Modern Shares says Bata India High Court appeal remains pending

Modern Shares and Stockbrokers Limited said Bata India Limited’s appeal related to T.E. Suit No. 146/192 of 2009 remains pending before the Bombay High Court. In its October 30, 2026 filing, Modern Shares said the Court of Small Causes at Bombay had directed the fixing of mesne profit and that a stay required a court deposit of mesne profit.

What did Modern Shares disclose about the Bata India case?

Modern Shares disclosed that it obtained an order from the Court of Small Causes at Bombay in its suit against Bata India, identified as T.E. Suit No. 146/192 of 2009. The order directed the fixing of mesne profit, according to the note accompanying the unaudited standalone results for the quarter ended September 30, 2026. The company did not disclose the date of the Small Causes Court order, the subject property or the value of mesne profit.

Modern Shares said Bata India appealed the order and was granted a stay subject to depositing mesne profit in court as required under the Small Causes Court order. The October 30, 2026 filing does not state the deposit amount, whether a deposit was made, or whether any later order changed the condition. It therefore does not quantify a possible recovery or financial effect from the dispute.

What is the status of Bata India’s Bombay High Court appeal?

Bata India’s appeal was still pending before the Bombay High Court when Modern Shares filed its September 30, 2026 results on October 30, 2026. Modern Shares did not report a High Court judgment, settlement, withdrawal or dismissal. It also did not provide the High Court case number, the next hearing date or a timetable for resolution.

The disclosure refers to an appeal against the Small Causes Court order, a conditional stay, and a further appeal before the Bombay High Court. Modern Shares does not explain the procedural relationship between those references or disclose the grounds advanced by either side. The reported position is consequently limited to the continuing pendency of the High Court proceeding as at October 30, 2026.

How did Modern Shares perform in the September 2026 quarter?

Modern Shares reported standalone profit after tax of Rs 13.54 lakh for the quarter ended September 30, 2026, compared with Rs 15.90 lakh a year earlier and Rs 5.95 lakh in the preceding June 2026 quarter. Total income was Rs 98.49 lakh, below Rs 103.55 lakh in the September 2025 quarter but above Rs 86.71 lakh in the June 2026 quarter.

Total expenses were Rs 80.37 lakh in the September 2026 quarter, compared with Rs 78.86 lakh a year earlier and Rs 79.68 lakh sequentially. Profit before tax was Rs 18.12 lakh, versus Rs 24.69 lakh in the September 2025 quarter and Rs 7.03 lakh in the June 2026 quarter. The company described all three quarterly columns as unaudited standalone results.

Brokerage and commission income was Rs 78.25 lakh in the September 2026 quarter, increasing from Rs 59.86 lakh in June 2026 and Rs 77.39 lakh in September 2025. Interest income was Rs 19.61 lakh, against Rs 19.39 lakh sequentially and Rs 20.03 lakh a year earlier. Employee benefit expense was largely unchanged sequentially at Rs 41.61 lakh, compared with Rs 41.74 lakh in June 2026.

What do Modern Shares’ half-year results and balance sheet show?

Modern Shares reported profit after tax of Rs 19.49 lakh for the half year ended September 30, 2026, down from Rs 30.80 lakh in the half year ended September 30, 2025. Total income declined to Rs 1.85 crore from Rs 2.03 crore, while total expenses increased to Rs 1.60 crore from Rs 1.59 crore. Profit before tax fell to Rs 25.15 lakh from Rs 44.04 lakh.

Brokerage and commission income for the six months decreased to Rs 1.38 crore from Rs 1.51 crore, while interest income declined to Rs 39 lakh from Rs 39.85 lakh. Employee benefit expense decreased to Rs 83.35 lakh from Rs 87.84 lakh. Administrative and other expenses rose to Rs 73.35 lakh from Rs 64.80 lakh over the same comparison.

Total assets were Rs 18.05 crore at September 30, 2026, compared with Rs 16.89 crore at March 31, 2026. Cash and cash equivalents rose to Rs 38.11 lakh from Rs 18.47 lakh, while other financial assets increased to Rs 5.15 crore from Rs 4.05 crore. Trade receivables fell to Rs 27.71 lakh from Rs 41.32 lakh.

Other equity stood at Rs 10.22 crore at September 30, 2026, compared with Rs 10.04 crore at March 31, 2026, while equity share capital remained Rs 2.93 crore. Other financial liabilities increased to Rs 3.00 crore from Rs 1.96 crore. Borrowings other than debt securities were nil at September 30, 2026, compared with Rs 19.50 lakh at March 31, 2026.

What did the auditor conclude on the September 2026 results?

B D G & Co LLP said nothing came to its attention that caused it to believe Modern Shares’ unaudited standalone statement did not make the disclosures required under the listing regulations or contained a material misstatement. The review report was dated October 30, 2026 and covered the quarter ended September 30, 2026 and the period from April 1, 2026 to September 30, 2026.

The auditor conducted the work under Standard on Review Engagements 2410, which concerns a review of interim financial information by the entity’s independent auditor. It said a review is substantially narrower in scope than an audit and did not express an audit opinion. Modern Shares also said it had no separate reportable segment under Indian Accounting Standard 108, which covers operating segments.

Conclusion

Modern Shares’ October 30, 2026 disclosure establishes that the Bata India appeal before the Bombay High Court remained unresolved. The disclosed Small Causes Court order directed the fixing of mesne profit, while the reported stay condition required a court deposit, but Modern Shares did not state the amount, whether it was deposited or the eventual financial outcome.

The matter to watch is any Bombay High Court order on the pending appeal or on the mesne-profit deposit condition. Modern Shares disclosed no target date for the litigation’s conclusion; the next reported financial comparison point follows its unaudited half-year result, in which profit after tax was Rs 19.49 lakh for the six months ended September 30, 2026.