B & A Ltd (508136)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, B & A's revenue was ₹71.6 Cr (+27.9% year on year, +62.7% on the previous quarter), and net profit ₹2.6 Cr (against a loss a year earlier); the operating margin was 8.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹71.6 | +27.9% | +62.7% |
| Operating profit | ₹6.4 | — | from loss |
| Net profit | ₹2.6 | from loss | from loss |
| EPS (₹) | 6.11 | from loss | from loss |
| Operating margin | 8.9% | — | — |
📢 Recent Corporate Announcements
B & A Ltd reported a significant turnaround in Q1 FY27, posting a standalone net profit of ₹0.18 crore compared to a loss of ₹21.58 crore in the same quarter last year. Revenue from operations grew by 167% YoY to ₹29.76 crore, driven by the seasonal nature of the tea business and the integration of the Aidaupukhuri Tea Factory. The company also announced the appointment of Mr. Raunak Barat as CFO, effective November 1, 2026. Despite the turnaround, the company remains a micro-cap player with a high debt-to-equity ratio of 0.81.
- Standalone revenue from operations surged 167% YoY to ₹29.76 crore in Q1 FY27.
- Net profit turned positive at ₹0.18 crore against a loss of ₹21.58 crore in Q1 FY26.
- Consolidated Tea segment assets increased to ₹198.28 crore as of June 30, 2026.
- Integration of Aidaupukhuri Tea Factory completed on June 5, 2026, following a March 2026 agreement.
- Appointment of Mr. Raunak Barat as CFO effective from November 1, 2026.
B & A Ltd reported a standalone net profit of ₹0.18 Cr for Q1 FY27, a significant recovery from the ₹21.58 Cr loss reported in the same quarter last year. Revenue from operations grew to ₹29.76 Cr, up 167% from ₹11.14 Cr YoY, although the company notes that tea production is highly seasonal. The company also announced the appointment of Mr. Raunak Barat as CFO effective November 2026 and the successful integration of the Aidaupukhuri Tea Factory in June 2026.
- Standalone revenue from operations increased to ₹29.76 Cr in Q1 FY27 from ₹11.14 Cr in Q1 FY26.
- Net profit turned positive at ₹0.18 Cr compared to a loss of ₹21.58 Cr in the year-ago period.
- Took possession of Aidaupukhuri Tea Factory on June 5, 2026, integrating its assets and liabilities.
- Employee benefit expenses stood at ₹25.69 Cr, accounting for approximately 86% of the quarterly revenue.
- Mr. Raunak Barat appointed as Chief Financial Officer (CFO) with effect from November 1, 2026.
B & A Ltd reported a turnaround in Q1 FY27, posting a standalone net profit of ₹0.18 Cr compared to a loss of ₹21.58 Cr in the same quarter last year. Revenue from operations surged 167% YoY to ₹29.76 Cr, significantly aided by the seasonal nature of the tea industry and the integration of the Aidaupukhuri Tea Factory on June 5, 2026. The company also appointed Mr. Raunak Barat as the new CFO, effective November 1, 2026. Despite the quarterly profit, the company remains highly leveraged with a debt of ₹111 Cr against a market cap of ₹64 Cr.
- Standalone Revenue from operations grew to ₹29.76 Cr in Q1 FY27 from ₹11.14 Cr in Q1 FY26.
- Net Profit turned positive at ₹0.18 Cr against a loss of ₹21.58 Cr in the year-ago period.
- Possession of Aidaupukhuri Tea Factory was taken on June 5, 2026, following Tea Board obligations.
- Mr. Raunak Barat appointed as CFO with effect from November 1, 2026.
- Inventory of finished goods increased by ₹17.30 Cr, reflecting peak seasonal production cycles.
B & A Ltd has announced a board meeting on August 8, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This follows a difficult March 2026 quarter where the company reported a net loss of ₹20 crore on revenue of ₹44 crore. With a small market capitalization of ₹73 crore and TTM revenue of ₹284 crore, the upcoming results are critical to assess if the company is recovering from recent losses. Investors should note the company's high debt-to-equity ratio of 0.81 and its focus on stabilizing the recently acquired Moheema Tea Estate.
