Dhunseri tea & industries Limited has announced its financial results for the third quarter of fiscal year 2026, showing mixed performance with revenue growth offset by declining profitability. The tea manufacturing company's results reflect the seasonal nature of its business operations and ongoing challenges in maintaining profit margins.

Standalone Financial Performance

The company's standalone operations showed contrasting trends in revenue and profitability for Q3FY26:

Despite revenue growth of 7.9%, the company's net profit declined significantly due to various operational factors. The profit before tax improved from a loss of Rs 135.70 lakhs in Q3FY25 to a profit of Rs 129.32 lakhs in Q3FY26.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the standalone performance showed stronger results:

Consolidated Results Show Challenges

The consolidated financial results painted a different picture, with the company reporting a net loss of Rs 711.51 lakhs in Q3FY26 compared to a loss of Rs 96.46 lakhs in Q3FY25. Consolidated revenue from operations increased to Rs 14,121.27 lakhs from Rs 12,244.95 lakhs, representing a 15.3% growth.

Corporate Actions and Strategic Decisions

The Board of Directors approved a significant strategic investment during their meeting held on February 10, 2026. The company will subscribe to Optional Convertible Debentures (OCD) worth USD 2.00 million being offered by its wholly-owned subsidiary, Dhunseri Petrochem & Tea Pte Ltd. (DPTPL). This investment demonstrates the company's commitment to strengthening its subsidiary operations.

Asset Rationalization Initiatives

As part of its operational optimization strategy, the company has undertaken several asset rationalization measures. The Committee Members decided to sell specified assets of Balijan (North) Tea Estate for Rs 3,500.00 lakhs, subject to adjustments for current assets and liabilities. These assets have been classified as "Assets held for Sale" in the current quarter.

Regulatory Compliance and Impact

The company has recognized the impact of India's new unified labour codes, which became effective from November 21, 2025. The consolidation of 29 existing labour legislations into four unified codes resulted in additional employee benefit expenses of Rs 46.00 lakhs during the quarter and nine months ended December 31, 2025.

Dhunseri Tea & Industries Limited has announced the strike-off of its step-down subsidiary, Dhunseri Mauritius Pte Ltd (DMPL), in compliance with regulatory disclosure requirements. The company informed both BSE and NSE about this corporate development on December 19, 2025.

Strike-Off Details

The subsidiary strike-off became effective on December 09, 2025. Dhunseri Mauritius Pte Ltd was registered in Mauritius and operated as a step-down subsidiary of the tea company. The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Impact Assessment

The struck-off subsidiary had minimal impact on the parent company's operations and financials. According to the regulatory filing, DMPL was classified as a non-material subsidiary with no significant business operations since its incorporation.

Regulatory Compliance

The announcement follows SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which mandates specific disclosures for subsidiary strike-offs. The company confirmed that this action does not involve any sale or disposal transaction, as indicated by "Not Applicable" entries for consideration received, buyer details, and related party transaction queries.

Corporate Structure Impact

The strike-off represents a streamlining of Dhunseri Tea & Industries' corporate structure by eliminating a non-operational entity. The subsidiary's removal from the group structure will have no material impact on the company's ongoing business operations or financial performance, given its dormant status since incorporation.