Quarterly results for Modern Insulators Ltd
Modern Insulators Ltd. – Q3 FY26 Results Summary
Announcement Date: 10 Feb 2026
Financial Performance (Consolidated, INR Crores)
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Reported Revenue: ₹199.46 Cr
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Excise Duty/VAT: No excise duty/VAT line item disclosed; reported figures used as-is.
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YoY Revenue Growth: +60.3% (Q3 FY25: ₹124.58 Cr → Q3 FY26: ₹199.46 Cr)
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QoQ Revenue Growth: +12.5% (Q2 FY26: ₹176.49 Cr → Q3 FY26: ₹199.46 Cr)
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Key Expenses (Q3 FY26):
- Cost of Materials Consumed: ₹61.46 Cr
- Employee Benefits: ₹23.99 Cr
- Other Expenses: ₹88.34 Cr
- COGS (including inventory changes and purchases): ₹61.46 Cr + ₹0.19 Cr – ₹6.08 Cr = ₹55.57 Cr
- Operating Profit (EBITDA): ₹31.56 Cr
- Operating Margin: 15.8% (vs 8.0% Q3 FY25, 10.6% prior quarter)
- Net Profit (PAT): ₹24.13 Cr
- Net Margin: 12.1% (vs 7.2% Q3 FY25, 9.0% prior quarter)
- EPS (Basic/Diluted): ₹5.12 (vs ₹1.97 YoY, ₹3.52 QoQ)
What’s Different This Quarter
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Record Revenue & Profitability:
- Revenue of ₹199.46 Cr is an all-time high, surpassing the previous peak of ₹176.5 Cr (Q2 FY26).
- Operating profit and PAT also at new highs (PAT: ₹24.13 Cr vs previous best of ₹16.6 Cr).
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Growth Acceleration:
- YoY revenue growth of 60.3% is the fastest in the available data, well above the 12.3% historical YoY average and recent 4Q average of 12.5%.
- QoQ growth of 12.5% continues the recent acceleration trend (recent 4Q avg: 12.5%).
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Margin Expansion:
- Operating margin at 15.8% is nearly double the 8.6% 8Q average and 8.0% in Q3 FY25; up 520 bps QoQ and 780 bps YoY.
- Net margin at 12.1% is also at the top end of historical range (historical max: 11.2%).
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Cost Structure:
- COGS ratio (27.9%) is below the historical average (30.8%), supporting margin expansion.
- Employee cost ratio (12.0%) is below the 16% historical average, despite absolute increases.
- Other expenses as a % of revenue (44.3%) are slightly below the historical average (46.4%).
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Tax Provisioning:
- Auditors have qualified the results due to non-provision of tax and interest (₹2.70 Cr for the quarter, cumulative ₹125.36 Cr), pending outcome of the proposed amalgamation. This may impact future reported profits.
Historical Context
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Seasonality:
- Q3 is typically a softer quarter (historical Q3 avg revenue: ₹113.5 Cr), but this quarter’s revenue is 76% above the Q3 average and sets a new record.
- Margins are well above the Q3 historical average (7.1%).
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Sustained Momentum:
- This is the fourth consecutive quarter of accelerating revenue and margin expansion, marking a clear break from prior seasonal and historical patterns.
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Operating Leverage:
- Operating profit growth (YoY: +219%) far outpaces revenue growth, reflecting strong operating leverage.
Company Updates & Developments
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Amalgamation:
- The Scheme of Arrangement with Modern Denim Limited remains pending; NCLT has disposed of the petition with liberty to re-apply post regulatory compliance. Management is reviewing next steps.
- Large interest-free loans (₹72.34 Cr) extended to a related company as part of this process.
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Tax Regime:
- Company has opted for the concessional tax regime (Section 115BAA), resulting in restatement of deferred tax assets/liabilities.
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No Segment or Capex Disclosure:
- No segmental breakdown or capex/project updates provided.
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Subsidiary/JV Impact:
- Consolidated and standalone results remain closely aligned; subsidiary and JV contributions are not material.
Summary:
Modern Insulators Ltd. delivered record revenue and profitability in Q3 FY26, with growth and margin expansion well above historical norms. The quarter is notable for its exceptional operating leverage and cost discipline. However, the auditor’s qualification regarding unprovided tax liabilities (linked to the pending amalgamation) remains a key disclosure for investors. No segment or capex details were provided, and the company continues to pursue regulatory steps for its proposed merger.