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MODTHREAD - Modern Threads

📊 NSE: MODTHREAD 🏢 Textiles - Spinning - Synthetic / Blended 📅 Last Updated: 12/14/2025 9:55

📢 Recent Corporate Announcements

Modern Threads Clarifies No Undisclosed Information Behind Recent Price Volatility

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 12 Mar 2026, 10:10 AM

Modern Threads (India) Limited has responded to a clarification request from the National Stock Exchange regarding significant recent movements in its share price. The company stated that it is in full compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015, and has disclosed all material events to the exchanges. Management clarified that no price-sensitive information has been withheld and that the current price movement is purely market-driven. This response aims to reassure investors that there are no hidden corporate developments causing the volatility.

Responded to NSE clarification letter NSE/CM/Surveillance/16558 dated March 11, 2026
Confirmed strict adherence to SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015
Stated that management is in no way connected with the recent price movement
Attributed the volatility entirely to prevailing market conditions and investor activity

💡 Investors should view this as a routine regulatory clarification and avoid speculative trading based on price volatility alone. Focus on the company's underlying financial performance and fundamental outlook rather than short-term price swings.

Modern Threads Seeks Approval for Appointment of Mr. Prabodh Kumar Nahar as Executive Director

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 25 Feb 2026, 03:05 PM

Modern Threads (India) Limited has issued a postal ballot notice to shareholders to approve the appointment of Mr. Prabodh Kumar Nahar as a Whole-time Director for a three-year term. The appointment is effective from January 7, 2026, with a proposed monthly basic salary of ₹1,40,623 and an annual increment of up to 10%. Shareholders as of the cut-off date of February 20, 2026, are eligible to participate in the electronic voting process. This move aims to formalize the leadership structure as recommended by the Nomination and Remuneration Committee.

Appointment of Mr. Prabodh Kumar Nahar as Whole-time Director for a 3-year tenure starting January 7, 2026.
Proposed remuneration includes a monthly basic salary of ₹1,40,623 and a monthly HRA of ₹5,500.
Provision for a 10% annual salary increment effective from July 1st each year starting 2026.
E-voting period is set from February 26, 2026, to March 27, 2026, for all eligible shareholders.
Bonus allowance proposed at 20% of basic salary along with standard statutory benefits like PF and Gratuity.

💡 Investors should monitor the leadership transition and ensure the proposed remuneration is commensurate with the company's financial performance. Shareholders are encouraged to exercise their voting rights during the e-voting window ending March 27, 2026.

Modern Threads Q3 Net Profit Jumps 262% YoY to ₹3.02 Cr; Revenue at ₹74.90 Cr

🔵 WATCH ⭐ 7/10

EARNINGS 📅 14 Feb 2026, 09:08 PM

Modern Threads (India) reported a strong Q3 FY26 with net profit jumping to ₹3.02 crore from ₹0.83 crore YoY, driven by improved margins despite flat revenue growth. Revenue for the quarter stood at ₹74.90 crore, a 3.5% increase compared to the previous year's corresponding quarter. However, the results are overshadowed by a qualified audit report concerning the non-provision of ₹10.75 crore in cumulative preference dividends. The company is also dealing with ₹14.50 crore in refundable share application money due to legacy regulatory changes.

Net Profit surged 262% YoY to ₹3.02 crore in Q3 FY26 compared to ₹0.83 crore in Q3 FY25.
Total Income for the nine-month period ended December 2025 reached ₹230.37 crore.
Auditors issued a qualified opinion regarding the non-provision of ₹10.75 crore in cumulative preference share dividends.
Basic EPS improved significantly to ₹0.87 for the quarter from ₹0.24 in the same period last year.
Share application money of ₹14.50 crore remains refundable following the repeal of the Sick Industrial Companies Act (SICA).

💡 While the operational turnaround and profit growth are positive, the qualified audit report and significant legacy liabilities suggest high risk. Investors should monitor the company's progress on the settlement of preference shares and the resolution of refundable application money before committing capital.

Modern Threads Reports December 2025 Physical Share Transfer Requests Status

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 14 Jan 2026, 04:50 PM

Modern Threads (India) Limited has submitted its monthly report for December 2025 regarding the relodgement of physical share transfer requests under the SEBI Special Window. The company's Registrar and Share Transfer Agent, Beetal Financial & Computer Services, received a total of 8 requests during the month. Of these, only 1 request was approved, while 7 were rejected. The average processing time for these requests was recorded at 12 days.

Received 8 requests for physical share transfer relodgement in December 2025
Processed 100% of received requests within the month
High rejection rate observed with 7 out of 8 requests being turned down
Average processing time for transfer requests was 12 days

💡 This is a routine administrative filing with no impact on the company's financial performance or business operations. No action is required for investors holding shares in dematerialized form.

Modern Threads Appoints CFO Prabodh Kumar Nahar as Executive Director; Ram Awatar Kabra Resigns

🟡 NEUTRAL ⭐ 6/10

MANAGEMENT 📅 07 Jan 2026, 06:21 PM

Modern Threads (India) Limited has announced a leadership transition effective January 7, 2026. Mr. Prabodh Kumar Nahar, the current CFO with 37 years of experience, has been appointed as an Executive Director for a three-year term. Simultaneously, Mr. Ram Awatar Kabra has resigned from his position as Executive Director citing health and personal reasons. The company also confirmed the reconstitution of its Audit and Stakeholder's Relationship Committees following these changes.

