Modern Insulators Ltd (515008)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Modern Insulators' revenue was ₹188 Cr (+33.5% year on year, -7.2% on the previous quarter), and net profit ₹29.6 Cr (+97.3% year on year); the operating margin was 16.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹188 | +33.5% | -7.2% |
| Operating profit | ₹31.8 | +144.6% | +2.6% |
| Net profit | ₹29.6 | +97.3% | +23.3% |
| EPS (₹) | 6.28 | +94.4% | +24.1% |
| Operating margin | 16.9% | — | — |
📢 Recent Corporate Announcements
CRISIL Ratings has reaffirmed Modern Insulators Limited's credit rating at 'CRISIL A-/Stable' for long-term bank facilities and 'CRISIL A2+' for short-term facilities. The total rated bank loan facilities have been enhanced from Rs 130 Crore to Rs 165 Crore, reflecting expanded working capital and term loan limits across Punjab National Bank and Central Bank of India. The reaffirmation underscores stability in the company's financial risk profile relative to its TTM revenue of Rs 766 Crore and low existing debt of Rs 68 Crore. The rating letter remains valid until March 31, 2027.
- Total bank loan facilities rated increased to Rs 165 Crore from Rs 130 Crore
- Long-term rating reaffirmed at 'Crisil A-/Stable'
- Short-term rating reaffirmed at 'Crisil A2+'
- Rated facilities include Rs 14.5 Crore term loan and Rs 50 Crore cash credit limits
- Rating validity extends till March 31, 2027
Modern Insulators reported a strong operational Q1 FY27 with standalone revenue growing 32.4% YoY to ₹187.20 Cr. Standalone Net Profit surged 79.5% YoY to ₹28.97 Cr, driven by the core Insulator segment which contributed 93.5% of revenue. However, the results carry a significant audit qualification: the company has not provided for cumulative taxes of ₹130.56 Cr (approx. 24% of Net Worth) pending a merger scheme with Modern Denim Ltd. Additionally, an interest-free loan of ₹70.29 Cr remains outstanding to a related party linked to this proposed amalgamation.
- Standalone Revenue from Operations increased 32.4% YoY to ₹187.20 Cr from ₹141.37 Cr.
- Standalone Net Profit rose 79.5% YoY to ₹28.97 Cr compared to ₹16.14 Cr in Q1 FY26.
- Insulator segment revenue grew to ₹175.10 Cr, while the Terry Towel segment contributed ₹12.10 Cr.
- Cumulative tax provision not made in accounts stands at ₹130.56 Cr due to the pending Scheme of Arrangement.
- Interest-free unsecured loan of ₹70.29 Cr provided to a related party under Section 189 of the Companies Act.
Modern Insulators reported a strong Q1 FY27 with standalone revenue growing 32.4% YoY to ₹187.20 Cr. Net profit surged 79.5% YoY to ₹28.97 Cr, driven by the core Insulators segment which contributed 93.5% of standalone revenue. However, the auditor issued a qualified opinion as the company has not provided for tax liabilities of ₹2.75 Cr this quarter (cumulative ₹130.56 Cr) pending a merger with Modern Denim Ltd. The company also maintains significant interest-free loans of ₹70.29 Cr to related parties.
- Standalone Revenue from Operations increased 32.4% YoY to ₹187.20 Cr from ₹141.37 Cr.
- Standalone Net Profit grew 79.5% YoY to ₹28.97 Cr, resulting in an EPS of ₹6.14 vs ₹3.42 YoY.
- Insulators segment revenue rose to ₹175.10 Cr, representing 93.5% of total standalone revenue.
- Tax provision of ₹2.75 Cr for the quarter (₹130.56 Cr cumulative) was not made, leading to an auditor qualification.
- Interest-free unsecured loans to related parties and subsidiaries total approximately ₹94.64 Cr.
Modern Insulators Ltd has scheduled a board meeting on August 10, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This follows a strong FY26 performance where revenue reached •720 Cr and PAT doubled to •80 Cr compared to the previous year. The trading window for designated persons has been closed since July 1, 2026, in compliance with insider trading regulations. Investors will be looking for consistency in margins, which stood at an OPM of 13.2% on a TTM basis.
- Board meeting scheduled for August 10, 2026, to approve Q1 FY27 results
- Trading window closed from July 1, 2026, until 48 hours post-announcement
- Company reported a significant TTM revenue of •719 Cr leading into this quarter
- Previous quarter (Mar 2026) saw revenue of •203 Cr and PAT of •24 Cr
- Focus remains on export performance, which previously accounted for •179.43 Cr in earnings
Financial Performance
Geographic Revenue Split
The company has a significant export presence with foreign exchange earnings of INR 179.43 Cr against a foreign exchange outgo of INR 14.02 Cr for the year ended March 31, 2025. This indicates that a substantial portion of revenue is derived from international markets, though the exact percentage split is not disclosed.
Profitability Margins
The average net profit of the company for the preceding three financial years (as per Section 135(5)) was INR 27.22 Cr. Specific gross, operating, and net margins for the current year are not disclosed.
Operational Drivers
Operational analysis data not yet available for this company.
Strategic Growth
Growth Strategy
The company focuses on maintaining its position in the insulator market through compliance with international standards and ethical business practices. It leverages its status as a net foreign exchange earner (INR 179.43 Cr) to serve global markets. Growth is supported by a 12% increase in average salaries for non-managerial employees, aligning with industry benchmarks to retain talent.
Products & Services
Insulators (specifically porcelain and hollow insulators used in electrical power transmission and distribution systems).
Brand Portfolio
Modern Insulators.
External Factors
Industry Trends
The industry is focused on electrical infrastructure; the company's reliance on indigenous technology (no technology imports in 3 years) suggests a stable, established manufacturing process in a mature industry.
Competitive Moat
The company's moat is built on its established manufacturing presence in Rajasthan and its ability to meet international demand, evidenced by significant export earnings. However, the sustainability of this moat is challenged by a qualified audit opinion on tax matters.
Macro Economic Sensitivity
The company is sensitive to global infrastructure and power sector spending, as evidenced by its high foreign exchange earnings of INR 179.43 Cr.
Regulatory & Governance
Industry Regulations
The company must comply with the Petroleum Act 1934 and various SEBI (LODR) regulations. It was fined INR 1.76 Lacs by the Stock Exchange for non-compliance with SEBI (LODR) over the last three financial years.
Taxation Policy Impact
The company is currently facing a qualified audit opinion due to a provision for taxation, including interest, estimated at INR 19.15 Cr.
Legal Contingencies
The company has disclosed pending litigations in its financial statements, with a major estimated tax-related contingency of INR 19.15 Cr impacting the auditor's opinion.
Risk Analysis
Key Uncertainties
The primary uncertainty is the resolution of the INR 19.15 Cr tax provision and the accuracy of Expected Credit Loss (ECL) measurements on trade receivables, which are identified as key audit matters.
Geographic Concentration Risk
The company's operations are concentrated in Abu Road, Sirohi, Rajasthan, though its revenue is globally distributed with INR 179.43 Cr in foreign earnings.
Technology Obsolescence Risk
The company has not imported technology in the last three years, which may indicate a risk of falling behind if global insulator technology shifts rapidly, though current operations appear stable.
Credit & Counterparty Risk
There is significant credit exposure to trade receivables, requiring an allowance for Expected Credit Losses based on customer aging and credit history.
