Mukka Proteins Limited has reported a robust financial performance for the second quarter, showcasing significant growth across key financial metrics.

Financial Highlights

The company's consolidated financial results for Q2 reveal impressive year-over-year growth:

The company's performance demonstrates strong growth in profitability and operational efficiency. The substantial increase in net profit and revenue indicates robust demand for Mukka Proteins' products and effective cost management.

Operational Performance

Mukka Proteins' EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant rise, more than doubling compared to the same period last year. This improvement, coupled with the expansion in EBITDA margin, suggests enhanced operational efficiency and better cost control measures implemented by the company.

Strategic Investment

In a separate development, Mukka Proteins' Board of Directors has approved a strategic investment in United Gulf Fishery Products LLC. The company plans to acquire a 68% stake for approximately ₹1.00 crore. This move is part of Mukka Proteins' strategy to expand its presence in the Middle East, leveraging the acquired entity's local expertise.

Market Position

Mukka Proteins operates in the fish and insects protein segment, with a significant portion of its revenue coming from international markets. For the half-year ended September 30, 2025, the company reported:

• Total revenue from operations: ₹4,153.55 million
• Revenue from India: ₹1,067.30 million
• Revenue from outside India: ₹2,942.32 million

This revenue distribution highlights the company's strong international presence and its ability to tap into global markets.

Regulatory Matters

The company is currently addressing two regulatory matters:

1. A Show Cause Notice from the Assistant Commissioner of State Tax, Porbandar, regarding alleged GST return discrepancies. The initial demand of ₹1,410.60 million has been reduced to ₹2.72 million.

2. A Show Cause Notice from the Directorate General of GST Intelligence, Mangaluru, alleging wrongful availment of Input Tax Credit amounting to ₹43.68 million related to IPO expenses.

Mukka Proteins maintains that these demands are untenable and plans to contest them before the appropriate authorities.

The company's strong financial performance, coupled with its strategic expansion plans, positions Mukka Proteins for potential growth in the coming quarters. However, investors should keep an eye on the ongoing regulatory matters and their potential impact on the company's financials.

Mukka Proteins Limited , a prominent player in the protein industry, has received a Show Cause Notice (SCN) from the Office of the Commissioner of Customs, Mangaluru, demanding the recovery of export incentives totaling ₹30.37 lakh. This development highlights the ongoing scrutiny of export incentives in India's customs regulatory landscape.

Details of the Show Cause Notice

The SCN, dated October 28, 2025, alleges that Mukka Proteins failed to furnish proof of realization of foreign exchange proceeds against certain exports. The breakdown of the demanded recovery is as follows:

In addition to the principal amount, the notice also demands applicable interest and penalties, which remain unquantified at this time.

Company's Response

Mukka Proteins has acknowledged receipt of the SCN and is taking the following steps:

1. Reviewing the notice in detail
2. Preparing a comprehensive response
3. Planning to file the response within the stipulated time frame

The company has assured stakeholders that, apart from the mentioned amount, there is no other impact on its financials or operations.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Mukka Proteins has duly informed the National Stock Exchange of India Limited and BSE Limited about this development. The company's proactive disclosure aligns with the regulatory requirements for listed entities.

Implications and Outlook

While the immediate financial implication is limited to the demanded amount plus potential interest and penalties, this situation underscores the importance of meticulous documentation and compliance in international trade operations. As Mukka Proteins navigates this regulatory challenge, investors and industry observers will be keenly watching how this issue unfolds and its potential impact on the company's export strategies.

The outcome of this case may also have broader implications for other exporters, highlighting the need for stringent adherence to foreign exchange realization norms and proper documentation of export incentives.

As the situation develops, Mukka Proteins is expected to provide further updates to its stakeholders and the regulatory authorities.