Earnings Call Transcript
MODINATUR · price
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Modi Naturals reported a strong FY25, marking its 50th anniversary year as a turnaround milestone. FY25 revenue rose 65.8% YoY to Rs 662.9 crore, EBITDA jumped 517% to Rs 56 crore (8.4% margin), and PAT swung to a Rs 31 crore profit from a Rs 1.4 crore loss. Q4 FY25 revenue grew 58.5% YoY to Rs 189.9 crore with EBITDA up 189% to Rs 16.1 crore. ROCE improved to 18.3% and net working capital days dropped sharply from 111 to 66. The ethanol division is the standout, contributing Rs 324.9 crore in FY25 revenue at 18.8% ROCE, with phase 2 expansion (adding 180 KL/day, total 310 KL/day) on track for Q3 FY26. Management guides FY26 revenue of Rs 850–880 crore, EBITDA of Rs 80–85 crore, and PAT of Rs 42–48 crore, supported by ethanol capacity addition, branded division recovery, and ad spend scaling up to ~7% of sales.
Strong execution across all three divisions, with clear margin expansion roadmap and a Rs 300 crore order book from oil marketing companies providing near-term ethanol revenue visibility. The capacity-led growth in ethanol combined with reviving consumer and bulk divisions supports a constructive outlook for shareholders, though ad spend pressure on near-term consumer margins is a watchpoint.