Source Natural Foods and Herbal Supplements Limited has announced major strategic developments in its renewable energy business following a board meeting held on March 6, 2026. The company approved several key initiatives aimed at expanding its green energy portfolio through dedicated subsidiaries and strategic project transfers.

Solar Project Transfer and Subsidiary Structure

The board approved the transfer of the company's 2 MW grid-connected Solar PV power project under the PM-KUSUM Component-A Scheme in Odisha to Source Natural Solar Private Limited, a wholly owned subsidiary. This strategic move is part of the company's business strategy to house specific renewable energy projects under dedicated Special Purpose Vehicles (SPVs) for efficient project management, financing, and operations.

The company also granted land usage rights to Source Natural Solar Private Limited for the Odisha Solar Project and approved entering into an EPC Contract with the subsidiary for development, implementation, running and maintenance of the project.

New Subsidiary Incorporation

The board approved the incorporation of a new wholly owned subsidiary in Karnataka. The proposed subsidiary will focus on acquiring land and immovable property rights to develop, manage, and lease properties for Special Purpose Vehicles. The subsidiary's scope includes setting up solar and renewable energy projects, energy storage systems, electric vehicle charging infrastructure, and facilities for wastewater treatment and waste management.

Project Portfolio and Recent Achievements

The board reviewed the company's expanding green energy business and expressed satisfaction with the progress achieved. The company has successfully commissioned a 0.5 MW rooftop solar project for an aerospace industry customer in Bangalore and received a Letter of Award as a power generator for the 2 MW grid-connected solar project in Odisha under the PM Kusum-A Scheme.

Current Project Pipeline

The company reported significant momentum in project acquisition and development:

• Secured Projects: 140 projects under the PM Surya Ghar Yojana in the last two months
• Advanced Discussions: 0.5 MW rooftop solar project for a customer in Udipi, Karnataka
• Large Scale Development: 30 MW solar project in Andhra Pradesh
• Future Pipeline: Initial discussions for 6-8 MW of solar projects in Odisha

Additional Infrastructure Development

Beyond solar projects, the company is implementing a 100 KLD wastewater treatment plant in Pune, Maharashtra. This nature-based STP is designed to treat wastewater without running motors or pumps, resulting in minimal operating costs and demonstrating the company's commitment to sustainable infrastructure solutions.

Corporate Governance and Compliance

The board meeting, which commenced at 11:30 A.M. and concluded at 12:45 P.M., was conducted in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company provided detailed disclosures regarding the subsidiary incorporation and project transfers as required under regulatory guidelines.

Source Natural Foods and Herbal Supplements Limited announced its unaudited financial results for the quarter ended December 31, 2025, along with significant strategic decisions regarding green energy investments. The board meeting held on February 14, 2026, approved the quarterly results and outlined expansion plans for subsidiary companies.

Financial Performance Overview

The company reported consolidated revenue from operations for Q3FY26, showing substantial growth across its business segments. The financial results demonstrate the company's diversified revenue streams through its Ayurveda and Energy business segments.

Segment-wise Performance

The Ayurveda segment remained the primary revenue contributor, generating ₹1461.23 lakhs in Q3FY26 compared to ₹900.06 lakhs in Q3FY25. The Energy segment showed significant expansion with revenue of ₹703.18 lakhs in Q3FY26 versus ₹250.00 lakhs in the corresponding previous quarter.

Board Meeting Outcomes and Strategic Decisions

The board meeting commenced at 11:30 a.m. and concluded at 14:00 p.m. on February 14, 2026. The directors approved two major financial commitments for green energy project development:

These decisions reflect the company's strategic focus on expanding its presence in the renewable energy sector through its subsidiary network.

Financial Position and Assets

The company's consolidated total assets stood at ₹4127.56 lakhs as of December 31, 2025, compared to ₹3002.45 lakhs in the previous year. Total liabilities increased to ₹1676.36 lakhs from ₹829.37 lakhs in the corresponding period.

Regulatory Compliance

The unaudited financial results were prepared in accordance with Indian Accounting Standards (IND AS) and reviewed by the Audit Committee before board approval. The results comply with Regulation 33 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The statutory auditor Srinaga & Giridharan issued a limited review report confirming the financial statements' compliance with applicable accounting standards.