Milkfood Limited has announced the execution of an Asset Purchase Agreement for the sale of its property/unit located at Village Agwanpur, Moradabad, Uttar Pradesh, for a total consideration of ₹130.00 crores. The agreement was signed on January 16, 2026, marking a significant asset divestment for the dairy products company.

Transaction Details

The comprehensive sale package includes substantial assets across the Moradabad facility:

Buyer Information and Transaction Structure

The purchaser, Bareilly Dairies Limited, is a company incorporated under the Companies Act, 2013, with its registered office at Ismailpur, Aliganj, Aonla, Bareilly, Uttar Pradesh. The company has confirmed that this buyer is not related to the promoters, promoter group, or group companies, ensuring the transaction remains at arm's length.

Key transaction characteristics include:

• No related party transaction implications
• Independent buyer with no promoter connections
• No direct or indirect interest from promoters, directors, or key managerial persons
• Transaction outside any scheme of arrangement

Financial Impact and Revenue Contribution

The Moradabad property has been a significant revenue contributor for Milkfood Limited. During FY 2024-25, the facility generated substantial business value:

Utilization of Sale Proceeds

Milkfood Limited has outlined a clear strategy for deploying the ₹130.00 crore proceeds from this asset sale. The net sales proceeds will be strategically allocated toward two primary objectives:

• Debt Reduction: Reducing existing borrowings to strengthen the company's financial position
• Business Development: Investing in growth initiatives and operational expansion

This dual approach reflects the company's commitment to both financial stability and future growth prospects.

Regulatory Compliance

The transaction has been disclosed in full compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under Schedule III of the Listing Regulations and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring complete transparency for stakeholders and regulatory authorities.

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.