Modison Reports Mixed Financial Results Amid Rising Debt and Interest Costs in August 2025

Modison, a microcap company in the Other Electrical Equipment industry, has recently reported its financial results for the quarter ending June 2025. The results, declared on August 14, 2025, indicate a notable shift in the company's evaluation, with its score adjusting to -3 from a previous score of 11 over the last three months.
The financial data reveals that Modison achieved its highest quarterly net sales in the last five quarters, reaching Rs 134.14 crore, suggesting a positive near-term sales trend. However, several challenges are evident in the financial performance. The operating profit to interest ratio has reached its lowest point at 4.14 times, indicating a decline in the company's ability to manage interest payments effectively. Additionally, profit after tax (PAT) has decreased to Rs 5.65 crore, reflecting a negative trend compared to the average PAT of the previous four quarters.

The company's debt-equity ratio has also risen to 0.34 times, the highest in the last five half-yearly periods, suggesting increased borrowing to fund operations. Furthermore, interest expenses have surged to Rs 2.07 crore, marking a significant rise in costs. The reliance on non-operating income, which constitutes 44.16% of profit before tax, raises concerns about the sustainability of the business model.

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