The National Company Law Tribunal (NCLT), Chennai Bench, has approved the scheme of amalgamation of DVS Industries Private Limited, a wholly-owned subsidiary, with M M Forgings Limited , the holding company. The order, pronounced on 19 June 2026, sanctions the merger under Sections 230 to 232 of the Companies Act, 2013. The appointed date for the amalgamation is 1 April 2024, and the scheme will become effective upon filing the certified order copy with the Registrar of Companies.

The amalgamation aims to achieve synergies in operations, integrate business processes, and reduce administrative and regulatory compliance costs. The transferor company, DVS Industries Private Limited, will be dissolved without winding up once the order is filed with the Registrar of Companies. The entire share capital of the transferor company, held by the transferee company, will be cancelled automatically without the issuance of new shares.

Key Approvals and Conditions

The scheme received necessary clearances from statutory authorities, including the Regional Director, Southern Region, and the Income Tax Department. The Income Tax Department conveyed no objection subject to conditions, including the transfer of tax liabilities, set-off of carried-forward losses under Section 72A of the Income Tax Act, 1961, and the continuation of pending proceedings by the transferee company. The department also directed the surrender of a duplicate Permanent Account Number (PAN) held by the transferor company.

The Official Liquidator also provided no objection, subject to specific undertakings by the companies regarding employee protection and compliance with accounting standards. The companies agreed to account for the amalgamation using the Pooling of Interest Method as per Ind AS 103 and to eliminate inter-company balances as of the appointed date.

Financial and Capital Structure Implications

As per the scheme, the authorized share capital of the transferor company, amounting to ₹2,50,00,000, will be combined with the authorized share capital of the transferee company. Consequently, the authorized share capital of M M Forgings Limited will be revised to ₹53,50,00,000, divided into 5,35,00,000 equity shares of ₹10 each. The Memorandum of Association of the transferee company will be amended accordingly to reflect this change.

The table below summarizes the key financial details of the authorized share capital:

Implementation and Compliance

The transferee company is required to file the amended Memorandum of Association with the Registrar of Companies to record the enhancement of authorized capital. All properties, rights, interests, liabilities, and duties of the transferor company will vest in the transferee company without further act or deed. The companies have undertaken to comply with all provisions of the Companies Act, 2013, and to ensure that no automatic modification of the scheme occurs without prior approval from the NCLT.

MM Forgings reported its audited financial results for the year ended March 31, 2026, with revenue from operations rising to ₹1,570.05 crore from ₹1,506.51 crore in the previous year. Net profit for the year stood at ₹113.86 crore, compared to ₹136.29 crore in FY25. The board approved the standalone and consolidated financial results at a meeting held on May 27, 2026. The results were published in Makkal Kural and Business Line pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the year was ₹300.37 crore, a decrease from ₹323.72 crore in the prior year. Profit before tax for FY26 was ₹129.96 crore, down from ₹179.98 crore in FY25. The statutory auditors, M/s G. Ramesh Kumar & Co., issued an unmodified opinion on the financial statements.

Dividend Declaration

The board of directors declared an interim dividend of 40%, or ₹4 per equity share, subject to the approval of shareholders. The record date for determining shareholder eligibility is June 12, 2026, and the dividend will be paid on or before June 24, 2026. This announcement was made pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015.

Key Financial Metrics

The following table summarises the standalone financial performance for FY26:

Operational Highlights

FY26 domestic sales grew by 9.5% to ₹986 crore, contributing 64% to the company's overall revenue. Export sales for FY26 were ₹543 crore, contributing 36% of overall sales. The company has embarked on a strategic transition towards 100% green energy during FY26, reinforcing its commitment to environmentally responsible and sustainable operations.

Borrowings and Compliance

MM Forgings disclosed that its outstanding qualified borrowings at the end of FY26 were ₹504.08 crore, with incremental qualified borrowings of ₹6.07 crore during the year. The company confirmed it is not classified under the LC category as defined by SEBI regulations. The proposed merger with its wholly-owned subsidiary, DVS Industries Private Limited, is currently awaiting orders from the National Company Law Tribunal (NCLT).