a. Industry Structure & Development
During the financial year 2025-26 India produced 1370.00 million kg of tea compared to 1303.50 million kg of tea in 2024-25 and grown by 5.10%. In 2025-26 South Indian Tea industry produced 233.80 million kg of tea compared to 227.00 million kg of tea in 2024-25 and grown by 3.00% in line with Indian Tea Industry. In 2025-26 North India produced 1136.20 million kg of tea compared to 1076.60 million kg of tea in 2024-25 and grown by 5.54%.
All India auctions average sale price stood at Rs.188.03 per kg in 2025-26 compared to Rs.199.30 per kg in 2024-25 Decreased by 11.27 per kg due to Excess in supply compared to previous year. North India average sale price was Rs.204.87 per kg in 2025-26 compared to Rs.221.57 per kg in 2024-25 and Decreased by Rs.16.70 per Kg. South Indian Tea average sale price was Rs.128.39 per kg in 2025-26 compared to Rs.130.74 per kg in 2024-25 and Decreased by Rs.2.35 per kg.
Export of tea from India was 280.40 million kg in 2025-26 compared to 256.17 million kg in 2024-25 and increased by 24.23 million kg due to slightly export demand.
b. Opportunities & Threats
Automation of tea processing in the light of Global competition and shortage of estate workers is imperative for future growth of tea industry. Sharing the social cost by the State Governments will reduce the cost of production and thereby increase the competitive strength of Indian tea
Increase in Labour wages: Inflated price of inputs like fertilizers, firewood, Diesel etc. Erratic weather, global warming effect. Deforestation Increasing trend of pest and disease. Dwindling of labour force. Longer period of dry spell.
c. Segment wise Performance
The price of orthodox tea is attractive and stable. Our company has been producing and selling of good quality of orthodox tea from the financial year 2018-19 onwards as a diversification.
Tea and other crops business accounted for 61.94% of the total revenue of the Company, Income from power generation is 1.93% and Investment income accounted for 36.14%
d. Forward looking statements / Outlook
Certain statements included above may be forward looking and would involve number of risks uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information/future events or otherwise.
e. Risk & concerns
Risk management is an integral part of the business process. With the help of experienced professionals, the company mapped the risks at the business processes and enterprise levels and evolved a risk management framework. Risk mitigating measures have been identified and these would be periodically reviewed by the Board of Directors.
During the financial year 2025-26, our total tea production stood at 23.12 lakh kgs, compared to 25.58 lakh kgs in the previous year, reflecting a decline of 2.46 lakh kgs approximately 9.62%. This shortfall was primarily due to Excess rainfall, with the first significant rain arriving only at the end of May 2025. The impact was most pronounced in the second quarter, where we experienced a production shortfall of 2.87 lakh kgs.
f. Internal Control
The Company has adequate internal control system to monitor internal business process financial reporting and compliance with applicable laws. The internal control system ensures that all assets are protected against loss from unauthorized use and all transactions are recorded and reported correctly. The Company periodically reviews the adequacy and effectiveness of the control systems. The Audit Committee of the Board assures the existence of effective internal control environment.
g. Discussion on financial performance with respect to operational performance
This section is covered in the Boards Report under the section of financial results and operation.
h. Human Resource
Relationship with employees at all level remains cordial. Training and development of employees continue to be an area of prime importance. The devotion and commitment of employees has enabled the Company to
2026 was No.930
i. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:
| Particulars | FY ended 31st March 2026 | FY ended 31st March 2025 | % of Changes between FY 26 and FY 25 | Explanation |
| Debtors Turnover | 38 | 26 | 46 | The Debtors Turnover Ratio increased by 46% compared to the previous year, indicating improved efficiency in the collection of receivables. |
| Inventory Turnover | 22 | 24 | 7.64 | — |
| Interest Coverage Ratio | 0.88 | 2.23 | (61) | The Interest Coverage Ratio decreased during the year primarily due to a reduction in operating profitability and/or an increase in finance costs. Higher borrowings and interest expenses, coupled with comparatively lower earnings before interest and taxes (EBIT), resulted in a reduced capacity to cover interest obligations. |
| Current Ratio | 1.39 | 1.62 | (14.27) | — |
| Debt Equity Ratio | 0.10 | 0.22 | 53.86 | Increase in Net Worth contribution to decrease in debt equity ratio. |
| Operating Margin Ratio | 46.95 | 28.50 | 64.74 | The Operating Margin Ratio increased by 65% due to higher operating profits arising from increased revenue and improved control over operating costs, reflecting enhanced operational efficiency and profitability. |
| Net Profit Margin | (3.90) | 0.97 | (502.50) | Due to bad monsoon and reduction in production and sales quality, there is a reduction in the export market even though increase in price realisation per Kg, decrease in Investment Income (fair value of Investments) contributed decrease in the net profits of the Company. |
j. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.
| Particulars | FY ended 31st March 2026 | FY ended 31st March 2025 | % of Changes between FY 26 and FY 25 | Explanation |
| Return on Net Worth | (1.48) | 0.11 | (1445) | The Return on Net Worth decreased by 1445% mainly due to a substantial decline in net profit during the year, resulting in lower returns generated on shareholders funds despite maintaining a strong equity base. |
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