MCLEODRUSS - Mcleod Russel
📢 Recent Corporate Announcements
McLeod Russel's Q3 FY26 results are marked by a severe adverse conclusion from statutory auditors, Lodha & Co LLP. The company has outstanding Inter-Corporate Deposits (ICDs) of ₹2,860.50 crore given to promoter groups, which auditors deem prejudicial to the company's interest. With current liabilities exceeding current assets and significant operational losses, there is material uncertainty regarding the company's ability to continue as a going concern. Most debt has been assigned to NARCL and J.C. Flowers ARC, and the company is currently awaiting approval for a submitted resolution plan.
- Statutory auditors issued an adverse conclusion citing ₹2,860.50 crore in ICDs to promoter groups with only ₹1,010.39 crore provided for.
- Material uncertainty exists over 'Going Concern' status as net worth is significantly eroded and liabilities exceed assets.
- Losses for the period are understated due to non-recognition of interest on loans, ICDs, and other financial liabilities.
- Debt has been assigned to National Asset Reconstruction Company Limited (NARCL) and J.C. Flowers ARC; resolution is pending lender approval.
- Potential liabilities from an Arbitral Tribunal Award involving promoter group borrowings remain indeterminate and unrecognised.
Mcleod Russel India Limited has announced that the insolvency application filed against it by PDK Impex Pvt Ltd has been dismissed. The financial creditor had previously approached the NCLT Kolkata bench under Section 7 of the IBC for an alleged default of Rs. 10.22 crores. Following the withdrawal of the application by the creditor, the NCLT has officially dismissed the case. This development provides significant relief to the company by removing a specific insolvency threat.
- PDK Impex Pvt Ltd has withdrawn its Section 7 IBC application against the company.
- The petition involved an alleged default amount of Rs. 10.22 crores.
- The Hon'ble NCLT, Kolkata bench has dismissed the application as withdrawn.
- The company received confirmation of the dismissal via its advocate on January 13, 2026.
Mcleod Russel India Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Maheshwari Datamatics Pvt Ltd, confirms that share certificates received for dematerialization between October 1, 2025, and December 31, 2025, were processed according to guidelines. It verifies that the original physical certificates were destroyed or mutilated after the dematerialization process. This is a standard regulatory filing required for all listed entities to ensure the integrity of electronic shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Registrar Maheshwari Datamatics Pvt Ltd confirmed processing of demat requests for the period Oct-Dec 2025.
- Verification provided that physical share certificates were destroyed/mutilated within stipulated timelines.
- The filing ensures adherence to SEBI (Depositories and Participants) Regulations, 2018.
Mcleod Russel India Limited has announced a change in the contact email addresses of its Registrar and Share Transfer Agent (RTA), Maheshwari Datamatics Pvt. Ltd. The previous email addresses have been replaced with compliance@mdplcorporate.com and contact@mdplcorporate.com. All other contact details, including the physical address in Kolkata and the telephone number +91-33-2248 2248, remain unchanged. This is a routine administrative update to ensure effective communication between stakeholders and the RTA.
- RTA Maheshwari Datamatics Pvt. Ltd. has updated its primary contact email addresses.
- New email addresses are compliance@mdplcorporate.com and contact@mdplcorporate.com.
- The RTA's physical address at 23, R.N. Mukherjee Road, Kolkata 700 001, remains unchanged.
- The telephone contact number +91-33-2248 2248 remains the same for all queries.
Mcleod Russel India Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the declaration of the company's unaudited standalone and consolidated financial results for the quarter ending December 31, 2025. The restriction applies to all designated persons and their immediate relatives to prevent any insider trading activities. The window will remain closed until 48 hours after the financial results are officially announced to the stock exchanges.
- Trading window closure effective from Thursday, January 1, 2026.
- Closure pertains to the Unaudited Financial Results for the quarter ending December 31, 2025.
- Restriction ends 48 hours after the official declaration of financial results.
- Compliance follows SEBI (Prohibition of Insider Trading) Regulations, 2015.
