Felix Industries Limited — Important, 18-08-2026: Disclosure of material issue

Felix Industries' board has approved the acquisition of 84.34% equity in Tierra Fertilizer Private Limited for approx. ₹1.69 Cr in cash. This moves Tierra Fertilizer, which processes hazardous and non-hazardous waste, from a step-down subsidiary to a direct subsidiary.

**Issue:** Internal corporate restructuring to streamline operations. Felix is buying the shares from its own subsidiary, Felix Prime Metals.

**Possible Impact:** Simplifies the ownership structure of Tierra Fertilizer, potentially enhancing direct control and operational efficiency within the group. Investors should note Tierra Fertilizer's turnover has seen a decline over the last three financial years: ₹6.71 Cr (FY24), ₹4.10 Cr (FY25), and ₹3.37 Cr (FY26).

**Company's Response/Mitigation:** The transaction, identified as a related party deal, was approved by the Audit Committee and the Board. The acquisition is expected to be completed by September 5, 2026.