Modulex Construction Technologies Reports Q1 FY26 Loss Amid Ongoing Project Delays

Modulex Construction Technologies Limited (MCTL) has announced its unaudited financial results for the first quarter ended June 30, 2025, revealing a continued struggle with project delays and financial challenges.

Standalone Financial Performance

On a standalone basis, MCTL reported a net loss of ₹32.37 lakh for Q1 FY26, showing a slight improvement from the ₹37.31 lakh loss in the same quarter of the previous year. The company's total income saw a significant increase to ₹41.50 lakh, up from ₹4.24 lakh year-over-year. However, total expenses also rose substantially to ₹73.88 lakh from ₹41.56 lakh in the corresponding quarter.

Consolidated Results

The consolidated financial picture painted a more challenging scenario. MCTL posted a consolidated loss of ₹418.12 lakh for Q1 FY26, a stark contrast to the profit of ₹1,118.06 lakh reported in the same quarter last year. This significant swing in financial performance underscores the ongoing challenges faced by the company and its subsidiaries.

Project Implementation Delays

The company's financial struggles are primarily attributed to continued delays in project implementation at its Pune facility through its subsidiary, Modulex Modular Buildings Private Limited (MMBPL). These delays have resulted in a situation where the group's current assets are insufficient to meet its current liabilities, raising concerns about its ability to continue as a going concern.

Progress and Future Outlook

Despite the challenges, MCTL has reported some positive developments:

• MMBPL received a land re-allotment order from MIDC in June 2024 and registered a 95-year long-term lease agreement in Indapur on August 9, 2024.
• Construction activities and machinery installation at the Indapur factory have commenced since Q3 FY25.
• Trial production runs have begun, with commercial production activities expected to start by Q2 FY26.

Financial Support and Warrants Issue

To support its ongoing projects and operations, MCTL has taken several financial measures:

• The company received ₹1,524.98 lakh from the first call on convertible warrants during Q1 FY26.
• Total collections from warrant applications and first call money amounted to ₹3,198.11 lakh as of June 30, 2025.
• The Board of Directors had previously approved the issuance of up to 3,71,80,555 convertible warrants, aggregating to ₹6,292.49 lakh, at an issue price of ₹18 per warrant.

Management's Commitment

The management has reaffirmed its commitment to completing the factory construction project in Indapur, Pune, through its subsidiary. The promoters have also pledged to provide financial support as needed, which has led to the preparation of financial results on a going concern basis.

While Modulex Construction Technologies faces significant challenges, the company's efforts to secure funding and progress on its Pune project indicate a push towards operational stability and future growth. Investors and stakeholders will be closely watching the company's ability to overcome its current hurdles and achieve commercial production in the coming quarters.