Modison Q1 FY27 Results (NSE: MODISONLTD)

13 Aug 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

The operating inflection remains positive after the recent margin expansion trend, with EBITDA margin at 19.5% versus 7.3% estimated from the Q1FY26 P&L and EBITDA growth of +343.9% outpacing revenue growth of +101.6%; however, gross margin compressed about 900bps as raw materials rose to 91.1% of revenue from 82.1%, making pass-through and product mix the next thesis test.

P&L walk

Consolidated revenue increased to ₹27,046.67 lakh, +101.6% YoY but -5.9% QoQ; EBITDA rose +343.9% YoY to ₹5,273 lakh as employee costs and depreciation grew only +4.5% and +1.5%, while raw-material intensity increased to 91.1% from 82.1%, limiting margin conversion.

Key positives

• Revenue reached ₹27,046.67 lakh, +101.6% YoY, extending the sharp growth acceleration visible from +15.5% in Q1FY26 and +19.0% in Q3FY26.
• EBITDA grew +343.9% YoY versus revenue growth of +101.6%, a +242.3 percentage-point gap, while employee costs grew only +4.5% and depreciation +1.5%; EBITDA margin expanded 1,220bps to 19.5%.
• PAT rose +603.5% to ₹3,384.48 lakh and EPS rose +604.7% to ₹10.43, with the PAT-to-EPS cross-check clean.

Key concerns

• Raw-material cost increased +123.8% YoY versus revenue growth of +101.6%, lifting raw-material intensity to 91.1% from 82.1% and compressing gross margin by about 900bps; the filing does not disclose the driver or the extent of pass-through.
• Finance cost increased +108.4% YoY to ₹431.34 lakh and +44.5% QoQ, which could become a larger drag if the elevated growth requires additional working capital.
• Revenue declined 5.9% QoQ and EBITDA margin fell about 500bps from the preceding quarter's 24.5% implied operating margin, so the Q1 margin peak has not yet been sustained.

View original filing

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