Asian Tea & Exports reported a substantial turnaround in profitability for the first quarter of FY27, with standalone net profit rising 126% year-on-year to ₹10.58 lakh. The company’s revenue from operations also showed strong momentum, climbing to ₹1,082.18 lakh for the quarter ended June 30, 2026.

The results reflect a significant operational recovery compared to the previous quarter, where revenue had dipped to ₹194.33 lakh. On a year-on-year basis, revenue grew by approximately 22% against ₹886.42 lakh in Q1FY26. The board of directors approved the unaudited financial results in a meeting held on August 14, 2026.

Financial Performance

Standalone pre-tax profit for the quarter was recorded at ₹16.38 lakh, compared to ₹14.52 lakh in the preceding quarter and ₹7.22 lakh in the same period last year. Earnings per share (EPS) on a basic and diluted basis stood at ₹0.06, up from ₹0.05 in Q4FY26 and ₹0.02 in Q1FY26.

On a consolidated basis, the group reported a net profit of ₹4.45 lakh, a marked improvement from a net loss of ₹30.99 lakh in the previous quarter. Consolidated revenue remained flat with standalone figures at ₹1,082.18 lakh. Consolidated EPS was ₹0.02, reversing a negative EPS of -₹0.16 in Q4FY26.

What the Numbers Show

The divergence between the consolidated and standalone results highlights the impact of subsidiary performance on the group’s bottom line. While the standalone entity generated a healthy pre-tax profit of ₹16.38 lakh, the consolidated pre-tax figure was only ₹2.19 lakh. This indicates that subsidiaries incurred significant losses or expenses amounting to roughly ₹14.19 lakh during the quarter, absorbing much of the parent company’s operational gains. Despite this drag, the group managed to return to profitability, avoiding the consolidated loss seen in the prior quarter.

The financial results were reviewed by the audit committee and approved by the board of directors. The figures were submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Asian Tea & Exports Ltd has informed the stock exchanges that the Deputy Commissioner of State Tax, Bureau of Investigation (South Bengal), Government of West Bengal, has issued a Report on Closure of Investigation Process. The report concludes an inspection initiated on November 21, 2025, under Section 67(1) of the West Bengal Goods and Service Tax Act, 2017, at the company's registered office. The company received the closure report, dated June 30, 2026, on July 17, 2026.

The inspection focused on the company's disclosure of exempt supplies for the financial years 2022-23, 2023-24, 2024-25, and the period up to October 2025. During the investigation, authorities noted that the Registered Taxable Person (RTP) had initially failed to provide details of exempt supplies. Authorized representatives appeared for personal hearings on multiple dates in January and February 2026 to submit documents and clarify the position.

The company clarified that it supplies tea (HSN 0902) as taxable supply at a 5% tax rate, while pulses are exempt from tax. The authorities verified the exempt supply figures declared in GSTR 9 and GSTR 3B returns against the Annual Financial Statements. The inspection confirmed that the exempted goods were purchased and sold in bulk, with the amounts in the returns matching the financial statements.

The table below details the exempt supply figures verified during the investigation:

Following the reconciliation of documents, including Bills of Supply and weighing slips, the authorities accepted the explanation. The inspection report noted that since the point raised regarding exempt supply was reconciled, there is no tax liability. Consequently, the company stated that there is no material impact on its financial, operational, or other activities due to the issuance of the closure report.