Mukka Proteins board approved a strategic cash investment of ₹64,92,500 in Swachha Eco Solutions Private Limited during a meeting held on August 12, 2026. The company plans to acquire 26,500 equity shares at ₹250 per share, securing a 25.98% stake in the investee entity. This move aligns with Mukka Proteins’ strategy to expand its presence in the waste management sector.

The acquisition is structured as an arm’s length transaction and does not involve any related parties, promoters, or group companies. Mukka Proteins intends to complete the acquisition by December 31, 2026, through one or more tranches. No governmental or regulatory approvals are required for this deal.

Investment Details

Target Company Profile

Swachha Eco Solutions Private Limited operates in the collection, treatment, and disposal of all types of waste. Incorporated on September 12, 2017, the company has an authorized capital of ₹10,00,000 and a paid-up capital of ₹5,00,000.

Financial data for Swachha Eco Solutions reveals significant volatility in recent years. For FY26, the company reported a turnover of ₹1,77,61,136, down from ₹2,77,64,810 in FY25 and ₹1,44,45,028 in FY24. Despite generating revenue, the target entity posted a net loss of ₹(75,05,051) for FY26, resulting in a negative net worth of ₹(2,10,22,476) as of March 2026.

What the Numbers Show

The financial profile of Swachha Eco Solutions presents a divergence between top-line activity and profitability. While revenue fluctuated between ₹1.44 crore and ₹2.77 crore over the last three fiscal years, the company consistently operated at a loss, culminating in a negative net worth position. Mukka Proteins’ entry at a valuation implied by the ₹250 per share price suggests a strategic focus on operational turnaround or market access rather than immediate financial returns from the target’s current earnings capacity.

The Board of Directors of Mukka Proteins Limited approved the unaudited consolidated financial results for the quarter ended June 30, 2026, on August 12, 2026. The company reported a consolidated net profit after tax of ₹186.34 million, compared to ₹15.89 million in the corresponding quarter of the previous fiscal year. Total comprehensive income stood at ₹196.55 million.

In a separate corporate action, the Board resolved to withdraw and rescind the earlier approval for the proposed issuance of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferable, INR Denominated Non-Convertible Debentures (NCDs) aggregating up to ₹750 million on a private placement basis. The initial approval for this issuance had been granted at a Board meeting held on May 15, 2026. The company clarified that the decision not to proceed was due to internal considerations and confirmed that no NCDs have been issued or allotted.

Consolidated revenue from operations reached ₹4,748.04 million, marking a significant increase from ₹1,648.81 million in the quarter ended June 30, 2025. Including other operating income of ₹148.50 million, total revenue from operations amounted to ₹4,896.54 million. Standalone net profit for the quarter was ₹194.07 million, up from ₹11.35 million year-on-year, with standalone revenue from operations at ₹3,927.05 million.

Financial Performance

The company’s cost of materials consumed was ₹3,919.82 million in the consolidated results. Employee benefit expenses rose to ₹163.35 million from ₹78.89 million in the prior year quarter. Finance costs increased to ₹164.52 million from ₹110.41 million. Depreciation and amortisation expenses were recorded at ₹47.97 million.

Geographically, revenue outside India contributed ₹4,140.68 million to the total, while domestic revenue within India accounted for ₹607.36 million. In the standalone segment, international revenue was ₹3,526.55 million against domestic revenue of ₹400.51 million.

Strategic Investments and Capital Actions

The Board approved an investment in Swachha Eco Solutions Private Limited (SESPL), involving a capital contribution of ₹64.925 million (₹64,92,500). This transaction secures a 25.98% stake in SESPL, making it an associate of Mukka Proteins. The investment aligns with the company’s strategy to expand its waste management segment. SESPL, incorporated in September 2017, operates in the collection, treatment, and disposal of waste. Its turnover for FY26 was ₹1.77 million, with a net loss of ₹7.50 million.

Board Appointments

The meeting included the re-appointment of several key executives and directors for five-year terms commencing January 2027, subject to shareholder approval at the 16th Annual General Meeting scheduled for September 10, 2026:

• Mr. Kalandan Mohammed Haris as Managing Director and CEO
• Mr. Kalandan Mohammed Althaf as Whole-Time Director and CFO
• Mr. Kalandan Mohammad Arif as Whole-Time Director and COO
• Mr. Karkala Shankar Balachandra Rao, Mr. Hamad Bava, and Mr. Narendra Surendra Kamath as Non-Executive Independent Directors

What the Numbers Show

The divergence between standalone and consolidated profits highlights the impact of joint ventures and associates. While standalone profit before tax was ₹274.99 million, the share of net loss from associates and joint ventures reduced the consolidated profit before tax to ₹273.74 million. This indicates that despite strong core operational performance, investments in joint ventures continue to exert downward pressure on consolidated earnings.