Modern Threads FY26 Net Profit ₹13.04 Cr, Qualified Audit

Summary of Key Information:

Reporting Period (Quarter/Year): Quarter and Year ended 31st March, 2026

Nature of Filing / Announcement: Submission of outcome of Board Meeting pursuant to Regulation 30 of SEBI LODR Regulations, 2015

Audit Opinion:

Qualified Opinion

Auditor’s Comment:

S.S. Surana & Company, Chartered Accountants, issued a qualified audit opinion citing two key issues:

1. The company has not provided for Interest (Dividend) on cumulative redeemable preference shares for the quarter ended 31.03.2026 (₹ 8.91 Lakhs) and for the year ended 31.03.2026 (₹ 36.13 Lakhs). The cumulative unpaid interest up to 31.03.2026 is ₹ 1083.87 Lakhs, as the company is in the process of settling the remaining redeemable preference share capital.

2. Balances of trade payables and trade receivables are subject to confirmation and consequential adjustments, if any. The management is of the opinion that the impact, if any, is not ascertainable.

The auditors also noted that a deferred tax asset of ₹ 157.17 lakhs (standalone) / ₹ 161.01 lakhs (consolidated) as at 31.03.2026 has not been recognized as it is not probable that future taxable profits will be available against which it can be utilized.

Key Financial Highlights [₹ in Lakhs]:

Standalone Results:

| Revenue from Operations | 7,813.98 | 7,490.20 | 6,741.45 | 30,057.97 | 26,004.48 |

| Total Income | 8,189.90 | 7,871.78 | 7,145.30 | 31,227.21 | 26,969.49 |

| Net Profit | 440.91 | 599.96 | 301.58 | 1,303.60 | 338.93 |

| EPS (Basic) (in ₹) | 1.27 | 1.73 | 0.87 | 3.75 | 0.97 |

Consolidated Results:

| Revenue from Operations | 7,825.64 | 7,551.97 | 6,741.45 | 30,069.63 | 26,004.48 |

| Total Income | 8,201.56 | 7,933.55 | 7,145.30 | 31,238.87 | 26,969.49 |

| Net Profit | 366.39 | 589.74 | 301.58 | 1,218.87 | 336.93 |

| EPS (Basic) (in ₹) | 1.05 | 1.70 | 0.87 | 3.51 | 0.97 |

Standalone Statement of Assets and Liabilities as at 31st March, 2026:

Total Assets: ₹ 25,539.38 Lakhs
Total Equity: ₹ 14,631.65 Lakhs
Paid-up equity share capital: ₹ 3,477.52 Lakhs (Face Value ₹10)
Other Equity: ₹ 11,154.13 Lakhs
Cash and Cash Equivalents: ₹ 420.30 Lakhs
Total Borrowings (Current + Non-Current): ₹ 3,285.85 Lakhs

Consolidated Statement of Assets and Liabilities as at 31st March, 2026:

Total Assets: ₹ 25,459.80 Lakhs
Total Equity: ₹ 14,539.91 Lakhs
Paid-up equity share capital: ₹ 3,477.52 Lakhs (Face Value ₹10)
Other Equity: ₹ 11,062.39 Lakhs
Cash and Cash Equivalents: ₹ 479.83 Lakhs
Total Borrowings (Current + Non-Current): ₹ 3,265.06 Lakhs

Segment-wise Performance:

The company is primarily engaged in the business of textile manufacturing, which the management and Chief Operating Decision Maker (CODM) recognize as the sole business segment. Hence, disclosure of segment-wise information is not provided.

Corporate Actions:

The Board re-appointed S. Goyal & Co., Cost Accountants, Jaipur (Firm Registration No. 005883) as the Cost Auditor of the Company for the financial year 2026-27.

No dividend was declared for the period.

Other Significant Information:

Subsidiary: The consolidated results include the financials of the wholly-owned foreign subsidiary, Modern Woollens UK Ltd, which started operations in the quarter ended 31.12.2025 (Q3 FY26).
Figures for Q4 FY26 and Q4 FY25 are the balancing figures between the audited full-year figures and the published unaudited year-to-date figures up to the third quarter.