Modi Rubber standalone quarterly loss widens to Rs 4.21 crore

Modi Rubber Limited reported a standalone net loss of Rs 4.21 crore for the quarter ended September 30, 2026, compared with a Rs 2.89 crore loss in the preceding quarter, as total income fell Rs 1.91 crore to Rs 3.13 crore. Other operating revenue increased to Rs 1.28 crore, but other income declined to Rs 1.85 crore.

Why did Modi Rubber's standalone loss widen in the September 2026 quarter?

Modi Rubber's standalone loss widened because the fall in income was not matched by a corresponding reduction in expenses. Loss before tax was Rs 4.55 crore in the quarter ended September 30, 2026, compared with Rs 2.65 crore in the quarter ended June 30, 2026. The filing reported no exceptional items in either period, so the movement arose within continuing operations.

Total income fell to Rs 3.13 crore from Rs 5.04 crore sequentially, while total expenses were broadly unchanged at Rs 7.69 crore versus Rs 7.69 crore. Other expenses declined by Rs 4.52 lakh to Rs 5.33 crore, but employee-benefit expense increased by Rs 2.05 lakh to Rs 1.34 crore. Depreciation and amortisation were Rs 87.25 lakh, while finance costs were Rs 13.94 lakh in the September quarter.

A deferred-tax credit of Rs 34.11 lakh reduced the pre-tax loss to an after-tax loss of Rs 4.21 crore. In the June quarter, Modi Rubber recorded a deferred-tax expense of Rs 23.78 lakh, contributing to the Rs 2.89 crore after-tax loss. Basic and diluted earnings per share were both a loss of Rs 1.68 in the September quarter, compared with a loss of Rs 1.15 in the June quarter.

How did Modi Rubber's income mix change during the quarter?

Modi Rubber's other operating revenue rose by Rs 6.45 lakh sequentially to Rs 1.28 crore in the September 2026 quarter, while other income fell by Rs 1.97 crore to Rs 1.85 crore. The lower other-income contribution more than offset the operating-revenue increase and accounted for the Rs 1.91 crore decline in total income from the June 2026 quarter.

The standalone statement reported no revenue from the sale of products or services for the September 2026 quarter, June 2026 quarter or September 2025 quarter. Reported revenue from operations therefore consisted of other operating revenue, which was Rs 1.28 crore in September 2026. Other income represented about Rs 1.85 crore of the quarter's Rs 3.13 crore total income.

Against the year-earlier quarter, other operating revenue increased from Rs 92.76 lakh to Rs 1.28 crore and total income rose from Rs 2.97 crore to Rs 3.13 crore. Total expenses also increased, from Rs 7.33 crore to Rs 7.69 crore. The September 2026 after-tax loss was nonetheless narrower than the Rs 4.39 crore loss recorded in the September 2025 quarter.

What do Modi Rubber's first-half standalone results show?

Modi Rubber recorded a standalone net loss of Rs 7.10 crore for the half year ended September 30, 2026, compared with a Rs 8.18 crore loss in the corresponding prior-year half. Total income increased to Rs 8.18 crore from Rs 7.33 crore, while total expenses declined to Rs 15.38 crore from Rs 15.94 crore, narrowing the pre-tax loss to Rs 7.20 crore from Rs 8.61 crore.

Other operating revenue for the six months was Rs 2.51 crore, up from Rs 1.98 crore in the half year ended September 30, 2025. Other income increased to Rs 5.67 crore from Rs 5.35 crore. Employee-benefit expense rose to Rs 2.66 crore from Rs 2.50 crore, whereas other expenses decreased to Rs 10.71 crore from Rs 11.11 crore.

The half-year result included other comprehensive income of Rs 3.00 crore, compared with other comprehensive loss of Rs 3.16 crore in the prior-year half. Total comprehensive loss consequently narrowed to Rs 4.10 crore from Rs 11.33 crore. Basic and diluted loss per share for the half year was Rs 2.84, compared with Rs 3.27 in the corresponding prior-year period.

How much cash did Modi Rubber use in operations?

Modi Rubber used Rs 13.50 crore in operating activities during the six months ended September 30, 2026. Its cash-flow statement showed an operating loss before working-capital changes of Rs 10.05 crore, followed by net working-capital movements that took cash generated from or used in operations to an outflow of Rs 13.06 crore. Net income taxes paid added Rs 43.58 lakh to the operating cash outflow.

Working-capital movements included a Rs 1.45 crore increase in other current financial assets, a Rs 89.95 lakh increase in other current assets and a Rs 37.18 lakh increase in trade receivables. These uses were partly offset by a Rs 14.13 lakh decrease in other non-current assets and a Rs 1.74 lakh decrease in loans and advances. The filing presents its cash flow under the indirect method prescribed by Indian Accounting Standard 7, Statement of Cash Flows.

Investing activities generated Rs 12.19 crore during the first half, led by Rs 20.34 crore of proceeds from sale of short-term investments against Rs 10.40 crore spent on purchases of short-term investments. Financing activities used Rs 55.56 lakh, comprising Rs 27.22 lakh of lease repayments and Rs 28.34 lakh of interest paid. Cash and cash equivalents declined by Rs 1.86 crore to Rs 96.87 lakh at September 30, 2026, from Rs 2.83 crore at the start of the financial year.

What changed in Modi Rubber's standalone balance sheet?

Modi Rubber's standalone total assets were Rs 427.41 crore at September 30, 2026, down from Rs 432.25 crore at March 31, 2026. Non-current assets decreased to Rs 365.55 crore from Rs 366.54 crore, including property, plant and equipment of Rs 207.27 crore and investments of Rs 111.69 crore. Current assets fell to Rs 61.86 crore from Rs 65.71 crore.

The current-asset movement included a fall in cash and cash equivalents to Rs 96.86 lakh from Rs 2.83 crore and a reduction in current investments to Rs 36.28 crore from Rs 39.97 crore. Trade receivables increased to Rs 88.05 lakh from Rs 50.87 lakh. Current tax assets rose to Rs 4.96 crore from Rs 4.52 crore, while other current assets increased to Rs 3.00 crore from Rs 2.10 crore.

Standalone equity declined to Rs 363.53 crore at September 30 from Rs 367.62 crore at March 31, reflecting other equity of Rs 338.49 crore versus Rs 342.58 crore. Non-current borrowings remained Rs 2.50 crore, and current liabilities declined to Rs 27.77 crore from Rs 28.21 crore. The filing also states that the unimplemented portion of the SS-08 scheme remains under implementation following the repeal of the Sick Industrial Companies Act, 1985, with approved schemes governed by the National Company Law Tribunal framework.

Conclusion

Modi Rubber's September 2026 standalone result shows that a sequential decline in other income outweighed higher other operating revenue, widening the quarterly net loss to Rs 4.21 crore. The first-half comparison improved from the prior year as total income rose and expenses declined, but operations still used Rs 13.50 crore of cash and cash equivalents fell to Rs 96.87 lakh.

The next results will show whether Modi Rubber can sustain growth in other operating revenue and reduce reliance on other income, which fell from Rs 3.82 crore in the June quarter to Rs 1.85 crore in the September quarter. The filing also leaves the SS-08 scheme's unimplemented portion unresolved, making any company update on its implementation a further item to watch.