Company Overview

Terai Tea Company Limited (BSE: 530533, CSE: 30105) reported mixed financial results for FY26 with strong standalone performance but weaker consolidated results. The company operates three tea manufacturing units with total production of 26.94 lakh kg and maintains investments in 10 associate companies.

Financial Performance

Standalone Results:

  • Net profit surged 161% YoY to ₹9.60 crore (FY25: ₹3.68 crore)
  • Revenue from operations at ₹88.71 crore (FY25: ₹102.99 crore)
  • EPS improved to ₹13.95 from ₹5.35
  • Key ratios: Current ratio 2.77, Debt-equity ratio 0.39, Return on equity 10.35%

Consolidated Results:

  • Net profit declined 45.6% YoY to ₹5.18 crore (FY25: ₹9.53 crore)
  • Revenue from operations decreased 13.9% to ₹88.71 crore
  • EPS fell to ₹7.54 from ₹13.86
  • Cash flow from operations turned negative at ₹(5.18) crore due to working capital changes
  • Total borrowings reduced by ₹32.38 crore to ₹38.43 crore

Operational Highlights

  • Tea production: 26.94 lakh kg (FY25: 21.22 lakh kg)
  • Sales quantity: 26.32 lakh kg (FY25: 18.10 lakh kg)
  • Average price realization: ₹120.99 per kg (FY25: ₹161.36 per kg)
  • Manufacturing units: Bagdogra Tea Estate (687.17 acres), CTC Tea Factory, Adhikari Tea Factory Unit

Corporate Governance & Management

Board Composition:

  • Mr. Ajit Kumar Agarwala (Managing Director)
  • Mrs. Shashikala Agarwala (Non-Independent Director)
  • Mr. Rajendra Kanodia (Non-Executive Director & CFO)
  • Three independent directors

Management Changes:

  • Mr. Rajendra Kanodia's designation changed from Non-Executive Director to Whole-Time Director effective August 25, 2026
  • Mr. Ajit Kumar Agarwala reappointed as Managing Director for 3 years from August 12, 2025

53rd Annual General Meeting

Date: September 30, 2026

Agenda: Adoption of financial statements, reappointment of directors, approval of cost auditor remuneration, and ratification of management changes

Investments & Subsidiaries

Subsidiary: Terai Retailors Private Limited (real estate business)

Key Associates (10 companies):

  • East Indian Produce Ltd: Revenue ₹8.25 crore, Net Loss ₹0.49 crore
  • New Darjeeling Union Tea Co. Ltd.: Revenue ₹28.03 crore, Net Profit ₹10.17 crore
  • Abhijit Tea Company Private Ltd.: Revenue ₹11.41 crore, Net Loss ₹3.25 crore
  • Total investments in associates: ₹7.49 crore

Financial Position

Assets: Property, plant and equipment ₹5.15 crore, Investments ₹12.82 crore (mutual funds and quoted shares), Cash ₹0.57 crore

Liabilities: Total borrowings ₹38.43 crore, Trade payables ₹2.25 crore

Credit Rating: CRISIL BBB-/stable

Significant Developments

  • Registered office shifted to East India House, Kolkata effective April 7, 2025
  • Pending litigation regarding Dharnipur Tea Estate acquisition
  • Applications made for tea tourism projects under West Bengal Tea Tourism Policy
  • Commercial real estate project development agreement for shopping mall at Siliguri (company's share 32%)

Forward-looking Statements

The company cautions that forward-looking statements are subject to various factors including weather conditions, market trends, and economic factors affecting the tea industry.