McLeod Russel India Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing continued financial challenges despite operational improvements in certain areas. The tea cultivation and manufacturing company reported mixed performance indicators while navigating ongoing debt restructuring processes.

Financial Performance Overview

The company's Q3FY26 performance showed both challenges and relative improvements compared to the previous year:

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹89,051 lakhs compared to ₹89,647 lakhs in the corresponding period of the previous year, representing a marginal decline of 0.66%.

Debt Resolution and Financial Restructuring

McLeod Russel continues to grapple with substantial financial obligations and ongoing restructuring efforts. The company's borrowings totaling ₹1,46,107 lakhs have been assigned to Asset Reconstruction Companies, with ₹1,03,303 lakhs assigned to National Asset Reconstruction Company Limited (NARCL) and the remaining ₹42,804 lakhs to other lenders.

The resolution plan submitted to NARCL and other lenders remains under consideration, with management expressing confidence in achieving a sustainable debt restructuring arrangement.

Operational Challenges and Going Concern

The company faces significant operational headwinds, with current liabilities exceeding current assets. Tea realization has been adversely affected, impacting operational volumes and overall performance. Cut-backs against sales proceeds have been appropriated toward borrowing repayments, further constraining operational liquidity.

Statutory liabilities aggregate to ₹18,236 lakhs as of December 31, 2025, with demands received from authorities in certain cases. The Assam Tea Employees Provident Fund Organisation has made representations to NARCL for consideration of provident fund dues during the resolution plan approval process.

Auditor Observations and Regulatory Matters

The statutory auditors, Lodha & Co LLP, issued an adverse review conclusion citing several material concerns including the recoverability of Inter-Corporate Deposits and non-recognition of various liabilities. The auditors highlighted that the financial results have not been prepared fairly in all material respects due to the significance of unresolved matters.

During the period, an arbitration award dated September 29, 2025, was passed involving promoter group entities for ₹50,896 lakhs plus additional amounts. The company has challenged this award before the Hon'ble High Court of Delhi, with the outcome pending.

Segment Performance and Outlook

On a consolidated basis, the group reported revenue from operations of ₹44,545 lakhs for Q3FY26 compared to ₹37,056 lakhs in Q3FY24. The consolidated net loss stood at ₹3,641 lakhs for the quarter.

The company's financial results have been prepared on a going concern basis, contingent upon successful debt resolution and implementation of ameliorative measures. Management remains focused on rationalizing operational costs and securing additional funding through the resolution process to strengthen the financial position over time.

McLeod Russel India Limited has received significant relief as a financial creditor has withdrawn its insolvency application against the company. The tea major informed stock exchanges on January 13, 2026, about this positive development under Regulation 30 of SEBI listing regulations.

Insolvency Application Withdrawal

PDK Impex Pvt Ltd, which had filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against McLeod Russel India Limited, has withdrawn the said application. The National Company Law Tribunal (NCLT) Kolkata bench has accordingly dismissed the application as withdrawn.

Legal Proceedings Update

The company received confirmation of this development through communication from its advocate. However, the formal order copy has not yet been uploaded on the NCLT website. This withdrawal represents a significant relief for McLeod Russel India Limited, as insolvency proceedings under the Insolvency and Bankruptcy Code can have serious implications for companies.

Regulatory Compliance

McLeod Russel India Limited has fulfilled its disclosure obligations by promptly informing all relevant stock exchanges about this material development. The company sent formal intimations to:

• BSE Limited (Scrip Code: 532654)
• National Stock Exchange of India Ltd (Scrip Code: MCLEODRUSS)
• The Calcutta Stock Exchange Limited (Scrip Code: 10023930)

Company Background

McLeod Russel India Limited operates from its registered office at Four Mangoe Lane, Surendra Mohan Ghosh Sarani, Kolkata. The company, with CIN L51109WB1998PLC087076, is a prominent player in the tea industry. This resolution of the insolvency application removes a significant legal overhang and provides the company with relief from potential bankruptcy proceedings that could have impacted its operations and stakeholder interests.