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DTIL - Dhunseri Tea

📊 NSE: DTIL 🏢 Tea 📅 Last Updated: 12/13/2025 21:31

📢 Recent Corporate Announcements

DTIL to Invest USD 1.5 Million in Subsidiary via Optional Convertible Debentures

🟡 NEUTRAL ⭐ 6/10

FUNDRAISE 📅 12 Feb 2026, 06:21 PM

Dhunseri Tea & Industries Limited (DTIL) has entered into a Debenture Subscription Agreement with its wholly-owned subsidiary, Dhunseri Petrochem & Tea Pte Ltd (DPTPL). The company will subscribe to Optional Convertible Debentures (OCD) totaling USD 1.5 million. These debentures carry a fixed interest rate of 7.50% per annum, providing a steady yield to the parent company. The transaction is conducted at arm's length and represents a further capital commitment to its international operations.

Subscription to Optional Convertible Debentures (OCD) aggregating to USD 1.5 million.
Target entity is Dhunseri Petrochem & Tea Pte Ltd, a 100% subsidiary of DTIL.
The debentures carry a fixed interest rate of 7.50% per annum.
Interest is payable in cash on the date of redemption or upon the issue of conversion shares.
The transaction is a related party transaction executed at arm's length.

💡 Investors should monitor the performance of the subsidiary DPTPL to ensure the capital is being deployed effectively for growth. The 7.5% interest rate provides a reasonable return on capital for the parent company in the interim.

DTIL Q3 Net Profit Drops to Rs 10.5 Lakhs; Board Approves $2M Investment in Subsidiary

🔵 WATCH ⭐ 7/10

EARNINGS 📅 10 Feb 2026, 02:17 PM

Dhunseri Tea & Industries Limited (DTIL) reported a standalone revenue of Rs 107.45 crore for Q3 FY26, up from Rs 99.61 crore in the previous year's corresponding quarter. However, Net Profit fell sharply to Rs 10.50 lakhs from Rs 2.80 crore YoY, largely due to a high base effect from exceptional gains in the prior year and rising expenses. The Board approved a USD 2 million investment in its wholly-owned subsidiary, Dhunseri Petrochem & Tea Pte Ltd, via Optional Convertible Debentures. Furthermore, the company is in the process of selling its Balijan (North) Tea Estate for Rs 35 crore to rationalize operations.

Standalone Revenue from operations grew 7.8% YoY to Rs 10,744.61 lakhs in Q3 FY26.
Net Profit for the quarter stood at Rs 10.50 lakhs compared to Rs 280.44 lakhs in Q3 FY25.
Board approved subscribing to USD 2.00 million Optional Convertible Debentures of subsidiary Dhunseri Petrochem & Tea Pte Ltd.
Proposed sale of Balijan (North) Tea Estate assets for Rs 3,500 lakhs to improve profitability.
Recognized a one-time expense of Rs 46 lakhs during the quarter due to the implementation of new Labour Codes.

💡 Investors should monitor the completion of the Rs 35 crore asset sale and the utilization of the USD 2 million capital infusion into the Singapore subsidiary. The stock remains sensitive to tea price seasonality and the company's ongoing restructuring of its tea estate portfolio.

Dhunseri Tea Q3 PAT Drops to ₹10.5 Lakhs; Board Approves $2M Investment in Subsidiary

🔴 NEGATIVE ⭐ 7/10

EARNINGS 📅 10 Feb 2026, 02:15 PM

Dhunseri Tea & Industries reported a sharp decline in standalone net profit to ₹10.51 lakhs for the quarter ended December 31, 2025, down from ₹23.22 lakhs in the corresponding quarter of the previous year. Revenue for the quarter stood at ₹10,744.61 lakhs, reflecting the seasonal nature of the tea industry. The company is continuing its strategy of asset rationalization, classifying the Balijan (North) Tea Estate as an asset held for sale for ₹3,500 lakhs. Additionally, the board has approved a USD 2 million investment in its Singapore-based wholly-owned subsidiary through Optional Convertible Debentures.

