Modi Naturals Limited Stock Analysis

Consolidated profit surged 28.5% YoY to Rs 1,004.43 lakhs in Q3 FY26 versus Rs 781.81 lakhs in Q3 FY25, driven by subsidiary Modi Biotech contributing Rs 892.05 lakhs net profit / Branded segment maintained robust profitability with EBITDA margin of 9.2% (Rs 384.62 lakhs on Rs 4,194.18 lakhs revenue) despite competitive pressures / Subsidiary generated positive cash flow of Rs 477.98 lakhs in Q3 FY26 through GST input credit set-off, improving working capital efficiency / Nine-month consolidated PAT grew 33.8% YoY to Rs 3,061 lakhs versus Rs 2,286.49 lakhs, indicating sustained profitability improvement / Inventory management improved with negative change of Rs 897.17 lakhs in Q3 (consolidated), releasing working capital versus Rs 1,823.59 lakhs buildup last year / Total assets on standalone basis remain stable at Rs 17,266.88 lakhs with low leverage, providing financial flexibility

Standalone revenue contracted 4.4% YoY to Rs 9,298.81 lakhs from Rs 9,729.55 lakhs, signaling weak demand in core edible oil business / Bulk segment turned negative with EBITDA loss of Rs 130.83 lakhs in Q3 FY26 versus positive Rs 227.88 lakhs in Q3 FY25, a concerning reversal in commodity trading profitability / Standalone profit plunged 57% YoY to Rs 112.44 lakhs from Rs 260.49 lakhs, indicating severe margin compression in the parent company / Employee benefit expenses surged to Rs 722.15 lakhs consolidated (Q3) versus Rs 780.48 lakhs last year, with uncertainty around new Labour Codes implementation impact / Finance costs remain elevated at Rs 182.01 lakhs consolidated in Q3, up from Rs 313.52 lakhs in Q3 FY25, straining profitability / Bulk segment assets at Rs 6,075.90 lakhs remain underutilized with negative EBITDA, suggesting operational inefficiencies and pricing pressure in commodity markets

Consolidated PAT grew strongly to Rs 1,044.43 lakh in Q3 FY26 from Rs 773.81 lakh in Q3 FY25 (+35.0%) and to Rs 3,061.00 lakh in 9M FY26 from Rs 2,286.49 lakh (+33.9%). / Consolidated PBT increased to Rs 3,745.50 lakh in 9M FY26 from Rs 2,655.89 lakh in 9M FY25, with PBT margin improving to about 7.96% from about 5.60%. / Q3 consolidated revenue rebounded sequentially to Rs 17,409.31 lakh from Rs 14,698.92 lakh in Q2 FY26 (+18.4%), indicating better quarter-on-quarter momentum. / Standalone branded segment EBITDA improved to Rs 384.62 lakh in Q3 FY26 versus Rs 141.17 lakh in Q3 FY25, showing stronger profitability in branded operations. / Standalone balance-sheet position appears moderate with segment total assets at Rs 17,266.88 lakh versus total liabilities of Rs 6,517.84 lakh as of Dec-25.

A large share of consolidated profit comes from the subsidiary (Rs 892.05 lakh of Q3 PAT and Rs 2,361.84 lakh of 9M PAT), implying high dependence on subsidiary earnings rather than parent operations. / Subsidiary cash flow was supported by GST input-credit set-off (additional Rs 477.98 lakh in Q3 and Rs 1,122.82 lakh in FY25), which may not represent recurring operating cash generation at the same level. / Standalone revenue remains under pressure, with Q3 at Rs 9,298.81 lakh vs Rs 9,729.55 lakh YoY (-4.4%) and 9M at Rs 23,091.74 lakh vs Rs 23,338.68 lakh (-1.1%). / Standalone bulk segment profitability is weak: EBIT was negative Rs -160.11 lakh in Q3 FY26 and Rs -113.55 lakh in 9M FY26, indicating margin volatility in a key segment. / Consolidated cost of materials consumed rose to Rs 33,165.86 lakh in 9M FY26 from Rs 30,065.50 lakh in 9M FY25, suggesting input-cost intensity and commodity-linked earnings sensitivity.