Andrew Yule & Company Limited posts Rs 21.4823 crore first-half loss

Andrew Yule & Company Limited posted a standalone net loss of Rs 21.4823 crore for the half year ended September 30, 2026, reversing a Rs 22.3197 crore profit a year earlier, as the tea segment reported a Rs 13.3726 crore loss before interest and tax despite sales growth. Net sales rose to Rs 154.4733 crore from Rs 126.9843 crore.

Why did Andrew Yule post a first-half loss?

Andrew Yule posted a first-half loss because expenses increased while other income dropped sharply from the prior-year level. Total expenses were Rs 186.4808 crore in the half year ended September 30, 2026, up from Rs 172.4465 crore a year earlier, while total income declined to Rs 167.4091 crore from Rs 198.3676 crore. The company consequently reported a pre-tax loss of Rs 19.0717 crore, against a pre-tax profit of Rs 25.9211 crore in the corresponding period.

The main difference in income was other income, which fell to Rs 12.071 crore in the latest first half from Rs 70.7135 crore in the prior-year first half. Other operating income increased to Rs 86.48 lakh from Rs 66.98 lakh, but this did not offset the decline in other income. Net sales and income from operations nevertheless increased by Rs 27.489 crore year on year to Rs 154.4733 crore.

Costs rose across several reported lines. Material costs increased to Rs 66.5575 crore from Rs 61.4827 crore, employee-benefit expense rose to Rs 108.4913 crore from Rs 100.1953 crore, and finance cost increased to Rs 13.6248 crore from Rs 9.4004 crore. Other expenses also increased to Rs 30.5879 crore from Rs 29.9996 crore, while the inventory-change line was negative Rs 36.0641 crore compared with negative Rs 31.7591 crore.

How did tea affect Andrew Yule's first-half result?

Tea was Andrew Yule's largest loss-making segment in the first half, reporting a Rs 13.3726 crore loss before interest and tax. The loss narrowed from Rs 25.5496 crore in the half year ended September 30, 2025, while tea revenue increased to Rs 86.4934 crore from Rs 69.6984 crore. The improvement in revenue and segment loss therefore did not bring tea to profitability.

Electrical-Chennai and engineering reported positive segment results, unlike tea and Electrical-Kolkata. Electrical-Chennai earned Rs 2.8291 crore before interest and tax, compared with Rs 1.7655 crore a year earlier, and engineering reported Rs 1.9281 crore against a Rs 1.4647 crore loss. Electrical-Kolkata recorded a Rs 40.89 lakh loss, narrower than the Rs 62.50 lakh loss in the corresponding half year.

Tea's segment assets stood at Rs 319.4328 crore at September 30, 2026, while its segment liabilities were Rs 346.7014 crore. This resulted in negative segment capital employed of Rs 27.2686 crore, compared with positive capital employed of Rs 54.9732 crore a year earlier. The year-on-year movement reflects both a rise in tea liabilities from Rs 255.0818 crore and a smaller increase in tea assets from Rs 310.055 crore.

What changed in Andrew Yule's September 2026 quarter?

Andrew Yule returned to a quarterly net profit of Rs 45.80 lakh in the three months ended September 30, 2026, following a Rs 21.0244 crore loss in the preceding June 2026 quarter. The September-quarter result also differed from the Rs 1.3598 crore net loss reported in the corresponding three months of 2025. Profit before tax was Rs 1.9526 crore, compared with a Rs 21.0244 crore pre-tax loss in the June quarter.

Quarterly net sales rose to Rs 96.632 crore from Rs 57.8413 crore in the preceding quarter and Rs 71.508 crore a year earlier. Total income reached Rs 108.0442 crore, including Rs 11.0033 crore of other income, while total expenses were Rs 106.0916 crore. The resulting gap between total income and expenses was Rs 1.9526 crore before tax.

Tea's quarterly segment loss reduced to Rs 78.22 lakh from Rs 12.5904 crore in the June quarter as tea revenue increased to Rs 57.8061 crore from Rs 28.6873 crore. Engineering reported a Rs 1.6275 crore segment profit, up from Rs 30.06 lakh in June, while Electrical-Chennai earned Rs 1.3967 crore compared with Rs 1.4324 crore. Electrical-Kolkata recorded a Rs 19.83 lakh loss in the September quarter.

What does Andrew Yule's balance sheet and review report show?

Andrew Yule's total assets rose to Rs 533.4578 crore at September 30, 2026, from Rs 499.3833 crore at March 31, 2026, while total equity fell to Rs 58.1231 crore from Rs 75.6807 crore. Total liabilities increased to Rs 475.3347 crore from Rs 423.7027 crore over the same period. Current assets included inventory of Rs 99.3592 crore, up from Rs 57.504 crore at the March year-end.

Trade receivables declined to Rs 68.4065 crore at September 30 from Rs 87.5174 crore at March 31, while cash and cash equivalents rose to Rs 8.3308 crore from Rs 4.1123 crore. Current borrowings increased to Rs 136.6367 crore from Rs 120.7193 crore, and non-current borrowings rose to Rs 13.4065 crore from Rs 60 lakh. Current liabilities were Rs 420.2198 crore, compared with Rs 383.2069 crore at the preceding financial year-end.

The independent auditor's limited-review report said nothing had come to its attention to indicate that the standalone statement was materially misstated, and its conclusion was not modified for the matters highlighted. The auditor noted that audit-trail features had been introduced only for financial transactions such as the cash book, and cited significant manual intervention in consolidation. It also said the lack of an integrated system created a higher level of audit risk.

The report identified provident-fund liabilities of Rs 62.5475 crore and gratuity liabilities of Rs 18.925 crore for various months as of September 30, 2026. It said Rs 5.3192 crore of penalty or demurrage relating to delayed provident-fund payments had not been considered or accounted for. Andrew Yule provided Rs 71.41 lakh for Securities and Exchange Board of India penalties for listing-rule non-compliance and requested a waiver, according to the report.

Conclusion

The first-half result shows that higher standalone sales did not translate into profit for Andrew Yule. The Rs 27.489 crore increase in net sales was outweighed by higher expenses, lower other income and a Rs 13.3726 crore tea-segment loss. Electrical-Chennai and engineering improved year on year, but their segment profits did not offset tea's loss and the company's finance and unallocable costs.

The next disclosures to watch are the unresolved provident-fund, gratuity and potential penalty matters cited by the auditor, including Andrew Yule's request for a waiver of the Rs 71.41 lakh SEBI penalty. The company had also submitted proposals to the Ministry of Heavy Industries on January 4, 2023, to close wholly owned subsidiaries Yule Engineering Limited and Yule Electrical Limited, which remain a disclosed matter in the limited-review report.