Standalone Net Profit for Q3 FY26 plummeted to ₹10.51 lakhs compared to ₹23.22 lakhs YoY.
Board approved a USD 2.00 million investment in subsidiary Dhunseri Petrochem & Tea Pte Ltd via OCDs.
Proposed sale of Balijan (North) Tea Estate for ₹3,500 lakhs to improve profitability and rationalize operations.
Recognized a ₹46 lakh expense in Q3 due to the implementation of new unified Labour Codes effective November 2025.
Nine-month standalone revenue grew slightly to ₹30,633.33 lakhs from ₹29,934.73 lakhs in the previous year.

💡 Investors should be cautious as core profitability remains thin and highly dependent on seasonal cycles and asset sales. The primary trigger to watch is the successful closure of the Balijan estate sale and the utilization of the $2M capital infusion in the Singapore subsidiary.

Dhunseri Tea & Industries Announces Trading Window Closure from January 1, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 26 Dec 2025, 03:50 PM

Dhunseri Tea & Industries Limited (DTIL) has announced the closure of its trading window for all designated persons starting January 1, 2026. This routine regulatory measure is in compliance with SEBI (Prohibition of Insider Trading) Regulations for the upcoming financial results. The closure pertains to the un-audited financial results for the quarter and nine months ending December 31, 2025. The window will reopen 48 hours after the results are officially declared to the exchanges.

Trading window closure effective from January 1, 2026.
Closure is related to the un-audited financial results for the quarter and nine months ended December 31, 2025.
Window to remain closed until 48 hours after the announcement of financial results.
Applies to all Designated Persons and their immediate relatives as per SEBI regulations.

💡 This is a standard regulatory filing and requires no immediate action from retail investors. Monitor for the upcoming announcement of the board meeting date to assess the company's Q3 financial performance.

Dhunseri Tea & Industries Strikes Off Inactive Mauritius Step-Down Subsidiary

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 19 Dec 2025, 06:23 PM

Dhunseri Tea & Industries Limited has announced the strike-off of its step-down subsidiary, Dhunseri Mauritius Pte Ltd (DMPL), effective December 09, 2025. DMPL was a non-material entity registered in Mauritius that had no business operations since its incorporation. The subsidiary contributed 0% to the company's consolidated turnover, revenue, and net worth during the last financial year. This move is part of a corporate simplification process to remove an inactive entity from the group structure.

Dhunseri Mauritius Pte Ltd (DMPL) was officially struck-off effective December 09, 2025.
The subsidiary had zero contribution to the company's turnover or net worth in the last financial year.
DMPL remained inactive with no business operations since its date of incorporation.
The disclosure was made under Regulation 30 of SEBI (LODR) Regulations, 2015.

💡 No action is required as the strike-off of this inactive subsidiary has no impact on the company's financial health or operations. Investors should continue to monitor the performance of the core tea business.

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💰 Financial Performance

Revenue Growth by Segment

Consolidated Total Operating Income (TOI) grew by 15% YoY to INR 456.38 Cr in FY25, following a 17% YoY growth in FY24 (INR 395.42 Cr). Standalone tea sales volume grew by 52% in FY24, though realizations dropped by over 10%.

Geographic Revenue Split

Operations are split between India (Assam) and Africa (Malawi). Domestic tea production reached 3.46 million kg in Q1FY26, while overseas tea production in Malawi grew to 9.16 million kg in CY24, up 24.6% from 7.35 million kg in CY23.

Profitability Margins

The company reported a consolidated net loss of INR 141.09 Cr in FY24. Operating profitability remained subdued in FY25 due to production losses from pest attacks and climate challenges, despite higher tea realizations.

EBITDA Margin

PBILDT margins are currently under pressure; a sustained improvement beyond 12% is a key monitorable for positive credit action. FY24 saw operational losses due to a 10% drop in realizations and increased wage costs.

