UNITEDTEA - United Nilgiri
📢 Recent Corporate Announcements
The United Nilgiri Tea Estates Company Limited has issued a postal ballot notice to seek shareholder approval for the re-appointment of Mr. R. Rajkumar as a Whole-time Director. The proposed tenure is for three years, starting from March 30, 2026. The remuneration package includes a monthly basic pay of Rs. 1,42,070 and a special allowance of Rs. 89,765, alongside other benefits. Shareholders are invited to cast their votes through a remote e-voting process ending on March 25, 2026.
- Re-appointment of Mr. R. Rajkumar as Whole-time Director for a 3-year term effective March 30, 2026.
- Proposed monthly remuneration includes Basic Pay of Rs. 1,42,070 and Dearness Allowance of Rs. 7,240.
- Additional monthly perks include a Special Allowance of Rs. 89,765 and Education Allowance of Rs. 6,230.
- Remote e-voting period is set from February 24, 2026, to March 25, 2026, with a cut-off date of February 18, 2026.
- The appointment is subject to shareholder approval via an ordinary resolution through postal ballot.
The United Nilgiri Tea Estates reported a 17.8% year-on-year increase in net profit for Q3 FY26, reaching ₹5.32 crore compared to ₹4.52 crore in the previous year. Revenue from operations grew slightly to ₹23.76 crore, while the company declared an interim dividend of ₹1 per share (10% of face value) with a record date of February 18, 2026. For the nine-month period, profits rose significantly to ₹18.28 crore from ₹14.68 crore, despite a marginal decline in total revenue. The board also approved the re-appointment of Mr. R. Rajkumar as Whole-time Director.
- Net Profit for Q3 FY26 grew 17.8% YoY to ₹532.33 Lakhs from ₹451.83 Lakhs.
- Revenue from operations for the quarter stood at ₹2,376.33 Lakhs, up from ₹2,293.66 Lakhs YoY.
- Interim dividend of ₹1 per equity share (10%) declared with a record date of February 18, 2026.
- Nine-month (9M FY26) EPS improved to ₹36.59 compared to ₹29.38 in the corresponding period last year.
- Plantation segment remains the primary revenue driver, contributing ₹2,212.34 Lakhs in Q3.
The United Nilgiri Tea Estates reported a 17.8% year-on-year increase in net profit to ₹5.32 crore for the quarter ended December 31, 2025. Revenue from operations grew slightly to ₹23.76 crore compared to ₹22.94 crore in the previous year's corresponding quarter. The Board declared an interim dividend of ₹1 per equity share (10%) with a record date of February 18, 2026. Additionally, the company approved the re-appointment of Mr. R. Rajkumar as Whole-time Director, ensuring leadership continuity.
- Net Profit for Q3 FY26 increased to ₹532.33 lakhs from ₹451.83 lakhs in Q3 FY25
- Revenue from operations for the quarter stood at ₹2,376.33 lakhs, up from ₹2,293.66 lakhs YoY
- Interim dividend of ₹1 per share announced with a record date of February 18, 2026
- Nine-month net profit rose to ₹1,828.03 lakhs compared to ₹1,468.15 lakhs in the previous year
- Earnings Per Share (EPS) for the quarter improved to ₹10.65 from ₹9.04 YoY
The United Nilgiri Tea Estates reported a 17.8% year-on-year increase in net profit to ₹5.32 crore for the quarter ended December 31, 2025. Revenue from operations grew slightly to ₹23.76 crore compared to ₹22.94 crore in the previous year's corresponding quarter. The Board declared an interim dividend of ₹1 per share (10% of face value) with a record date of February 18, 2026. For the nine-month period, the company showed strong performance with net profit reaching ₹18.28 crore against ₹14.68 crore last year.
- Net profit for Q3 FY26 rose to ₹532.33 lakhs from ₹451.83 lakhs in Q3 FY25.
- Interim dividend of ₹1 per share (10% on FV of ₹10) declared with record date Feb 18, 2026.
- Nine-month EPS improved significantly to ₹36.59 from ₹29.38 in the previous year.
- Plantation segment remains the primary driver with Q3 revenue of ₹2,212.34 lakhs.
- Total Comprehensive Income for the nine-month period increased to ₹1,886.23 lakhs.
The United Nilgiri Tea Estates Company reported a net profit of ₹5.32 crore for Q3 FY26, marking a 17.8% increase from ₹4.52 crore in the same quarter last year. Revenue from operations grew marginally by 3.6% to ₹23.76 crore. For the nine-month period, while revenue was slightly lower at ₹67.04 crore compared to ₹70.88 crore previously, net profit improved significantly to ₹18.28 crore from ₹14.68 crore. The board has also declared an interim dividend of ₹1 per share (10%) for the financial year 2025-26.
- Net Profit for Q3 FY26 rose to ₹532.33 lakhs from ₹451.83 lakhs in Q3 FY25.
- Interim dividend of ₹1 per equity share (10%) declared with a record date of February 18, 2026.
- Nine-month EPS increased to ₹36.59 from ₹29.38 in the corresponding previous period.
- Plantation segment revenue for the quarter stood at ₹2,212.34 lakhs, while property revenue contributed ₹163.99 lakhs.
- Company accounted for an incremental gratuity liability of ₹8.90 lakhs due to new Labour Codes.
The United Nilgiri Tea Estates Company Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that the company's Registrar and Share Transfer Agent, Integrated Registry Management Services Private Limited, processed all dematerialization requests for the quarter ended December 31, 2025. The process involved the verification, cancellation, and substitution of depository names in the register of members within the mandated 15-day period. This is a standard regulatory procedure to ensure the smooth transition of physical shares to electronic form.
