This small-cap ethanol stock to be in focus on Tuesday after additional supply order from OMCs
Modi Naturals is expected to attract investor attention following an ethanol order of 1.98 crore litres valued at ₹140 crore, adding to a previous ₹400 crore contract.
Shares of Modi Naturals are likely to be on investors' radar in Tuesday's trade, 18 August, after the company announced that it has received an additional ethanol order from various oil marketing companies (OMCs).
In its post-market regulatory filing on Monday, the company said that through its wholly owned subsidiary, Modi Biotech Private Limited (MBPL), it has received an additional allocation of 1.98 crore litres of ethanol, with an estimated order value of ₹140 crore for ESY 2025-26, with supplies to be made until October 2026.
This is in addition to the existing order of around ₹400 crore for approximately 47.9 KLPD from various OMCs.
In the June quarter (Q1FY27), the company's ethanol business was impacted by a planned maintenance shutdown of around 20 days, along with lower FCI rice prices. However, the management said that the underlying operating performance of the business has improved significantly.
The company said that with both the existing and expanded plants expected to be fully operational by the end of August 2026, it would be able to execute the additional order book and progressively ramp up capacities over the balance of the ESY period.
As part of its expansion plans, the company commenced the second phase of its ethanol expansion, increasing capacity from 130 KLPD to 282 KLPD, significantly strengthening its production capabilities.
Delivers steady performance in June quarter
The company reported a steady performance in Q1FY27, with revenue from operations rising marginally 0.4% year-on-year to ₹155.6 crore, compared with ₹155 crore in Q1 FY26.
At the operating level, EBITDA grew 25.6% YoY to ₹22.2 crore from ₹17.7 crore, with the EBITDA margin improving to 14.2% from 11.4% in the year-ago quarter.
At the bottom line, the net profit after tax increased 19.1% YoY to ₹12.5 crore from ₹10.5 crore, while the PAT margin expanded to 8% from 6.8%. EPS stood at ₹9.44 in Q1 FY27, compared with ₹7.87 in the corresponding quarter last year.
On a sequential basis, however, the company's performance moderated, with revenue declining 36% from ₹243.1 crore in Q4 FY26. EBITDA fell 9.3% QoQ to ₹22.2 crore, while PAT declined 36.5% from ₹19.7 crore in the March quarter.
Looking ahead, the company has set an FY27 revenue guidance of ₹925–965 crore, compared with ₹719 crore in FY26. It expects EBITDA to rise to ₹100–105 crore from ₹74 crore, while PAT is projected at ₹66–70 crore, compared with ₹50 crore in FY26.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
About the Author
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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