Milkfood Limited , a prominent player in the dairy products sector, has reported a significant net loss of Rs 506 lakhs for the quarter ended September 30, 2025, according to the company's latest financial results. This marks a stark contrast to the profit of Rs 53 lakhs recorded in the same period last year, despite an increase in revenue.

Financial Performance

The company's financial results for Q2 FY2026 paint a mixed picture:

Despite the year-on-year decrease in revenue, Milkfood Limited saw a sequential increase from Rs 7,366.00 lakhs in Q1 FY2026 to Rs 7,415.00 lakhs in Q2 FY2026.

Impact of Exceptional Weather Conditions

The company's performance was adversely impacted by exceptional heavy rains during the quarter. This unforeseen weather event significantly affected operations, contributing to the substantial loss reported for the period.

Management Outlook

Despite the current setback, the management of Milkfood Limited remains optimistic. They expect a recovery in the upcoming peak season, which could potentially offset some of the losses incurred during this challenging quarter.

Other Notable Developments

Employee Stock Option Plan

The company has granted 12,18,000 stock options (with a fair value of Rs 409.00 lakhs) to eligible employees and directors under the "Milkfood Ltd Employee Stock Option Plan 2024". The vesting period for these options is set until June 20, 2026.

Revised Asset Depreciation

Milkfood Limited has revised the useful life of its vehicles from 6 years to 8 years, retroactively applied from the financial year 2019-20. This revision resulted in a decrease in depreciation of Rs 251.00 lakhs, which has been shown under other income.

Contingent Liabilities

The company reported contingent liabilities of Rs 4,632.00 lakhs, as certified by the management.

Conclusion

While Milkfood Limited faces short-term challenges due to exceptional weather conditions, the management's expectation of recovery in the peak season suggests potential for improvement in the coming quarters. Investors and stakeholders will be closely watching the company's performance in the next quarter to gauge the effectiveness of its recovery strategies.

Milkfood Limited , a prominent player in the Indian dairy industry, has taken steps to streamline its corporate structure by initiating the process to strike off its wholly owned subsidiary, MFL Trading Private Limited. This move comes as part of the company's efforts to optimize its operations and focus on core business activities.

Key Details of the Strike-Off Application

Milkfood Limited has filed an application with the Registrar of Companies to remove MFL Trading Private Limited from the Register of Companies. The subsidiary, classified as a non-material entity, has remained dormant since its incorporation, conducting no business operations.

Subsidiary Status and Financial Impact

To provide a clear picture of the subsidiary's status, here's a breakdown of its key financial metrics:

As evident from the table, MFL Trading Private Limited has not generated any financial activity since its inception, resulting in zero impact on Milkfood Limited's consolidated financials.

Regulatory Compliance

In adherence to regulatory requirements, Milkfood Limited has:

1. Submitted Form STK-2 to initiate the strike-off process
2. Disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
3. Provided necessary details as per SEBI Circular No. SEBl/HO/CFD/PoD2/CIR/P/0155 dated 11 November 2024

Implications and Next Steps

The strike-off process is subject to approval from the Registrar of Companies. Once completed, it will result in the dissolution of MFL Trading Private Limited. This action is not expected to have any material impact on Milkfood Limited's operations or financial position, given the subsidiary's inactive status.

Milkfood Limited's decision to strike off this inactive subsidiary aligns with good corporate governance practices, potentially leading to a more streamlined and efficient organizational structure. Shareholders and investors may view this as a step towards optimizing the company's resources and focusing on its core dairy business operations.

As the strike-off process progresses, Milkfood Limited is expected to provide further updates to its stakeholders in compliance with regulatory requirements.