Modi Naturals’ ethanol led half-year segment profit growth

Modi Naturals Limited reported that its ethanol segment generated Rs 35.15 crore of earnings before interest, tax, depreciation and amortisation (EBITDA) in the half year ended September 30, 2026, up Rs 9.33 crore year on year and the highest reported segment amount. Ethanol revenue reached Rs 193.70 crore.

How did ethanol compare with Modi Naturals’ other segments?

Ethanol was Modi Naturals’ largest reported segment by both half-year revenue and EBITDA for the period ended September 2026. Its Rs 193.70 crore revenue exceeded branded business revenue of Rs 87.44 crore and bulk business revenue of Rs 80.81 crore. Its EBITDA of Rs 35.15 crore was also above branded EBITDA of Rs 9.34 crore and bulk EBITDA of Rs 73.91 lakh.

The filing reported total segment EBITDA of Rs 40.82 crore for the half year, against Rs 34.15 crore a year earlier. However, the three disclosed segment EBITDA rows add to Rs 45.22 crore for September 2026, compared with the reported total of Rs 40.82 crore. Modi Naturals did not provide a reconciliation for the difference in the segment information table.

Ethanol also led the disclosed segment earnings before interest and tax, or EBIT, at Rs 30.13 crore in the half year ended September 2026. Branded EBIT was Rs 4.71 crore and bulk EBIT was Rs 17.43 lakh. Total segment profit before interest and tax was reported at Rs 35.01 crore, before finance cost of Rs 5.76 crore.

Did ethanol drive Modi Naturals’ half-year revenue growth?

No, bulk business produced the largest absolute revenue increase, while ethanol remained Modi Naturals’ largest revenue segment and recorded the second-largest increase. Bulk revenue rose by Rs 33.59 crore year on year to Rs 80.81 crore, compared with a Rs 28.23 crore increase in ethanol revenue to Rs 193.70 crore. Branded revenue declined by Rs 3.28 crore to Rs 87.44 crore.

Revenue from operations increased to Rs 361.95 crore in the half year ended September 2026 from Rs 303.41 crore in the corresponding period of 2025. The increase of Rs 58.54 crore reflected gains in bulk and ethanol that more than offset the branded business decline. Ethanol accounted for more than half of the reported half-year revenue from operations of Rs 361.95 crore.

In the September 2026 quarter, ethanol revenue was Rs 117.46 crore, compared with Rs 76.24 crore in the June 2026 quarter and Rs 85.19 crore in the September 2025 quarter. Branded revenue was Rs 44.98 crore in the September quarter, while bulk revenue was Rs 42.46 crore. Ethanol therefore remained the largest sales segment in each of the two quarters making up the half year.

Why did ethanol lead Modi Naturals’ operating-profit growth?

Ethanol delivered the largest reported EBITDA increase among Modi Naturals’ segments, rising Rs 9.33 crore from Rs 25.82 crore in the half year ended September 2025. Branded EBITDA increased by Rs 2.13 crore from Rs 7.20 crore, while bulk EBITDA declined by Rs 39.35 lakh from Rs 1.13 crore. Ethanol’s increase was larger than the Rs 6.67 crore rise in the reported total segment EBITDA figure.

The revenue and EBITDA movements differed materially across the three businesses. Bulk added Rs 33.59 crore of half-year revenue but its EBITDA fell to Rs 73.91 lakh. Branded revenue fell Rs 3.28 crore, while its EBITDA rose to Rs 9.34 crore. Ethanol combined a Rs 28.23 crore revenue increase with the largest disclosed EBITDA gain of Rs 9.33 crore.

Ethanol EBIT rose to Rs 30.13 crore from Rs 22.59 crore in the comparable prior-year half. By contrast, branded EBIT declined to Rs 4.71 crore from Rs 7.13 crore, and bulk EBIT declined to Rs 17.43 lakh from Rs 42.37 lakh. The different EBITDA and EBIT changes reflect the depreciation and amortisation charges included between those two segment measures.

How large was ethanol in Modi Naturals’ segment asset base?

Ethanol carried reported segment assets of Rs 336.38 crore at September 30, 2026, making it Modi Naturals’ largest disclosed asset base. Ethanol assets were Rs 278.12 crore at March 31, 2026 and Rs 260.30 crore at September 30, 2025. The September 2026 balance was higher by Rs 58.26 crore from March and by Rs 76.08 crore year on year.

Branded segment assets were Rs 85.35 crore at September 30, 2026, compared with Rs 68.19 crore at March 31, 2026. Bulk segment assets were Rs 31.97 crore, down from Rs 59.61 crore at March 31, 2026. The segment table reported total assets of Rs 453.70 crore and no unallocable segment assets.

The consolidated statement of assets and liabilities separately reported total assets of Rs 448.22 crore at September 30, 2026, compared with Rs 406.24 crore at March 31, 2026. This is Rs 5.48 crore below the total in the segment table. The filing does not explain the difference between the two reported asset totals.

What did the half-year results show for Modi Naturals’ consolidated profit?

Modi Naturals reported consolidated profit before tax of Rs 29.26 crore for the half year ended September 2026, compared with Rs 25.31 crore in the prior-year period. Profit after tax increased to Rs 23.53 crore from Rs 20.57 crore. Revenue from operations increased by Rs 58.54 crore over the same comparison.

The September 2026 quarter generated revenue from operations of Rs 204.90 crore, compared with Rs 157.05 crore in the June 2026 quarter and Rs 147.47 crore in the September 2025 quarter. Quarterly profit after tax was Rs 11.02 crore, below Rs 12.50 crore in June 2026 but above Rs 10.07 crore a year earlier. Finance cost was Rs 2.75 crore in the September quarter.

For the half year, finance cost rose to Rs 5.74 crore from Rs 4.83 crore, while depreciation and amortisation increased to Rs 5.82 crore from Rs 4.01 crore. These charges followed reported total segment EBITDA of Rs 40.82 crore and total segment EBIT of Rs 35.01 crore. The company reported no exceptional items for the half year ended September 2026.

Conclusion

The September 2026 half-year segment disclosure identifies ethanol as Modi Naturals’ largest reported business by revenue, EBITDA, EBIT and segment assets. Ethanol generated Rs 193.70 crore of revenue and Rs 35.15 crore of EBITDA, while bulk recorded the larger revenue increase of Rs 33.59 crore but lower EBITDA of Rs 73.91 lakh.

The next disclosures will need to show whether ethanol sustains its September-quarter revenue of Rs 117.46 crore and EBITDA of Rs 18.53 crore. They may also clarify the difference between the Rs 40.82 crore reported total segment EBITDA and the Rs 45.22 crore sum of the segment rows, as well as the two September 2026 total-asset figures of Rs 453.70 crore and Rs 448.22 crore.