Shares of Modison Limited hit a 20% upper circuit on Tuesday, touching ₹208.50 against a previous close of ₹173.75, extending a rally that has taken the stock up approximately 40% over two consecutive sessions following a blowout set of Q4 FY26 results.
The micro-cap silver electrical contact manufacturer reported revenue from operations of ₹287 crore in Q4 FY26, up 120.8% year-on-year from ₹130 crore in Q4 FY25 and up 99.3% sequentially from ₹144 crore in Q3 FY26. Net profit for the quarter came in at ₹36 crore, a jump of 277.7% from ₹9.53 crore in Q4 FY25 and 79.1% higher than the ₹20.1 crore posted in Q3 FY26.
| Metric | Q4 FY26 | Q4 FY25 | YoY Change | Q3 FY26 | QoQ Change |
|---|---|---|---|---|---|
| Revenue from Operations | ₹287 cr | ₹130 cr | +120.8% | ₹144 cr | +99.3% |
| Net Profit | ₹36 cr | ₹9.53 cr | +277.7% | ₹20.1 cr | +79.1% |
| EPS (₹) | ₹11.09 | ₹2.94 | +277.2% | — | — |
The board has recommended a final dividend of ₹3 per equity share of face value ₹1 each, representing a payout of 300% for FY26.
Modison manufactures silver and silver-alloy electrical contact materials, finished contacts, and precious metal compounds used in switchgear, circuit breakers, and power distribution equipment. The company serves over 150 customers across more than 20 countries and operates manufacturing capacity of approximately 2,000 tonnes per annum. It has over 50 years of industry experience.
The results land at a moment when silver is itself a market story. Global silver prices have been under significant stress due to supply tightness linked to the Iran war and Strait of Hormuz disruptions, factors that have simultaneously driven up the value of Modison’s core input material and raised questions about procurement costs even as demand from the power and infrastructure sector remains strong.
The company’s financials reflect efficient capital deployment, with a return on capital employed of 30.9% and return on equity of 32%. The debt-to-equity ratio stands at 0.64. Even after the two-day surge, the stock trades at a trailing P/E of 8.63 against an industry P/E of 27.3, with a PEG ratio of 0.10, suggesting the market is still pricing in limited forward growth relative to the company’s five-year profit CAGR of 25.9%.
Market capitalisation stood at approximately ₹676.58 crore during Tuesday’s trade.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.