Modulex Construction Technologies reported a consolidated net loss of ₹4.78 crore for the quarter ended June 2026, according to reports from Business Standard. However, the company achieved a standalone net profit of ₹40.62 lakhs for the same period, marking a significant turnaround from the ₹32.37 lakh loss posted in the corresponding period of FY25. The standalone profit was primarily driven by a reduction in other expenses, which fell to ₹13.56 lakhs from ₹44.87 lakhs year-on-year, while other income rose to ₹93.30 lakhs from ₹41.50 lakhs. The divergence between standalone and consolidated results highlights the heavy cost burden associated with the subsidiary's ongoing project delays.
The company reported zero sales for both the quarter ended June 2026 and the corresponding quarter of the previous financial year ended June 2025, as reported by Business Standard. This indicates that Modulex Construction Technologies has not generated any revenue from operations during either of these quarters, which could be attributed to operational challenges or market conditions affecting the company's business activities. The absence of operating revenue indicates that commercial production has not yet commenced, despite the completion of Phase-I internal construction.
Auditors Dhadda & Associates have flagged material going-concern risks due to project delays and unpaid tax liabilities of over ₹2.5 crore across the group, according to the latest financial results. The company faces outstanding Tax Deducted at Source (TDS) liabilities of ₹30.22 lakhs, including ₹8.05 lakhs in interest provisions, and Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) amounting to ₹28.86 lakhs, along with ₹5.42 lakhs in interest provisions. The subsidiary MMBPL also has undisclosed TDS liabilities of ₹198.38 lakhs and RCM GST dues of ₹6.44 lakhs. Additionally, MMBPL has faced significant delays in implementing its Pune project, leading to accumulated negative retained earnings of ₹813.33 lakhs as of June 30, 2026, casting significant doubt on the company's ability to continue as a going concern.
During the quarter, the company received ₹1,525.96 lakhs towards final call money for convertible warrants issued earlier, as reported in the latest financial results. The Board allotted 3,38,95,810 equity shares of ₹10 each at a premium of ₹8 per share. However, three warrant holders failed to pay the outstanding final call money within the stipulated period, making these warrants liable to be forfeited. The aggregate amount of ₹147.81 lakhs received against these forfeited warrants is liable to be transferred to Capital Reserve. The company is currently in the process of obtaining board approval for this forfeiture.
