UNITEDTEA - United Nilgiri

📊 NSE: UNITEDTEA 🏢 Tea 📅 Last Updated: 12/14/2025 14:45

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for the tea segment in FY25 was Rs. 89.80 Cr, representing a 6.88% growth from Rs. 84.01 Cr in FY24. For H1 FY26, revenue was Rs. 43.28 Cr, a decline of 9.72% YoY from Rs. 47.94 Cr in H1 FY25.

Geographic Revenue Split

Not disclosed in available documents, though the company notes that export of teas is substantial and incidental to operations.

Profitability Margins

Net Profit Margin for FY25 was 20.61% (Rs. 18.51 Cr profit on Rs. 89.80 Cr revenue). For H1 FY26, the Net Profit Margin improved significantly to 29.94% (Rs. 12.96 Cr profit on Rs. 43.28 Cr revenue) compared to 21.19% in H1 FY25.

EBITDA Margin

Operating profit before changes in operating assets/liabilities for H1 FY26 was Rs. 11.38 Cr (26.3% of revenue), a 36.6% increase from Rs. 8.33 Cr (17.4% of revenue) in H1 FY25.

Capital Expenditure

Historical capital expenditure for H1 FY26 was Rs. 2.44 Cr, compared to Rs. 2.83 Cr in H1 FY25. Planned expenditure is not explicitly disclosed.

Credit Rating & Borrowing

Credit rating not disclosed. Finance costs were minimal at Rs. 0.058 Cr for H1 FY26, suggesting low reliance on external debt.

⚙️ Operational Drivers

Raw Materials

Green leaf is the primary raw material, with cost of materials consumed representing 21.7% of revenue (Rs. 9.41 Cr) in H1 FY26.

Import Sources

Sourced internally from company-owned estates located in the Nilgiris, Tamil Nadu.

Key Suppliers

Internal production from company-owned estates: Allada Valley, Chamraj, Devabetta, Korakundah, and Rockland.

Capacity Expansion

Current tea plantation area is 806.20 hectares out of a total estate area of 1573.41 hectares. Planned expansion in hectares is not disclosed.

Raw Material Costs

Raw material costs were Rs. 9.41 Cr in H1 FY26 (21.7% of revenue), a decrease of 19.6% YoY from Rs. 11.71 Cr in H1 FY25. Procurement is primarily through internal estate production.

Manufacturing Efficiency

Not disclosed in terms of capacity utilization percentage, but efficiency is being driven by mechanized harvesting and factory cost-saving measures.

Logistics & Distribution

Not disclosed as a percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth is targeted through mechanized harvesting to improve field outlook and yield, focus on better sales realization for premium teas, and managing a strong financial asset portfolio which contributed Rs. 4.28 Cr in fair value gains in H1 FY26.

Products & Services

Tea products including Black, Green, and Organic varieties sold in bulk and value-added formats.

Brand Portfolio

Chamraj, Korakundah.

Strategic Alliances

The company has two associate companies incorporated as Section 8 not-for-profit entities, which are not considered for consolidation.

🌍 External Factors

Industry Trends

The tea industry is seeing a shift toward mechanized harvesting to manage labour costs and a growing focus on organic and high-altitude specialty teas where the company is positioned with its Korakundah and Chamraj estates.

Competitive Landscape

The company faces competition in both domestic and international tea markets, though specific competitor names were not disclosed.

Competitive Moat

Sustainable competitive advantage derived from unique high-altitude estate locations in the Nilgiris and established brand reputation for organic and premium teas.

Macro Economic Sensitivity

Sensitive to global tea demand and domestic labour regulations, though specific GDP sensitivity percentages are not disclosed.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Tea Act 1953, Plantation Labour Act 1951, Tea Marketing Control Order 2003, and Food Safety and Standards Act 2006.

Environmental Compliance

Not disclosed in absolute INR values, though environmental protection activities are undertaken at factories.

Taxation Policy Impact

Effective tax rate for H1 FY26 was 14.07% (Rs. 2.12 Cr tax on Rs. 15.08 Cr PBT).

Legal Contingencies

NSE imposed fines totaling Rs. 4,21,260 (Rs. 3,00,900 for Reg 17(1) and Rs. 1,20,360 for Reg 18(1)) for non-compliance during Q3 FY25, which were remitted in March 2025.