Mukand Limited , a prominent player in the industrial machinery sector, has executed a significant corporate restructuring move. On October 18, 2025, the company signed a Business Transfer Agreement (BTA) with its wholly-owned subsidiary, Mukand Heavy Engineering Limited (MHEL), to transfer a portion of its Industrial Machinery Business through a slump sale.

Key Details of the Business Transfer

The transfer involves the following aspects of Mukand Limited's business:

• Designing, manufacturing, erecting, and commissioning of EOT Cranes
• Other materials handling activities
• Process plant equipment operations

This strategic move is structured as a slump sale, transferring the specified business segments on a going concern basis.

Transaction Structure and Consideration

The transaction has been structured with the following key points:

• Purchase Consideration: To be paid through the issuance of equity shares by MHEL to Mukand Limited
• Valuation: Equity shares will be issued at fair value on the closing date
• Related Party Transaction: Classified as a related party transaction, conducted at arm's length

Strategic Rationale

Mukand Limited has outlined several objectives for this business transfer:

1. Provide focused attention on the transferred business segments
2. Enhance growth opportunities
3. Unlock growth potential
4. Create operational synergies leading to economies of scale
5. Maximize stakeholder value

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction details have been communicated to both the BSE Limited and the National Stock Exchange of India Limited.

Implications for Investors

Investors should note that:

1. The transaction is between related parties but conducted at arm's length
2. The slump sale may lead to a more streamlined operation for both Mukand Limited and MHEL
3. The focus on operational synergies and economies of scale could potentially improve efficiency

As with any corporate restructuring, stakeholders are advised to monitor future financial reports and company announcements to assess the actual impact of this business transfer on Mukand Limited's performance and valuation.

Note: This article is based on the information provided in the company's regulatory filing.

Mukand Limited , a prominent player in the steel industry, has reported strong financial results for the first quarter of fiscal year 2026, showcasing significant improvements in profitability and operational efficiency.

Financial Highlights

• Total income from operations reached Rs 1,102.39 crore, up 4.1% quarter-on-quarter (QoQ) but down 7.3% year-on-year (YoY)
• Profit before tax grew by 129.9% QoQ to Rs 44.11 crore
• Net profit after tax surged by 435.8% QoQ to Rs 35.47 crore
• EBITDA margin improved to 8.3% from 5.2% in the previous quarter
• Earnings per share increased to Rs 2.45 from Rs 0.46 in the previous quarter

Operational Performance

The company's impressive financial performance can be attributed to its focus on high-margin stainless steel production and effective utilization of its workforce of over 1,400 employees. This strategic approach has enabled Mukand Limited to enhance its operational efficiency and profitability.

Strategic Developments

Mukand Limited has recently completed two significant transactions:

1. Demerger of Stainless Steel Business: The company has finalized the demerger of its stainless steel cold finished bars and wires business, effective April 1, 2024. This strategic move is expected to streamline operations and potentially unlock value for shareholders.

2. Land Sale Agreement: Mukand Limited has signed an agreement to sell 17.77 acres of land for Rs 673.00 crore. This transaction could provide the company with additional liquidity to fund its growth initiatives or reduce debt.

Management Commentary

The management highlighted the company's successful transformation from a debt-laden entity to a profitable growth trajectory. They emphasized their focus on high-margin stainless steel production and leveraging the expertise of their workforce to drive operational excellence.

Outlook

With the recent strategic moves and improved financial performance, Mukand Limited appears to be well-positioned for sustained growth in the coming quarters. The company's ability to significantly improve its profitability despite a slight decline in year-on-year revenue demonstrates its operational resilience and effective cost management.

Note: The financial results mentioned are for the quarter ended June 30, 2025 (Q1 FY2026).