Mukand Ltd

Kalwa land sale update

• Mukand receives Rs 59.29 crore from AGP DC Infra as second Kalwa land sale tranche.

Instruments & Ratings

• Bank Guarantee Rs 184.90 crore rated A2.
• Cash Credit Rs 0.10 crore rated BBB+/Stable.
• Working Capital Demand Loan Rs 1400 crore rated BBB+/Stable.
• Fixed Deposits Rs 75 crore rated BBB+/Stable.
• Total bank facilities rated: Rs 1585 crore.

Agency, Outlook & Validity

• Agency: CRISIL Ratings.
• Long-Term Rating: BBB+/Stable; Short-Term Rating: A2 (Reaffirmed).
• Outlook: Stable.
• Rating letter valid till 31 March 2027.

AGM Details

• AGM held on August 12, 2026 at 11:30 a.m. via VC/OAVM.
• Quorum present; 91 members attended via VC/OAVM.
• Meeting duration from 11:30 a.m. to 1:08 p.m.
• Two-way VC facility provided; proceedings viewable live on KFin.

Key Resolutions

• R1: Adoption of audited standalone and consolidated financials with reports for year ended March 31, 2026.
• R2: Declaration of 8% dividend on 8% Cumulative Redeemable Preference Shares for year ended March 31, 2026.
• R3: Declaration of equity dividend of Rs 3 per share including Re 1 special payout (30%).
• R4: Re-appointment of Nirav Bajaj by rotation as director.
• R5: Ratification of cost auditor’s remuneration.
• R6: Approval for issue of Redeemable Non-convertible Debentures on private placement.

Dividend

• CRPS dividend: 8% declared.
• Equity dividend: Rs 3 per share including Re 1 special payout (30%).

Director Changes

• Nirav Bajaj to be re-appointed by rotation as a director.

Auditor Appointments

• Cost auditor remuneration to be ratified.

Material Related Party Transactions

• No material related party transactions disclosed.

Other Material Approvals

• No other material approvals disclosed.

Voting Status

• Results for all resolutions awaited; to be declared within 2 working days.

Financial results approved

• Board approved unaudited standalone and consolidated Q1 FY2026 results for quarter ended June 30, 2026.
• Results reviewed by DHC & Co. with a limited review report.
• Unaudited results to be hosted on the company website.

Signatory authorization

• Chairman and MD Niraj Bajaj authorized to sign unaudited results.

Asset sales and held-for-sale assets

• Conveyance deed for Kalwe land (~3.07 acres) and 0.06 acres at Dighe executed; surplus in Other Income.
• Term Sheet for Kalwe land parcel (~9.20 acres) disclosed as Asset Held for Sale; approvals pending.
• Company to seek government approvals and conditions precedent for sale.

Auditor remarks and notes

• Independent auditor reviews completed; no material misstatement identified.
• One joint venture's interim results not reviewed by its auditor; not material.
• Group's share of profits from that venture and associates not material.

AGM details

• AGM on Aug 12, 2026 at 11:30 IST via VC/OAVM.
• Deemed venue: Registered Office of the Company.
• Remote e-voting window: Aug 9–11, 2026.
• Dividend record date: Aug 7, 2026.
• Cut-off date for voting rights: Aug 5, 2026.
• Dividend payout date targeted by Aug 26, 2026.

Ordinary resolutions

• Adopt standalone and consolidated financial statements for FY 2025-26.
• Dividend on 8% CRPS on paid-up value for FY 2025-26.
• Dividend on equity shares of Rs 3 per share, including Rs 1 special payout.

Director changes

• Nirav Bajaj to be re-appointed as Whole-time Director.

Auditor remuneration

• Cost Auditors M/s. Y. R. Doshi & Co. remuneration Rs 1,35,000 plus expenses ratified.

Special resolutions

• General approval to issue secured/unsecured Redeemable NCDs on private placement up to Rs 500 crore.
• Board empowered to delegate powers for NCD issuance and related actions.

Financials (Standalone)

• Standalone revenue from operations FY2025-26: Rs 4,762.30 crore.
• Standalone total income from continuing operations: Rs 5,336.44 crore.
• Profit after tax from continuing operations: Rs 642.15 crore.
• Total year PAT: Rs 634.69 crore.
• Earnings per share: Rs 44.44 (continuing), Rs 43.92 (total).
• Net debt to equity ratio: 0.99 (improved from 1.60).
• Dividend: 8% on 8% Cumulative Redeemable Preference Shares; Rs 3 per equity share.
• Record date for dividend: 07 Aug 2026; credit by 26 Aug 2026.

