BSEModern Insulators LtdHighNeutral
Announced Thu, 14 Aug · 17:16 IST

We hereby submits the Unaudited Standalone & Consolidated Financial Results for the quarter ended 30th June, 2025

Qualified OpinionRevenue Growth 20pctPat Growth 25pctRelated Party TransactionsResults View source PDF

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AI summary

Modern Insulators Ltd reported strong Q1 FY26 standalone results, with revenue from operations rising about 36% year-on-year to Rs. 14,137 lacs from Rs. 10,382 lacs. Standalone profit after tax more than doubled to Rs. 1,613.55 lacs (from Rs. 779.73 lacs), pushing EPS to Rs. 3.42 vs Rs. 1.65 a year ago. The Insulators segment drove the growth, with revenue climbing to Rs. 12,745 lacs from Rs. 9,049 lacs, while the Terry Towels segment remained broadly flat at around Rs. 1,392 lacs. Consolidated results tracked the standalone performance closely. However, the auditor issued a qualified review report because the company has not made a tax provision of Rs. 261.93 lacs for the quarter (cumulative Rs. 12,106 lacs), citing a proposed amalgamation. The company also has large interest-free unsecured loans — Rs. 7,124 lacs to a Section 189 company and Rs. 1,131 lacs to its wholly owned subsidiary — with no fixed repayment terms.

Likely market impact

The sharp jump in revenue and profits is a clear positive for shareholders. But the qualified auditor opinion, the over Rs. 121 crore cumulative unprovided tax liability linked to a pending amalgamation, and sizeable interest-free related-party loans are concerns that investors should weigh before taking a positive view.