Operating Leverage Inflection
Expected: Q4 FY26HIGH confidence
What: EBITDA Margin: 24.84%
Impact: Margin expansion of 1,302 basis points YoY from 11.82%
Modison Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +98.3%Strong9w Streak
In , Modison Ltd (Capital Goods - Electric General) is outperforming Nifty 500 with +98.3% relative strength. Fundamentals: Strong. On a 9-week streak.
Modison Ltd Key Facts
- PE Ratio
- 11.4x
- Market Cap
- ₹897 Cr
- PAT Growth YoY
- +260%
- Revenue Growth YoY
- +121%
- OPM
- 25.0%
- RS vs Nifty 500
- +98.3%
PE: Near TroughStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 51% YoY — balance sheet strengthening
💰Trading 223% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Operating Leverage Inflection
Q4 FY26HIGH
2. Industry Consolidation Virtual Monopoly
OngoingHIGH
3. Value Added Product Mix Shift
Q4 FY26HIGH
Key Risks
1. Silver accounts for ~75-80% of raw material purchases, creating significant expo
HIGH2. Export sales represent ~15% of net sales and imports ~7% of purchases, exposing
MEDIUM3. Fire incident at Vapi manufacturing facility on February 7, 2026 caused temporar
MEDIUMKey Numbers
PAT Growth YoY
+260%
Stable
Revenue YoY
+121%
Accelerating
Operating Margin
25.0%
+1300 bps YoY
PE Ratio
11.4
Current Price
₹276
Dividend Yield
1.99%
Fundamental Score
70/100
Strong
3Y PAT CAGR
+80%
Market Cap
959 Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Modison Ltd's Earnings Accelerating?
Based on Q4 FY26 (web) earnings • Updated Jul 28, 2026
Industry Consolidation Virtual Monopoly
Expected: OngoingHIGH confidence
What: Market Position: Only player in India for HV contacts
Impact: 100% market share in HV segment domestically
Value Added Product Mix Shift
Expected: Q4 FY26HIGH confidence
What: Product Mix: Higher-margin specialized electrical contacts
Impact: Margin doubling from 11.82% to 24.84%
Geographical Expansion
Expected: FY27 onwardsMEDIUM confidence
What: Export Channels: Global customer partnerships
Impact: Export growth propulsion via global value chain
Market Share Gains
Expected: Q4 FY26HIGH confidence
What: Revenue Growth: 120.90% YoY
Impact: Revenue doubled from ₹130 Cr to ₹287 Cr in Q4
Asset Quality Improvement
Expected: H2 FY26MEDIUM confidence
What: ROCE: 25.38% half-yearly
Impact: Highest ROCE in company history
What Are the Key Risks for Modison Ltd?
Earnings deceleration risks from management commentary
Silver accounts for ~75-80% of raw material purchases, creating significant expo
HIGHTrigger: Silver accounts for ~75-80% of raw material purchases, creating significant exposure to input price volatility that directly impacts profitability margins.
Impact: PAT impact: >10%
Management view: Company follows order-backed procurement policy and hedges part of inventory depending on market dynamics, but has no defined hedging policy.
Monitor: commodity
Export sales represent ~15% of net sales and imports ~7% of purchases, exposing
MEDIUMTrigger: Export sales represent ~15% of net sales and imports ~7% of purchases, exposing the company to foreign exchange rate fluctuations affecting both revenue and input costs.
Impact: PAT impact: 5-10%
Management view: Company follows natural hedging and enters forex forward contracts to mitigate foreign currency risk.
Monitor: fx
Fire incident at Vapi manufacturing facility on February 7, 2026 caused temporar
MEDIUMTrigger: Fire incident at Vapi manufacturing facility on February 7, 2026 caused temporary operational disruption with exceptional loss of ₹10.63 Cr recognized in FY26 results.
Impact: PAT impact: 5-10%
Management view: Assets were adequately insured with insurance claim of ₹18.02 Cr lodged; operations restored by February 24, 2026.
