Key Financial Figures (Standalone)

  • Revenue from Operations: Q2 FY27: ₹39,193 lakhs; H1 FY27: ₹59,638 lakhs
  • Total Income: Q2 FY27: ₹39,271 lakhs; H1 FY27: ₹59,813 lakhs
  • Profit/(Loss) before Tax: Q2 FY27: ₹3,854 lakhs; H1 FY27: ₹2,378 lakhs
  • Profit/(Loss) for the period: Q2 FY27: ₹3,438 lakhs; H1 FY27: ₹1,960 lakhs
  • EPS (not annualized): Q2 FY27: ₹3.29; H1 FY27: ₹1.88
  • Paid-up Equity Share Capital: ₹5,223 lakhs (Face Value: ₹5 per share)
  • Other Equity: (₹14,320 lakhs) as at September 30, 2026

Key Financial Figures (Consolidated)

  • Revenue from Operations: Q2 FY27: ₹44,373 lakhs; H1 FY27: ₹70,484 lakhs
  • Total Income: Q2 FY27: ₹44,642 lakhs; H1 FY27: ₹71,012 lakhs
  • Profit/(Loss) before Tax: Q2 FY27: ₹3,920 lakhs; H1 FY27: ₹2,587 lakhs
  • Profit/(Loss) for the period: Q2 FY27: ₹3,391 lakhs; H1 FY27: ₹2,053 lakhs
  • EPS (not annualized): Q2 FY27: ₹3.25; H1 FY27: ₹1.97
  • Paid-up Equity Share Capital: ₹5,223 lakhs (Face Value: ₹5 per share)
  • Other Equity: (₹6,347 lakhs) as at September 30, 2026

Auditor's Adverse Opinion

The statutory auditors, Lodha & Co LLP, have issued an adverse opinion on both standalone and consolidated financial results due to multiple material uncertainties:

1. Inter-Corporate Deposits (ICDs): ₹2,86,050 lakhs (including interest accrued till March 31, 2019) given to promoter group and certain other entities are doubtful of recovery. Provision of ₹2,44,629 lakhs made in earlier years leaves a balance of ₹41,421 lakhs unprovided, overstating profit.

2. Debt Restructuring: Adjustments pursuant to Master Restructuring Agreement (MRA) with NARCL and One Time Settlement (OTS) with JCAF are subject to fulfilment of conditions precedent.

3. Non-recognition of Interest: Interest on loans, ICDs, and other amounts taken by the company totaling ₹18,134 lakhs (including ₹1,945 lakhs for the period) has not been recognized, overstating profit.

4. Impairment Testing: Fair value of Property, Plant & Equipment (₹73,255 lakhs), Intangible Assets under development (₹162 lakhs), Capital Work-in-Progress (₹3,352 lakhs), and Investment in subsidiary (₹15,967 lakhs) has not been determined.

5. Statutory Liabilities: Amount payable in respect of lease rent for office premises and statutory liabilities aggregating ₹26,530 lakhs (including Provident Fund dues of ₹19,111 lakhs) have not been determined.

6. Deferred Tax Assets: ₹28,232 lakhs recognized in earlier periods, given uncertainty with respect to availability.

7. Labour Code Impact: Implications of the newly notified Labour Code are under evaluation, impact not ascertained.

8. Reconciliation Issues: Certain debit and credit balances are subject to reconciliation with individual details and confirmation.

Debt Restructuring Details

The company's borrowings have been restructured through assignment to ARCs:

  • Total Borrowings Assigned: ₹3,35,327 lakhs (including interest accrued till cut-off date)
  • Assigned to NARCL: ₹2,48,330 lakhs
  • Assigned to JCAF: ₹74,966 lakhs
  • Payable to Lender Bank: ₹12,031 lakhs (subject to settlement)

NARCL Restructuring (Effective December 31, 2025):

  • Sustainable debt: ₹1,05,000 lakhs (after adjusting repayment of ₹2,742 lakhs)
  • Amount set aside for equity conversion: ₹11,900 lakhs (10% of total equity capital on diluted basis)
  • Unsustainable debt: ₹84,648 lakhs (adjusted under exceptional items in FY26)

JCAF OTS (Effective March 31, 2026):

  • Sustainable debt: ₹15,000 lakhs (after adjusting repayment of ₹62 lakhs)
  • Unsustainable debt: ₹44,247 lakhs (adjusted under exceptional items in FY26)

Conditions Precedent:

  • Execution of MOU for selling certain tea estates
  • Promoters' contribution
  • Settlement plan for Provident Fund dues
  • Creation of additional security by pledge of promoters'/related parties' holdings
  • Settlement with lender bank and resolution of Arbitral Award

Going Concern Assumption

The financial results are prepared on a going concern basis despite:

  • Current liabilities exceeding current assets
  • Operational losses affecting net worth
  • Significant provision against ICDs

The ability to continue as a going concern is dependent on:

  • Fulfilment of conditions precedent to debt restructuring
  • Timely implementation of resolution plans
  • Approval of settlement proposal with lender bank
  • Monetization of assets and adequate operational cash flows

Pending Legal and Regulatory Matters

  • Legal suit filed before Hon'ble Calcutta High Court for recovery of ICDs from promoter group entities
  • Petitions filed by lenders before DRT and NCLT under IBC
  • Arbitral Award dated September 29, 2025, for ₹50,896 lakhs + US$564,600 + costs, challenged before Hon'ble Delhi High Court
  • Examination by regulatory authorities regarding ICDs and related party transactions

Segment Information (Consolidated)

The Group operates in geographical segments:

  • India: Revenue H1 FY27 ₹59,548 lakhs; Segment Result ₹2,285 lakhs
  • Uganda: Revenue H1 FY27 ₹8,613 lakhs; Segment Result (₹476) lakhs
  • UK: Revenue H1 FY27 ₹2,451 lakhs; Segment Result (₹67) lakhs
  • Others: Revenue H1 FY27 ₹978 lakhs; Segment Result ₹22 lakhs

Cash Flow (Standalone)

  • Net cash from Operating Activities: ₹6,450 lakhs (H1 FY27)
  • Net cash used in Investing Activities: (₹1,264) lakhs (H1 FY27)
  • Net cash used in Financing Activities: (₹2,226) lakhs (H1 FY27)
  • Net increase in Cash and Equivalents: ₹2,960 lakhs (H1 FY27)

Cash Flow (Consolidated)

  • Net cash from Operating Activities: ₹8,074 lakhs (H1 FY27)
  • Net cash used in Investing Activities: (₹1,006) lakhs (H1 FY27)
  • Net cash used in Financing Activities: (₹3,860) lakhs (H1 FY27)
  • Net increase in Cash and Equivalents: ₹3,208 lakhs (H1 FY27)

Subsequent Events

  • Memorandum of Understanding executed for sale of specified assets of six tea estates (carrying value: ₹11,859 lakhs) for aggregate consideration of ₹14,921 lakhs
  • Unattested Agreement of Pledge of Shares executed on October 09, 2026
  • Sustainable debt repayment of ₹4,705 lakhs (including ₹1,901 lakhs during the period) from operational accruals