Rossell India Limited reported a net profit of ₹3.81 crore for the first quarter ended June 30, 2026, marking a 52% decline from the ₹8.01 crore recorded in the same period last year. Revenue from operations fell 15% year-on-year to ₹36.78 crore, driven by higher employee costs due to notified wage rate increases and the non-recognition of the Orthodox Subsidy amid receipt uncertainty. The Board of Directors also approved significant leadership transitions, including the retirement of Chief Financial Officer Nirmal Kumar Khurana after 32 years with the company.

The financial results were reviewed by the Audit Committee and approved by the Board on August 7, 2026, in compliance with Regulation 30 and Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Khandelwal Ray & Co., Chartered Accountants, issued a limited review report on the unaudited standalone financial results prepared under Ind AS 34. The company disclosed that its tea cultivation and manufacturing business is seasonal, meaning quarterly results are not indicative of full-year performance.

Financial Performance

Total revenue from operations stood at ₹36.78 crore in Q1FY26, compared to ₹43.58 crore in Q1FY25. Gross revenue from the sale of products and services decreased to ₹36.27 crore from ₹40.45 crore in the prior year period. Other operating income dropped significantly to ₹51 lakh from ₹3.13 crore, primarily because the Orthodox Subsidy was not recognised under other operating revenue during the quarter due to uncertainty regarding its receipt.

*Profit before finance cost, depreciation, exceptional items, and tax.

Operating expenses totalled ₹30.21 crore, up from ₹32.87 crore in the corresponding quarter of the previous year, but this reduction was outweighed by the fall in revenue. Employee benefits expense rose to ₹44.47 crore from ₹39.12 crore, reflecting a 12% revision in wage rates for daily-rated workers at tea estates effective April 1, 2026, and arrears from a retrospective salary revision for sub-staff effective June 1, 2025. Consumption of green leaf increased to ₹3.10 crore from ₹2.19 crore.

Leadership Changes

Nirmal Kumar Khurana, who served as Whole Time Director, Chief Financial Officer, and Company Secretary & Compliance Officer, will retire from service on September 1, 2026, upon attaining superannuation age. He will cease to hold his directorship immediately following the Annual General Meeting scheduled for August 25, 2026.

The Board appointed Raunak Rathi as the new Chief Financial Officer, effective September 1, 2026. Rathi is a qualified Chartered Accountant with over 28 years of experience in the tea industry, having previously served as COO at Asian Tea Group and CFO at Apeejay Tea Limited. Manish Shaw was appointed as Company Secretary and Compliance Officer on the same date. Shaw is a Member of the Institute of Company Secretaries of India with over 10 years of experience in corporate governance.

Committee Reconstitution

Following Khurana’s departure, the Board reconstituted the Stakeholders Relationship Committee and Corporate Social Responsibility Committee effective August 26, 2026. Ms. Nayantara Palchoudhuri continues as Chairperson of both committees. Mr. Digant Mahesh Parikh replaces Khurana as a member of the Stakeholders Relationship Committee, subject to shareholder approval at the AGM. Ms. Samara Gupta joins the Corporate Social Responsibility Committee alongside Mr. Rahul Bhatnagar.

Rossell India Limited has scheduled its 32nd Annual General Meeting (AGM) for Tuesday, August 25, 2026, to be conducted via Video Conference or Other Audio-Visual Means (VC/OAVM). The meeting aims to transact ordinary business, including the adoption of audited financial statements for FY26 and the declaration of a dividend of ₹ 0.40 per equity share of ₹ 2 each. This payout represents a direct return to shareholders following a financial year where total income rose to ₹ 23,099.49 lakhs from ₹ 18,551.65 lakhs in FY25. The notice was published in Aajkal, Kolkata Bengali edition, on July 29, 2026, confirming that dispatch of notices was completed on July 27, 2026.

The AGM notice, issued pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, outlines several special business items critical to the company’s governance structure. Shareholders will vote on the fixation of overall maximum remuneration for managerial personnel, superseding limits under Section 197 of the Companies Act, 2013. Additionally, the meeting will address the reappointment of Harsh Mohan Gupta as Executive Chairman and Managing Director, and Samara Gupta as Whole Time Director, alongside the new appointment of Digant Mahesh Parikh.

Key Board Appointments and Reappointments

The most significant structural change involves the elevation of Digant Mahesh Parikh from Senior Vice-President (Finance) to the Board. Members are asked to approve his appointment as a Director liable to retire by rotation, effective August 26, 2026, and subsequently as a Whole Time Director for a three-year term ending July 31, 2029. Mr. Parikh, who joined the company in November 2011, will oversee financial management and treasury activities. His proposed salary is set at ₹ 4,00,000 per month, with allowances capped at 50% of his salary.

Harsh Mohan Gupta, who has led the company since its inception in 1994, seeks reappointment as Executive Chairman and Managing Director for a three-year term from April 1, 2027, to March 31, 2030. Notably, shareholders must grant consent for him to hold office despite having attained the age of 70 years. His remuneration package includes a monthly salary of ₹ 11,00,000 and commission up to 10% of net profits. Samara Gupta, currently a Whole Time Director, is up for reappointment for a similar three-year term starting February 9, 2027, with a base salary of ₹ 5,00,000 per month.

Financial Performance and Auditor Ratification

The company’s financial trajectory shows growth in top-line revenue, though profitability metrics require scrutiny. While total income increased significantly, profit before taxation declined to ₹ 1,750.06 lakhs in FY26 compared to ₹ 2,108.41 lakhs in FY25. Finance costs rose sharply to ₹ 679.06 lakhs from ₹ 381.64 lakhs in the prior year, impacting the bottom line. The Board attributes this variance to the seasonal nature of the tea business and broader economic factors.

Shareholders will also ratify the remuneration of M/s Shome & Banerjee, Cost Accountants, appointed as Cost Auditors for the tea product segment for FY27. Their fee is fixed at ₹ 1,70,000 plus applicable taxes and out-of-pocket expenses. The Register of Members will remain closed from August 19, 2026, to August 25, 2026, to determine dividend entitlements. Remote e-voting will be open from August 21, 2026, at 9:00 AM IST to August 24, 2026, at 5:00 PM IST.

What the Numbers Show

The divergence between rising revenue and declining pre-tax profit highlights increasing operational leverage costs. With finance costs nearly doubling year-on-year, the company’s net interest burden is eroding operating gains. The proposed remuneration structures for leadership remain tied to performance incentives, such as commission on net profits for the Chairman, aligning executive compensation with the challenge of restoring margin stability amidst higher borrowing costs.