Company Overview

Diana Tea Company Limited (Scrip Code: 530959) has demonstrated a significant financial turnaround in FY2025-26, reporting a net profit of ₹1.75 crore compared to a net loss of ₹4.58 crore in the previous year. Revenue from operations increased by 24% to ₹880.7 crore from ₹708.2 crore.

AGM and Corporate Governance

The company will hold its 115th Annual General Meeting on September 11, 2026 via video conferencing. Key resolutions include:

  • Re-appointment of Mrs. Sarita Singhania as Whole-Time Director
  • Enhancement of borrowing limits to ₹100 crore
  • Adoption of new MOA/AOA compliant with Companies Act 2013
  • Preferential issue of 40.74 lakh equity convertible warrants

The company has complied with SEBI Listing Regulations and maintains robust corporate governance practices.

Preferential Issue Details

Diana Tea proposes to issue 40,74,075 equity convertible warrants to promoters at ₹27 per warrant to raise ₹11 crore. Proceeds will be utilized for:

  • ₹7.50 crore (68.18%) for land acquisition through investment in Bolt Ironworks Private Limited
  • ₹3.50 crore (31.82%) for land development and construction

Full utilization is expected by March 31, 2028.

Financial Performance and Ratios

The company showed marked improvement across key financial metrics:

  • Net Profit Ratio: 1.99% (from -6.47% previous year)
  • Return on Equity: 2.66% (from -7.12%)
  • Inventory Turnover Ratio: 11.25 (37.29% improvement)
  • Total debt stood at ₹4,456.16 lakhs with net debt to equity ratio of 0.58
  • Cash equivalents increased to ₹630.36 lakhs from ₹268.41 lakhs

Related Party Disclosures

Significant related-party transactions were disclosed as per SEBI LODR Regulations:

  • Sarita Singhania: ₹160.80 lakh balance at year-end (max ₹189.45 lakh during year)
  • Devang Singhania: ₹25.85 lakh balance at year-end (max ₹131.85 lakh during year)
  • Diana Capital Limited: ₹5.00 lakh loan balance at year-end

Capital Structure and Management

Equity share capital remained unchanged at ₹749.55 lakhs while other equity increased to ₹5,849.71 lakhs. The company manages interest rate risk effectively, with a 100 basis point change affecting profit before tax by approximately ₹44.55 lakhs.

Regulatory Compliance and Future Outlook

The company has addressed all regulatory requirements including Labour Code implementation implications. No dividend was recommended for FY2025-26 due to financial performance considerations, focusing instead on strategic investments through the preferential issue for future growth.