Modi Naturals September profit rises 9% as revenue gains 39%

Modi Naturals Limited reported consolidated profit of Rs 11.02 crore for the quarter ended 30 September 2026, up 9% year on year, while revenue from operations rose 39% to Rs 204.90 crore. Ethanol was the largest revenue contributor at Rs 117.46 crore, while total expenses increased to Rs 191.94 crore.

How did Modi Naturals perform in September 2026?

Modi Naturals reported revenue from operations of Rs 204.90 crore for the quarter ended 30 September 2026, compared with Rs 147.47 crore in the quarter ended 30 September 2025. Total income rose to Rs 205.26 crore from Rs 148.31 crore, although other income declined to Rs 35.84 lakh from Rs 83.57 lakh.

Profit for the period increased by Rs 95.16 lakh to Rs 11.02 crore from Rs 10.07 crore a year earlier. Profit before tax rose to Rs 13.32 crore from Rs 11.88 crore, while tax expense increased to Rs 2.29 crore from Rs 1.80 crore. Basic and diluted earnings per share, or EPS, were Rs 8.33, compared with Rs 7.58.

The 30 September 2026 results were approved by the board on 5 November 2026 after review by the audit committee. The consolidated statement includes wholly owned subsidiary Modi Biotech Private Limited, and the statutory auditor said nothing had come to its attention to indicate a material misstatement in the reviewed results.

Why did Modi Naturals' profit trail revenue growth?

Modi Naturals' total expenses rose to Rs 191.94 crore in the September 2026 quarter from Rs 136.43 crore a year earlier, an increase of Rs 55.51 crore. Revenue from operations increased by Rs 57.43 crore over the same period, so the reported 39% sales increase was larger than the 9% increase in profit for the period.

Cost of materials consumed rose to Rs 157.68 crore from Rs 100.02 crore, representing the largest expense increase. Employee benefits expense increased to Rs 8.46 crore from Rs 6.84 crore, finance costs rose to Rs 2.75 crore from Rs 2.06 crore, and depreciation and amortisation increased to Rs 2.91 crore from Rs 2.01 crore.

Selling, marketing and distribution expense moved in the opposite direction, falling to Rs 8.88 crore from Rs 11.86 crore. Purchases of stock-in-trade increased to Rs 3.66 crore from Rs 1.76 crore, while other expenses were broadly unchanged at Rs 7.01 crore compared with Rs 7.01 crore in the prior-year quarter.

The sequential comparison showed a different outcome. Revenue increased from Rs 157.05 crore in the quarter ended 30 June 2026 to Rs 204.90 crore in the September quarter, but profit for the period declined from Rs 12.50 crore to Rs 11.02 crore and profit before tax fell from Rs 15.95 crore to Rs 13.32 crore.

Which Modi Naturals segments drove September-quarter revenue?

Modi Naturals' ethanol segment generated the highest September-quarter revenue, at Rs 117.46 crore, followed by branded revenue of Rs 44.98 crore and bulk revenue of Rs 42.46 crore. Ethanol revenue increased from Rs 85.19 crore a year earlier and bulk revenue rose from Rs 16.00 crore, while branded revenue decreased from Rs 46.27 crore.

Ethanol also delivered segment earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 18.53 crore, compared with Rs 12.24 crore in the September 2025 quarter. Branded EBITDA declined to Rs 95.35 lakh from Rs 3.32 crore, while bulk reported an EBITDA loss of Rs 50.82 lakh after EBITDA of Rs 39.75 lakh a year earlier.

For the half year ended 30 September 2026, ethanol revenue was Rs 193.70 crore, against Rs 165.47 crore in the corresponding prior-year half. Bulk revenue increased to Rs 80.81 crore from Rs 47.22 crore, whereas branded revenue declined to Rs 87.44 crore from Rs 90.72 crore.

What do Modi Naturals' half-year results and balance sheet show?

Modi Naturals reported half-year revenue from operations of Rs 361.95 crore for the period ended 30 September 2026, compared with Rs 303.41 crore a year earlier. Half-year profit for the period increased to Rs 23.53 crore from Rs 20.57 crore, while profit before tax rose to Rs 29.26 crore from Rs 25.31 crore.

Total assets were Rs 448.22 crore at 30 September 2026, compared with Rs 406.24 crore at 31 March 2026. Trade receivables increased to Rs 82.39 crore from Rs 47.00 crore, while inventories were almost unchanged at Rs 88.94 crore compared with Rs 89.02 crore.

Total equity increased to Rs 195.79 crore from Rs 172.14 crore over the six months, including other equity of Rs 182.48 crore. Non-current borrowings declined to Rs 111.56 crore from Rs 120.35 crore, but current liabilities increased to Rs 129.84 crore from Rs 104.12 crore.

Cash and cash equivalents were Rs 2.25 crore at 30 September 2026, compared with Rs 1.83 crore at 31 March 2026. Property, plant and equipment declined to Rs 206.83 crore from Rs 213.51 crore, while capital work-in-progress increased to Rs 27.68 crore from Rs 19.35 crore.

How did Modi Naturals' half-year cash flow change?

Modi Naturals generated net cash from operating activities of Rs 8.68 crore in the half year ended 30 September 2026, down from Rs 35.96 crore in the corresponding 2025 period. Operating profit before working-capital changes rose to Rs 41.01 crore from Rs 33.14 crore, but the reported cash conversion was lower.

The cash-flow statement recorded a Rs 40.60 crore use of cash from trade and other receivables, compared with a Rs 1.75 crore use in the prior-year half. Inventory changes generated Rs 8.58 lakh of cash, compared with Rs 8.49 crore in the earlier period, while trade payables generated Rs 14.77 crore.

Cash generated from operations was Rs 15.26 crore before direct taxes paid, and direct taxes paid were Rs 6.58 crore. Investing activities used Rs 7.52 crore, compared with an outflow of Rs 34.85 crore a year earlier, including Rs 8.82 crore of net changes in property, plant and equipment.

Financing activities used Rs 73.63 lakh in the latest half year after interest paid of Rs 5.74 crore and net borrowings of Rs 5.01 crore. The resulting net increase in cash and cash equivalents was Rs 42.38 lakh, compared with Rs 17.61 lakh in the corresponding 2025 half year.

Conclusion

Modi Naturals reported higher revenue and profit in the September 2026 quarter, but expense growth limited the increase in profit relative to sales. Ethanol supplied Rs 117.46 crore of quarterly revenue and Rs 18.53 crore of EBITDA, while branded revenue declined and bulk recorded a segment EBITDA loss.

The filing gives no revenue, profit or capital-expenditure target and does not disclose a scheduled next event. The next periodic results will show whether the Rs 82.39 crore receivables balance, the Rs 8.68 crore half-year operating cash flow and the September-quarter decline in profit from June are resolved or persist.