Operating Leverage Inflection
Expected: Q3 FY26HIGH confidence
What: EBITDA Margin: 17.78%
Impact: 588bps expansion
Modern Insulators Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +58.9%Average6w StreakRe-Entry
In , Modern Insulators Ltd (Capital Goods - Electric General) is outperforming Nifty 500 with +58.9% relative strength. Fundamentals: Average. On a 6-week streak.
Modern Insulators Ltd Key Facts
- PE Ratio
- 27.6x
- Market Cap
- ₹1,777 Cr
- PAT Growth YoY
- +167%
- Revenue Growth YoY
- +59%
- OPM
- 16.0%
- RS vs Nifty 500
- +58.9%
PE: At PeakRiding Wave
What's Happening
📊PE near cycle highs — limited room for further expansion
📊Debt increased 32% YoY — leverage rising
💰Trading 36% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Operating Leverage Inflection
Q3 FY26HIGH
2. Tam Expansion Changing Consumption
FY26HIGH
3. Management Or Ownership Change
Jan 2026MEDIUM
Key Risks
1. NCLT disposed of the petition for amalgamation with Modern Denim Ltd, requiring
HIGH2. Middle East conflict causing higher freight costs and insurance premiums for exp
MEDIUM3. Energy-intensive manufacturing process vulnerable to rising LPG/LNG prices due t
MEDIUMSector-Specific Signals
Export Revenue Mix47%Not Given
Cash Conversion Cycle300 daysNot Given
Insulators Segment Contribution94%Not Given
Terry Towel Segment Contribution6%Not Given
Key Numbers
PAT Growth YoY
+167%
Inflection Up
Revenue YoY
+59%
Accelerating
Operating Margin
16.0%
+800 bps YoY
PE Ratio
27.6
Current Price
₹377
Fundamental Score
51/100
Average
3Y PAT CAGR
+21%
Market Cap
1.8K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Modern Insulators Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Tam Expansion Changing Consumption
Expected: FY26HIGH confidence
What: Revenue: ₹199.46 Cr
Impact: 60% YoY growth
Management Or Ownership Change
Expected: Jan 2026MEDIUM confidence
What: Leadership: Joint MD Appointment
Impact: 5-year term
What Are the Key Risks for Modern Insulators Ltd?
Earnings deceleration risks from management commentary
NCLT disposed of the petition for amalgamation with Modern Denim Ltd, requiring
HIGHTrigger: NCLT disposed of the petition for amalgamation with Modern Denim Ltd, requiring procedural compliances before re-approaching.
Impact: PAT impact: ₹2.70 Cr (unprovided tax)
Management view: Reviewing order for next steps
Monitor: regulatory
Middle East conflict causing higher freight costs and insurance premiums for exp
MEDIUMTrigger: Middle East conflict causing higher freight costs and insurance premiums for export consignments.
Impact: PAT impact: Not Given
Management view: Managing cost pressures to sustain performance
Monitor: logistics
Energy-intensive manufacturing process vulnerable to rising LPG/LNG prices due t
MEDIUMTrigger: Energy-intensive manufacturing process vulnerable to rising LPG/LNG prices due to Gulf conflict.
Impact: PAT impact: Not Given
Management view: Efforts to reduce fuel consumption
Monitor: commodity
What Did Modern Insulators Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹199.46 Cr
YoY +60.11%QoQ +13.01%
Revenue growth was driven by the Insulators segment amid a global supply crunch in porcelain insulators.
EBITDA
₹35.46 Cr
YoY +139.3%Margin 17.78%
Margins expanded significantly due to operating leverage and a favorable pricing environment in the porcelain segment.
PAT
₹24.13 Cr
YoY +159.74%QoQ +45.45%
PAT growth outpaced revenue due to margin expansion and the absence of tax provisioning related to the proposed amalgamation.
Other Highlights
• Provision for taxation (Rs. 2.70 Cr for Q3) was not made due to the proposed amalgamation under the Companies Act.
• Shri Shreyans Ranka appointed as Joint Managing Director for a five-year term starting January 8, 2026.
