Milkfood Limited has announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with quarterly profits but nine-month losses. The dairy products company, which operates primarily in ghee and milk powder segments, reported these results following board approval on February 13, 2026.

Quarterly Financial Performance

The company's third quarter performance showed improvement in profitability despite revenue challenges. Key quarterly metrics demonstrate the company's operational dynamics during the period.

Nine-Month Performance Analysis

The nine-month results revealed contrasting trends, with the company facing operational challenges that resulted in overall losses for the period.

Operational Expenses and Cost Structure

The company's expense management showed varied patterns across different cost categories. Cost of materials consumed for Q3FY26 was ₹7,573 lakhs compared to ₹10,361 lakhs in Q3FY25. Employee benefits expense increased to ₹711 lakhs from ₹590 lakhs year-over-year. Finance costs rose significantly to ₹367 lakhs from ₹116 lakhs in the corresponding quarter of the previous year.

For the nine-month period, total expenses amounted to ₹24,714 lakhs compared to ₹28,712 lakhs in the previous year, reflecting the company's cost management efforts despite revenue pressures.

Key Corporate Developments

Several significant corporate actions and regulatory matters shaped the company's performance during the period:

• Asset Disposal: The company entered into an Asset Purchase Agreement dated January 16, 2026, to sell identified assets of its Moradabad Unit, following special resolution approval on September 25, 2025

• Employee Stock Option Plan: Granted 12,18,000 stock options with fair value of ₹409 lakhs to eligible employees and directors under the "Milkfood Ltd Employee Stock Option Plan 2024" on June 20, 2025

• GST Matters: Facing demands totaling ₹1,896 lakhs from CGST Commissioner Appeals, Ludhiana, with additional ₹2 lakh demand from CGST Commissionerate, Jaipur

Financial Position and Capital Structure

The company maintained stable capital structure with paid-up equity share capital of ₹1,219 lakhs, consisting of shares with face value of ₹5 each. Other equity stood at ₹11,325 lakhs as of March 31, 2025. The company reported contingent liabilities of ₹4,364 lakhs as claims against the company not acknowledged as debts.

Trade receivables include ₹47 lakhs (net of write-off/provisions of ₹22 lakhs) from an entity facing insolvency proceedings before NCLT, against which a claim of ₹78 lakhs including interest has been filed with the Resolution Professional.

Milkfood Limited has completed the formal dissolution of its wholly owned subsidiary, with MFL Trading Private Limited being officially struck off from the Register of Companies. The development marks the conclusion of a corporate restructuring process that began several months ago.

Striking Off Process Completed

The Registrar of Companies has approved the striking off application for MFL Trading Private Limited through an official communication dated January 20, 2026. This approval follows the subsidiary's initial application filing on October 15, 2025, when the company submitted Form STK-2 to initiate the striking off process.

Regulatory Compliance

Milkfood Limited has maintained transparency throughout the process by providing timely updates to stakeholders. The company initially informed the BSE Limited about the striking off application on October 15, 2025, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The latest communication to BSE Limited confirms the successful completion of the striking off process, ensuring all regulatory disclosure requirements are met. Company Secretary Rakesh Kumar Thakur signed the official intimation letter, maintaining proper corporate governance protocols throughout the dissolution process.

Corporate Structure Impact

With MFL Trading Private Limited now formally struck off from the Register of Companies, Milkfood Limited has streamlined its corporate structure by removing the inactive subsidiary entity. The striking off represents a clean closure of the subsidiary's legal existence, eliminating any ongoing compliance obligations associated with maintaining the dormant entity.

The completion of this process allows Milkfood Limited to focus its resources and management attention on its core business operations while maintaining a simplified corporate structure.