ROSSELLIND - Rossell India
📢 Recent Corporate Announcements
India Ratings & Research has affirmed and assigned credit ratings for Rossell India's bank loan facilities totaling Rs 140 crore. The long-term rating is set at 'IND BBB+' with a Stable outlook, while the short-term rating is 'IND A2+'. This rating covers Rs 131 crore of existing affirmed facilities and Rs 9 crore of newly assigned facilities. The stable outlook suggests the agency expects the company's credit profile to remain steady in the medium term.
- Total bank loan facilities rated aggregate to Rs 140.00 Crores.
- Long-term rating affirmed and assigned at 'IND BBB+' with a 'Stable' outlook.
- Short-term rating affirmed and assigned at 'IND A2+'.
- The rating action includes an affirmation of Rs 131 crore and a new assignment of Rs 9 crore in facilities.
Samara Gupta, a promoter of Rossell India, has acquired 35,79,170 equity shares, representing a 9.49% stake in the company. The acquisition was executed on February 20, 2026, through an off-market inter-se transfer by way of a gift from her father, Mr. Harsh Mohan Gupta. Following this transaction, Samara Gupta's holding increased from 0.04% to 9.54%, while Mr. Harsh Mohan Gupta's stake decreased from 39.49% to 30.00%. This is a non-cash transaction among immediate relatives and does not change the aggregate promoter group holding.
- Acquisition of 35,79,170 equity shares representing 9.49% of diluted share capital
- Transaction conducted as an off-market gift from promoter Harsh Mohan Gupta to daughter Samara Gupta
- Samara Gupta's total shareholding increased to 35,94,706 shares (9.54%)
- Harsh Mohan Gupta's shareholding reduced to 1,13,08,943 shares (30.00%)
- Exempted from open offer under Regulation 10(1)(a)(i) and (ii) of SEBI SAST Regulations
Samara Gupta, a promoter of Rossell India, has filed an intimation to acquire 35,79,170 equity shares, representing a 9.49% stake in the company. The acquisition is an off-market inter-se transfer by way of a gift from her father, Mr. Harsh Mohan Gupta, who is also a promoter. This transaction is exempt from open offer requirements under SEBI (SAST) regulations as it is between immediate relatives. Importantly, the aggregate promoter group shareholding remains unchanged following this transfer.
- Proposed acquisition of 35,79,170 equity shares representing 9.49% of the total share capital.
- Transfer is an off-market gift from father (Harsh Mohan Gupta) to daughter (Samara Gupta).
- Samara Gupta's individual holding will rise from 0.04% to 9.54% post-transaction.
- Harsh Mohan Gupta's holding will decrease from 39.49% to 30.00%.
- The transaction is scheduled to occur on or after February 20, 2026.
Rossell India reported a significant 36% YoY growth in revenue to ₹85.19 crore for Q3 FY26, largely aided by the acquisition of the Dhoedaam Tea Estate. However, Net Profit for the quarter declined by 30.6% YoY to ₹4.28 crore due to rising operational costs and a sharp increase in finance charges. Finance costs surged to ₹1.18 crore from ₹0.32 crore YoY, while employee expenses rose by 31.8%. The 9-month PAT also saw a slight dip to ₹39.65 crore compared to ₹41.74 crore in the previous year.
- Revenue from Operations increased 36% YoY to ₹8,519 lakhs from ₹6,265 lakhs.
- Net Profit (PAT) fell 30.6% YoY to ₹428 lakhs from ₹617 lakhs.
- Finance costs surged by 268% YoY to ₹118 lakhs from ₹32 lakhs.
- Employee benefit expenses increased to ₹3,358 lakhs from ₹2,548 lakhs in the previous year.
- Basic EPS for the quarter dropped to ₹1.14 from ₹1.64 in Q3 FY25.
Rossell India Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that for the quarter ended December 31, 2025, all securities received for dematerialization were processed and listed on the stock exchanges. The company's Registrar and Share Transfer Agent, CB Management Services (P) Limited, verified that physical certificates were mutilated and cancelled as per regulatory requirements. This is a standard administrative disclosure ensuring the integrity of the shareholding records.
- Compliance certificate issued for the quarter ended December 31, 2025.
- Confirmation provided by Registrar and Share Transfer Agent, CB Management Services (P) Limited.
- Securities received for dematerialization were processed and listed on BSE and NSE.
- Physical certificates were mutilated and cancelled within prescribed timelines after due verification.
Rossell India Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's Q3 financial results. The window will remain closed until 48 hours after the declaration of the unaudited financial results for the quarter ended December 31, 2025. This is a standard regulatory procedure to prevent insider trading before sensitive financial information is released to the public.
- Trading window closure starts on January 1, 2026
- Closure is for the purpose of declaring Unaudited Financial Results for the quarter ended December 31, 2025
- Applies to all Directors, Officers, Designated Persons, and their immediate relatives
- Window will reopen 48 hours after the financial results are officially declared
Financial Performance
Revenue Growth by Segment
Total Revenue from Operations for H1 FY26 reached INR 124.43 Cr, representing a growth of 12.97% compared to INR 110.14 Cr in H1 FY25. Segment-wise reporting under Ind AS 108 is not applicable to the company's current structure.
Geographic Revenue Split
The company operates primarily in India, with major tea estates located in Assam (Dikom and Kharikatia). Specific regional revenue percentages are not disclosed, but operations are concentrated in the domestic tea production sector.