• Operating profit surged 218.15% YoY to ₹31.56 crore according to Business Standard data.
What Sector Metrics Matter for Modern Insulators Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Export Revenue Mix
47%
YoY Not GivenQoQ Not Given
Why: Substantial international footprint with exports to over 50 countries.
Cash Conversion Cycle
300 days
YoY Not GivenQoQ Not Given
Why: High dependency on government utilities and railways leads to payment delays.
Insulators Segment Contribution
94%
YoY Not GivenQoQ Not Given
Why: Core business focus on high voltage and extra high voltage porcelain insulators.
Terry Towel Segment Contribution
6%
YoY Not GivenQoQ Not Given
Why: Legacy business segment that drags overall ROCE.
International Receivables
₹62 Cr
YoY Not GivenQoQ Not Given
Why: Represents approximately 51% of total trade receivables as of March 2025.
How Fast Is Modern Insulators Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +59% | +4% | Accelerating |
| PAT (Net Profit) | +167% | +21% | Inflection Up |
| OPM | 16.0% | +800 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Capital Goods - Electric General Stocks Beating Nifty 500
Frequently Asked Questions: Modern Insulators Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Modern Insulators Ltd's latest quarterly results?
Modern Insulators Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +166.7% (turning around (inflection up))
- Revenue Growth YoY: +59.2%
- Operating Margin: 16.0% (volatile)
Is Modern Insulators Ltd's profit growing or declining?
Modern Insulators Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +166.7% (latest quarter)
- PAT Growth QoQ: +41.2% (sequential)
- 3-Year PAT CAGR: +21.0%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Modern Insulators Ltd's revenue growth trend?
Modern Insulators Ltd's revenue growth trend is accelerating.
- Revenue Growth YoY: +59.2%
- Revenue Growth QoQ: +13.1% (sequential)
- 3-Year Revenue CAGR: +4.4%
How is Modern Insulators Ltd's operating margin trending?
Modern Insulators Ltd's operating margin is volatile.
- Current OPM: 16.0%
- OPM Change YoY: +8.0% basis points
- OPM Change QoQ: +5.0% basis points
What is Modern Insulators Ltd's 3-year profit and revenue CAGR?
Modern Insulators Ltd's long-term compounding rates
- 3-Year Profit CAGR: +21.0%
- 3-Year Revenue CAGR: +4.4%
Is Modern Insulators Ltd's growth accelerating or decelerating?
Modern Insulators Ltd's earnings growth is turning around (inflection up) with positive momentum on a sequential basis.
- YoY Acceleration: +69.2% bps
- Sequential Acceleration: +27.9% bps
What is Modern Insulators Ltd's trailing twelve month (TTM) performance?
Modern Insulators Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹65 Cr
- TTM PAT Growth: +41.3% YoY
- TTM Revenue: ₹676 Cr
- TTM Revenue Growth: +39.7% YoY
- TTM Operating Margin: 12.1%
Is Modern Insulators Ltd overvalued or undervalued?
Modern Insulators Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 27.6x
- Price-to-Book: 3.6x
What is Modern Insulators Ltd's current PE ratio?
Modern Insulators Ltd's current PE ratio is 27.6x.
- Current PE: 27.6x
- Market Cap: 1.8K Cr
How does Modern Insulators Ltd's valuation compare to its history?
Modern Insulators Ltd's current PE is 27.6x.
- Current PE: 27.6x
- Valuation Assessment: Significantly Overvalued
What is Modern Insulators Ltd's price-to-book ratio?
Modern Insulators Ltd's price-to-book ratio is 3.6x.
- Price-to-Book (P/B): 3.6x
- Book Value per Share: ₹105
- Current Price: ₹377
Is Modern Insulators Ltd a fundamentally strong company?
Modern Insulators Ltd is rated Average with a fundamental score of 50.75/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +59.2% (10% weight)
- PAT Growth YoY: +166.7% (10% weight)
- PAT Growth QoQ: +41.2% (10% weight)
- Margins stable (10% weight)
Is Modern Insulators Ltd debt free?
