Modern Insulators Ltd. , a leading manufacturer in the electrical equipment sector, has reported a strong financial performance for the second quarter of fiscal year 2026, showcasing significant growth across key metrics.

Revenue and Profitability Surge

The company's consolidated revenue for Q2 FY26 reached ₹176.49 crore, marking a substantial 56% increase from ₹114.92 crore in the corresponding quarter of the previous year. This impressive top-line growth was accompanied by a notable improvement in profitability.

Modern Insulators' consolidated net profit for the quarter rose to ₹16.59 crore, up from ₹13.05 crore in Q2 FY25, representing a 27% year-over-year increase. This growth in net profit underscores the company's ability to translate higher revenues into improved bottom-line results.

Operational Efficiency Improvements

One of the standout aspects of Modern Insulators' Q2 performance was the significant enhancement in operational efficiency, as reflected in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) figures:

The company's EBITDA surged by 276% year-over-year to ₹18.80 crore, while the EBITDA margin expanded significantly from 4.34% to 10.63%, indicating a substantial improvement in operational efficiency and profitability.

Segment-wise Performance

Modern Insulators operates primarily in two segments: Insulators and Terry Towels. The segment-wise revenue breakdown for Q2 FY26 is as follows:

The Insulators segment, which forms the core of the company's business, demonstrated robust growth of 63.6% year-over-year. However, the Terry Towels segment experienced a slight decline of 9.2% compared to the same quarter last year.

Balance Sheet Strength

As of September 30, 2025, Modern Insulators maintained a strong balance sheet position:

• Total Assets: ₹666.64 crore
• Total Equity: ₹495.10 crore
• Current Ratio: 3.22

The company's healthy current ratio of 3.22 indicates strong liquidity and ability to meet short-term obligations.

Outlook

The significant improvement in revenue and profitability, particularly in the core Insulators segment, suggests that Modern Insulators is well-positioned to capitalize on growth opportunities in the electrical equipment sector. The company's focus on operational efficiency, as evidenced by the substantial expansion in EBITDA margin, may continue to drive profitability in the coming quarters.

Investors and market observers will likely keep a close watch on how Modern Insulators maintains this growth momentum and manages any potential challenges in its operating environment.

Modern Insulators Limited (MIL) has announced the withdrawal of its application to reclassify Kakunda Investment Private Limited from the Promoter Group to the Public Group. This decision marks a reversal of the company's earlier plans, which were approved by the Board of Directors on August 14, 2025.

Key Details of the Withdrawal

Implications and Process

The company has formally requested BSE Limited to withdraw both the initial intimation and the filed application from their records. This move effectively nullifies the previous decision to change the classification of Kakunda Investment Private Limited within the company's shareholding structure.

Modern Insulators Limited, headquartered in Sirohi, Rajasthan, has not provided specific reasons for this withdrawal in their communication to the stock exchange. The decision to maintain Kakunda Investment Private Limited's status in the Promoter Group could have implications for the company's ownership structure and potentially for its governance practices.

It's important to note that reclassification of promoter entities is a significant corporate action that can affect investor perceptions and regulatory compliance. The withdrawal of such an application suggests a reconsideration of the company's shareholding strategy or potential changes in the relationship between MIL and Kakunda Investment Private Limited.

Investors and market watchers may want to keep an eye on any further developments or explanations from Modern Insulators Limited regarding this decision.