Modern Insulators makes porcelain insulators sturdy enough to survive wind, ice, earthquakes—and SEBI queries. With ₹541 crore sales in FY25 and ₹40 crore PAT, it’s India’s largest porcelain insulator exporter, but the real shock? They own Swiggy shares, NSE shares, and even run a yarn division (soon to be demerged). This company is basically your eccentric uncle: makes serious money from insulators but spends weekends trading startups and denim companies.
2. Introduction
Picture Rajasthan’s Abu Road: not exactly Silicon Valley, yet home to India’s biggest porcelain insulator factory. Modern Insulators, founded in 1985 with Siemens’ blessings, is now the godfather of hollow, long-rod, and solid-core insulators. If electricity flows in India without tripping every monsoon, these guys probably had a hand in it.
But here’s the plot twist: the company doesn’t just stick to insulators. It lends ₹5 crore to Modern Denim Ltd (merger in progress), sets up a yarn demerger into Modern Polytex Ltd, invests ₹10 crore into a hedge fund, buys Swiggy shares, and even grabbed 25,000 NSE shares. Who knew the path from power transmission to food delivery was just one board resolution away?
Financially, it’s stable: PE of 13.6, EV/EBITDA of 9.6, ROCE of 9%. Almost debt-free at ₹25 crore debt, current ratio 3.8, inventory days 325 (basically enough porcelain to tile an entire railway).
The issue? Growth is crawling: sales CAGR just 2–4% over 5–10 years, though FY25 showed a good 18% jump. It’s the classic case of a conservative industrial company suddenly behaving like a venture capitalist on weekends.
Question: Do you trust a company that makes railway insulators but also speculates in Swiggy? Or do you admire the diversification as “chaat masala” on otherwise plain balance sheets?
3. Business Model – WTF Do They Even Do?
They manufacture and export insulators—those ceramic cylinders you see on electric poles and substations. Product portfolio:
Hollow insulators – weather shields for internal components.
Solid core insulators – survive earthquakes and short circuits.
Long rod insulators – designed for decades of static/dynamic loads.
Railway insulators – stay arms, brackets, 9-tonne insulators (yes, nine tonnes), etc.
Capacity: 26,000 MTPA. Customers: Indian Railways, power utilities, EPC contractors worldwide. Exports form 56% of revenue, so their porcelain travels more than most Indian passports.
But then, they also set up Modern Composites Pvt Ltd in 2023 to enter polymer and composite insulators. Plus, JVs with Shriji Designs (Railways EPC contracts) and Sikka Engineering (not operational yet).
So yes, core business = porcelain, but with side hustles in composites, railways EPC, denim bailouts, Swiggy shares, and yarn demergers. Basically, a B2B industrial company moonlighting as a family office.
4. Financials Overview
Quarterly Financials (₹ crore)
Metric
Q1 FY26 (Jun 25)
Q1 FY25 (Jun 24)
Q4 FY25 (Mar 25)
YoY %
QoQ %
Revenue
141
104
160
36.2%
-11.9%
EBITDA
13
5
18
160%
-27.8%
PAT
15.2
6.8
9
122%
68.9%
EPS (₹)
3.23
1.60
1.84
101%
75.5%
Annualised EPS ~₹12.9 → PE ~9x (cheap).
Commentary: They doubled profits YoY and trade at single-digit PE on forward numbers. That’s not just growth—it’s a porcelain miracle.
5. Valuation Discussion – Fair Value Range
a) P/E Method
Current EPS FY25 = ₹9.81
PE range: 12x–18x
Fair Value Range = ₹118–₹177 per share.
b) EV/EBITDA Method
EV = ₹568 Cr
EBITDA FY25 = ₹59 Cr
EV/EBITDA = 9.6x
Peer avg ~10–15x
Fair Value Range = EV ₹590–₹880 Cr → equity ₹123–₹185/share.