- Compliance certificate issued for the quarter ended December 31, 2025
- Confirmation that dematerialized securities are listed on the stock exchanges
- Physical security certificates were mutilated and cancelled within 15 days of receipt
- Registrar and Share Transfer Agent (RTA) confirmed all regulatory requirements were met
The United Nilgiri Tea Estates Company Limited has announced the closure of its trading window for equity shares starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations for the upcoming Q3 FY2025-26 financial results. The window will remain closed until 48 hours after the declaration of the Unaudited Financial Results for the quarter ending December 31, 2025. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window closure starts on January 1, 2026, for all Designated Persons.
- Closure is related to the Unaudited Financial Results for the quarter ending December 31, 2025.
- The window will reopen 48 hours after the financial results are officially declared.
- Compliance follows SEBI (Prohibition of Insider Trading) Regulations, 2015.
Financial Performance
Revenue Growth by Segment
Revenue from operations for the tea segment in FY25 was Rs. 89.80 Cr, representing a 6.88% growth from Rs. 84.01 Cr in FY24. For H1 FY26, revenue was Rs. 43.28 Cr, a decline of 9.72% YoY from Rs. 47.94 Cr in H1 FY25.
Geographic Revenue Split
Not disclosed in available documents, though the company notes that export of teas is substantial and incidental to operations.
Profitability Margins
Net Profit Margin for FY25 was 20.61% (Rs. 18.51 Cr profit on Rs. 89.80 Cr revenue). For H1 FY26, the Net Profit Margin improved significantly to 29.94% (Rs. 12.96 Cr profit on Rs. 43.28 Cr revenue) compared to 21.19% in H1 FY25.
EBITDA Margin
Operating profit before changes in operating assets/liabilities for H1 FY26 was Rs. 11.38 Cr (26.3% of revenue), a 36.6% increase from Rs. 8.33 Cr (17.4% of revenue) in H1 FY25.
Capital Expenditure
Historical capital expenditure for H1 FY26 was Rs. 2.44 Cr, compared to Rs. 2.83 Cr in H1 FY25. Planned expenditure is not explicitly disclosed.
Credit Rating & Borrowing
Credit rating not disclosed. Finance costs were minimal at Rs. 0.058 Cr for H1 FY26, suggesting low reliance on external debt.
Operational Drivers
Raw Materials
Green leaf is the primary raw material, with cost of materials consumed representing 21.7% of revenue (Rs. 9.41 Cr) in H1 FY26.
Import Sources
Sourced internally from company-owned estates located in the Nilgiris, Tamil Nadu.
Key Suppliers
Internal production from company-owned estates: Allada Valley, Chamraj, Devabetta, Korakundah, and Rockland.
Capacity Expansion
Current tea plantation area is 806.20 hectares out of a total estate area of 1573.41 hectares. Planned expansion in hectares is not disclosed.
Raw Material Costs
Raw material costs were Rs. 9.41 Cr in H1 FY26 (21.7% of revenue), a decrease of 19.6% YoY from Rs. 11.71 Cr in H1 FY25. Procurement is primarily through internal estate production.
Manufacturing Efficiency
Not disclosed in terms of capacity utilization percentage, but efficiency is being driven by mechanized harvesting and factory cost-saving measures.
Strategic Growth
Expected Growth Rate
7%
Growth Strategy
Growth is targeted through mechanized harvesting to improve field outlook and yield, focus on better sales realization for premium teas, and managing a strong financial asset portfolio which contributed Rs. 4.28 Cr in fair value gains in H1 FY26.
Products & Services
Tea products including Black, Green, and Organic varieties sold in bulk and value-added formats.
Brand Portfolio
Chamraj, Korakundah.
Strategic Alliances
The company has two associate companies incorporated as Section 8 not-for-profit entities, which are not considered for consolidation.
External Factors
Industry Trends
The tea industry is seeing a shift toward mechanized harvesting to manage labour costs and a growing focus on organic and high-altitude specialty teas where the company is positioned with its Korakundah and Chamraj estates.
Competitive Landscape
The company faces competition in both domestic and international tea markets, though specific competitor names were not disclosed.
Competitive Moat
Sustainable competitive advantage derived from unique high-altitude estate locations in the Nilgiris and established brand reputation for organic and premium teas.
Macro Economic Sensitivity
Sensitive to global tea demand and domestic labour regulations, though specific GDP sensitivity percentages are not disclosed.
Regulatory & Governance
Industry Regulations
Operations are governed by the Tea Act 1953, Plantation Labour Act 1951, Tea Marketing Control Order 2003, and Food Safety and Standards Act 2006.
Environmental Compliance
Not disclosed in absolute INR values, though environmental protection activities are undertaken at factories.
Taxation Policy Impact
Effective tax rate for H1 FY26 was 14.07% (Rs. 2.12 Cr tax on Rs. 15.08 Cr PBT).
Legal Contingencies
NSE imposed fines totaling Rs. 4,21,260 (Rs. 3,00,900 for Reg 17(1) and Rs. 1,20,360 for Reg 18(1)) for non-compliance during Q3 FY25, which were remitted in March 2025.
Risk Analysis
Key Uncertainties
Weather dependency for green leaf production (potential impact >15% on yield) and foreign exchange volatility affecting export realizations.
Geographic Concentration Risk
100% of production is concentrated in the Nilgiris region of Tamil Nadu.
Third Party Dependencies
Low dependency on third-party suppliers as the company relies primarily on its own estates for green leaf production.
Technology Obsolescence Risk
The company is mitigating traditional labour-intensive risks through digital transformation and mechanized harvesting.
Credit & Counterparty Risk
Trade receivables increased by Rs. 3.28 Cr in H1 FY26, indicating a temporary increase in credit exposure.