Business developments & strategy

• Demerger of Stainless Steel Cold Finished Bars & Wires Undertaking (MSMPL) sanctioned by NCLT; effective 12 May 2025.
• Slump sale of part of Industrial Machinery Division to Mukand Heavy Engineering Limited completed; Rs 45.78 crore consideration.
• Sale of non-core land parcels (approx. 17.56 acres) completed to unlock value.
• Green Steel Certification awarded: 5-Star for Black Bars, 4-Star for Wire Rods/Bright Bars (NISST).
• Steel division revenue: Rs 4,743.27 crore; Industrial Machinery Division: Rs 159.20 crore.
• Export revenue Rs 383.38 crore; domestic Rs 4,462.70 crore; overall mix steady.
• Solar PV installed at canteen; Tata Power to supply renewable energy; PNG/LNG energy transitions.

Dividends & capital allocation

• Equity dividend proposed: Rs 3 per share (30%); record date 07 Aug 2026.
• Credit/delivery of dividend: by 26 Aug 2026; CRPS dividend stands at 8%.
• 8% CRPS outstanding: 5,626,320 shares; promoter group holds equal blocks via Jamnalal Sons and Bachhraj.
• Promoter group total equity stake: 74.70% as of 31-Mar-2026; strong holding base.

Governance & audits

• Board size 6: 2 Executive, 4 Non-Executive (3 Independent; 1 woman).
• Niraj Bajaj reappointed as Chairman & Managing Director for 3 years; Nirav Bajaj reappointed as Whole-time Director.
• Statutory auditors: DHC & Co. reappointed for 2025-30 (5-year term).
• Cost Auditor: Y. R. Doshi & Co. remuneration Rs 1,35,000; ratification by members sought.
• Secretarial Auditor: Anant B. Khamankar & Co. appointed for 5 years (2025-30).
• Independent Directors have provided independence declarations; no resignations during FY2025-26.
• Postal ballots conducted for multiple ordinary/special resolutions; results declared within 2 working days.

ESG & risk highlights

• Material ESG risks identified: air quality, GHG emissions, energy, water, waste management.
• Zero Liquid Discharge (ZLD) mechanism implemented; no liquid effluent discharge.
• Waste management emphasizes recycling; 3R approach and hazardous waste controls.
• 78% of primary inputs sourced from stainless steel scrap; supports circular economy.
• Lifecycle & ESG governance overseen by Risk Management, Audit, and Sustainability committees.
• Green Steel Certification acknowledged; ongoing energy efficiency and cleaner technologies.

CSR & stakeholder engagement

• CSR expenditure for FY2025-26: Rs 1.47 crore; CSR obligation reflected in disclosures.
• CSR Committee: Niraj Bajaj (Chairman), R. Sankaran, Nirav Bajaj.
• CSR activities span education, women empowerment, sports, healthcare, infrastructure.
• Stakeholder engagement includes communities, investors, and value-chain partners; channels include meetings and digital communications.

Significant events & disclosures

• Sale of land parcels and other strategic assets monetized; surplus recognized in Other Income.
• Consolidated results reflect Slump Sale and Discontinued Operations classifications.
• Foreign exchange risk managed via hedging; no material impairment noted.
• Revenue recognition policy consistent with Ind AS 115/119 and POC for long-term contracts.

Kalwa land sale term sheet

• Execution of a term sheet for sale of Kalwa land to AGP DC Infra Private Limited.
• Land parcels totaling ~35,548.93 sqm plus ~1,691.64 sqm; Northern Access Road included.
• Composite consideration approx Rs 506 crore; Rs 10 crore advance received.
• Price basis Rs 55 crore per acre for land and non-exclusive right of way.
• Subject to approvals and NOCs from Government of Maharashtra and other authorities.
• Final consideration may revise based on actual land measurement and conditions.
• Purchaser not promoter group; not a related party transaction.
• Sale not expected to impact Mukand's operations.
• Term Sheet dated 15 July 2026; buyer AGP DC Infra Private Limited.