GILLANDERS - Gillanders Arbut

📊 NSE: GILLANDERS 🏢 Diversified - Medium / Small 📅 Last Updated: 12/13/2025 22:21

💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 25% YoY to INR 412.27 Cr in FY25. The Engineering division (MICCO) recorded 127% YoY growth in H1FY25, increasing its revenue share to 32% in FY25 from a historical 7-12%. Tea and Textile segments saw their combined revenue share decline to 66% in FY25 from 80-90% historically.

Profitability Margins

PBILDT margin improved to 4.74% in FY25 from -0.31% in FY24. PAT margin improved to 3.65% in FY25 from -5.01% in FY24. Tea segment PBIT margin improved to 18.83% in H1FY25 from 13.46% in H1FY24.

EBITDA Margin

PBILDT margin was 4.74% in FY25, representing a significant recovery from an operating loss in FY24. H1FY25 PBILDT margin reached 11.82% due to higher tea prices.

Capital Expenditure

No major capital expenditure is currently planned. Total debt was reduced from INR 300.92 Cr in 2020 to INR 88.70 Cr by March 2024 through asset sales and internal accruals.

Credit Rating & Borrowing

CARE BBB; Stable / CARE A3 (Reaffirmed in October 2025). Interest coverage ratio significantly improved to 5.66x in H1FY25 from -0.11x in FY24.

⚙️ Operational Drivers

Raw Materials

Tea leaves (for tea division) and textile fibers/yarn (for textile division), both subject to commodity price volatility.

Capacity Expansion

Current capacity not specified in MT; however, the company recently reduced capacity by selling its Akbarpur textile unit and Tengapani Tea Estate to deleverage the balance sheet.

Raw Material Costs

Raw material costs are subject to commodity price volatility and vagaries of nature; tea production costs were impacted by inclement weather in FY25.

Manufacturing Efficiency

Engineering division reported healthy operating margins of 7-8% in FY25 due to efficient execution of existing orders.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is driven by the Engineering division (MICCO), which has a healthy order book of INR 240 Cr as of June 30, 2025. The company is strategically shifting its revenue mix toward engineering and property leasing to reduce exposure to the volatile tea and textile markets.

Products & Services

Tea, textile yarn and fabrics, engineering products and services (MICCO), and rental space in Gillander House.

Brand Portfolio

Gillander House, MICCO.

Strategic Alliances

Part of the G.D. Kothari group, providing financial flexibility and access to group-level financing.

🌍 External Factors

Industry Trends

The tea industry is currently benefiting from price increases due to supply shortages, while the textile industry faces demand headwinds. The company is positioning itself toward infrastructure-linked engineering growth.

Competitive Landscape

Operates in highly fragmented and competitive markets for tea and textiles, with engineering being a more order-book-driven segment.

Competitive Moat

Moat is derived from a highly diversified revenue profile and an 80-year operational track record under the G.D. Kothari group, which provides a buffer against segment-specific downturns.

Macro Economic Sensitivity

Highly sensitive to agricultural weather patterns (impacting tea) and global commodity price cycles (impacting textiles).

Consumer Behavior

Reduced demand for textile products has recently forced the company to accept lower realizations, impacting division profitability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Government policies on tea and textiles, labor-intensive industry regulations, and the Sexual Harassment of Women at Workplace Act.