Modern Threads (India) Limited

Consolidated Financial Results (Rs. in Lakhs)

Income Statement Highlights:

  • Q2 FY2026 Performance: Revenue from Operations: ₹10,704.02; Other Income: ₹136.11; Total Income: ₹10,840.13
  • H1 FY2026 Performance: Revenue from Operations: ₹19,365.71; Other Income: ₹407.95; Total Income: ₹19,773.66
  • Profit Before Tax: Q2 FY2026: ₹749.70; H1 FY2026: ₹1,553.38
  • Tax Expense: Q2 FY2026: ₹190.43; H1 FY2026: ₹405.67
  • Net Profit After Tax: Q2 FY2026: ₹559.27; H1 FY2026: ₹1,147.71
  • Earnings Per Share (Basic): Q2 FY2026: ₹1.61; H1 FY2026: ₹3.30

Comparative Performance:

  • Q2 Revenue growth: 37.8% YoY (from ₹7,767.40 lakhs in Q2 FY2025)
  • H1 Revenue growth: 31.3% YoY (from ₹14,753.81 lakhs in H1 FY2025)

Standalone Financial Results (Rs. in Lakhs)

Income Statement Highlights:

  • Q2 FY2026 Performance: Revenue from Operations: ₹10,570.93; Other Income: ₹146.52; Total Income: ₹10,717.45
  • H1 FY2026 Performance: Revenue from Operations: ₹19,513.63; Other Income: ₹422.45; Total Income: ₹19,936.08
  • Net Profit After Tax: Q2 FY2026: ₹497.02; H1 FY2026: ₹1,069.97
  • Earnings Per Share (Basic): Q2 FY2026: ₹1.43; H1 FY2026: ₹3.08

Auditor's Qualified Conclusion

The independent auditor, S.S. Surana & Co., issued a qualified conclusion on both consolidated and standalone financial results due to two specific matters:

1. Non-provision of Preference Share Dividend: The company has not provided for interest (dividend) on cumulative redeemable preference shares for:

  • Quarter ended 30.09.2026: ₹9.10 lakhs
  • Half year ended 30.09.2026: ₹18.11 lakhs
  • Cumulative amount up to 30.09.2026: ₹1,101.98 lakhs

Reason: The company is in process of settlement of remaining redeemable preference share capital.

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

These matters were also qualified in previous audit reports for the year ended March 31, 2026, and previous quarterly reviews.

Subsidiary Information

The consolidated results include Modern Woollens UK Limited (wholly owned foreign subsidiary) with the following financials:

  • Total Assets: ₹1,733.87 lakhs as at September 30, 2026
  • Q2 FY2026: Revenue: ₹695.16 lakhs; Net Profit: ₹42.23 lakhs; Comprehensive Income: ₹21.13 lakhs
  • H1 FY2026: Revenue: ₹1,207.40 lakhs; Net Profit: ₹88.42 lakhs; Comprehensive Income: ₹88.84 lakhs
  • Cash Flow: Net cash outflow of ₹23.02 lakhs for H1 FY2026

The subsidiary's financial results were not reviewed by any auditor and were provided by management. These results are not considered material to the Group.

Capital Structure

Paid-up Equity Share Capital: ₹3,477.52 lakhs (Face Value: ₹10 per share) remained unchanged during the period.

Balance Sheet Position (Consolidated)

As at 30.09.2026:

  • Total Assets: ₹28,504.45 lakhs
  • Non-Current Assets: ₹8,751.14 lakhs (including Property, Plant & Equipment: ₹5,102.29 lakhs)
  • Current Assets: ₹19,753.31 lakhs (including Inventories: ₹11,950.07 lakhs)
  • Total Equity: ₹15,699.90 lakhs
  • Total Liabilities: ₹12,804.55 lakhs

Cash Flow Statement (Consolidated)

H1 FY2026:

  • Cash from Operating Activities: ₹268.33 lakhs
  • Cash from Investing Activities: ₹900.87 lakhs
  • Cash from Financing Activities: ₹(15.80) lakhs
  • Net Increase in Cash: ₹1,153.40 lakhs
  • Cash and Equivalents at period end: ₹1,623.16 lakhs

Additional Notes

1. Deferred Tax Assets: Not recognized as it is not probable that future taxable profits will be available for utilization. Unrecognized deferred tax asset: ₹157.42 lakhs as at 30.09.2026

2. Share Application Money: ₹1,450 lakhs raised pursuant to restructuring/settlement scheme submitted to BIFR became refundable after enactment of SICA Repeal Act effective 1/12/2016

3. Segment Reporting: The company operates solely in textile manufacturing business, hence segment-wise disclosure not provided

4. Previous Period Figures: Have been regrouped/rearranged wherever necessary to conform to current period presentation

Impact of Audit Qualifications

Management provided adjusted figures reflecting the impact of the audit qualifications:

  • Consolidated Net Profit: Would reduce from ₹1,147.71 lakhs to ₹1,129.60 lakhs if preference share dividend was provided
  • Consolidated EPS: Would reduce from ₹3.30 to ₹3.25
  • Net Worth: Would reduce from ₹15,699.90 lakhs to ₹14,597.92 lakhs