Modi Naturals reports H1 FY26 growth, ethanol expansion advancing

Modi Naturals Limited reported a 2.7% year-on-year increase in revenue from operations to INR302 crores for H1 FY26, with consolidated EBITDA growing by 24% to INR33 crores, resulting in EBITDA margins of 10.9%. Profit After Tax (PAT) also saw significant growth, up 36.7% to INR20.6 crores compared to the previous year. The consumer division maintained healthy momentum despite temporary GST-related disruptions, while the bulk division achieved an EBITDA turnaround of INR1.2 crores in H1 FY26, recovering from a loss of INR1.5 crores in the same period last year due to improved operational efficiency.

The ethanol division demonstrated strong performance, with H1 FY26 revenue at INR164.1 crores and EBITDA at INR25.7 crores. EBITDA margin for this division improved by 337 basis points to 15.6% due to lower grain prices and enhanced raw material availability. Modi Naturals is progressing with its ethanol plant expansion, with the second phase of the 180 KLPD plant currently under trial and expected to commence operations by December 2025, increasing total capacity to 310 KLPD. The company has secured orders worth INR400 crores from OMCs for 49,700 KL of ethanol for the next ESY.

Strategic investments in marketing and advertising for H1 FY26 amounted to INR9.15 crores, up from INR6.4 crores last year, aimed at strengthening brand visibility and consumer engagement. Despite these investments and seasonal softness in the bulk division, the company remains confident in achieving its full-year guidance and delivering a stronger performance in the second half of the year.