B & A Q2 revenue rises to Rs 120.11 crore as profit dips

B & A Limited reported consolidated revenue from operations of Rs 120.11 crore for the quarter ended 30 September 2026, up from Rs 102.90 crore a year earlier, while net profit declined to Rs 25.24 crore from Rs 26.38 crore. Tea and paper sacks increased revenue and segment profit, while flexible laminates reported a loss.

How did B & A perform in the September 2026 quarter?

B & A generated Rs 120.11 crore of revenue from operations in the three months ended 30 September 2026, compared with Rs 102.90 crore in the corresponding 2025 quarter. Total income reached Rs 120.71 crore, including other income of Rs 59.15 lakh, versus Rs 103.95 crore a year earlier.

Profit before tax was Rs 25.78 crore, down from Rs 27.45 crore in the September 2025 quarter, and profit for the period was Rs 25.24 crore against Rs 26.38 crore. Finance cost increased to Rs 2.59 crore from Rs 2.12 crore, while basic and diluted earnings per share were Rs 80.69, compared with Rs 82.21.

The September quarter was materially larger than the immediately preceding June 2026 quarter, when revenue from operations was Rs 71.60 crore and profit for the period was Rs 2.58 crore. B & A states that the parent company's black-tea cultivation, production and sale operations are seasonal, making the quarter and six-month results not indicative of the full financial year.

Which B & A segments drove September-quarter revenue?

B & A's tea segment was the largest contributor, reporting revenue of Rs 68.03 crore for the September 2026 quarter, up from Rs 62.34 crore a year earlier. Paper sacks revenue increased to Rs 31.07 crore from Rs 25.84 crore, while flexible laminates revenue rose to Rs 21.01 crore from Rs 14.72 crore.

The three operating segments together matched the group’s Rs 120.11 crore revenue from operations. Tea generated segment profit before tax and finance cost of Rs 26.20 crore, compared with Rs 24.71 crore in the year-earlier quarter, and paper sacks generated Rs 4.84 crore, up from Rs 3.63 crore.

Flexible laminates was the exception in the quarterly segment comparison. It reported a loss before tax and finance cost of Rs 2.67 crore, compared with a profit of Rs 1.13 crore in the September 2025 quarter, despite its Rs 6.29 crore increase in revenue.

Aggregate segment profit before tax and finance cost consequently declined to Rs 28.38 crore from Rs 29.47 crore. After finance cost of Rs 2.59 crore, compared with Rs 2.12 crore a year earlier, B & A reported profit before tax of Rs 25.78 crore for the quarter.

What changed in B & A's first-half results?

B & A reported first-half revenue from operations of Rs 191.72 crore for the six months ended 30 September 2026, compared with Rs 158.53 crore in the corresponding 2025 period. Total income increased to Rs 193.49 crore from Rs 160.69 crore, even as other income fell to Rs 1.78 crore from Rs 2.17 crore.

Profit before tax for the six months rose to Rs 29.34 crore from Rs 25.39 crore, while profit for the period was Rs 27.82 crore. Total comprehensive income was Rs 27.88 crore, compared with Rs 24.10 crore in the previous-year half, including other comprehensive income of Rs 8.37 lakh.

Tea’s six-month revenue rose to Rs 97.83 crore from Rs 83.19 crore, paper sacks increased to Rs 58.46 crore from Rs 47.59 crore, and flexible laminates reached Rs 35.42 crore from Rs 27.74 crore. Flexible laminates nevertheless recorded a first-half loss before tax and finance cost of Rs 2.43 crore, against a profit of Rs 2.42 crore a year earlier.

B & A recorded finance cost of Rs 4.65 crore for the half year, compared with Rs 3.79 crore in the preceding corresponding period. Depreciation and amortisation increased to Rs 4.12 crore from Rs 3.03 crore, while total expenses rose to Rs 164.15 crore from Rs 135.30 crore.

What do B & A's balance sheet and cash flows show?

B & A's total assets were Rs 378.12 crore at 30 September 2026, compared with Rs 321.43 crore at 31 March 2026. Current assets increased to Rs 197.90 crore from Rs 141.36 crore, with inventories rising to Rs 93.59 crore from Rs 53.86 crore and trade receivables increasing to Rs 52.63 crore from Rs 28.85 crore.

Cash and cash equivalents declined to Rs 7.04 crore at 30 September 2026 from Rs 12.44 crore at the March 2026 year-end. Total equity rose to Rs 190.22 crore from Rs 162.47 crore, while total liabilities increased to Rs 187.90 crore from Rs 158.96 crore.

Operating activities used Rs 9.04 crore during the six months ended 30 September 2026, compared with an outflow of Rs 5.26 crore in the prior-year period. The cash-flow statement recorded a Rs 39.73 crore increase in inventories and a Rs 24.33 crore increase in trade receivables, partly offset by a Rs 13.76 crore increase in trade payables.

Investing activities used Rs 6.16 crore, including Rs 6.20 crore for property, plant, equipment and intangible assets, against Rs 3.91 crore used in the previous-year half. Financing activities generated Rs 9.79 crore after term-loan proceeds of Rs 12.03 crore and Rs 5.38 crore of proceeds from current borrowings, resulting in a Rs 5.40 crore decline in cash and cash equivalents.

What is the status of B & A's financial-statement legal matter?

B & A's audit committee and board approved the unaudited consolidated results on 14 November 2026. The independent auditor said its review had not identified matters causing it to believe the statement failed to make disclosures required under the listing regulations, while noting that a review provides moderate rather than audit assurance.

The auditor drew attention to an order dated 4 August 2026 that restrained implementation of annual general meeting resolutions, including adoption of financial statements for the year ended 31 March 2026. B & A said the September 2026 consolidated results were prepared using underlying audited consolidated figures approved by the board and audited by the statutory auditors.

The restraint followed proceedings brought by Amrex Marketing Private Limited in Miscellaneous Case No. 200 of 2026 arising from Title Suit No. 715 of 2026. B & A said it has not given effect to the relevant annual general meeting resolution pending further court orders, and that the restraint does not itself alter the underlying audited financial figures.

B & A also said black-tea stock at 30 September 2026 was valued at the lower of cost and net realisable value, with cost based on estimated production cost and expenditure for the year ending 31 March 2027. The company said the valuation method reflects non-uniform production and expenditure through the year.

Conclusion

B & A increased September-quarter revenue by Rs 17.21 crore year on year to Rs 120.11 crore, led by tea, paper sacks and flexible laminates sales. However, the move by flexible laminates to a Rs 2.67 crore segment loss, together with higher finance cost, coincided with a Rs 1.13 crore decline in quarterly profit for the period to Rs 25.24 crore.

The next disclosed matters to watch are the pending court proceedings concerning the 4 August 2026 restraint on annual general meeting resolutions and the seasonal progression of the tea business through the financial year ending 31 March 2027. B & A has specifically said the September six-month results are not indicative of the full-year outcome.