Monitor: climate
GST proceeding of ₹0
LOWTrigger: GST proceeding of ₹0.12 crore for FY2021-22 was dropped by Deputy Commissioner of Gujarat; customs demand of ₹0.02 crore for ineligible drawback noted.
Impact: PAT impact: <5%
Management view: Company expected no impact on financial or operational activities from the dropped GST proceedings.
Monitor: regulatory
What Did Modison Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹289.12 Cr
YoY +119.6%QoQ +99.9%
Consolidated revenue for Q4 FY26 ended March 31, 2026 was ₹289.12 crores per audited results.
EBITDA
₹53.26 Cr
Margin 18.4%
EBITDA of ₹53.26 crore stated in Kotak Neo FAQ section for Q4 FY26.
PAT
₹36.00 Cr
YoY +277.8%QoQ +79.5%
PAT of ₹36.00 crores for Q4 FY26, up 277.8% YoY from ₹9.53 crores in Q4 FY25.
Other Highlights
• Final dividend of Rs. 3.00 per equity share (300% of face value Re. 1) recommended for FY26
• Board approved audited financial statements on May 22, 2026
• EPS for Q4 FY26 stood at ₹11.09 per share
• Total assets increased to ₹50,277.9 Lakhs as of March 31, 2026 from ₹31,926.4 Lakhs year-ago
What Is Modison Ltd's Management Guidance?
Forward-looking targets from management
Management Tone: CAUTIOUS
How Fast Is Modison Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +121% | +28% | Accelerating |
| PAT (Net Profit) | +260% | +80% | Stable |
| OPM | 25.0% | +1300 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Jul 28, 2026.
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Frequently Asked Questions: Modison Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Modison Ltd's latest quarterly results?
Modison Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +260.0% (stable)
- Revenue Growth YoY: +120.8%
- Operating Margin: 25.0% (volatile)
Is Modison Ltd's profit growing or declining?
Modison Ltd's profit is growing with a stable trend.
- PAT Growth YoY: +260.0% (latest quarter)
- PAT Growth QoQ: +80.0% (sequential)
- 3-Year PAT CAGR: +80.0%
- Trend: Stable — consistent growth pattern
What is Modison Ltd's revenue growth trend?
Modison Ltd's revenue growth trend is accelerating.
- Revenue Growth YoY: +120.8%
- Revenue Growth QoQ: +99.3% (sequential)
- 3-Year Revenue CAGR: +28.4%
How is Modison Ltd's operating margin trending?
Modison Ltd's operating margin is volatile.
- Current OPM: 25.0%
- OPM Change YoY: +13.0% basis points
- OPM Change QoQ: +12.0% basis points
What is Modison Ltd's 3-year profit and revenue CAGR?
Modison Ltd's long-term compounding rates
- 3-Year Profit CAGR: +80.0%
- 3-Year Revenue CAGR: +28.4%
Is Modison Ltd's growth accelerating or decelerating?
Modison Ltd's earnings growth is stable with positive momentum on a sequential basis.
- YoY Acceleration: 0.0% bps
- Sequential Acceleration: 0.0% bps
What is Modison Ltd's trailing twelve month (TTM) performance?
Modison Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹73 Cr
- TTM PAT Growth: +100.0% YoY
- TTM Revenue: ₹710 Cr
- TTM Revenue Growth: +45.2% YoY
- TTM Operating Margin: 16.5%
Is Modison Ltd overvalued or undervalued?
Modison Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 11.4x
- Price-to-Book: 3.3x
What is Modison Ltd's current PE ratio?
Modison Ltd's current PE ratio is 11.4x.
- Current PE: 11.4x
- Market Cap: 897 Cr
- Dividend Yield: 1.99%
How does Modison Ltd's valuation compare to its history?
Modison Ltd's current PE is 11.4x.
- Current PE: 11.4x
- Valuation Assessment: Significantly Undervalued
What is Modison Ltd's price-to-book ratio?
Modison Ltd's price-to-book ratio is 3.3x.
- Price-to-Book (P/B): 3.3x
- Book Value per Share: ₹85
- Current Price: ₹276
Is Modison Ltd a fundamentally strong company?
