Goodricke Group Ltd (500166)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Goodricke Group's revenue was ₹211 Cr (+20.7% year on year, +103.2% on the previous quarter), and net profit ₹40.9 Cr; the operating margin was 17.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹211 | +20.7% | +103.2% |
| Operating profit | ₹37.8 | — | from loss |
| Net profit | ₹40.9 | — | from loss |
| EPS (₹) | 18.92 | — | from loss |
| Operating margin | 17.9% | — | — |
📢 Recent Corporate Announcements
Goodricke Group reported a sharp turnaround in Q1 FY27, with Net Profit surging to Rs 40.87 Cr from Rs 3.19 Cr in the same quarter last year. Revenue grew 21% YoY to Rs 211.30 Cr, supported by a 41% increase in own crop production and improved realizations. The results include an exceptional gain of Rs 5.60 Cr from the sale of tea estate assets for a total consideration of Rs 19.00 Cr. However, the statutory auditor has issued a qualified conclusion regarding the company's inventory valuation method, which deviates from Ind AS 2 standards.
- Net Profit for Q1 FY27 reached Rs 40.87 Cr, significantly higher than the Rs 3.19 Cr reported in Q1 FY26.
- Revenue from operations increased by 21.08% YoY to Rs 211.30 Cr.
- Exceptional gain of Rs 5.60 Cr realized from the sale of tea estate assets for Rs 19.00 Cr in May 2026.
- Own crop production grew by 41% YoY, excluding the impact of estates sold.
- Quarterly EPS of Rs 18.92 already exceeds the full-year FY26 EPS of Rs 11.83.
Goodricke Group reported a significant turnaround in Q1 FY27, with Net Profit surging to Rs 40.87 Cr compared to Rs 3.19 Cr in the same quarter last year. Revenue from operations grew 21% YoY to Rs 211.30 Cr, driven by a 4.1% increase in own crop production and better realizations. The bottom line was further bolstered by an exceptional gain of Rs 5.60 Cr from the sale of tea estate assets. However, the statutory auditor has maintained a qualified opinion regarding the company's inventory valuation method, which deviates from Ind AS 2 standards.
- Net Profit for Q1 FY27 reached Rs 40.87 Cr, representing 157% of the total TTM PAT of Rs 26 Cr.
- Revenue from operations increased by 21.1% YoY to Rs 211.30 Cr from Rs 174.51 Cr.
- Exceptional profit of Rs 5.60 Cr recorded from the disposal of specified assets of a tea estate.
- Own crop production grew by 4.1% YoY, excluding the impact of estates sold during the period.
- Grant Thornton Bharat LLP appointed as Internal Auditors for a three-year term starting FY 2026-27.
Goodricke Group Ltd has finalized the appointment of M/s M S K A & Associates LLP as its Statutory Auditors for a five-year term, effective from the conclusion of the 50th AGM held on July 29, 2026. This move follows the mandatory rotation of auditors as M/s Deloitte Haskins & Sells LLP completed their second term. The appointment will remain in effect until the conclusion of the 55th AGM. This is a standard regulatory procedure for a company with a TTM revenue of ₹802 crore and a market capitalization of ₹401 crore.
- Appointment of M/s M S K A & Associates LLP for a term of 5 consecutive years
- Effective from the conclusion of the 50th AGM held on July 29, 2026
- Outgoing auditors Deloitte Haskins & Sells LLP completed their 2nd term at the 50th AGM
- The new auditors will serve until the conclusion of the 55th AGM
Goodricke Group Ltd has scheduled a board meeting for August 11, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. The company is coming off a seasonally weak March 2026 quarter where it reported a net loss of ₹29 crore on revenue of ₹104 crore. Investors will be looking for a recovery compared to the June 2025 quarter, which saw a modest profit of ₹3 crore. Given the thin TTM operating margin of 2.4%, the focus will be on cost control and the performance of high-margin instant tea exports.
- Board meeting scheduled for August 11, 2026, to approve Q1 results.
- Results pertain to the three-month period ended June 30, 2026.
- Company reported a significant net loss of ₹29 crore in the preceding quarter (March 2026).
- TTM revenue stands at ₹802 crore with a relatively low operating margin of 2.0% for FY26.
- Promoter holding remains stable at 74.0% as of June 2026.
Financial Performance
Revenue Growth by Segment
Revenue from operations grew 12.8% YoY to INR 929.44 Cr. Instant Tea export volumes grew 10.8% to 0.41 million kg from 0.37 million kg. Packet tea and bulk tea segments contributed to the remaining revenue, though specific % growth for these sub-segments was not disclosed.
