Modern Diagnostic FY26 net profit falls 42% to ₹525.33 lakh
Modern Diagnostic and Research Centre Limited reported a 42% decline in net profit to ₹525.33 lakh for FY26, despite a 7% increase in revenue to ₹8,311.06 lakh. Total expenses rose to ₹7,814.58 lakh, impacting profitability. The company utilized ₹1,571.62 lakh of its ₹3,689.28 lakh IPO proceeds for capital expenditure and working capital. Gupta Aiyer & Co issued an unmodified opinion on the audited results.
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Modern Diagnostic and Research Centre Limited reported a 42% decline in net profit to ₹525.33 lakh for the year ended March 31, 2026, down from ₹900.79 lakh in the previous year. Revenue from operations rose 7% to ₹8,311.06 lakh from ₹7,794.54 lakh in FY25. The company’s board approved the audited financial results on May 29, 2026.
The diagnostic services provider listed on the BSE SME platform on January 7, 2026, raising ₹3,689.28 lakh through an initial public offering (IPO). The proceeds were earmarked for capital expenditure, working capital requirements, and repayment of borrowings. As of March 31, 2026, the company had utilized ₹1,571.62 lakh of the IPO proceeds, leaving ₹1,744.89 lakh unutilized.
Total expenses for FY26 increased to ₹7,814.58 lakh from ₹6,593.49 lakh in the prior year, driven by higher costs of materials, employee benefits, and finance costs. The company’s basic earnings per share (EPS) stood at ₹3.48 for FY26, compared to ₹8.19 in the previous year.
Financial Performance
| Particulars | Year Ended Mar 31, 2026 (₹ in Lacs) | Year Ended Mar 31, 2025 (₹ in Lacs) |
|---|---|---|
| Revenue from operations | 8,311.06 | 7,794.54 |
| Total Income | 8,413.71 | 7,880.46 |
| Total Expenses | 7,814.58 | 6,593.49 |
| Profit for the period | 525.33 | 900.79 |
| Basic EPS (₹) | 3.48 | 8.19 |
IPO Proceeds Utilisation
| Item Head | Proposed Utilisation (₹ in Lacs) | Utilisation upto Mar 31, 2026 (₹ in Lacs) |
|---|---|---|
| Capital Expenditure | 2,068.95 | 646.28 |
| Working Capital Requirement | 800.00 | 492.01 |
| Repayment of Borrowings | 100.00 | 100.00 |
| General Corporate Purpose | 333.33 | 333.33 |
| Total | 3,302.28 | 1,571.62 |
Auditor’s Report
Gupta Aiyer & Co, Chartered Accountants, issued an unmodified opinion on the audited financial results. The auditors identified the utilization of IPO proceeds as a key audit matter, noting that the funds were utilized for the purposes stated in the prospectus, with temporary deployment of unutilized funds in compliance with regulatory requirements. The auditors also confirmed the adequacy and operating effectiveness of the company’s internal financial controls over financial reporting.
Historical Stock Returns for Modern Diagnostic & Research Centre
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -19.17% | -19.17% | -23.02% | -39.58% | -39.58% | -39.58% |
What specific measures will management implement to curb the rising material and employee benefit costs that eroded net profit?
How does the company plan to deploy the remaining ₹1,744.89 lakh in unutilized IPO proceeds to drive future growth?
Will the significant drop in EPS impact the company's ability to raise capital or maintain investor confidence in the near term?
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