Modern Insulators Ltd has approved an investment of ₹25 crore in Buoyant Large Value Fund (LVF) to deploy surplus funds for long-term returns. The Board of Directors sanctioned the proposal during its meeting held on June 26, 2026. This strategic move aims to diversify the company's investment portfolio and generate appropriate risk-adjusted returns.

The investment will be made in cash consideration, with the unit allocation expected to be completed within 7-10 days from the date of investment. Following the transaction, Modern Insulators Ltd will hold approximately 3% shareholding in Buoyant Large Value Fund. The price at which the units are purchased will be determined at the time of acquisition.

Buoyant Large Value Fund is an Alternate Investment Fund that invests in listed equities across large cap, mid cap, and small stocks based on the fund manager's conviction. The fund has demonstrated a good return on investment (ROI) in the past. The transaction does not fall under related party transactions, and no promoter or promoter group entities have any interest in the deal.

Investment Details

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board meeting commenced at 4:00 P.M. and concluded at 4:30 P.M. on June 26, 2026.

Modern Insulators Limited reported a standalone net profit of ₹8292.64 lacs for the financial year ended March 31, 2026, nearly doubling from ₹3921.73 lacs in the previous year. Revenue from operations for the year stood at ₹71913.61 lacs, compared to ₹50325.16 lacs in FY25. Despite the strong profit growth, the board decided not to recommend any dividend for FY26. The board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at its meeting held on May 29, 2026.

Financial Performance

The company delivered robust growth across both quarterly and annual metrics. For the quarter ended March 31, 2026, standalone net profit rose to 246M rupees from 91M rupees in the same period last year, while revenue climbed to 2.02B rupees from 1.6B rupees year-on-year. EBITDA for Q4 surged to 316M rupees compared to 178M rupees in the corresponding quarter of the previous year, with the EBITDA margin expanding significantly to 15.65% from 11.15%. Total revenue for FY26 was ₹74130.78 lacs. The company operates primarily through two segments: Insulators and Terry Towels.

The following table summarises the key annual financial metrics:

The Q4 performance highlights are presented below:

Audit Qualifications

R B Verma & Associates, Chartered Accountants, issued a qualified opinion on the standalone and consolidated financial results. The qualification arises because the company has not made a provision for taxation, including interest, amounting to ₹244.69 lacs for the quarter and ₹936.19 lacs for the year ended March 31, 2026. This decision is based on a proposed amalgamation scheme with Modern Denim Limited, which is currently pending regulatory approvals including a No Objection Certificate (NOC) from the stock exchange.

Board Decisions

The board re-appointed M/s Rajesh & Company, Cost Accountants, as the Cost Auditor for the financial year 2026-27. The trading window for designated persons and their immediate relatives, which has been closed since April 1, 2026, will remain shut until 48 hours after the publication of the financial results.