Spice Lounge Food Works Ltd

Spice Lounge Food Works Limited closes trading window from October 1, 2026 until 48 hours after the Board Meeting to approve the quarterly and half-year ended September 30, 2026 financial results; reopening 48 hours after the Board Meeting

MoU details

• Non-binding MoU for exclusive offtake, branding, and distribution of IEML's emulsifiers in India.
• Effective date 18 September 2026, tenure five years from commissioning.
• Production line output contemplated at approximately 200 MT per month.
• Revenue potential estimated at ₹500 crore over the first three years.
• Non-binding; definitive Offtake and Distribution Agreement required; volume/pricing subject to final terms.
• Export markets option available where IEML channels don't serve.
• Not a related-party transaction; no acquisition or JV implied.
• The arrangement aligns with Spice Lounge's focus on expanded food solutions and distribution platform.

Financial performance

• Standalone revenue from operations: 222.18 Lakhs.
• Standalone PAT: 26.36 Lakhs; Basic EPS 0.004.
• Consolidated revenue from operations: 15842.48 Lakhs; Consolidated PAT 969.13 Lakhs; EPS 0.14.
• Total comprehensive income: Standalone 26.36 Lakhs; Consolidated 1272.11 Lakhs (OCI).
• Dividend declared: none for FY2025-26.
• Authorized capital: Rs 7,000.00 Lakhs; Paid-up capital: Rs 6,971.23 Lakhs.
• Gearing ratio: 50.88% (vs 0.97% prior year).
• Consolidated cash flow: Operating 480.58 Lakhs; Financing 4,259.02; Net cash change -100.25; Closing 144.12.
• Foreign exchange earnings: Rs 302.98 Lakhs; Outgo: Nil.

Capital structure & liquidity

• Net debt: 5,257.74 Lakhs; Equity: 10,333.19 Lakhs.
• Capital and net debt: 5,075.45 Lakhs.
• Gearing ratio: 50.88%.
• Consolidated cash and cash equivalents at year-end: 144.12 Lakhs.
• Current ratio (consolidated): 1.79; Debt-to-equity: 0.75; ROE: 0.10.
• Return on equity improved to 0.10; Net profit margin 0.08.
• Notes show cash flow from operations: 480.58 Lakhs; Invested -4,839.84; Financing 4,259.02.

Dividends & capital allocation

• Dividend declared: none for FY2025-26.
• No IPO/FPO or fund-raise during year.
• Share capital unchanged at 69.71 Crore.
• No buy-back of shares during year.
• Proposed transfers to reserves: none.

Governance & leadership

• Independent Directors appointed: Uday Kiran Devineni and Naresh Thaluru on 19-09-2025.
• CFO changes: P.S. Phaninder Nath appointed 06-08-2026; Ravi Paritala resigned 06-08-2026.
• Board: 8 directors; 4 Exec; 4 Independent; 1 Women director Kondini Nikitha Chowdhary.
• Statutory auditor: JMT & Associates; Secretarial auditor: Putcha Sarada.
• Board affirmed internal controls and going concern.

Risks & outlook

• Macro risks: inflation, commodity prices, high oil, deficits, political.
• Long-term outlook positive amid domestic growth and capital markets.
• Company focuses on IT services and food hospitality expansion.

Related party transactions

• Related parties include Chicken Wild Wings, Mirchi Wild Wings, MWW Gachibowli, Teksoft Systems, directors.
• All related party transactions on arm's length; Audit Committee approvals.
• Outstanding balances at 31-03-2026: 92.08; 132.59; 3.38; 108.34; 222.33; 32.21; 17.00.

Audits & internal controls

• Statutory auditor report on Standalone IND AS: unmodified.
• Secretarial audit MR-3; no qualifications.
• Internal financial controls: adequate and operating effectively.
• No material fraud or non-compliance reported.

Subsidiaries & group

• Subsidiaries: Mirchi Wild Wings Pvt Ltd; Chicken Wild Wings Pvt Ltd; Teksoft Systems Inc; 100% ownership.
• Step-down subsidiary: MWW Gachibowli Pvt Ltd; 100% ownership.
• Group consolidated financials include these four entities.

Subject and scope

• Launch of Food Emulsifier & Agro Division; new emulsifiers, agri-sourcing and processing vertical.

Revenue potential

• Expected revenue potential approximately ₹1,200 crore across targeted verticals.

Implementation plan

• Implementation underway; sourcing tie-ups, capacity scale-up, onboarding, exports and JV plans to follow.

Structure

• Directly undertaken by the company as an internal division; no subsidiary or JV announced.

Related party / governance

• Not a related party transaction; promoter group has no interest.

Strategic discussions

• Advanced confidential talks with global emulsifier and agribusiness majors for partnerships and offtake.

Financial results

• Unaudited standalone and consolidated results for the quarter ended 30 June 2026 presented.

Audit report

• Limited Review Report by Statutory Auditors provided for the results.

Board actions

• Board meeting held 04:30–06:20 hours; results filed for information/record.

Overview

• Xora World unveils four-event portfolio across India with projected revenue exceeding ₹20 crore.

Upcoming events

• Independence Weekender on Aug 15 in Salud, Goa.
• Karthik - Live in Concert on Oct 31, Tirupati.
• K. S. Chithra - Live in Concert on Nov 21, Hyderabad.
• Circus 2026 on Dec 18-19, Venue TBD.

Strategic impact

• National footprint expansion in India's live events through Xora World.

Overview

• Xora World portfolio to expand across Goa, Tirupati, Hyderabad with ₹21 crore+ revenue potential.

Contract details

• Awarded by Xora World; aggregate order value exceeding ₹21 crore; to be executed within four months.

Nature and scope

• Nature: Event management / live entertainment; domestic; not related-party.

Outlook

• Plans to expand live entertainment presence with material revenue potential.

Meeting Details

• Date: 14 August 2026; Time: 04:30 PM; Location: Registered Office.

Key Agenda Items

• Un-Audited standalone and consolidated financial results for the Quarter Ended 30 June 2026 to be considered and approved.

CFO resignation and replacement

• Resigning CFO: Ravi Kumar Paritala.
• Relieved from duties: 06-08-2026.
• Reason for resignation: personal reasons.
• No other material reasons stated.
• Board took note of the resignation.
• Appointed P.S. Phaninder Nath as CFO on 06-08-2026.

Dematerialisation status

• Dematerialisation requests processed; certificates mutilated and cancelled after verification, depository substituted as registered owner.
• Securities dematerialised have been listed on the stock exchanges.