Midland Polymers Limited (MPL) has released its unaudited financial results for the second quarter and half-year ended September 30, 2025, revealing continued challenges in its financial performance. The company, primarily engaged in trading activities, reported losses and an increase in borrowings during the period.

Financial Performance

MPL's financial results for Q2 FY2026 and H1 FY2026 show a continuation of losses:

The company's expenses primarily comprised employee benefits and other operational costs. Employee benefits expense stood at ₹0.06 million for Q2 and ₹0.16 million for H1 FY2026, while other expenses amounted to ₹0.04 million and ₹0.13 million, respectively.

Balance Sheet and Liquidity

As of September 30, 2025, MPL's balance sheet reflects:

The company's cash position improved marginally, with cash and cash equivalents increasing to ₹0.21 million from ₹0.08 million at the end of the previous fiscal year. However, current borrowings rose to ₹26.40 million from ₹23.75 million, indicating increased reliance on debt financing.

Borrowing and Cash Flow

During the period, Midland Polymers took on additional unsecured loans of ₹2.65 million. This move appears to be part of the company's strategy to manage its working capital needs and operational expenses in the face of continued losses.

The cash flow statement reveals:

• Net cash used in operating activities: ₹(0.51) million
• Net cash from financing activities: ₹2.65 million
• Net increase in cash and cash equivalents: ₹0.14 million

Business Outlook

Midland Polymers Limited continues to operate primarily in trading activities, with no other reportable business segments mentioned in the financial results. The persistent losses and increasing borrowings suggest that the company may be facing challenges in its core business operations.

Investor Considerations

Investors and stakeholders should note the following key points:

1. Continued losses may impact the company's long-term viability if not addressed.
2. The increase in borrowings could lead to higher interest expenses in future periods.
3. The negative equity position (-₹20.38 million) indicates significant financial stress.
4. The company's ability to generate revenue and manage expenses will be crucial for its future performance.

As Midland Polymers navigates through these financial challenges, stakeholders will likely look for clear strategies from the management on how the company plans to improve its operational performance and strengthen its financial position in the coming quarters.

Midland Polymers has announced the appointment of Mrs. Mounika Pammi as an Additional Director in the Independent category, effective August 4, 2025. The appointment, which is subject to shareholder approval, is for a term of 5 consecutive years.

Board Meeting Details

The decision was made during a board meeting held at the company's registered office in Hyderabad, Telangana. The meeting commenced at 11:30 AM and concluded at 11:50 AM, as per the company's filing with the BSE.

About Mrs. Mounika Pammi

Mrs. Pammi brings a wealth of experience to her new role:

• Over 15 years of leadership experience across various sectors
• Expertise in marketing, insurance, administration, CSR, and strategic consulting
• Holds an MBA in Marketing
• Previously served as Managing Director of MNRG Technologies
• Specializes in corporate strategy, stakeholder engagement, and sustainable development

Key Points of the Appointment

The company has affirmed that Mrs. Pammi is not debarred from holding the office of Director by virtue of any SEBI order or any other such authority.

Company Information

Midland Polymers, with its registered office in Hyderabad, is listed on the BSE. The company is led by Managing Director Vanaja Veeramreddy, who signed the regulatory filing.

This strategic appointment aligns with Midland Polymers' commitment to strengthening its board with diverse expertise. Mrs. Pammi's extensive experience is expected to contribute significantly to the company's governance and strategic direction.