Capital Expenditure

No significant capital expenditure is planned for the medium term. The company has focused on liquidity through asset monetization, including the sale of Dilli Tea Estate for INR 35 Cr and Jaipur Factory for INR 20 Cr in H1FY25.

Credit Rating & Borrowing

Long-term bank facilities (INR 148.93 Cr) are rated CARE A; Stable as of October 2025. Short-term facilities (INR 0.50 Cr) are rated CARE A2+. Interest coverage stood at 3.75x in H1FY25, though it is expected to moderate by year-end.

⚙️ Operational Drivers

Raw Materials

Green tea leaves (including bought-out leaf) and manual labor, with wage costs accounting for 45-50% of the total cost of sales.

Import Sources

Sourced locally from tea gardens in Assam, India, and plantations in Malawi, Africa.

Key Suppliers

Not specifically named; procurement involves internal garden production and third-party 'bought-out' leaf suppliers in the tea-growing regions.

Capacity Expansion

Currently operates 11 tea estates and 11 tea factories (reduced from 12 following asset sales). Focus has shifted from expansion to restructuring by disposing of loss-making assets like the Hatibari and Shivani factories (INR 15 Cr).

Raw Material Costs

Wage costs are the primary driver, representing 45-50% of sales. Steep upward revisions in statutory wages in Assam directly impact margins by increasing the cost of production per kg.

Manufacturing Efficiency

Average recovery rate ranges from 22.55% to 23.76%, which is in line with the industry average of ~22%. Yield improved to 2011 kg per hectare in Q1FY26 compared to 1100 kg per hectare in H1FY25.

Logistics & Distribution

Tea is distributed via auctions, private sales through intermediaries, and direct packaged tea sales.

📈 Strategic Growth

Expected Growth Rate

15-17%

Growth Strategy

Growth is driven by the acquisition of new tea gardens and improving the yield of existing ones. The company is also optimizing its portfolio by divesting underperforming assets (INR 70 Cr+ in total sales) and focusing on higher-quality tea production to improve realizations.

Products & Services

Bulk black tea, packaged tea, and macadamia nuts.

Brand Portfolio

Dhunseri Tea.

New Products/Services

Increased focus on 'better quality' tea production in newly acquired gardens to command higher auction premiums.

Market Expansion

Consolidation under Naga Dhunseri Group Limited (NDGL), which now holds a 54.56% stake, providing stronger financial backing for market stability.

Market Share & Ranking

Not disclosed, but recognized as an established player with over five decades of track record in the tea industry.

Strategic Alliances

Part of the CK Dhanuka Group, providing financial flexibility and access to a group liquidity pool of ~INR 1,200 Cr.

🌍 External Factors

Industry Trends

The tea industry is evolving toward quality-centric production to counter rising labor costs (45-50% of total costs). The industry remains highly fragmented and susceptible to climate change.

Competitive Landscape

Competes with other bulk tea producers in Assam and international tea/macadamia producers in Africa.

Competitive Moat

Durable advantage stems from the promoter's 50-year track record and the financial flexibility of being part of the Dhunseri Group, which holds ~INR 1,200 Cr in liquid assets.

Macro Economic Sensitivity

Highly sensitive to currency fluctuations in Malawi and global tea/macadamia price volatility.

Consumer Behavior

Shift toward packaged and branded tea, which DTIL is addressing through its blending and packaging unit in Rajasthan.

Geopolitical Risks

Operations in Malawi, Africa, expose the company to regional economic instability and currency risks.

⚖️ Regulatory & Governance

Industry Regulations

Subject to statutory wage revisions in the tea sector (Assam) and agricultural export/import regulations in Malawi.

Environmental Compliance

Not disclosed in absolute INR values, but tea operations are subject to agro-climatic and environmental regulations.

⚠️ Risk Analysis

Key Uncertainties

Agro-climatic risks (hailstorms/pests) and volatility in macadamia prices are the primary uncertainties, with potential to cause multi-crore operational losses.