Modison PAT +100% YoY to ₹23.3 Cr, but OPM compresses to 11.1% from 18.4% QoQ

Modison Limited's consolidated revenue for Q2 FY27 (quarter ended September 30, 2026) came in at ₹279.03 Cr, up 92.2% year-on-year from ₹145.16 Cr and up a modest 3.2% sequentially from ₹270.47 Cr in Q1 FY27. Consolidated PAT was ₹23.29 Cr, up 99.7% YoY from ₹11.66 Cr, but down 31.2% from ₹33.84 Cr in the preceding quarter. EPS was ₹7.18 against ₹3.59 a year ago and ₹10.43 last quarter. Standalone and consolidated are nearly identical — standalone PAT ₹23.32 Cr — since the lone subsidiary, Modison HV Pvt Ltd, was divested on September 21, 2026, with no material impact on the group numbers per the company's own note. The YoY jump in both lines tracks the sharp rise in revenue and in cost of materials consumed — predominantly silver inputs for electrical contacts — which rose to ₹266.64 Cr from ₹130.81 Cr a year ago. But the sequential picture is weaker than the headline suggests: EBIT margin fell to 11.14% from 18.42% in Q1 FY27, and net margin fell to 8.25% from 12.39%, even as revenue grew. The swing sits mainly in cost of materials, up 8.2% QoQ against only 3.2% revenue growth, and in a smaller build-up of finished-goods/work-in-progress inventory this quarter (₹36.20 Cr versus ₹41.72 Cr in Q1), which flattered Q1's reported expenses relative to Q2. This quarter's PBT also carries a ₹3.60 Cr exceptional gain from silver hedging and forward-contract mark-to-market, versus a ₹0.28 Cr exceptional loss in Q1 FY27 and a ₹1.03 Cr gain in the year-ago quarter. Adjusting both periods for these swings, YoY PAT growth is still strong at roughly 89%, while QoQ PAT is down closer to 40% rather than the reported 31% — the sequential slowdown is not an artifact of the exceptional items, it is somewhat worse once they are stripped out. Management gives no formal forward guidance on record, and our records hold no prior concall commentary for this company, so there is no guidance bar to grade this print against. A web search for broker or consensus estimates on Modison's Q2 FY27 turned up nothing — the stock appears to lack formal sell-side coverage — so a street comparison is not available either. Separately, the company lodged an ₹18.02 Cr insurance claim after a February 2026 factory fire destroyed inventory and equipment; it received a further ₹1.80 Cr part-payment this quarter, included in other income, with the remaining claim still in process with the insurer. The board also declared an interim dividend of ₹4 per share (400% of the ₹1 face value) for FY27, with October 23, 2026 as the record date.