Modi Naturals Limited — Investor Meet, 19-05-2026: Analysts/Institutional Investor Meet/Con. Call Updates

Modi Naturals Limited held an earnings conference call to discuss Q4 and FY26 financial results. Management provided updates on the company's transformation into a diversified business with a focus on consumer products, bulk oils, and ethanol. Key achievements for FY26 included commissioning Phase 2 of ethanol expansion and the highest ever quarterly revenue in the consumer division. The company anticipates full operational and financial benefits from the expanded ethanol facility from FY27.

**Financial Performance:**

- **Q4 FY26:** Revenue increased 28% YoY to ₹243 Cr. EBITDA grew 51.8% YoY to ₹24.5 Cr with a 10.1% margin. PAT surged 141% YoY to ₹19.7 Cr.

- **FY26:** Revenue rose 8.5% YoY to ₹719 Cr. EBITDA (excluding exceptional item) was ₹73.5 Cr, a 31.2% YoY increase, with a 10.2% margin. PAT grew 62.1% YoY to ₹50.3 Cr. Return on capital employed improved to 19.9%. Working capital days reduced to 62.

**Management Commentary & Outlook:**

Management highlighted the ethanol industry's tailwinds from government policies and energy security focus. They expect significant benefits from the expanded ethanol facility starting FY27. The consumer division showed steady momentum with strong performance in the pasta category and successful launch of new products. Operational improvements were seen in the bulk business through a leaner inventory model. The company is focusing on disciplined growth, operational excellence, premiumization, and sustainable profitability for FY27.

**Analyst Q&A Highlights:**

- **Ethanol Overcapacity:** Management addressed concerns about ethanol overcapacity, emphasizing their expanded capacity and strategic positioning. They are exploring value-added products for both potable and chemical sectors.

- **Consumer Division Growth:** Focus on improving distribution, brand visibility, and product accessibility. The company is evaluating acquisition opportunities in the food sector.

- **Capacity Utilization:** Confident in utilizing expanded ethanol capacities through participation in tenders from both PSU and private OMCs.

- **FMCG Potential:** Management envisions the FMCG segment reaching ₹500 Cr in the medium term, driven by oil and food products, with a focus on profitable, premium categories.

**Investor Angle:**

The management expressed confidence in the company's strengthened operational and financial foundation and its positioning for future growth. The tone was positive, with a clear focus on execution and value creation across its diversified business segments.