Modern Dairies reported a 33.1% year-on-year increase in net profit for the quarter ended September 30, 2026. The dairy company posted a profit after tax of ₹225.34 lakh, compared to ₹169.23 lakh in the corresponding period last year.

The Board of Directors approved the standalone un-audited financial results during a meeting held on October 19, 2026, at its corporate office in Chandigarh. The results were reviewed by the Audit Committee and carry a limited review report from statutory auditors Sanjeev Sharma & Associates.

Quarterly Performance Overview

Revenue from operations stood at ₹7,439.26 lakh for Q2FY27, marking a 9.2% decline from ₹8,195.85 lakh recorded in Q2FY26. On a sequential basis, revenue fell 18.5% from ₹9,126.63 lakh in the preceding quarter (Q1FY27). Despite the top-line contraction, profitability improved due to lower cost of materials consumed and reduced employee benefit expenses relative to the prior year quarter.

Earnings per share (basic) rose to ₹0.76 from ₹0.64 in the same period last year. Diluted EPS increased to ₹0.76 from ₹0.60.

Financial Metrics Comparison

What the Numbers Show

A significant divergence exists between the company's operational performance and its cash flow generation. While net profit grew 33.1% YoY, net cash generated from operating activities remained negative at ₹536.32 lakh for the half-year ended September 30, 2026. This negative operating cash flow is primarily driven by a substantial decrease in trade payables of ₹2,102.71 lakh, which outweighed the positive impact of a ₹908.66 lakh reduction in trade receivables. This suggests that while collections improved, the company settled significant outstanding liabilities to suppliers during the period, impacting immediate liquidity.

Balance Sheet Highlights

Total assets as of September 30, 2026, stood at ₹1,29,92.53 lakh, a slight decrease from ₹1,31,61.46 lakh as of March 31, 2026. Equity share capital increased to ₹3,195.89 lakh from ₹2,845.89 lakh, reflecting recent capital infusion. Other equity rose significantly to ₹4,160.19 lakh from ₹2,690.16 lakh, bolstered by retained earnings and premium on shares.

Long-term borrowings decreased to ₹518.00 lakh from ₹718.00 lakh, indicating debt reduction. However, short-term borrowings surged to ₹720.37 lakh from ₹438.56 lakh over the same period. Cash and cash equivalents increased to ₹1,137.40 lakh from ₹1,028.88 lakh.

Regulatory and Legal Disclosures

The company disclosed that it has provided for milk cess liability under the Haryana Murrah Buffalo and other Milch Animal Breed Act, 2001. A provision of ₹15.75 lakh was made for the current quarter, bringing the total provision to ₹22.17 crore as of September 30, 2026. Of this amount, ₹9.91 crore has been deposited as per court orders. The matter remains pending before the Hon'ble Supreme Court following an interim stay granted in September 2012.

Modern Dairies Ltd received listing approval from BSE Limited for 35,00,000 equity shares issued to promoters and promoter group through warrant conversion.

The exchange granted approval on October 13, 2026, for the allotment of these shares with a face value of ₹10 each. The shares were issued at a premium of ₹40 per share pursuant to a preferential basis allotment completed earlier in September 2026.

Regulatory compliance and trading conditions

The listing approval follows the company's earlier intimation dated September 10, 2026, regarding the allotment of equity shares to promoters. This action was executed in accordance with SEBI regulations and the Companies Act, 2013.

BSE specified that trading approval for these shares will be granted only after Modern Dairies files:

• Listing approval from the National Stock Exchange of India Ltd (if applicable)
• Confirmation letters from NSDL or CDSL regarding crediting shares to beneficiary accounts
• Confirmation letters regarding lock-in of pre-preferential holding (if applicable)

Timeline for trading approval

Per Schedule XIX of ICDR Regulations and SEBI circular no. SEBI/HO/CFD/PoD-2/P/CIR/2023/00094 dated June 21, 2023, listed entities must apply for trading approval within seven working days from the date of grant of listing approval. Non-compliance with this requirement attracts fines as specified in the cited circular.

The company is also required to ensure compliance with Regulation 167 of SEBI (ICDR) Regulations. Any change exceeding two percent of the total paid-up share capital necessitates filing the shareholding pattern in XBRL mode under Regulations 31(1)(c) of SEBI LODR Regulations, 2015.