JAYSREETEA - Jay Shree Tea
📢 Recent Corporate Announcements
Jayshree Tea & Industries reported a 25.2% YoY increase in revenue from operations to ₹29,168 Lakhs for Q3 FY26. However, net profit for the quarter plummeted to ₹73 Lakhs from ₹7,434 Lakhs in the previous year, which was heavily inflated by one-time gains from land sales and discontinued operations. The core tea segment witnessed a significant margin contraction, while the sugar segment continued to report operational losses, partially offset by a strong performance in the fertiliser division.
- Revenue from operations grew to ₹29,168 Lakhs in Q3 FY26 vs ₹23,296 Lakhs in Q3 FY25.
- Net profit from continuing operations fell sharply to ₹73 Lakhs from ₹1,885 Lakhs YoY.
- Tea segment EBIT margins dropped significantly to 5.7% from 26.5% in the same quarter last year.
- Fertiliser segment revenue surged 122% YoY to ₹8,143 Lakhs with segment profit rising to ₹562 Lakhs.
- Sugar segment reported a loss of ₹271 Lakhs, showing slight improvement from a loss of ₹580 Lakhs YoY.
Jayshree Tea & Industries Limited has informed the exchanges that its trading window for dealing in company securities will be closed starting January 1, 2026. This closure is in compliance with SEBI Insider Trading regulations ahead of the announcement of financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be announced at a later time.
- Trading window closure commences on January 1, 2026.
- Closure pertains to the unaudited financial results for the quarter and nine months ended December 31, 2025.
- Trading window will reopen 48 hours after the official announcement of the financial results.
- The date for the Board Meeting to consider the results is yet to be intimated.
Care Ratings has reaffirmed the credit rating of Jayshree Tea & Industries Limited at BBB-/Stable for its long-term bank facilities and A3 for short-term facilities. The total rated facilities amount to Rs 376.25 crore, which includes Rs 336.25 crore in fund-based and Rs 40 crore in non-fund-based limits. The rating agency noted an improvement in financial performance during FY25 and the first half of FY26. This reaffirmation indicates a stable credit profile supported by a strong promoter group and a diversified revenue base across tea and fertilizers.
- Reaffirmed BBB-/Stable rating for long-term fund-based facilities of Rs 336.25 crore.
- Assigned and reaffirmed A3 rating for non-fund based facilities of Rs 40.00 crore.
- Total bank facilities covered under the current rating cycle amount to Rs 376.25 crore.
- Rating factors in improved financial performance in FY25 and sustenance in H1FY26.
- Strengths include a strong brand name in bulk tea and fertilizers with adequate capacity utilization.
Financial Performance
Revenue Growth by Segment
Total revenue for three subsidiaries and two step-down subsidiaries was INR 10.14 Cr for FY25. Segment-specific percentage growth for Tea, Sugar, and Chemicals/Fertilisers was not explicitly detailed in the provided documents.
Geographic Revenue Split
The Group operates in India and overseas, with two subsidiaries of Birla Holding Limited (BHL) located outside India. Specific percentage splits by region were not disclosed.
Profitability Margins
Net profit per equity share (Basic & Diluted) for continuing and discontinued operations improved significantly to INR 43.81 in FY25 from INR 4.50 in FY24, representing an 873.5% increase. Total Comprehensive Income for the year reached INR 124.70 Cr compared to INR 24.13 Cr in the previous year.
EBITDA Margin
PBILDT interest coverage ratio improved to 1.09x in FY25 from -1.19x in FY24. Operating profit before changes in assets and liabilities was INR 44.93 Cr in FY25, a turnaround from a loss of INR 40.29 Cr in FY24.
Capital Expenditure
Purchase of Property, Plant & Equipment (including CWIP and Capital Advances) was INR 44.55 Cr in FY25, down 22.6% from INR 57.58 Cr in FY24. Sale of Property, Plant & Equipment generated INR 34.45 Cr in FY25.
Credit Rating & Borrowing
Overall gearing improved to 1.09x as on March 31, 2025, from 1.60x in the previous year. Total debt to gross cash accruals (TD/GCA) improved to 2.90x from 17.63x YoY. Total borrowings as of March 31, 2025, stood at INR 314.76 Cr (INR 67.99 Cr non-current and INR 246.77 Cr current).
Operational Drivers
Raw Materials
Primary raw materials include green tea leaves and sugarcane. Biological assets (unplucked green leaves and standing sugarcane crops) are measured at fair value less cost to sell.
Raw Material Costs
Labour costs are a major component, representing approximately 33% - 34% of the total cost of sales in FY24. Inventory written off in FY25 was INR 0.08 Cr compared to INR 1.13 Cr in FY24.
Manufacturing Efficiency
The Group closed manufacturing operations at its fertiliser unit in Pataudi, Gurugram, in July 2024 to optimize the operational footprint.
Strategic Growth
Growth Strategy
Growth is targeted through asset monetization (INR 100 Cr land sale), resumption of ethanol production from sugarcane juice and B-heavy molasses, and expected increases in government subsidies for the fertiliser division.
Products & Services
Tea, Sugar, Ethanol, and Fertilisers.
Brand Portfolio
Jay Shree Tea.
New Products/Services
Resumption of ethanol production from sugarcane juice and B-heavy molasses is expected to contribute to future revenue.
External Factors
Industry Trends
The industry is seeing a shift toward ethanol production from sugarcane by-products and increasing reliance on government subsidies for fertiliser viability.
Competitive Moat
The company maintains a significant asset base in tea estates and integrated sugar/ethanol facilities, providing a cost-competitive production moat.
Macro Economic Sensitivity
The company is sensitive to government subsidy policies in the fertiliser sector and ethanol blending mandates.
Geopolitical Risks
The Group has operations in overseas subsidiaries, exposing it to international regulatory and economic shifts.
Regulatory & Governance
Industry Regulations
Operations are subject to seasonal industry regulations and government subsidy frameworks for fertilisers. The company faced an audit trail non-compliance issue where the 'edit log' feature was not enabled at the Sugar unit and database level.
Taxation Policy Impact
The Holding Company has recognized Deferred Tax Assets (net) of INR 54.23 Cr as of March 31, 2025, based on unused tax losses and deductible temporary differences.
Legal Contingencies
The Group has pending litigations disclosed in Note 19 and Note 37 of the financial statements; specific case values were not provided in the snippets.
Risk Analysis
Key Uncertainties
Recoverability of Deferred Tax Assets is a key audit matter due to the high degree of estimation regarding future taxable profits. Seasonality and labour intensity (34% of costs) remain primary business risks.
Geographic Concentration Risk
Significant operations are concentrated in India (Kolkata headquarters) with some exposure in overseas subsidiaries.
Third Party Dependencies
The Group relies on other auditors for the audit of three subsidiaries and two step-down subsidiaries representing assets of INR 63.25 Cr.
Technology Obsolescence Risk
The lack of an enabled audit trail at the Sugar unit and database level indicates a need for digital governance upgrades.
Credit & Counterparty Risk
Trade receivables increased by INR 13.59 Cr in FY25. Provision for doubtful receivables was a net reversal of INR 0.30 Cr.