Mukand Limited , a prominent player in the specialty steel and industrial machinery sector, has reported a decline in its financial performance for the second quarter of fiscal year 2026. The company's results reflect challenges in the current economic environment.

Revenue and Profitability

For Q2 FY2026, Mukand reported a consolidated revenue from operations of ₹1,160.62 crore, marking a decrease from ₹1,262.84 crore in the corresponding quarter of the previous year. This represents a year-on-year decline of approximately 8.1%.

The company's profitability also saw a significant reduction:

Segment Performance

Mukand's business is primarily divided into two segments:

1. Specialty Steel: This segment generated revenue of ₹1,138.72 crore in Q2 FY2026, compared to ₹1,208.34 crore in Q2 FY2025, showing a decline of about 5.8%.

2. Industrial Machinery & Engineering Contracts: This segment reported revenue of ₹23.73 crore in Q2 FY2026, significantly lower than the ₹54.50 crore reported in the same quarter last year, representing a substantial decrease of approximately 56.5%.

Financial Position

As of September 30, 2025, Mukand's consolidated balance sheet shows:

• Total Assets: ₹3,775.91 crore
• Total Equity: ₹957.50 crore
• Total Liabilities: ₹2,818.41 crore

Other Developments

1. The company has executed an Agreement for Sale on July 23, 2025, for land parcels in Thane District for a consideration of approximately ₹673 crore. This transaction is subject to necessary approvals and fulfillment of conditions precedent.

2. Mukand's Board of Directors approved the sale and transfer of part of its Industrial Machinery Division to Mukand Heavy Engineering Limited, a wholly-owned subsidiary, through a Business Transfer Agreement executed on October 18, 2025.

3. The National Company Law Tribunal approved a scheme of demerger of the Stainless Steel Cold Finished Bars and Wires business from Mukand Sumi Metal Processing Limited into Mukand Ltd., effective from April 01, 2024.

While Mukand faces challenges in the current quarter, these strategic moves may position the company for potential operational efficiency in the future. Investors and stakeholders will likely be watching closely to see how these developments impact the company's performance in the coming quarters.

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.