In 2025, the global economy demonstrated resilience despite on increasingly complex and uncertain operating environment. Global GDP growth was estimated at approximately 3.4% reflecting a stable, albeit uneven, expansion across regions. While advanced economies recorded moderate growth, many emerging markets continued to expand at rates exceeding 4% underpinning overall global economic momentum. Fiscal policies across major economies remained broadly balanced, with governments pursing fiscal consolidation while extending targeted support to encourage investment and enhance long-term competitiveness.
Input cost fluctuations across agricultural commodities, including tea and coffee, continued to exert pressure on industry margins and pricing strategies during the year. In response, companies intensified their focus on strengthening supply chain and enhancing operational efficiency through productivity improvement initiatives. These efforts were aimed at improving business agility and optimising service levels thereby enabling organisations to better navigate a dynamic and evolving business environment.
The global economic outlook remains subject to significant downside risks, driven by the potential escalation of geopolitical conflicts, renewed trade tensions and climate related disruptions that could adversely affect commodity production and global supply chains. The global GDP growth is projected to moderate to 3.1% in 2026 reflecting the adverse impact of the conflict in the Middle East. Prudent macroeconomic management, continued policy support and enhanced supply chain resilience will remain critical to sustaining global growth and mitigating the impact of external shocks.
India continued to rank among the worlds fastest growing major economies during financial year 2026, supported by strong domestic consumption, sustained public infrastructure investments and increasing digital adoption across sectors, Robust macroeconomic fundamentals, improving private investment and stable financial conditions further reinforced the countrys growth momentum. The Government maintained a growth oriented yet fiscally prudent approach during the year with continued emphasis on capital expenditure to strengthen infrastructure, expand productive capacity and enhance Indias long term economic competitiveness. Rationalisation of GST rates across selected essential and mass consumption categories together with personal income tax relief helped improve household disposable incomes and supported consumer spending.
The Reserve Bank of India (RBI) has retained its financial year 2026 GDP growth projection at 7.6% while moderating its forecast for financial year 2027 to 6.9% reflecting expectations of slower growth during the first half of the year. The RBI has highlighted that escalating geopolitical tensions, elevated under oil prices and global economic uncertainties could pose downside risks to the countrys growth outlook. Notwithstanding these near-term challenges, Indias long-term growth fundamentals remain robust. Favourable demographics, rising disposable income, rapid urbanisation and the continued expansion of the digital economy are expected to sustain growth across consumer sectors, including beverages.
The tea industry witnessed divergent trends globally and in India during the calendar year 2025. Global tea production (excluding China) recorded a marginal increase over 2024, primarily driven by higher output from India, while products across several African tea-producing nations declined owing to adverse climatic conditions and other operational challenges. In India, total tea production increased by approximately 5% reaching 1370 million kgs compared with 1304 million kgs in the previous year. Domestic tea consumption remained resilient supported by large consumer base and teas position as an essential daily beverage. Per capita consumption remained broadly stable, while premium and value-added teas continued to witness stronger demand, particularly in urban markets.
Indias tea exports also witnessed healthy growth during the year, increased by approximately 24 million kgs over the previous year, defying fear of a slowdown due to punitive US tariff and geo-political disturbances. Iraq and UAE have now replaced Russia as the largest destinations. The combined increase in shipments to Middle East more than offset the deepening contraction to US and European Union.
Improved global supply moderated the prices in most producing regions. Average auction prices in North India declined by around Rs. 22/- per kg due to higher production. However, quality focused producers experienced a relatively lower decline, reflecting sustained demand for premium teas.
Overall financial year 2026 is expected to be a period of caution optimism for the Indian tea industry, while challenges remain in terms of cost and global market volatility. Indias diversified production portfolio and strong domestic consumption base provide a solid foundation for sustained growth.
The Company produced 37,02,867 Kgs of tea during the year ended 31st March, 2026 against 32,23,423 Kgs for the same period last year. The average price for Assam teas realised by the Company during the year was Rs. 255/- Kg and for South Indian teas was Rs. 145/- per Kg.
Global coffee production continued its upward trajectory in 2025, increasing by approximately 2% to a record 178.8 million bags compared with 175.3 million bags in 2024. The increase was primarily driven by a strong recovery in Robusta production in Vietnam along with record crops in Indonesia and Ethiopia, which more than compensated for lower Arabica crop in Brazil and Columbia resulting from adverse weather conditions. Global coffee consumption also reached a new high of 173.9 million bags in 2025 registering a growth of approximately 1.3% over 171.7 million bags in the previous year. Demand remained resilient across both developed and emerging markets with sustained growth in coffee consuming regions. Although production exceeded consumption by 5 million kgs, global stocks continued to decline reflecting tightness in global inventories following successive years of supply constraints.
Indias coffee production remained broadly unchanged from the previous year at around 3.60 lakh tons despite weather related challenges in major coffee growing regions. Lower yields caused by adverse climatic conditions were offset by stable acreage and improved cultivation practices.
India continues to be an export-oriented coffee producer with nearly four-fifths of its production destined for international markets. Indias coffee exports in 2025 crossed the record of $ 2 billion mark, registering a 22% growth over the previous year on high prices and strong buying from the Russian Federation. The sharp price escalation aligns with global coffee market trends driven by supply constraints in major producing nations and elevated logistics cost.
