Modison Q2 FY27 Results (NSE: MODISONLTD)

16 Oct 2026 · Analysis by Alpha Inflection

Signal: Growth decelerated

The read

The growth trajectory remains powerful, with Q2FY27 revenue up 92.3% YoY to ₹27,902.59 lakh and H1 revenue up 96.7% to ₹54,949.26 lakh, but the key inflection is negative on gross margin: material costs rose 103.8% YoY versus revenue growth of 92.3%, compressing derived gross margin by 545bps to 4.4%. PAT still doubled to ₹2,328.89 lakh, helped by the ₹360.27 lakh exceptional item, while finance cost rose 202.0%.

P&L walk

Consolidated revenue rose 92.3% YoY to ₹27,902.59 lakh and PAT rose 99.7% to ₹2,328.89 lakh, but material costs grew 103.8% and compressed derived gross margin to 4.4%; the ₹360.27 lakh exceptional item also supported pre-tax profit.

Segments

No segment table is disclosed; consolidated PAT of ₹2,328.89 lakh was only ₹3.42 lakh below standalone PAT of ₹2,332.31 lakh, so the subsidiary does not materially alter group earnings.

Key positives

• Revenue rose 92.3% YoY to ₹27,902.59 lakh and H1 revenue rose 96.7% YoY to ₹54,949.26 lakh, sustaining the sharp expansion seen in the recent results series.
• PAT increased 99.7% YoY to ₹2,328.89 lakh, while H1 PAT rose 246.9% to ₹5,713.37 lakh.
• EPS rose 100.0% YoY to ₹7.18 and tracked PAT closely, with no material evidence of equity dilution.
• Employee benefits increased only 6.4% YoY to ₹691.01 lakh, materially below the 92.3% revenue growth rate.

Key concerns

• Derived gross margin fell 545bps YoY to 4.4% as material costs reached 95.6% of revenue from 90.1% a year earlier; the filing does not disclose the cause or evidence of pricing pass-through.
• Finance cost rose 202.0% YoY to ₹492.43 lakh, outpacing revenue growth and limiting operating-to-PAT conversion.
• Sequential momentum moderated: revenue rose only 3.2% QoQ while PAT declined 31.2% QoQ to ₹2,328.89 lakh.

View original filing

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