Modern Insulators Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹25 Cr
What is Modern Insulators Ltd's return on equity (ROE) and ROCE?
Modern Insulators Ltd's return ratios over recent years
- FY2023: ROCE 7.0%
- FY2024: ROCE 9.0%
- FY2025: ROCE 9.0%
Is Modern Insulators Ltd's cash flow positive?
Modern Insulators Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹40 Cr
- Free Cash Flow (FCF): ₹-1 Cr
- CFO/PAT Ratio: 103% (strong cash conversion)
What is Modern Insulators Ltd's dividend yield?
Modern Insulators Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹377
Who holds Modern Insulators Ltd shares — promoters, FII, DII?
Modern Insulators Ltd's shareholding pattern (Mar 2026)
- Promoters: 60.2%
- FII (Foreign): 0.3%
- DII (Domestic): 1.2%
- Public: 38.3%
Is promoter holding increasing or decreasing in Modern Insulators Ltd?
Modern Insulators Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 60.2% (Mar 2026)
- Previous Quarter: 60.2% (Dec 2025)
- Change: 0.00% (stable)
How long has Modern Insulators Ltd been outperforming Nifty 500?
Modern Insulators Ltd has been outperforming Nifty 500 for 6 consecutive weeks, indicating building momentum.
Is Modern Insulators Ltd a new momentum entry or an established outperformer?
Modern Insulators Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Modern Insulators Ltd?
Modern Insulators Ltd has 3 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — High fixed-cost absorption on 60% revenue growth led to doubling of operating margins.
- Tam Expansion Changing Consumption — Data center and grid expansion are driving a structural shift in insulator demand.
- Management Or Ownership Change — Succession planning and leadership continuity in a promoter-led business.
What are the key risks in Modern Insulators Ltd?
Modern Insulators Ltd has 3 key risks worth monitoring
- [HIGH] NCLT disposed of the petition for amalgamation with Modern Denim Ltd, requiring — NCLT disposed of the petition for amalgamation with Modern Denim Ltd, requiring procedural compliances before re-approaching.
- [MEDIUM] Middle East conflict causing higher freight costs and insurance premiums for exp — Middle East conflict causing higher freight costs and insurance premiums for export consignments.
- [MEDIUM] Energy-intensive manufacturing process vulnerable to rising LPG/LNG prices due t — Energy-intensive manufacturing process vulnerable to rising LPG/LNG prices due to Gulf conflict.
What is Modern Insulators Ltd's management guidance for growth?
Modern Insulators Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
What sector-specific metrics matter most for Modern Insulators Ltd?
Modern Insulators Ltd's most important sub-sector-specific KPIs from the latest concall
- Export Revenue Mix: 47% (YoY Not Given) (QoQ Not Given) — Substantial international footprint with exports to over 50 countries.
- Cash Conversion Cycle: 300 days (YoY Not Given) (QoQ Not Given) — High dependency on government utilities and railways leads to payment delays.
- Insulators Segment Contribution: 94% (YoY Not Given) (QoQ Not Given) — Core business focus on high voltage and extra high voltage porcelain insulators.
- Terry Towel Segment Contribution: 6% (YoY Not Given) (QoQ Not Given) — Legacy business segment that drags overall ROCE.
- International Receivables: ₹62 Cr (YoY Not Given) (QoQ Not Given) — Represents approximately 51% of total trade receivables as of March 2025.
Is Modern Insulators Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Modern Insulators Ltd may be worth studying
- Earnings growing at +166.7% YoY
- Revenue growth is accelerating — +59.2% YoY
- Cash flow is positive — CFO ₹40 Cr
What is the investment thesis for Modern Insulators Ltd?
Modern Insulators Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +59.2% YoY
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: NCLT disposed of the petition for amalgamation with Modern Denim Ltd, requiring
What is the future outlook for Modern Insulators Ltd?
Modern Insulators Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: accelerating
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: NCLT disposed of the petition for amalgamation with Modern Denim Ltd, requiring
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.