Modern dairies Limited has completed the allotment of 12,00,000 equity shares through warrant conversion, marking a significant capital raising exercise for the company. The allotment was approved by the company's Allotment Committee through a resolution by circulation dated February 26, 2026.

Warrant Conversion Details

The conversion involved warrants that were originally issued to promoters and promoter group entities on a preferential basis. Each warrant carried the right to convert into one equity share of face value Rs. 10 at an issue price of Rs. 50 per share, including a premium of Rs. 40 per share.

Allottee Details and Distribution

The warrant conversion was executed by three entities from the promoter and promoter group category. Each entity converted 4,00,000 warrants into an equivalent number of equity shares.

Impact on Share Capital

The warrant conversion has resulted in an increase in the company's paid-up equity share capital. The newly allotted shares rank pari-passu with existing equity shares and are subject to lock-in provisions as per SEBI regulations.

Shareholding Pattern Changes

The warrant conversion has strengthened the promoter and promoter group's stake in the company. The combined shareholding of the three allottees increased significantly following the conversion.

Regulatory Compliance

The allotment was conducted in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and provisions of Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The allotted equity shares are subject to specified lock-in periods as mandated by regulatory requirements. The company has fulfilled all disclosure obligations and submitted the necessary documentation to BSE Limited for record purposes.

Modern dairies Limited announced its unaudited financial results for the third quarter of fiscal year 2026, covering the period ended December 31, 2025. The Board of Directors approved these results during their meeting held on February 14, 2026, in Chandigarh, following review and recommendation by the Audit Committee.

Financial Performance Overview

The company's Q3FY26 performance reflected mixed results across key financial metrics. Net profit for the quarter declined to ₹121.65 lacs compared to ₹169.23 lacs in the preceding quarter, representing a sequential decrease of 28.1%. Revenue from operations also showed a downward trend, falling to ₹8,748.20 lacs from ₹8,195.85 lacs in Q2FY26.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Modern Dairies Limited demonstrated resilience despite quarterly fluctuations. The company achieved revenue from operations of ₹24,774.33 lacs compared to ₹25,703.31 lacs in the corresponding period of the previous year. Net profit for the nine-month period stood at ₹455.94 lacs, significantly lower than ₹6,510.38 lacs in the previous year, primarily due to exceptional items recorded in the prior period.

Operational Cost Structure

The company's expense management showed mixed trends during Q3FY26. Cost of materials consumed increased to ₹6,754.88 lacs from ₹6,537.48 lacs in the preceding quarter. Employee benefits expense remained relatively stable at ₹401.25 lacs compared to ₹407.38 lacs in Q2FY26. Finance costs rose to ₹31.38 lacs from ₹26.40 lacs, while other expenses decreased to ₹1,016.36 lacs from ₹1,092.43 lacs in the previous quarter.

Earnings Per Share and Capital Structure

Earnings per share (basic) for Q3FY26 improved significantly to ₹24.84 compared to ₹1.78 in the preceding quarter. The diluted earnings per share also increased to ₹24.84 from ₹1.66 in Q2FY26. The company maintained its paid-up equity share capital at ₹2,565.89 lacs throughout the reporting periods.

Legal and Regulatory Matters

The company continues to address ongoing legal proceedings related to Milk Cess liability under the Haryana Murrah Buffalo and other Milch Animal Breed Act, 2001. Modern Dairies Limited has filed a Special Leave Petition before the Supreme Court and received an interim stay in September 2012. The company has provided ₹15.75 lacs for Milk Cess provision in the current quarter, bringing the total provision to ₹21.74 crores as of December 31, 2025. Out of this amount, ₹9.91 crores has already been deposited as per court orders.

Business Operations and Compliance

Modern Dairies Limited operates primarily in the manufacturing of milk and milk products, which constitutes a single primary reportable segment under Indian Accounting Standards. The financial results have been prepared in accordance with Ind-AS as prescribed under Section 133 of the Companies Act 2013 and SEBI guidelines. The statutory auditors have completed their limited review of the quarterly results and issued their report, which is available on the company's website at www.moderndairies.com .