Mcleod Russel India's Q2 FY 2025-26 Quarterly Results

Result Summary

• Mcleod Russel India Ltd reported a 66.7% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 19.9%.
• Its expenses for the quarter were up by 20.9% QoQ and down 9.1% YoY.
• The net profit decreased 166.8% QoQ and decreased 65.6% YoY.
• The earnings per share (EPS) of Mcleod Russel India Ltd stood at 2.79 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Mcleod Russel India Ltd is a prominent player in the tea industry. The company is known for being one of the largest tea producers globally, with a significant presence in both domestic and international markets. Traditionally, Mcleod Russel's operations include the cultivation, processing, and sale of tea. The company operates numerous tea estates and is involved in the production of a wide variety of tea products. Recent developments in the company have not been specified in the provided data, but the tea industry overall has faced challenges related to climate change, fluctuating demand, and international trade policies. The company's focus remains on maintaining high-quality production and exploring new market opportunities.

Revenue

In the second quarter of FY26, Mcleod Russel India Ltd reported a total income of ₹363.39 crores, which marks a significant quarter-over-quarter (QoQ) increase of 66.7% from the previous quarter's ₹217.94 crores. However, when compared to the same quarter in the previous fiscal year (Q2FY25), where the total income was ₹453.48 crores, there is a year-over-year (YoY) decrease of 19.9%. This fluctuation in revenue could be reflective of various factors influencing the market demand and production capacity during these periods. The company's ability to generate revenue appears to have improved significantly QoQ, though the YoY decline suggests broader market or operational challenges over the year.

Profitability

Mcleod Russel India's profitability metrics show a notable shift between quarters. The company recorded a profit before tax of ₹37.43 crores in Q2FY26, recovering from a loss of ₹51.65 crores in Q1FY26, which indicates a substantial QoQ improvement. Conversely, compared to Q2FY25, where the profit before tax was ₹94.80 crores, there is a YoY decrease of 60.5%. The tax expense for Q2FY26 was ₹8.37 crores, showing a reversal from a tax credit in Q1FY26, which stood at -₹8.17 crores. The profit after tax for the current quarter is ₹29.06 crores, contrasting with a loss of ₹43.48 crores in Q1FY26 and a profit of ₹84.54 crores in Q2FY25, reflecting a YoY decline of 65.6%. Earnings per share also follow a similar trend, with a current value of ₹2.79, up from -₹4.15 in Q1FY26, but down from ₹8.10 in the previous year.

Operating Metrics

Analyzing the company's operating metrics, Mcleod Russel India's total expenses for Q2FY26 were ₹325.96 crores, which represents a 20.9% increase from the previous quarter's ₹269.59 crores, yet a 9.1% decrease from Q2FY25's expenses of ₹358.68 crores. These changes in expenses could be indicative of varying cost structures, input prices, or operational efficiencies throughout the different periods. The significant QoQ rise in expenses might be related to increased activity or costs associated with boosting production, while the YoY decrease suggests a potential reduction in cost or scale of operations compared to the prior year. The trends in expenses and profitability metrics highlight the dynamic nature of the company's operational environment.