Outcome of Board Meeting-Financial Results, Dividend and Re-appointment of Cost Auditors
MODISONLTD · price
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Modison Ltd reported strong full-year FY2026 results with revenue from operations growing 45% to ₹71,033 Lakhs from ₹49,024 Lakhs in FY2025. Profit after tax surged nearly 3x to ₹7,255 Lakhs from ₹2,468 Lakhs, with EPS at ₹22.36 versus ₹7.61 in the prior year. The Board recommended a final dividend of ₹3 per share (300%). Exceptional items include a ₹1,063.46 Lakhs loss from a fire incident at the factory on February 7, 2026, along with hedging losses on silver inventory totaling ₹830.86 Lakhs for the year. The company has filed an insurance claim of ₹1,801.95 Lakhs and received ₹170 Lakhs preliminary payment. Operating cash flow was negative at ₹6,418 Lakhs due to significant working capital buildup in inventories and receivables. Auditors issued unmodified (clean) opinions on both standalone and consolidated results.
Strong profitability growth despite fire incident and negative operating cash flow. The 300% dividend signals management confidence, but the fire loss and working capital strain warrant monitoring. Debt levels have increased notably year-over-year.