Geographic Revenue Split
The company operates 18 gardens across 10,311 hectares, with 73% of the area in the Dooars region and 9% in Darjeeling (West Bengal), and the remainder in Assam.
Profitability Margins
Net Profit Margin improved by 126% YoY, turning positive with a profit of INR 20.06 Cr compared to a loss of INR 69.30 Cr in FY24. Operating profit margin saw a 212% variance due to better realizations and cost control.
EBITDA Margin
Operating profit recovered significantly from an operating loss of ~INR 6.0 Cr in FY24 to a positive trajectory in FY25, driven by a 212% variance in operating margins and disposal of specified estate assets.
Capital Expenditure
No major debt-funded capital expenditure or acquisitions were planned for the current fiscal. Historical capex was not explicitly detailed in INR Cr, but the company focused on asset disposal to generate cash flow.
Credit Rating & Borrowing
Credit rating reaffirmed at [ICRA]A (Stable) for long-term and [ICRA]A2+ for short-term. Total rated amount is INR 164.00 Cr, with cash credit/WCDL limits of INR 155.00 Cr.
Operational Drivers
Raw Materials
Green leaf (sourced from own gardens and bought leaf) is the primary raw material. Labor costs are a critical driver, with wage hikes implemented in Assam (Oct '23) and West Bengal (June '23) impacting the cost structure.
Import Sources
Raw materials are primarily sourced domestically from the company's 18 gardens and local growers in West Bengal and Assam.
Key Suppliers
Not disclosed in available documents; however, the company relies on its own tea gardens and local small tea growers for green leaf procurement.
Capacity Expansion
Current capacity includes 18 gardens across 10,311 hectares and 22 factories, including tea-blending units and an instant tea plant. No specific expansion timeline was disclosed.
Raw Material Costs
Raw material and production costs were impacted by wage hikes and a 11.89% decline in output in the Dooars region, leading to higher unit costs of production.
Manufacturing Efficiency
Manufacturing efficiency is linked to garden productivity; however, crop levels were muted in Assam and Dooars during the previous cycle, impacting fixed-cost absorption.
Logistics & Distribution
Distribution costs are influenced by geopolitical turmoil affecting international tea exports, which reached an all-time high of 0.41 million kg for instant tea.
Strategic Growth
Expected Growth Rate
12.8%
Growth Strategy
Growth is targeted through increasing high-margin instant tea exports (currently at an all-time high), cost control measures, and optimizing the estate portfolio through the disposal of specified assets to improve the debt-equity ratio by 45%.
Products & Services
Bulk tea, packet tea, instant tea, and tea-blending services.
Brand Portfolio
Goodricke.
New Products/Services
Instant tea exports are a key growth area, achieving a 10.8% volume increase to 0.41 million kg.
Market Expansion
Focusing on international markets for instant tea exports to mitigate domestic bulk tea price cyclicality.
Strategic Alliances
The company operates with group entities Amgoorie India Limited, Stewart Holl (India) Limited, and Koomber Tea Company Private Limited.
External Factors
Industry Trends
The Indian tea industry is facing regional production contractions (11.89% in Dooars) and rising fixed costs due to mandatory wage hikes, shifting focus toward value-added products like instant tea.
Competitive Landscape
Competes with other bulk and packet tea producers in India; market dynamics are influenced by global demand-supply and international pricing.
Competitive Moat
Moat is derived from an established position in the bulk tea industry and a sizeable scale of 10,311 hectares, supported by a diversified revenue stream that offsets domestic bulk tea risks.
Macro Economic Sensitivity
Highly sensitive to agricultural cycles and international tea prices, which influence domestic bulk tea realizations.
Geopolitical Risks
Geopolitical turmoil was cited as a primary factor affecting international trade and export logistics during the year.
Regulatory & Governance
Industry Regulations
Operations are governed by the Tea Act and regional labor laws regarding mandatory wage rates in Assam and West Bengal.
Taxation Policy Impact
Tax expense for FY25 was INR 6.01 Cr compared to a tax credit of INR 3.68 Cr in FY24.
Legal Contingencies
The Independent Auditor’s Report for the year ended March 31, 2025, contained no qualifications, reservations, or adverse remarks.
Risk Analysis
Key Uncertainties
Agricultural commodity price volatility and weather-related crop losses (e.g., Dooars contraction) pose significant risks to profitability.
Geographic Concentration Risk
High concentration in West Bengal, with 82% of cultivated area (73% Dooars, 9% Darjeeling) located in the state.
Third Party Dependencies
Dependency on small tea growers for 'bought leaf' to supplement own garden production.
Credit & Counterparty Risk
Liquidity is adequate with undrawn working capital limits of INR 75 Cr and a free cash balance of INR 14.5 Cr as of March 2024.
