional ₹2 lakh demand from CGST Commissionerate, Jaipur

Financial Position and Capital Structure

The company maintained stable capital structure with paid-up equity share capital of ₹1,219 lakhs, consisting of shares with face value of ₹5 each. Other equity stood at ₹11,325 lakhs as of March 31, 2025. The company reported contingent liabilities of ₹4,364 lakhs as claims against the company not acknowledged as debts.

Trade receivables include ₹47 lakhs (net of write-off/provisions of ₹22 lakhs) from an entity facing insolvency proceedings before NCLT, against which a claim of ₹78 lakhs including interest has been filed with the Resolution Professional.