- Applies to all designated persons and their immediate relatives as per the company's Code of Conduct.
Financial Performance
Revenue Growth by Segment
Not disclosed in available documents. However, the consolidated Net Profit Before Tax declined by 121.97% YoY, moving from a profit of INR 6,473 Lakhs in H1 FY25 to a loss of INR 1,422 Lakhs in H1 FY26.
Geographic Revenue Split
Not disclosed in percentage terms. The group operates through subsidiaries in India, Borelli Tea Holding Limited (UK), McLeod Russel Uganda Limited (Uganda), McLeod Russel Africa Limited (Kenya), and McLeod Russel Middle East DMCC (Dubai).
Profitability Margins
Net Profit Margin improved by 33.37% from -0.29 in FY24 to -0.19 in FY25, though it remains negative. Operating Margin improved from -0.13 in FY24 to 0.86 in FY25. Profitability is severely impacted by high finance costs of INR 9,262 Lakhs in H1 FY26.
EBITDA Margin
EBITDA for H1 FY26 was INR 10,838 Lakhs, representing a 43.45% decrease compared to INR 19,167 Lakhs in H1 FY25. This decline is driven by a shift from profit to loss before tax despite a 4.16% reduction in finance costs.
Credit Rating & Borrowing
Not disclosed in available documents. However, the company has current borrowings of INR 1,81,203 Lakhs and is currently undergoing a debt resolution process with lenders.
Operational Drivers
Raw Materials
Green leaf purchased from external sources represents the primary raw material cost. Specific percentage of total cost is not disclosed.
Import Sources
India, Uganda, and Kenya, where the company and its subsidiaries operate tea plantations and sourcing units.
Key Suppliers
External green leaf growers and small tea enterprises (Micro and Small Enterprises dues of INR 1,374 Lakhs reported).
Raw Material Costs
Not disclosed as a percentage of revenue. The company relies on external green leaf purchases to supplement its own production.
Strategic Growth
Growth Strategy
The company aims to achieve stability through a debt resolution plan with lenders. Growth will be supported by rationalizing operational costs and leveraging its global footprint in India, Africa, and the Middle East to manage supply and distribution.
Products & Services
Bulk tea and value-added tea products produced from plantations in India and Africa.
Brand Portfolio
McLeod Russel.
Strategic Alliances
D1 Williamson Bio Fuel Limited (Associate, though carrying value is currently Nil).
External Factors
Industry Trends
The tea industry is facing sluggish demand in certain international markets. The company is positioning itself for a turnaround by focusing on debt restructuring and cost control.
Competitive Moat
The company's moat is its position as one of the world's largest tea producers with a diversified geographic footprint across India and Africa, providing a hedge against regional crop failures.
Macro Economic Sensitivity
Sensitive to global tea prices and sluggish market conditions in East Africa, which led to losses in the Uganda subsidiary.
Geopolitical Risks
Operations in Uganda, Kenya, and Dubai expose the company to regional economic volatility and trade barrier risks in the tea export market.
Regulatory & Governance
Industry Regulations
The company is subject to the Companies Act, 2013, with specific concerns raised by auditors regarding Section 185 compliance related to Inter-Corporate Deposits.
Taxation Policy Impact
Current tax liability (net) stood at INR 2,770 Lakhs as of September 30, 2025.
Legal Contingencies
Pending resolution of Inter-Corporate Deposits (ICDs) given to group companies. Predecessor auditors issued an adverse opinion in FY19 regarding the nature of these book entries and potential non-compliance with Section 185.
Risk Analysis
Key Uncertainties
The primary uncertainty is the successful resolution of the parent company's debt and the potential impairment of investments in the Uganda subsidiary (MRUL), which has negative working capital.
Geographic Concentration Risk
Significant concentration in India and East Africa (Uganda/Kenya).
Third Party Dependencies
High dependency on external green leaf suppliers for production volumes.
Credit & Counterparty Risk
Provision for doubtful debts/advances/interest receivable was INR 379 Lakhs in H1 FY26.