Profitability Margins
Net Profit Margin for H1 FY26 stood at 28.42% (INR 35.37 Cr profit on INR 124.43 Cr revenue), slightly down from 32.29% in H1 FY25. Profit before tax for H1 FY26 was INR 39.17 Cr compared to INR 40.75 Cr in the previous year's half, a decrease of 3.88%.
EBITDA Margin
EBITDA margin for H1 FY26 was 37.43% (INR 46.57 Cr) compared to 41.25% (INR 45.43 Cr) in H1 FY25. While absolute EBITDA grew by 2.5%, the margin contracted due to higher operating expenses.
Capital Expenditure
In H1 FY26, the company invested INR 2.80 Cr in the purchase of Property, Plant, and Equipment and other intangible assets, compared to INR 1.99 Cr in H1 FY25, an increase of 40.7%.
Credit Rating & Borrowing
Total borrowings as of September 30, 2025, stood at INR 78.47 Cr (INR 38.25 Cr non-current and INR 40.22 Cr current). Finance costs for H1 FY26 rose significantly to INR 4.67 Cr from INR 2.05 Cr in H1 FY25, a 127.8% increase, indicating higher borrowing costs or increased debt utilization.
Operational Drivers
Raw Materials
Green Leaf (INR 4.52 Cr, 3.6% of revenue), Stores and Spares (INR 7.69 Cr, 6.2% of revenue), and Power and Fuel (INR 11.02 Cr, 8.8% of revenue).
Import Sources
Raw materials like green leaf are sourced internally from the company's tea estates in Assam, India.
Key Suppliers
Not specifically disclosed; however, the company processes green leaf from its own estates and potentially local small growers.
Capacity Expansion
Current capacity is not explicitly stated in MT, but the company is focusing on quality enhancement at its Dikom and Kharikatia estates. Capital work-in-progress stood at INR 6.77 Cr as of September 2025.
Raw Material Costs
Consumption of Green Leaf costs decreased by 18.85% YoY in H1 FY26 to INR 4.52 Cr. Total operating expenses rose to INR 80.91 Cr in H1 FY26 from INR 68.36 Cr in H1 FY25, an 18.3% increase.
Manufacturing Efficiency
Employee benefit expenses are a major driver, accounting for 64.58% of total revenue in H1 FY26 (INR 80.36 Cr), up from 55.11% in H1 FY25, suggesting a decrease in labor-related efficiency or rising wage costs.
Logistics & Distribution
Not explicitly disclosed; however, other expenses (including distribution) rose 20.9% YoY to INR 13.13 Cr in H1 FY26.
Strategic Growth
Expected Growth Rate
13%
Growth Strategy
The company aims to strengthen its financial base post-corporate restructuring (demerger of subsidiaries) by focusing on quality enhancement of tea products and prudent cost management. The strategy involves leveraging strong financial fundamentals to improve operating performance in the years ahead.
Products & Services
Cultivation, manufacture, and sale of Black Tea.
Brand Portfolio
Rossell Tea, Dikom Tea Estate, Kharikatia Tea Estate.
Market Expansion
The company is focusing on strengthening its existing tea estate operations in Assam following the demerger of other business interests.
Strategic Alliances
The company currently has no subsidiaries, associates, or joint ventures following recent corporate restructuring.
External Factors
Industry Trends
The tea industry is shifting toward sustainable and responsible business conduct (NGRBC). Rossell is positioning itself by adopting ESG policies and securing labor welfare awards from the Government of Assam.
Competitive Landscape
Competes with other major Indian tea producers like Tata Consumer Products and McLeod Russel in the premium Assam tea segment.
Competitive Moat
The moat is based on the ownership of high-quality tea estates like Dikom and Kharikatia, which have high brand recall in tea auctions. This is sustainable due to the fixed geographic nature of premium tea-growing land.
Macro Economic Sensitivity
Highly sensitive to agricultural inflation and labor wage revisions in the state of Assam.
Consumer Behavior
Increasing demand for high-quality, ethically produced tea, which aligns with the company's recent awards for labor welfare.
Geopolitical Risks
Minimal direct exposure as a standalone Indian tea producer, though global tea commodity prices affect domestic realizations.
Regulatory & Governance
Industry Regulations
Subject to the Tea Act, Plantation Labour Act, and environmental norms set by the Assam Pollution Control Board. The company recently received awards from the Labour Welfare Department of Assam, indicating high compliance with labor regulations.
Environmental Compliance
The company has identified water management as a material sustainability issue and has implemented NGRBC policies across all 9 principles.
Taxation Policy Impact
Effective tax rate for H1 FY26 was approximately 9.7% (INR 3.80 Cr tax on INR 39.17 Cr PBT).
Legal Contingencies
The company reported 'Exceptional Items' of INR 0.12 Cr related to demerger expenses/investment cancellations. No major pending litigation values were disclosed in the provided extracts.
Risk Analysis
Key Uncertainties
Climate change and erratic rainfall patterns in Assam pose a significant risk to crop yields, with potential impact on revenue exceeding 10%.
Geographic Concentration Risk
100% of tea production assets are concentrated in Assam, making the company vulnerable to regional political or climatic disruptions.
Third Party Dependencies
High dependency on the tea auction system for revenue realization and on the local labor force for harvesting.
Technology Obsolescence Risk
Low risk in traditional tea cultivation, but failure to modernize processing plants could lead to higher energy costs (which rose 42% YoY).
Credit & Counterparty Risk
Trade receivables stood at INR 17.62 Cr as of September 2025, a sharp increase from INR 0.18 Cr in March 2025, indicating a seasonal spike in credit exposure.