Source Natural Foods and Herbal Supplements Limited has incorporated a wholly-owned subsidiary, Source Natural Estates Private Limited, on June 18, 2026, to expand its presence in the green or renewable energy sector. The new entity will focus on acquiring and developing land and immovable property to support Special Purpose Vehicles (SPVs) involved in solar and other renewable energy projects. This strategic move allows the parent company to facilitate the development of energy storage systems, electric vehicle charging infrastructure, and facilities for wastewater and solid waste management.

The incorporation was disclosed to BSE Limited pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Source Natural Estates Private Limited is classified as a related party transaction since it is a wholly-owned subsidiary. The company confirmed that, aside from this ownership, the promoter or promoter group has no other interest in the new entity. The subsidiary has not yet commenced business operations.

Financial details of the newly incorporated entity reveal an authorized capital of Rs. 10,00,000, divided into 1,00,000 equity shares of Rs. 10 each. The paid-up capital stands at Rs.1,00,000, divided into 10,000 equity shares of Rs. 10 each. Source Natural Foods and Herbal Supplements Limited, along with its nominee shareholders, has subscribed to 100% of the equity shares, amounting to a total cash consideration of Rs.1,00,000.

Key Details of the Subsidiary

The primary object of the acquisition is to acquire land and property rights to develop, manage, and lease assets for SPVs. These SPVs will utilize the infrastructure for setting up and operating solar projects, green energy infrastructure, and agri-waste processing facilities. No specific governmental or regulatory approvals were required for this incorporation, and the transaction was conducted at arm's length.

Source Natural Foods and Herbal Supplements Limited reported a 17% increase in net profit to ₹339.94 crore for the financial year ended March 31, 2026, on revenue from operations of ₹7,043.25 crore. For the quarter ended March 31, 2026, net profit surged 98% to ₹124.47 crore, while revenue increased 30% to ₹2,106.66 crore. The Board approved the audited financial results in a meeting held on May 28, 2026.

The company's EBITDA for FY26 stood at ₹594.45 crore, a 30% increase from the previous year. Basic Earnings Per Share (EPS) for the year rose to ₹5.28 from ₹4.51 in FY25. The statutory auditors, M/s Srinaga & Giridharan, expressed an unmodified opinion on the financial statements.

The disclosure was made to BSE Limited under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also re-appointed M/s Ganga Prakash & Co. as Internal Auditors and M/s Chiranjeevulu & Co. as Cost Auditors for FY27, and authorized corporate guarantees up to ₹10 crore for subsidiaries.