Dhunseri Tea & Industries Limited has announced robust financial results for the quarter ended September 30, 2025, showcasing significant improvement in profitability and strategic asset management.

Financial Highlights

The company reported a substantial increase in standalone profit after tax, reaching Rs 2,799.88 lakhs compared to a loss of Rs 978.29 lakhs in the previous quarter. On a consolidated basis, profit after tax rose to Rs 2,115.63 lakhs, up from Rs 1,435.41 lakhs in the prior quarter.

Key Performance Metrics

All figures in Rs lakhs

For the six-month period, standalone profit after tax stood at Rs 3,778.17 lakhs, while consolidated profit reached Rs 3,551.04 lakhs.

Strategic Asset Sale

A significant contributor to the quarter's performance was an exceptional item of Rs 204.80 lakhs, resulting from the sale of specified assets of Deoball Tea Estate. This strategic move, effective September 1, 2025, aligns with the company's efforts to rationalize operations and enhance profitability.

Operational Performance

The company's total income on a standalone basis for the quarter was Rs 12,840.34 lakhs, while consolidated total income reached Rs 17,147.58 lakhs, indicating strong operational performance across its business segments.

Corporate Governance

The financial results were approved by the Board of Directors at their meeting held on November 12, 2025, demonstrating the company's commitment to timely financial reporting and transparency.

Outlook

While the results show a marked improvement, it's important to note that the tea industry is subject to seasonal variations. The company's performance may fluctuate from quarter to quarter, and these results may not be fully representative of the expected annual performance.

Dhunseri Tea & Industries Limited's strategic asset management and improved financial performance suggest a focused approach to enhancing shareholder value. Investors and market watchers may want to keep an eye on the company's future initiatives and their impact on long-term growth prospects.

Dhunseri Tea & Industries Limited (DTIL) has received a reaffirmation of its credit ratings from CARE Ratings Limited, highlighting the company's financial stability and operational performance in the tea industry.

Credit Ratings

CARE Ratings has reaffirmed and assigned the following ratings to DTIL:

The long-term bank facilities amount has been reduced from ₹153.20 crore previously.

Key Rating Drivers

Strengths:

1. Experienced Promoters: DTIL benefits from the extensive experience of its promoters and an established track record in the tea industry spanning over five decades.

2. Operational Scale: The company operates 10 tea estates and 10 tea factories in Assam, along with overseas subsidiaries in Malawi producing tea and macadamia nuts.

3. Group Liquidity: Significant comfort is derived from the group's liquidity, including cash and liquid investments in mutual funds and listed securities.

4. Operational Improvement: DTIL showed improvement in quarterly results with PBILDT of ₹24.06 crore in Q1FY26 compared to a loss of ₹6.64 crore in the corresponding quarter of the previous year.

Challenges:

1. Subdued Financial Performance: FY25 saw consolidated revenue increase by 15% to ₹456.38 crore, but the company reported operating losses of ₹18.06 crore.

2. Production Challenges: Adverse weather conditions and pest attacks in recently acquired tea gardens led to production losses.

3. Overseas Performance: The company's overseas subsidiaries continue to be affected by lower realization of macadamia.

4. Industry Constraints: DTIL faces challenges due to the moderate scale of operations, labor-intensive nature of the tea industry, and susceptibility to agro-climatic risks.

Financial Performance

NM: Not Meaningful; NA: Not Available

Outlook

The stable outlook reflects DTIL's strong financial flexibility as part of the Dhunseri group and its demonstrated track record of successfully managing the tea business. The company's ability to sustain the improvement in financial performance will be crucial going forward.

DTIL's ratings continue to benefit from the promoters' extensive experience, the company's established track record in the tea industry, and the group's liquidity position. However, the ratings are constrained by the company's moderate scale of operations, labor-intensive nature of the tea industry, and susceptibility to agro-climatic risks affecting both tea and macadamia businesses.

As Dhunseri Tea & Industries navigates through the challenges in the tea industry, investors and stakeholders will be closely watching the company's ability to improve its operational performance and maintain its financial stability in the coming quarters.