Modern Insulator Q1 FY27 Results (BSE: 515008)
Signal: Margins at cyclical peak
The read
The trajectory has inflected sharply upward for a fourth consecutive quarter of consolidated margin expansion, with EBITDA margin reaching 21.9% from approximately 9.0% a year earlier and EBITDA up 126.6% versus revenue up 33.2%; however, the 25.1% other-income contribution to PBT, unprovided tax-related liability, and depreciation declining while assets rise make reported PAT less clean than operating momentum suggests.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹188.3 Cr | 33.2% | -7.0% |
| EBIT | ₹38.78 Cr | 145.4% | |
| Net profit | ₹29.6 Cr | 94.5% | |
| EPS | ₹6.28 | 94.4% | |
| EBIT margin | 21.9% |
P&L walk
Consolidated revenue rose 33.2% YoY to ₹18829.76 lakh, gross margin expanded on lower raw-material intensity, EBITDA margin reached 21.9% from approximately 9.0%, and PAT rose 94.5% to ₹2960.3 lakh despite other income contributing 25.1% of PBT.
Segments
Insulators drove the group, with revenue up 37.4% YoY to ₹17509.92 lakh and segment result up 132.7% to ₹3777.92 lakh, while Terry Towels revenue fell 13.0% to ₹1210.22 lakh and result declined to ₹4.25 lakh from ₹17.37 lakh.
Key positives
- Consolidated revenue rose 33.2% YoY to ₹18829.76 lakh, led by Insulators revenue growth of 37.4% to ₹17509.92 lakh.
- EBITDA grew 126.6% YoY to ₹4119 lakh versus revenue growth of 33.2%, while EBITDA margin expanded to 21.9% from approximately 9.0%.
- Employee benefits and other expenses grew only 5.3% YoY on a consolidated basis versus 33.2% revenue growth, supporting operating conversion.
- Insulators segment result rose 132.7% YoY to ₹3777.92 lakh and remained the dominant earnings engine.
- EPS grew 94.4% YoY to ₹6.28, closely tracking PAT growth of 94.5%.
Key concerns
- Other income of ₹938.53 lakh represented 25.1% of consolidated PBT of ₹3746.48 lakh, so PAT growth of 94.5% is not entirely operating-led.
- Terry Towels revenue declined 13.0% YoY to ₹1210.22 lakh and its segment result fell 75.5% to ₹4.25 lakh.
- Consolidated segment assets rose 19.0% YoY while depreciation fell 13.4%, creating an earnings-quality and capitalisation question.
- The company has not provided tax including interest of ₹275.40 lakh for the quarter in view of the proposed amalgamation scheme.
Earnings quality: includes non-operating other income
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