Mr. Prabodh Kumar Nahar appointed as Executive Director for a 3-year term starting Jan 7, 2026.
Outgoing Director Ram Awatar Kabra resigned effective close of business hours on Jan 7, 2026.
New appointee Mr. Nahar brings 37 years of experience in Finance, Taxation, and Management.
The Board has reconstituted the Audit and Stakeholder's Relationship Committees.

💡 Monitor the transition and the appointment of a new CFO to ensure financial oversight remains robust. The internal promotion indicates a preference for continuity in leadership.

Modern Threads (India) Limited Submits SEBI Reg 74(5) Compliance Certificate for Q3 FY26

🟡 NEUTRAL ⭐ 2/10

REGULATORY 📅 07 Jan 2026, 12:55 PM

Modern Threads (India) Limited has filed its quarterly compliance certificate for the period ending December 31, 2025, as required under SEBI (Depositories and Participants) Regulations. The certificate, issued by the Registrar and Share Transfer Agent, Beetal Financial & Computer Services (P) Ltd., confirms that all dematerialization requests were processed correctly. It verifies that physical security certificates were mutilated and cancelled within the mandated 15-day period. This is a routine administrative filing that ensures the integrity of the company's shareholding records.

Compliance certificate submitted for the quarter ended December 31, 2025.
Registrar Beetal Financial confirms processing of dematerialization requests within 15 days.
Confirmation that security certificates were mutilated and cancelled after due verification.
The name of the depositories has been substituted in the register of members as the registered owner.

💡 This is a routine regulatory filing with no impact on the company's fundamentals; no action is required from investors.

Modern Threads (India) Limited Announces Trading Window Closure from January 1, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 25 Dec 2025, 03:51 PM

Modern Threads (India) Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI insider trading regulations. This closure is ahead of the declaration of un-audited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all promoters, directors, and designated persons until 48 hours after the results are announced. The specific date for the board meeting to approve these results will be shared later.

Trading window closure begins on January 1, 2026, for all designated persons.
Closure is related to the un-audited financial results for the period ending December 31, 2025.
The window will reopen 48 hours after the financial results are officially declared.
The date for the board meeting to approve the results is yet to be announced.

💡 This is a routine regulatory filing with no direct impact on stock fundamentals. Investors should wait for the announcement of the board meeting date to assess the upcoming quarterly performance.

View All MODTHREAD Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations decreased by 13.46% YoY, falling from INR 300.49 Cr in FY24 to INR 260.04 Cr in FY25. Segment-specific growth percentages were not disclosed in the available documents.

Profitability Margins

The adjusted net profit margin for the period ending September 30, 2025, was approximately 1.61% (INR 2.45 Cr profit on INR 151.66 Cr income). Reported net profit for the same period was INR 2.63 Cr, but was adjusted downward to INR 2.45 Cr due to audit qualifications.

EBITDA Margin

Not explicitly stated, but Profit Before Tax (PBT) for the half-year ended September 30, 2025, was INR 3.74 Cr. Total income for FY25 was INR 269.89 Cr, down 11.24% from INR 304.08 Cr in FY24.

Capital Expenditure

The company incurred capital expenditure of INR 8.32 Cr in FY25 for Property, Plant, and Equipment, compared to INR 10.42 Cr in FY24. Capital work-in-progress increased from INR 2.20 Cr to INR 5.01 Cr YoY.

Credit Rating & Borrowing

The company has sanctioned working capital limits exceeding INR 5 Cr from UCO Bank. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Wool and threads (implied by company name and website). Cost of materials consumed was INR 150.52 Cr in FY25, representing 57.88% of total revenue from operations.

Raw Material Costs

Raw material costs decreased by 12.28% YoY from INR 171.59 Cr in FY24 to INR 150.52 Cr in FY25, largely tracking the 13.46% decline in revenue.

📈 Strategic Growth

Growth Strategy

The company is focusing on maintaining its presence in the woolen and thread markets, though specific strategic expansion plans were not detailed. The company actively trades in derivative financial instruments (equity, currency, and commodity) to manage financial risks or generate additional income.

Products & Services

Woolen threads, yarn, and related textile products.

Brand Portfolio

Modern Woollens, Modern Threads.

🌍 External Factors

Industry Trends

The textile and woolen industry is evolving with a focus on compliance and internal controls. Modern Threads is currently addressing material weaknesses in its financial reporting processes to align with industry standards.

Competitive Moat

The company relies on its established brand 'Modern Woollens' and its long-standing presence in the Bhilwara textile hub, though its competitive advantage is currently pressured by declining revenues and internal control issues.

Macro Economic Sensitivity

The company is sensitive to fluctuations in the textile industry and commodity prices due to its active derivative trading in commodities.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with the Companies Act, 2013, and SEBI (LODR) Regulations, 2015. It is required to file quarterly returns with UCO Bank for its working capital limits.

Taxation Policy Impact

The company did not recognize Deferred Tax Assets because it is not probable that future taxable profits will be available to utilize them, indicating a cautious outlook on future profitability.

Legal Contingencies

The company has a significant pending liability for unprovided interest/dividends on cumulative redeemable preference shares amounting to INR 10.66 Cr as of September 30, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the material weakness in internal financial controls regarding the confirmation of trade receivables and payables, which could lead to material misstatements in financial reporting.

Geographic Concentration Risk

Operations are concentrated in Bhilwara, Rajasthan.

Third Party Dependencies

Dependency on UCO Bank for working capital limits exceeding INR 5 Cr.

Technology Obsolescence Risk

The company uses accounting software with audit trail features, but the effectiveness of digital controls is currently under review due to identified material weaknesses.