Modi Rubber Ltd Q3 FY26: ₹7.32 Cr Sales, -104% OPM, Yet ₹5.08 Cr Profit — Is This Tyre Company Or Other Income Factory?
1. At a Glance – When Loss-Making Operations Print Profits
At ₹117 per share and a market cap of ₹293 crore, Modi Rubber Ltd looks like a sleepy microcap tyre player. Stock P/E stands at 18.7. Price-to-book? A jaw-dropping 0.42x. Book value ₹276. Sounds like a bargain, right?
Now hold your tyre iron.
Latest quarterly sales (Dec 2025) came in at just ₹7.32 crore. Operating margin? -104%. Yes, negative one hundred and four percent. Operating profit was -₹7.63 crore.
And yet…
PAT for the quarter: ₹5.08 crore.
How?
Other income: ₹14.27 crore.
Return over last 3 months: 6.37%. One-year return: 21%. ROE: 2.89%. ROCE: 3.28%. Debt: ₹19.5 crore. Debt-to-equity: 0.03.
So here’s the million-rupee question:
Is this a tyre manufacturer… or a financial asset holding company wearing a tyre costume?
Let’s investigate. 🕵️♂️
2. Introduction – The Curious Case of the Vanishing Tyres
Modi Rubber was incorporated in 1971. Old name. Old lineage. Part of the Modi Group.
It manufactures truck and bus tyres under the brand “MARATHAN.” It also produces resin coated sand. And operates salons. Yes. Salons.
From heavy-duty tyres to hair styling.
Only in India.
The company has:
62 depots
20 C&F agents
3,000+ dealers
Production capacity of 1.7 million tyres and tubes combined across plants
Exports to:
USA
Middle East
Pakistan
Afghanistan
Sounds solid on paper.
But when we open the financial bonnet, the engine tells a different story.
Revenue TTM: ₹29 crore. Other income TTM: ₹46 crore.
Let that sink in.
Core business is gasping. Other income is oxygen cylinder.
Now ask yourself — are we investing in tyres… or treasury management?
3. Business Model – WTF Do They Even Do?
Let’s simplify this like we’re explaining to your chacha at a wedding.
Segment 1: Tyres (Traditional Business)
Truck and bus tyres under MARATHAN brand.
Production capacity:
1.2 million tyres at Modi Puram & Partapur
5 lakh tyres at Modi Nagar
Distribution:
62 depots
3,000 dealers
But here’s the twist.
TTM sales: ₹29 crore.
For context — peers do quarterly sales in thousands of crores.
So either:
Plants are underutilized
Business scaled down massively
Tyre division is not the real earnings driver
You choose.
Segment 2: Resin Coated Sand
Used in foundry casting. Sounds industrial. Probably small contribution.
Segment 3: Salons
Through JV Modi Marco Aldany Private Limited.
And guess what?
The JV suffered cash losses and store shutdowns post-COVID.
The company has:
₹1,079.35 lakh investment
₹157.99 lakh loans
To a struggling JV.
Spin Investment Ltd (subsidiary) has also invested in associate Vinura Beverages, whose net worth has substantially eroded.
Loans given to:
Vinura Beverages
Uniglobe Travel
Both with eroded net worth.
Question for you:
Why is a tyre company funding beverages and travel businesses?