- Board meeting scheduled for August 8, 2026, to review Q1 FY27 results.
- Company reported a significant net loss of ₹20 crore in the previous quarter ended March 2026.
- TTM revenue stands at ₹284 crore, which is nearly 3.9x its current market capitalization of ₹73 crore.
- Operating profit margin (TTM) is currently low at 3.9%, reflecting industry-wide cost pressures.
- Promoter holding has remained stable at 59.47% as of June 2026.
B & A Ltd has responded to a BSE query regarding significant movement in its equity share price. The company confirmed that it is in full compliance with SEBI LODR Regulations and has disclosed all material events to the exchange. Management stated that there is no impending announcement or undisclosed information that could be influencing the price behavior, attributing the movement to general market dynamics. This clarification follows a period where the stock saw a 25.2% price return over the last three months despite a TTM net loss of Rs 2 Cr.
- Clarification issued in response to BSE email dated 20th July 2026 regarding price movement.
- Company confirms no material information or impending announcements remain undisclosed.
- Management attributes recent share price volatility to general market dynamics.
- Company maintains a small market cap of Rs 83 Cr, which often leads to higher price sensitivity.
- Financial context shows a TTM revenue of Rs 284 Cr against a net loss of Rs 2 Cr.
B & A Ltd has issued a formal notice regarding the mandatory transfer of equity shares to the Investor Education and Protection Fund (IEPF). This action affects shareholders who have not claimed their dividends for seven consecutive years, specifically starting from the financial year 2018-19. Affected shareholders must submit a valid claim to the company's Registrar by October 15, 2026, to prevent the transfer of their holdings. This is a standard regulatory procedure under the Companies Act, 2013.
- Shares with dividends unclaimed for 7 consecutive years starting from FY 2018-19 will be transferred to IEPF.
- The deadline for shareholders to submit a valid claim to the Registrar is October 15, 2026.
- Notice covers dividends declared at Annual General Meetings held between September 14, 2019, and July 30, 2025.
- Physical share certificates will be automatically cancelled upon transfer to the IEPF account.
- Shareholders can still claim transferred shares from the IEPF Authority by filing Form IEPF-5 online.
Financial Performance
Revenue Growth by Segment
Total revenue from operations declined by 17% to INR 134 Cr in FY25 from INR 162 Cr in FY24, primarily due to a 27% decline in tea production. However, H1FY26 saw a recovery with revenue growing 7% YoY driven by higher sales volumes.
Geographic Revenue Split
100% of revenue is derived from India, specifically from tea gardens located in Assam. The company's production is concentrated in North India, where it accounts for 0.46% of the region's total production of 1,137.15 million kg.
Profitability Margins
Net Profit Margin remained thin at 0.01% in FY25 compared to 0.02% in FY24. Profitability was severely impacted by a 27% drop in production and higher employee costs, leading to a cash loss of INR 3.60 Cr in FY25 after adjusting for a one-time gratuity write-back of INR 11.05 Cr.
EBITDA Margin
PBILDT margin moderated significantly to -3.94% in FY25 from 0.77% in FY24. However, margins rebounded sharply in H1FY26 to 26.99% (up from 24.37% in H1FY25) due to increased volumes and better cost absorption.
Capital Expenditure
The company undertook a significant acquisition of the Moheema Tea Estate in FY24 to expand its production base. Debt increased to INR 77.36 Cr in FY25 to fund operations and acquisitions, with principal repayments starting in Q4 FY25.
Credit Rating & Borrowing
Credit rating was downgraded to 'CARE BBB; Stable' in December 2025 from 'CARE BBB+; Stable' due to moderated financial performance and cash losses in FY25. Interest coverage ratio stood at 1.09x in FY25, down from 1.82x in FY24.
Operational Drivers
Raw Materials
Green tea leaves (own leaf and bought leaf) are the primary raw materials. Own leaf production increased by 2.62 lakh kg in FY25, but overall production fell to 3.78 million kg due to quality restrictions on bought leaves.
Import Sources
Raw materials are sourced locally from the company's own nine tea gardens in Assam and from third-party 'bought leaf' suppliers within the same region.
Key Suppliers
Not specifically named, but the company relies on local small tea growers for 'bought leaf' requirements, which were restricted in FY25 due to quality standards.
