Modella Woollens Q1 Results: Net loss narrows to ₹3.98 lakh
Modella Woollens Ltd posted a Q1FY26 net loss of ₹3.98 lakh, with zero operational revenue. Other income fell to ₹1.95 lakh while expenses totaled ₹5.93 lakh. Statutory auditors Kochar & Associates provided an unmodified limited review report. The loss per share was ₹0.44.
*this image is generated using AI for illustrative purposes only.
Modella Woollens reported a net loss of ₹3.98 lakh for the first quarter of FY26 (Q1FY26), ending June 30, 2026. This represents a slight widening of the loss compared to ₹3.01 lakh in Q1FY25, though it is a narrowing from the preceding quarter’s loss of ₹4.44 lakh in Q4FY25. The company recorded zero revenue from operations, relying solely on other income for its total income of ₹1.95 lakh. The results highlight the company’s continued lack of operational turnover during the period.
The Board of Directors, chaired by Sandeep Shah, approved the unaudited standalone financial results in a meeting held on August 4, 2026. The meeting commenced at 5:10 pm and concluded at 6:20 pm. In compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company submitted the results along with a limited review report from its statutory auditors, Kochar & Associates. The Audit Committee also reviewed the financial statements prior to board approval.
Financial Performance Breakdown
Modella Woollens generated no revenue from operations in Q1FY26, continuing a trend observed in previous periods where operational income was nil. Total income stood at ₹1.95 lakh, entirely composed of other income, which decreased from ₹2.80 lakh in Q1FY25. Expenses totaled ₹5.93 lakh, driven primarily by other expenditure of ₹3.97 lakh and employee benefit expenses of ₹1.94 lakh. Depreciation remained minimal at ₹0.01 lakh.
| Particulars | Q1FY26 (₹ Lakh) | Q4FY25 (₹ Lakh) | Q1FY25 (₹ Lakh) | FY25 (₹ Lakh) |
|---|---|---|---|---|
| Revenue from Operations | - | - | - | - |
| Other Income | 1.95 | 1.28 | 2.80 | 6.88 |
| Total Income | 1.95 | 1.28 | 2.80 | 6.88 |
| Employee Benefit Expenses | 1.94 | 2.38 | 1.72 | 7.67 |
| Other Expenditure | 3.97 | 3.31 | 4.06 | 19.11 |
| Depreciation | 0.01 | 0.01 | 0.01 | 0.04 |
| Total Expenses | 5.93 | 5.70 | 5.80 | 26.82 |
| Net Profit/(Loss) | (3.98) | (4.44) | (3.01) | (19.95) |
What the Numbers Show
The primary driver of the quarterly loss is the absence of operational revenue against fixed cost structures. While total income declined by 30% year-on-year from ₹2.80 lakh to ₹1.95 lakh, total expenses saw a marginal decrease of 2.4% from ₹5.80 lakh to ₹5.93 lakh (note: expense increased slightly QoQ but is comparable YoY). The reduction in employee benefit expenses from ₹1.72 lakh in Q1FY25 to ₹1.94 lakh in Q1FY26 indicates a slight rise in personnel costs, yet this was offset by a decrease in other expenditure from ₹4.06 lakh to ₹3.97 lakh. The company’s paid-up equity share capital remains unchanged at ₹91.00 lakh. With basic earnings per share at (₹0.44), shareholders continue to face dilution of value due to sustained operational losses.
Historical Stock Returns for Modella Woollens
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.01% | +6.03% | +20.96% | +4.24% | +2.29% | +525.46% |
What strategic initiatives is Modella Woollens planning to implement to generate operational revenue and break the cycle of zero turnover?
How does the company intend to manage its fixed cost structure, particularly employee benefits, in the absence of operational income?
Are there any pending legal or regulatory issues that may be contributing to the suspension of business operations?
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