Coffee prices in India remained at historically high levels in 2025 supported by strong global demand and tight supplies from Brazil and Vietnam. Although international prices moderated from their early 2025 peaks towards the end of the year, domestic farm-gate prices remained significantly above 2024 levels. Prices declined by about 20% for arabica, whereas the robusta prices eased marginally in line with the decline in global prices.
International Coffee prices are expected to ease during 2026 as larger crops replenish global supplies. However, prices are likely to remain above long-term historical averages owing to relatively low inventories and supply chain disruptions. Demand for coffee is expected to remain resilient, driven by growing consumption in emerging markets, expanding cafe culture and increasing preference for premium and speciality coffee.
The Company produced 3,81,278 kgs of coffee comprising of 1,32,707 kgs of Arabica and 2,48,571 kgs of Robusta during the year ended 31st March, 2026 against 3,36,773 kgs comprising of 84,782 kgs of Arabica and 2,51,991 kgs of Robusta harvested for the same period last year. The average price for coffee realised by the Company during the year was higher at Rs. 511/- per kg as compared to Rs. 448/- per kg last year.
Global natural rubber production recorded only a marginal increase in 2025 compared with 2024, rising to around 14.9 million tons. Production growth was constrained by adverse weather, ageing plantations, disease outbreaks and limited replanting in key producing nations. In contrast, global demand continued to expand at a faster pace, supported by robust automotive and industrial activity resulting in another year of supply deficit. Indias natural rubber production recorded a modest growth of about 2.1% during 2025 to 875 thousand tons supported by sustained domestic prices and improved tapping activity. Despite the improvement in production, domestic output continued to fall significantly short of consumption, necessitating substantial imports to meet the requirements of the countrys expanding rubber products and automotive industries, including the rapidly expanding electric vehicle segment.
Riding on the strength of surging international rates, natural rubber prices in the domestic market moved north reaching on all time high of Rs. 250 per kg. The upward trend is driven by disruptions linked to the West Asia crisis, tightening supply conditions and fluctuations in crude oil prices.
Global natural rubber production is expected to increase by 2.2% in 2026 to an estimated 15.32 million tons. However, consumption is projected to grow by 1.4% to approximately 15.60 million tons, indicating a continuing supply deficit. The overall outlook seems to be positive due to the continued imbalance between demand and supply and is expected to keep market fundamentals favourable in near term. Rubber sector is witnessing increased investments in capacity expansion, technology upgrades and export-oriented manufacturing. The industry is entering a new growth cycle, supported by strong domestic demand, rising exports and global supply chain shifts. The India-UK comprehensive Economic and Trade Agreement is expected to significantly benefit Indias natural rubber and rubber products industry by providing tariff-free access to the UK market, potentially boosting exports and economic growth.
The Company produced 17,91,612 kgs of rubber during 2025-26 as against 15,49,104 kgs in the previous year. The average price realised by the Company during the year was Rs. 204/- per kg as against Rs. 206/- per kg last year.
The Company has established a robust internal control framework commensurate with the size, scale and complexity of its operations. The framework is designed to provide reasonable assurance regarding the integrity and reliability of financial and operational information, compliance with applicable laws and regulations, safeguarding of assets, proper authorisation and recording of transactions and adherence to the Companys policies and procedures.
The Companys Internal Auditors conduct audits across various departments and areas. The Audit Committee of the Board reviews audit reports submitted by the Internal Auditors and oversees the implementation of corrective actions. Additionally, the Statutory Auditors provide assurance regarding the adequacy of the Companys internal control systems. Overall, these strong auditing mechanism helps to ensure that the Companys internal controls remain effective and aligned with best practices, promoting transparency and accountability within its operations.
The details of Financial Performance and Operational Performance have been provided in the Report of the Directors.
The Company continues to focus on attracting, developing and retaining talent, recognising that its human resources are fundamental to its long-term growth and success. It remains committed to fostering a positive and inclusive work environment that encourages employee management, promotes welfare and ensures compliance with applicable labour laws and statutory requirements. As of 31st March, 2026 there were 2818 permanent employees on the rolls of the Company.
Industrial relations during the year remained cordial, harmonious and stable, reflecting a culture of mutual trust, respect and constructive engagement between the management and employees.
| Sl. No. | Key Financial Ratios | 31.03.2026 | 31.03.2025 | Change (%) |
| 1 | Interest Service Coverage Ratio | 0.72 | 3.11 | (79%) |
| 2 | Operating Profit Margin | 1.54 | 3.58 | (57%) |
| 3 | Net Profit Margin | (5.22) | 4.64 | (213%) |
| 4 | Return on Net Worth | (0.01) | 0.01 | (154%) |
For detailed explanation regarding significant changes in the abovementioned ratios, please refer to Note no. 48 of the Notes to Standalone Financial Statements for the financial year ended 31st March, 2026. During Financial Year 2025-26, there was no significant change in Debtors Turnover Ratio, Inventory Turnover Ratio, Current Ratio, Debt Equity Ratio compared to that of Previous Year.
The statements made in this Managements Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be Forward Looking Statements within the meaning of applicable Securities Laws & Regulations. Actual results may differ materially from those expressed or implied due to external and internal factors beyond the control of the Company.
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