Modi Naturals Ltd reported a strong consolidated revenue growth of 38.9% YoY for the quarter ended September 2026, reaching Rs 204.90 crore. While the ethanol segment continues to drive the top line, standalone profitability saw a sharp decline. Investors should weigh the significant revenue expansion against the pressure on standalone margins.
Modi Naturals Q2 Performance: Revenue Rises 39% To Rs 204.9 Crore
Consolidated Revenue at Rs 204.9 crore; Ethanol segment dominates with Rs 117.46 crore contribution.
Reader Takeaway: Ethanol strength drives consolidated growth, but standalone margins face pressure following a sharp profit contraction.
What just happened
Modi Naturals Ltd has announced its financial results for the quarter ended September 30, 2026. The company posted a consolidated revenue of Rs 204.90 crore, a 38.9% increase from Rs 147.47 crore in the same period last year. Consolidated net profit rose to Rs 11.02 crore from Rs 10.07 crore. However, the standalone business segment showed a significant decline in profitability, with net profit dropping to Rs 0.02 crore from Rs 2.63 crore.
Why this matters
The company's strategic pivot toward the ethanol segment is yielding top-line results. Ethanol contributed Rs 117.46 crore to the consolidated revenue, positioning it as the company's primary growth engine. While consolidated earnings remain stable, the stark drop in standalone profit indicates operational or margin challenges in non-consolidated entities or specific core business segments that shareholders need to monitor.
Segmental Performance
The ethanol segment remains the most significant contributor to the firm's earnings, reporting an EBITDA of Rs 18.53 crore. The branded segment contributed Rs 0.95 crore in EBITDA, while the bulk segment weighed on performance with a negative EBITDA of Rs 0.51 crore.
Auditor and Governance Update
The financial results were reviewed by the Audit Committee and approved by the Board of Directors on November 5, 2026. Statutory auditors, B. Chhawchharia & Co., have issued an unqualified limited review report on both standalone and consolidated financial statements, signaling no major accounting concerns.
What to track next
Investors should watch for management commentary regarding the margin compression in the standalone business and the sustainability of high revenue growth in the ethanol division as market dynamics evolve.