Modi Naturals Q2 FY27 Results (NSE: MODINATUR)
Signal: Margin pressure
The read
The trajectory has shifted from margin expansion to mix-led growth with absorption: consolidated revenue rose 38.9% YoY to ₹20489.95 lakh, but gross margin contracted 874bps to 20.97% and EBITDA margin fell to 9.26% from 13.91% QoQ, leaving PAT growth at only 9.4%; the key test is whether ethanol and bulk growth can recover profitability without further raw-material pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹204.9 Cr | +38.9% | +30.5% |
| EBIT | ₹16.06 Cr | +15.3% | |
| Net profit | ₹11.02 Cr | +9.4% | |
| EPS | ₹8.33 | +9.9% | |
| EBIT margin | 9.26% |
P&L walk
Revenue accelerated to ₹20489.95 lakh, +38.9% YoY and +30.5% QoQ, but gross margin fell 874bps to 20.97% as material and inventory costs rose to 79.02% of revenue; EBITDA margin consequently declined to 9.26% from 10.81% a year ago and 13.91% in the prior quarter, while PAT grew only 9.4% to ₹1102.42 lakh.
Segments
Ethanol drove the group with ₹11746.01 lakh revenue and ₹1600.72 lakh segment EBIT, while bulk grew 165.4% YoY to ₹4245.86 lakh but remained loss-making at negative ₹75.93 lakh; consolidated PAT was ₹1102.42 lakh versus standalone PAT of ₹288.12 lakh.
Key positives
- Consolidated revenue rose 38.9% YoY to ₹20489.95 lakh, led by ethanol revenue growth of 37.9% and bulk revenue growth of 165.4%.
- Selling, marketing and distribution plus employee expenses fell to 8.46% of revenue from 12.68% a year ago, although gross-margin pressure prevented EBITDA margin expansion.
- Consolidated EPS rose 9.9% YoY to ₹8.33, broadly tracking 9.4% PAT growth.
- Finance cost declined 8.3% QoQ to ₹274.69 lakh.
Key concerns
- Gross margin compressed 874bps YoY to 20.97% as material and inventory costs increased to 79.02% of revenue from 67.84%.
- EBITDA grew 19.0% YoY to ₹1897.68 lakh, trailing revenue growth of 38.9% by 19.9 percentage points; EBITDA margin fell 155bps YoY and 465bps QoQ.
- Bulk revenue increased 165.4% YoY but the segment remained loss-making at negative ₹75.93 lakh.
- Operating cash flow fell 75.9% YoY to ₹868.41 lakh while trade receivables increased to ₹8238.95 lakh from ₹4699.95 lakh.
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