Modern Dairies Limited reported a standalone net profit of ₹2.13 crore for the quarter ended June 30, 2026 (Q1FY27), a 30% year-on-year increase from ₹1.65 crore in the corresponding period of FY26. Revenue from operations rose 16.6% to ₹91.27 crore, up from ₹78.30 crore in Q1FY26, driven by favorable inventory movements and controlled material costs. The Board of Directors approved these results on August 11, 2026, alongside key governance appointments.

The company’s total income stood at ₹91.56 crore, while total expenses were ₹88.52 crore. Profit before tax was ₹3.05 crore, compared to ₹2.09 crore in Q1FY26. Deferred tax expense increased to ₹90.85 lakh from ₹44.07 lakh in the prior year quarter. Earnings per share (basic) rose to ₹0.75 from ₹0.64 in Q1FY26. The results were reviewed by the Audit Committee and approved by the Board pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Highlights

Cost of materials consumed decreased to ₹71.72 crore from ₹60.57 crore in Q1FY26, but was offset by a positive change in inventories of ₹34.12 lakh compared to a negative adjustment of ₹73.31 lakh in the prior year. Employee benefits expense remained stable at ₹4.27 crore. Other income declined slightly to ₹29.76 lakh from ₹13.57 lakh in Q1FY26.

Governance and Appointments

The Board approved the re-appointment of Mr. Ashwani Kumar Aggarwal as Executive (Whole-Time) Director for three years, subject to shareholder approval at the forthcoming Annual General Meeting (AGM). The appointment follows a recommendation by the Nomination and Remuneration Committee. Mr. Aggarwal, a Dairy Technologist with over three decades of experience, has been associated with the company since its inception.

Additionally, the Board appointed M/s. Sanjeev Sharma & Associates as Statutory Auditors for one year, effective from the conclusion of the AGM until the AGM in 2027. M/s. K K Sinha & Associates was appointed as Cost Auditors for the financial year 2026-27. Both appointments were recommended by the Audit Committee.

Key Disclosures

The company disclosed an ongoing legal matter regarding Milk Cess liability under the Haryana Murrah Buffalo and other Milch Animal Breed Act, 2001. A Special Leave Petition is pending before the Supreme Court, which granted an interim stay in September 2012. The Government of Haryana issued a demand notice on December 31, 2023, for ₹544.31 crore including compounded interest. As of June 30, 2026, the company has provided ₹22.01 crore for this liability, including a current quarter provision of ₹11.81 lakh. Of this total provision, ₹9.91 crore has already been deposited as per court orders.

What the Numbers Show

The 30% net profit growth outpaced the 16.6% revenue growth, indicating improved operational leverage. This margin expansion was primarily driven by a significant positive swing in inventory valuation changes (₹34.12 lakh vs. negative ₹73.31 lakh last year) and controlled employee costs. However, the rise in deferred tax expenses suggests higher taxable income recognition, while the ongoing milk cess litigation remains a contingent liability risk, though partially mitigated by existing provisions and court stays.

The Board of Directors of Modern Dairies approved the annual audited financial results for the financial year ended March 31, 2026, on May 22, 2026. The company reported a net profit of ₹4.88 lacs for the full year, a sharp decline from the ₹82.96 lacs recorded in the previous fiscal year. For the quarter ended March 31, 2026, the net profit was ₹32.47 lacs.

Revenue from operations for the financial year 2025-26 stood at ₹3,39,92.34 lacs, slightly lower than the ₹3,48,09.49 lacs achieved in the preceding year. In the fourth quarter of FY26, the company generated revenue from operations of ₹92,18.01 lacs. Total income for the year was ₹3,41,21.70 lacs, while total expenses amounted to ₹3,34,48.19 lacs.

Financial Performance

The company's financial results for the year and quarter reflect the costs and operational adjustments undertaken during the period. The profit before tax for the year was ₹6,73.51 lacs, down from ₹65,72.81 lacs in the previous year. The basic earnings per share (EPS) for FY26 was reported at ₹1.89, compared to ₹35.46 in the prior year.

Assets and Liabilities

As of March 31, 2026, the total assets of the company stood at ₹1,31,61.46 lacs, an increase from ₹1,16,91.40 lacs in the previous year. Equity share capital increased to ₹28,45.89 lacs from ₹25,65.89 lacs, following the conversion of share warrants into equity shares during the quarter. The company's cash and cash equivalents improved to ₹10,28.88 lacs as of the end of the fiscal year.

The statutory auditors have issued an unmodified opinion on the audited financial results for the quarter and year ended March 31, 2026. The financial statements were prepared in compliance with Indian Accounting Standards (Ind-AS) and the requirements of the Securities and Exchange Board of India (SEBI).