Modern Dairies reported a robust start to its fiscal year, with net profit surging 68% year-on-year to ₹2.77 crore in Q1FY26. The dairy processing company’s revenue from operations climbed 16.5% to ₹91.27 crore, driven by higher volumes and improved operational efficiency. This growth trajectory signals strengthening demand and effective cost management strategies implemented by the management team.

The Board of Directors approved the standalone unaudited financial results on August 11, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were subsequently published in Financial Express and Jansatta on August 12, 2026, as mandated under Regulation 30. The figures presented have been reviewed by the company’s statutory auditors.

Financial Performance Highlights

Revenue from operations stood at ₹91.27 crore in the quarter ended June 30, 2026, compared to ₹78.30 crore in the same period last year. This top-line growth outpaced the previous fiscal year’s full-year revenue of ₹339.92 crore on a quarterly run-rate basis, indicating an accelerated business momentum.

What the Numbers Show

The divergence between revenue growth (16.5%) and profit before tax growth (45.6%) highlights significant operating leverage. Modern Dairies managed to expand its pre-tax margins substantially, suggesting that fixed costs were effectively absorbed by higher sales volumes. The net profit margin improved to approximately 3.03% in Q1FY26, up from 2.11% in Q1FY25, demonstrating enhanced profitability per unit of revenue generated.

Earnings per share metrics also reflected this improvement. Basic EPS rose to ₹0.75 from ₹0.64, while diluted EPS increased to ₹0.74 from ₹0.60. The equity share capital remained stable at ₹28.46 crore, ensuring that the earnings growth directly benefited shareholders without dilution. Reserves as shown in the audited balance sheet of the previous year stood at ₹22.53 crore, providing a solid financial base for future investments.

The results were signed off by A.K. Aggarwal, Executive Director, on behalf of the Board. The detailed financial statements are available on the company’s website and the BSE platform for investor review.

Modern Dairies Limited reported a standalone net profit of ₹2.14 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 and the scheduling of its 34th Annual General Meeting (AGM).

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 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 and AGM Details

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.

The Board fixed the date of closure of Register of Members and Share Transfer books from September 20, 2026, to September 26, 2026 (both days inclusive). The 34th AGM will be held on September 26, 2026, via Video Conferencing or Other Audio Visual means. M/s. Sanger & Associates was appointed as scrutinizer for the e-voting process.

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.