Alok Industries has completed the sale of its entire stake in Czech textile manufacturer Mileta a.s. for €558,825, equivalent to approximately ₹5.6 crore. In a disclosure to the stock exchanges dated 9 October 2026, the company confirmed that Alok Industries International Limited, its step-down wholly owned subsidiary, had completed the transaction.

The divestment follows a share purchase agreement signed on 16 December 2025 between Alok Industries International Limited and CRESCON a.s., a company incorporated in the Czech Republic. Under the agreement, Alok Industries International Limited agreed to transfer its entire equity stake in Mileta to CRESCON. The December 2025 disclosure stated that the transaction was subject to customary closing conditions and that Mileta would cease to be a subsidiary of Alok Industries once the sale was completed.

The latest filing confirms the closure of the transaction. CRESCON operates in residential and resort property development and, according to the original disclosure, is neither part of Alok Industries’ promoter group nor one of its group companies.

Mileta’s Financial Performance

Mileta manufactures textile fibres, fabrics and other textile products. Its activities also include yarn dyeing, chemical processing of fabrics and wholesale trade. The company operates facilities in Horice, which handles weaving and administration, and Cerny Dul, which undertakes processing activities in the Czech Republic.

According to Alok Industries’ December 2025 disclosure, Mileta accounted for approximately 4.11 per cent of the group’s consolidated turnover in FY25. For the financial year ended 31 March 2025, Mileta reported sales of ₹152.27 crore and a loss of ₹49.63 crore, compared with sales of ₹153.23 crore and a loss of ₹28.53 crore in FY24.

Information in Alok Industries’ FY26 annual report indicates that Mileta’s sales increased to ₹189.62 crore in FY26, while its reported loss narrowed significantly to ₹5.92 crore. These figures reflect an improvement in the subsidiary’s reported financial performance before the divestment was completed. However, the disclosures reviewed do not establish the reasons for the sale or quantify its potential impact on Alok Industries’ future profitability and debt position.

Sale Ends Mileta’s Subsidiary Status

The transaction transfers Alok Industries International Limited’s entire equity stake in Mileta to CRESCON. Following completion, Mileta no longer forms part of Alok Industries’ subsidiary structure.

While the company’s disclosures confirm the transaction value and completion, they do not specify how Alok Industries plans to utilise the sale proceeds. The impact of the divestment on the group’s consolidated financial position will depend on the applicable accounting treatment and any associated costs or adjustments.