Modison Ltd is rated Strong with a fundamental score of 70/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +120.8% (10% weight)
- PAT Growth YoY: +260.0% (10% weight)
- PAT Growth QoQ: +80.0% (10% weight)
- Margins stable (10% weight)
Is Modison Ltd debt free?
Modison Ltd's debt position
- Total Debt: ₹174 Cr
What is Modison Ltd's return on equity (ROE) and ROCE?
Modison Ltd's return ratios over recent years
- FY2024: ROCE 12.0%
- FY2025: ROCE 15.0%
- FY2026: ROCE 31.0%
Is Modison Ltd's cash flow positive?
Modison Ltd's operating cash flow is negative (FY2026).
- Cash from Operations (CFO): ₹-64 Cr
- Free Cash Flow (FCF): ₹-79 Cr
- CFO/PAT Ratio: -88% (weak cash conversion)
What is Modison Ltd's dividend yield?
Modison Ltd's current dividend yield is 1.99%.
- Dividend Yield: 1.99%
- Current Price: ₹276
Who holds Modison Ltd shares — promoters, FII, DII?
Modison Ltd's shareholding pattern (Jun 2026)
- Promoters: 52.2%
- FII (Foreign): 0.9%
- DII (Domestic): 0.0%
- Public: 46.8%
Is promoter holding increasing or decreasing in Modison Ltd?
Modison Ltd's promoter holding has increased recently.
- Current Promoter Holding: 52.2% (Jun 2026)
- Previous Quarter: 52.2% (Mar 2026)
- Change: +0.07% (increasing — positive signal)
How long has Modison Ltd been outperforming Nifty 500?
Modison Ltd has been outperforming Nifty 500 for 9 consecutive weeks, indicating consistent outperformance.
Is Modison Ltd a new momentum entry or an established outperformer?
Modison Ltd is an established outperformer with 9 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Modison Ltd?
Modison Ltd has 6 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Record margin demonstrates structural profitability improvement beyond revenue scale.
- Industry Consolidation Virtual Monopoly — Monopoly position in HV contacts provides pricing power and barrier to entry.
- Value Added Product Mix Shift — Product mix shift directly drives margin expansion beyond volume growth.
- Geographical Expansion — China+1 trend positions Modison for export market share gains.
What are the key risks in Modison Ltd?
Modison Ltd has 4 key risks worth monitoring
- [HIGH] Silver accounts for ~75-80% of raw material purchases, creating significant expo — Silver accounts for ~75-80% of raw material purchases, creating significant exposure to input price volatility that directly impacts profitability margins.
- [MEDIUM] Export sales represent ~15% of net sales and imports ~7% of purchases, exposing — Export sales represent ~15% of net sales and imports ~7% of purchases, exposing the company to foreign exchange rate fluctuations affecting both revenue and input costs.
- [MEDIUM] Fire incident at Vapi manufacturing facility on February 7, 2026 caused temporar — Fire incident at Vapi manufacturing facility on February 7, 2026 caused temporary operational disruption with exceptional loss of ₹10.63 Cr recognized in FY26 results.
- [LOW] GST proceeding of ₹0 — GST proceeding of ₹0.12 crore for FY2021-22 was dropped by Deputy Commissioner of Gujarat; customs demand of ₹0.02 crore for ineligible drawback noted.
What is Modison Ltd's management guidance for growth?
Modison Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Management tone: cautious
Is Modison Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Modison Ltd may be worth studying
- Earnings growing at +260.0% YoY
- Revenue growth is accelerating — +120.8% YoY
- Valuation: appears significantly undervalued
What is the investment thesis for Modison Ltd?
Modison Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +120.8% YoY
- Appears significantly undervalued
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Key risk: Silver accounts for ~75-80% of raw material purchases, creating significant expo
What is the future outlook for Modison Ltd?
Modison Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: accelerating
- Margin Trend: volatile
- Valuation: Significantly Undervalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Silver accounts for ~75-80% of raw material purchases, creating significant expo
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.