Capacity Expansion
Current production capacity is approximately 5.19 million kg (FY24 level). The company recently expanded its footprint by acquiring the Moheema Tea Estate in Golaghat, Assam, to increase its scale of operations.
Raw Material Costs
Labour costs are the most significant operational expense, accounting for 60% of the total cost of sales in FY25, up from 47% in FY24. This high fixed-cost structure makes margins highly sensitive to production volumes.
Manufacturing Efficiency
Capacity utilization was reported at a moderate 58% in FY24. Efficiency is hampered by the seasonal nature of tea plucking and government-mandated closure periods.
Logistics & Distribution
Distribution is primarily handled through the tea auction system and marketplace partnerships to reach domestic and export buyers.
Strategic Growth
Expected Growth Rate
7%
Growth Strategy
Growth is targeted through the integration of the newly acquired Moheema Tea Estate, focusing on high-quality CTC tea production that commands premium auction prices, and improving capacity utilization from the current 58%.
Products & Services
High-quality CTC (Crush, Tear, Curl) Tea sold primarily through auctions and direct marketplace partnerships.
Brand Portfolio
Gatoonga Tea Estate, Mokrung Tea Estate, Salkathoni Tea Estate, and Moheema Tea Estate.
New Products/Services
Innovation in tea blends and strategic repositioning to counter competition from alternative beverages like energy drinks and coffee.
Market Expansion
Expansion is focused on the North India tea market, leveraging the acquisition of gardens in the Golaghat region of Assam.
Market Share & Ranking
Small player with 0.46% market share of North India's tea production. Gatoonga estate is ranked No. 1 in Assam for price realization.
Strategic Alliances
The company maintains strategic equity investments in group companies totaling INR 15.71 Cr as of March 2025.
External Factors
Industry Trends
The tea industry is seeing a shift toward alternative beverages (coffee, energy drinks) among younger demographics, growing at a rate that necessitates brand repositioning. The industry is also facing rising costs due to stricter environmental and labor standards.
Competitive Landscape
Competes with a large number of organized and unorganized tea producers in North India; market is highly fragmented with B&A holding less than 1% share.
Competitive Moat
The company's moat is built on 'Superior Quality' and brand reputation of its specific estates (Gatoonga, Mokrung). This allows them to command a premium over industry averages, which is sustainable as long as garden management and soil health are maintained.
Macro Economic Sensitivity
Highly sensitive to macroeconomic conditions influencing market demand and supply, as well as changes in regulatory and taxation policies.
Consumer Behavior
Shift in preference toward health-based alternatives and energy drinks is challenging traditional tea consumption patterns.
Geopolitical Risks
Subdued export demand for Indian tea impacts auction prices and overall revenue stability.
Regulatory & Governance
Industry Regulations
Regulated by the Tea Board of India, Food Safety and Standards Act (FSSAI) 2006, and Legal Metrology Act 2009. Mandated garden closure dates significantly impact annual production volumes.
Environmental Compliance
Complies with Pollution Control Act and Tea Board guidelines; compliance adds to operational costs but is essential for maintaining 'superior quality' status.
Taxation Policy Impact
Subject to Indian corporate tax laws and specific agricultural tax norms applicable to tea cultivation in Assam.
Legal Contingencies
The company reported compliance with all fiscal, labour, and environmental laws. No specific high-value pending court cases or litigation values were disclosed in the provided documents.
Risk Analysis
Key Uncertainties
Agro-climatic risk (weather volatility) and labour wage revisions are the primary uncertainties, with the potential to swing operating margins by over 10% annually.
Geographic Concentration Risk
100% of tea gardens are concentrated in Assam, exposing the company to regional weather patterns and local political/labour issues.
Third Party Dependencies
Moderate dependency on 'bought leaf' suppliers to supplement own production; quality issues in third-party leaves led to production declines in FY25.
Technology Obsolescence Risk
Low risk in traditional tea cultivation, but digital transformation is required in distribution and marketplace partnerships.
Credit & Counterparty Risk
Exposure to group companies through loans and advances stood at INR 15.71 Cr (18.53% of net worth), which constrains financial flexibility.
