Mcleod Russel India LimitedQ1 FY27 Results & Financial Update
Mcleod Russel India Limited: Q1 FY27 consolidated results and company financials – revenue ₹261.11 Cr, PAT ₹-13.38 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Mcleod Russel India Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
For the quarter ended 30 June 2026, McLeod Russel reported consolidated revenue from operations of INR 261.11 crore and a total income of INR 263.70 crore.
The company recorded a consolidated loss before tax of INR 13.33 crore and a net loss after tax (PAT) of INR 13.38 crore, resulting in a basic and diluted EPS of INR -1.28.
Employee benefits expenses formed a major cost component at INR 214.53 crore for the consolidated entity during the quarter, impacted by wage revisions and interim daily-rated worker wage increases.
The company's financial position continues to experience stress, with current liabilities exceeding current assets and ongoing constraints driven by legacy Inter-Corporate Deposits (ICDs) and debt obligations.
During the quarter, the company progressed with debt restructuring plans, including approvals from Asset Reconstruction Companies (ARCs) such as NARCL and JCAF, subject to conditions precedent like asset monetization.
Statutory auditors issued an adverse conclusion on the financial results, citing significant uncertainties regarding the recoverability of ICDs, non-recognition of certain interest expenses, and going-concern considerations.
01 · Business model
What does Mcleod Russel India do?
McLeod Russel India Limited is primarily engaged in the business of cultivation, manufacture, and sale of tea across various geographical locations.
The company operates on a consolidated basis with subsidiaries including Borelli Tea Holdings Limited in the UK and step-down subsidiaries in Uganda, Kenya, and Dubai.
Due to the nature of agricultural tea cultivation, the company's business is highly seasonal, meaning quarterly results do not necessarily indicate full-year performance.
02 · Historical context
What shaped the business before this quarter
Since earlier years and up to 31 March 2019, the company advanced Inter-Corporate Deposits aggregating to INR 2,76,109 lakhs to promoter group and other entities, against which substantial provisions have been recognized.
The debt resolution process initiated under RBI's 7 June 2019 circular has progressed, leading to the assignment of borrowings to ARCs including NARCL and JCAF in prior periods.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹261.11 Cr |
| Total income | ₹263.70 Cr |
| Profit before tax | ₹-13.33 Cr |
| Profit after tax | ₹-13.38 Cr |
| EPS | ₹-1.28 |
Financial interpretation
What the reported numbers mean
Profit after tax represented -5.1% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to -5.1% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹2.59 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Consolidated revenue was driven by operations in India generating INR 203.99 crore and international subsidiaries such as Uganda contributing INR 43.67 crore.
Tea realizations improved to a certain extent during the quarter, supporting operational top-line performance despite seasonal constraints.
What drove margins
Margins were weighed down by high employee benefit expenses, including a retrospective sub-staff wage settlement impact of INR 3.82 crore and an interim daily-rated worker wage increase in Assam of INR 9.22 crore.
Consolidated finance costs stood at INR 29.33 crore, while other expenses were INR 121.64 crore, reflecting ongoing operational overheads.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The group reports tea manufacturing and selling segments across India (revenue of INR 203.99 crore, segment result of loss of INR 15.26 crore) and Uganda (revenue of INR 43.67 crore, segment result of profit of INR 1.13 crore).
Geography and market mix
Step-down subsidiaries in Uganda, Kenya, and Dubai collectively contributed total income of INR 58.77 crore and a net profit after tax of INR 1.43 crore for the quarter.
06 · Strategy & new businesses
How the company is trying to change its growth mix
In line with NARCL debt restructuring requirements, the Board approved the sale of specified assets of four tea estates for an aggregate consideration of INR 123.05 crore, with additional sales of other estates finalized post-quarter.
07 · Pressure points & risks
What is not going smoothly
The company's current liabilities exceeded its current assets, and operational losses have severely impacted net worth and liquidity.
08 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital allocation & funding
Debt assigned to NARCL and JCAF has been restructured into sustainable and unsustainable portions, with sustainable debt payable through promoters' contribution and asset monetization over agreed timelines.
A settlement proposal for the remaining borrowing of INR 120.31 crore payable to a lender bank has been submitted and is under consideration.
09 · Beyond the numbers
What changed beyond the numbers
Reported update
Statutory Wage Revisions
The Government of Assam increased the wage rate of daily rated workers by INR 30 per day effective 01 April 2026 on an interim basis, resulting in an incremental impact of INR 9.22 crore recognized during the quarter.
10 · Key Q&A
The quarter, answered directly
What does Mcleod Russel India do?
McLeod Russel India Limited is primarily engaged in the business of cultivation, manufacture, and sale of tea across various geographical locations.
What is the clearest takeaway from Q1 FY27?
For the quarter ended 30 June 2026, McLeod Russel reported consolidated revenue from operations of INR 261.11 crore and a total income of INR 263.70 crore.
What drove revenue or demand?
Consolidated revenue was driven by operations in India generating INR 203.99 crore and international subsidiaries such as Uganda contributing INR 43.67 crore.
What mattered most for margins or profitability?
Margins were weighed down by high employee benefit expenses, including a retrospective sub-staff wage settlement impact of INR 3.82 crore and an interim daily-rated worker wage increase in Assam of INR 9.22 crore.
What changed operationally beyond the headline numbers?
In line with NARCL debt restructuring requirements, the Board approved the sale of specified assets of four tea estates for an aggregate consideration of INR 123.05 crore, with additional sales of other estates finalized post-quarter.
What are the main pressure points disclosed for the quarter?
The company's current liabilities exceeded its current assets, and operational losses have severely impacted net worth and liquidity.
11 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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12 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Master Restructuring Agreement Execution: Monitor the formal execution of the Master Restructuring Agreement (MRA) with NARCL and fulfillment of conditions precedent.
- 02
Asset Monetization Completion: Track the completion of approved tea estate asset sales and realization of sale proceeds for debt servicing.
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Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.