Modi Naturals Ltd , a leading player in the FMCG and ethanol sectors, has reported a robust financial performance for the second quarter of fiscal year 2026, demonstrating resilience in the face of market challenges and positioning itself for future growth.

Financial Highlights

The company achieved significant growth in its bottom line for Q2FY26:

This strong performance comes despite the impact of GST transition on the consumer division, highlighting the company's ability to navigate regulatory changes effectively.

Ethanol Division Expansion

Modi Naturals has made substantial progress in its ethanol business:

• Secured ethanol orders worth ₹400.00 crores from Oil Marketing Companies (OMCs)
• Expanding ethanol production capacity to 310 KLPD
• New 180 KLPD facility expected to commence operations by December 2025

The expansion aligns with India's push for increased biofuel usage and positions Modi Naturals as a key player in the sector.

Consumer Division Performance

While facing short-term challenges due to GST transitions, the consumer division shows promise:

• Increased marketing and advertising spend to ₹9.15 crores in H1FY26
• Strong performance in e-commerce channels, particularly for pasta products
• Introduction of new products, including Hing in the spice category

Strategic Outlook

Modi Naturals is focusing on several key areas for growth:

1. Capacity Utilization: The company aims to fully utilize its expanded ethanol capacity, leveraging the growing demand for biofuels.
2. Product Diversification: Plans to enter the ready-to-eat snacking segment, expanding its FMCG portfolio.
3. Distribution Expansion: Deepening presence in Tier 2 and Tier 3 markets to capture evolving consumption patterns.
4. Operational Efficiency: Implementing a lower inventory business model in the bulk division to enhance profitability.

Management Commentary

Akshay Modi, Joint Managing Director, stated, "We are confident of achieving our set of numbers. We expect growth from all three divisions, with the bulk division contributing significantly in the second half of the year due to seasonality factors."

Modi also emphasized the company's long-term vision for the FMCG division, targeting revenue of ₹500.00 crores in the coming years.

Conclusion

Modi Naturals' Q2FY26 results demonstrate the company's resilience and strategic focus. With its expanded ethanol capacity, growing FMCG portfolio, and operational improvements, the company appears well-positioned to capitalize on both the renewable energy trend and evolving consumer preferences in the Indian market.

Modi Naturals Limited , a leading player in the edible oil and food products sector, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025, showcasing robust performance and significant growth.

Key Financial Highlights

• Consolidated Profit: The company reported a consolidated profit after tax of Rs. 302.57 crore for Q2 FY26.
• Revenue: Revenue from operations increased marginally to Rs. 1,473.62 crore in Q2 FY26, compared to Rs. 1,465.74 crore in Q2 FY25, representing a 0.5% year-on-year growth.
• Profitability: The profit before tax (PBT) surged to Rs. 118.75 crore in Q2 FY26, up from Rs. 89.14 crore in Q2 FY25, marking a 33.2% increase.
• Earnings Per Share (EPS): The company's EPS for Q2 FY26 stood at Rs. 7.58, compared to Rs. 5.70 in the same quarter last year, reflecting a 32.98% growth.

Segment Performance

Modi Naturals' performance across its business segments demonstrates the company's strategic focus and operational efficiency:

The branded segment continues to be the primary revenue and profit driver for the company, while the bulk segment shows potential for growth.

Subsidiary Contribution

Modi Biotech Private Limited, a wholly-owned subsidiary, made a significant contribution to the group's performance:

• Net Profit: Rs. 744.51 crore
• Additional Cash Flow: Rs. 66.35 lakh from GST input credit set-offs

Balance Sheet Strength

As of September 30, 2025, Modi Naturals' consolidated balance sheet reflects a strong financial position:

• Total Assets: Rs. 3,530.20 crore
• Total Equity: Rs. 1,421.16 crore
• Debt-to-Equity Ratio: 1.07x, improved from 1.38x in H1 FY25

Management Commentary

Mr. Akshay Modi, Joint Managing Director of Modi Naturals, commented on the results: "Our Q2 performance demonstrates the resilience of our business model and the effectiveness of our strategic initiatives. The significant improvement in profitability, particularly in our branded segment, reflects our focus on high-margin products and operational efficiency."

Future Outlook

With the ongoing expansion of its ethanol capacity and strong performance in the branded segment, Modi Naturals is well-positioned for sustained growth. The company's focus on diversification, coupled with its strong balance sheet, provides a solid foundation for future expansion and market leadership in the edible oil and food products sector.

Note: All financial figures are based on the unaudited consolidated financial results for the quarter and half-year ended September 30, 2025, as reported by Modi Naturals Limited.