💰 Financial Performance

Revenue Growth by Segment

Total Revenue from Operations for H1 FY26 reached INR 124.43 Cr, representing a growth of 12.97% compared to INR 110.14 Cr in H1 FY25. Segment-wise reporting under Ind AS 108 is not applicable to the company's current structure.

Geographic Revenue Split

The company operates primarily in India, with major tea estates located in Assam (Dikom and Kharikatia). Specific regional revenue percentages are not disclosed, but operations are concentrated in the domestic tea production sector.

Profitability Margins

Net Profit Margin for H1 FY26 stood at 28.42% (INR 35.37 Cr profit on INR 124.43 Cr revenue), slightly down from 32.29% in H1 FY25. Profit before tax for H1 FY26 was INR 39.17 Cr compared to INR 40.75 Cr in the previous year's half, a decrease of 3.88%.

EBITDA Margin

EBITDA margin for H1 FY26 was 37.43% (INR 46.57 Cr) compared to 41.25% (INR 45.43 Cr) in H1 FY25. While absolute EBITDA grew by 2.5%, the margin contracted due to higher operating expenses.

Capital Expenditure

In H1 FY26, the company invested INR 2.80 Cr in the purchase of Property, Plant, and Equipment and other intangible assets, compared to INR 1.99 Cr in H1 FY25, an increase of 40.7%.

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, stood at INR 78.47 Cr (INR 38.25 Cr non-current and INR 40.22 Cr current). Finance costs for H1 FY26 rose significantly to INR 4.67 Cr from INR 2.05 Cr in H1 FY25, a 127.8% increase, indicating higher borrowing costs or increased debt utilization.

⚙️ Operational Drivers

Raw Materials

Green Leaf (INR 4.52 Cr, 3.6% of revenue), Stores and Spares (INR 7.69 Cr, 6.2% of revenue), and Power and Fuel (INR 11.02 Cr, 8.8% of revenue).

Import Sources

Raw materials like green leaf are sourced internally from the company's tea estates in Assam, India.

Key Suppliers

Not specifically disclosed; however, the company processes green leaf from its own estates and potentially local small growers.

Capacity Expansion

Current capacity is not explicitly stated in MT, but the company is focusing on quality enhancement at its Dikom and Kharikatia estates. Capital work-in-progress stood at INR 6.77 Cr as of September 2025.

Raw Material Costs

Consumption of Green Leaf costs decreased by 18.85% YoY in H1 FY26 to INR 4.52 Cr. Total operating expenses rose to INR 80.91 Cr in H1 FY26 from INR 68.36 Cr in H1 FY25, an 18.3% increase.

Manufacturing Efficiency

Employee benefit expenses are a major driver, accounting for 64.58% of total revenue in H1 FY26 (INR 80.36 Cr), up from 55.11% in H1 FY25, suggesting a decrease in labor-related efficiency or rising wage costs.

Logistics & Distribution

Not explicitly disclosed; however, other expenses (including distribution) rose 20.9% YoY to INR 13.13 Cr in H1 FY26.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

The company aims to strengthen its financial base post-corporate restructuring (demerger of subsidiaries) by focusing on quality enhancement of tea products and prudent cost management. The strategy involves leveraging strong financial fundamentals to improve operating performance in the years ahead.

Products & Services

Cultivation, manufacture, and sale of Black Tea.

Brand Portfolio

Rossell Tea, Dikom Tea Estate, Kharikatia Tea Estate.

Market Expansion

The company is focusing on strengthening its existing tea estate operations in Assam following the demerger of other business interests.

Market Share & Ranking

Not disclosed.

Strategic Alliances

The company currently has no subsidiaries, associates, or joint ventures following recent corporate restructuring.

🌍 External Factors

Industry Trends

The tea industry is shifting toward sustainable and responsible business conduct (NGRBC). Rossell is positioning itself by adopting ESG policies and securing labor welfare awards from the Government of Assam.

Competitive Landscape

Competes with other major Indian tea producers like Tata Consumer Products and McLeod Russel in the premium Assam tea segment.

Competitive Moat

The moat is based on the ownership of high-quality tea estates like Dikom and Kharikatia, which have high brand recall in tea auctions. This is sustainable due to the fixed geographic nature of premium tea-growing land.

Macro Economic Sensitivity

Highly sensitive to agricultural inflation and labor wage revisions in the state of Assam.

Consumer Behavior

Increasing demand for high-quality, ethically produced tea, which aligns with the company's recent awards for labor welfare.

Geopolitical Risks

Minimal direct exposure as a standalone Indian tea producer, though global tea commodity prices affect domestic realizations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Tea Act, Plantation Labour Act, and environmental norms set by the Assam Pollution Control Board. The company recently received awards from the Labour Welfare Department of Assam, indicating high compliance with labor regulations.

Environmental Compliance

The company has identified water management as a material sustainability issue and has implemented NGRBC policies across all 9 principles.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 9.7% (INR 3.80 Cr tax on INR 39.17 Cr PBT).

Legal Contingencies

The company reported 'Exceptional Items' of INR 0.12 Cr related to demerger expenses/investment cancellations. No major pending litigation values were disclosed in the provided extracts.

⚠️ Risk Analysis

Key Uncertainties

Climate change and erratic rainfall patterns in Assam pose a significant risk to crop yields, with potential impact on revenue exceeding 10%.

Geographic Concentration Risk

100% of tea production assets are concentrated in Assam, making the company vulnerable to regional political or climatic disruptions.

Third Party Dependencies

High dependency on the tea auction system for revenue realization and on the local labor force for harvesting.

Technology Obsolescence Risk

Low risk in traditional tea cultivation, but failure to modernize processing plants could lead to higher energy costs (which rose 42% YoY).

Credit & Counterparty Risk

Trade receivables stood at INR 17.62 Cr as of September 2025, a sharp increase from INR 0.18 Cr in March 2025, indicating a seasonal spike in credit exposure.