The Grob Tea Company Limited reported weak financial performance for FY2025-26 with revenue declining 3.5% to ₹114.38 crore and net profit plunging 43% to ₹5.75 crore. The deterioration was driven by lower average tea sale prices (₹249.97/kg vs ₹265.65/kg) and reduced production volume (44.01 lakh kgs vs 46.06 lakh kgs).
Financial & Operational Highlights:
- Debt increased significantly with debt-equity ratio rising to 0.57 from 0.21 due to full utilization of cash credit facilities
- Board recommended a reduced dividend of ₹2 per share (vs ₹3 previously)
- Company disclosed an ongoing ₹71.80 crore acquisition of The Bazaloni Group Limited, with ₹21.02 crore already paid
- Financial statements include provisions for doubtful loans (₹0.50 crore) and impacts from new labor codes
Corporate Governance Changes:
- Resubmitted Annual Report for FY2025-26 to correct formatting error in Registrar's address
- Statutory auditor changed from M/s GARV & Associates to M/s B Nath & Company
- Mr. Pradeep Kumar Agarwal proposed for reappointment as Managing Director with revised remuneration
- Appointed two new independent directors (Mr. Kishan Kumar Kejriwal and Ms. Nidhi Shah)
- Seeking shareholder approval for material related party transactions with two NBFCs (Banka Enterprises and K L Support) for lending/borrowing activities up to ₹5 crore each
Balance Sheet & Ratios:
Total assets increased to ₹163.23 crore (from ₹123.98 crore) while borrowings rose to ₹52.90 crore (from ₹18.34 crore). Key ratios showed deterioration with return on equity declining to 5.91% (from 12.15%) and net profit ratio falling to 5.03% (from 8.49%). The company spent ₹28.12 lakhs on CSR activities and discontinued its LED lights business segment during the year.