Modi Naturals Q1 FY27 Results (NSE: MODINATUR)
Signal: Margin expansion
The read
The key inflection is consolidated margin expansion to 14% and PAT growth of 19.2% despite flat 0.4% revenue, led by ethanol's ₹1411.86 lakh EBIT; however, standalone PAT fell 11.1% to ₹288.12 lakh and QoQ consolidated revenue fell 36.0%, so the trajectory depends on sustained subsidiary and ethanol performance rather than broad-based parent growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹155.61 Cr | 0.4% | -36.0% |
| EBIT | ₹18.94 Cr | 20.6% | |
| Net profit | ₹12.5 Cr | 19.2% | |
| EPS | ₹9.44 | 19.9% | |
| EBIT margin | 14% |
P&L walk
Consolidated revenue was ₹15560.64 lakh, up 0.4% YoY but down 36.0% QoQ; EBITDA rose 23.5% to ₹2184.07 lakh and margin expanded to 14%, while PAT rose 19.2% to ₹1250.12 lakh despite finance cost increasing 7.1% YoY.
Segments
Ethanol drove the group with ₹7480.30 lakh revenue and ₹1411.86 lakh EBIT, contributing 74.6% of consolidated segment EBIT, while branded EBIT was ₹383.88 lakh and bulk EBIT ₹98.15 lakh; the consolidated-parent PAT gap of ₹1250.12 lakh versus ₹288.12 lakh confirms earnings are concentrated outside standalone operations.
Key positives
- Consolidated EBITDA rose 23.5% YoY to ₹2184.07 lakh versus revenue growth of 0.4%, widening EBITDA margin by 220bps to 14%.
- Ethanol generated ₹1411.86 lakh EBIT at a 22.2% EBIT margin, materially above branded EBIT of ₹383.88 lakh and bulk EBIT of ₹98.15 lakh.
- Consolidated EPS increased 19.9% to ₹9.44, slightly ahead of 19.2% PAT growth, with no dilution signal.
Key concerns
- Standalone PAT declined 11.1% YoY to ₹288.12 lakh despite standalone revenue growth of 6.8%, indicating weak parent-level earnings conversion.
- Gross margin compressed approximately 340bps YoY while revenue grew 0.4%; raw material cost increased to 66.4% of revenue from approximately 65.0%, suggesting cost absorption with the driver not disclosed.
- Consolidated revenue declined 36.0% QoQ to ₹15560.64 lakh and ethanol EBIT declined 35.4% QoQ to ₹1411.86 lakh, highlighting sequential volatility.
Research and educational content only. Not investment advice.