Modern Engineering posts FY26 profit, but Q4 profit fell 96%.
Full-year net profit rose 16.5% to ₹8.5 crore, but the fourth quarter saw profit collapse to ₹0.37 crore from ₹9.36 crore a year earlier, masking the annual growth story.
— 3 earlier stories on Modern Engineering And Projects Ltd. →What's new
- Full-year revenue from operations rose 25% to ₹119.8 crore; net profit grew 16.5% to ₹8.5 crore.
- Q4 net profit plunged to ₹0.37 crore from ₹9.36 crore, despite 13% quarterly revenue growth to ₹47.6 crore.
- Board approved shifting the registered office to Bandra East, Mumbai, effective June 1.
Why this matters
The annual numbers look solid, but the Q4 collapse is a red flag. A company can't grow revenue 13% and lose 96% of its profit in a single quarter without a specific cause — be it a one-time charge, a margin squeeze, or a contract gone wrong. The filing gives no explanation. For a nano-cap, this kind of surprise can swing the stock.
What we're watching
- Management commentary or a detailed breakdown explaining the Q4 profit collapse.
- Whether the registered office move to Mumbai signals a broader operational shift.
- The stock's reaction to the sharp quarterly deterioration versus the annual growth.
The full read
Modern Engineering's full-year results tell a growth story: revenue up 25% to ₹119.8 crore, net profit up 16.5% to ₹8.5 crore. The Q4 numbers blow that story apart. In the final quarter, revenue grew 13% to ₹47.6 crore, yet net profit crumbled to ₹0.37 crore from ₹9.36 crore a year earlier. That is a 96% drop. The filing provides no reason for the disconnect. For a company with a market cap of just ₹62 crore, the quarterly swing is material. The annual growth is real, but the Q4 collapse demands an explanation that isn't here. The office move to Mumbai and a new company secretary are routine. The profit collapse is not.
Questions answered
- Why did Modern Engineering's Q4 profit drop so sharply even though revenue grew?
- The filing doesn't explain the divergence. Quarterly revenue rose 13% to ₹47.6 crore, but net profit fell 96% to ₹0.37 crore. The cause, whether a one-time expense or an operational issue, is not disclosed in the results.
- How do the full-year FY26 numbers compare to FY25?
- Revenue from operations grew 25% to ₹119.8 crore and net profit increased 16.5% to ₹8.5 crore for the full year ending March 2026. The annual trajectory is positive.
- What were the other board decisions in the filing?
- The board approved relocating the company's registered office from its current location to Bandra East, Mumbai, effective June 1, 2026. It also appointed Anisha Suraj Rajbhar as the new company secretary and compliance officer.
Modern Engineering And Projects Ltd.
Latest quarter · Mar 2026
Leverage & growth
Story so far
All notes on MEAPL →- 26 May 2026 · 4:45 PM IST Modern Engineering posts FY26 profit, but Q4 profit fell 96%.
- 6d ago CFO exits Modern Engineering, replacement lined up
- 41d ago Modern Engineering's Q4 profit crashes 96% even as the full year grows
- 41d ago Modern Engineering approves routine Q4 and FY26 results