Dhunseri Tea & Industries Ltd Returns to Profit in June Quarter

Dhunseri Tea & Industries Ltd reported a standalone net profit of ₹11.66 crore for the quarter ended June 30, 2026, reversing a ₹32.93 crore loss in the preceding March quarter. The recovery was supported by operating profit of ₹21.83 crore, while standalone net sales were ₹57.75 crore.

What did Dhunseri Tea report for the June 2026 quarter?

Dhunseri Tea reported a sharp sequential recovery in standalone profitability for the June 2026 quarter. Profit after tax was ₹11.66 crore, compared with a loss of ₹32.93 crore in the March 2026 quarter. Profit before tax improved to ₹18.42 crore from a pre-tax loss of ₹40.82 crore over the same period.

The improvement coincided with a return to positive operating performance. Operating profit was ₹21.83 crore in the June quarter, against an operating loss of ₹45.86 crore in the prior quarter. Total expenditure declined to ₹35.91 crore from ₹65.77 crore, while net sales increased from ₹19.91 crore to ₹57.75 crore.

The company reported adjusted earnings per share of ₹11.10 for the June 2026 quarter. This followed negative adjusted EPS of ₹31.34 in the March quarter. Interest expense was ₹1.88 crore, up from ₹1.42 crore sequentially, while depreciation remained broadly unchanged at ₹2.91 crore.

How did the quarterly numbers change from March 2026?

Dhunseri Tea's June-quarter performance marked a reversal from the weak March quarter, although sales remained below the ₹72.43 crore recorded in June 2025. Net sales fell 20.3% year on year, based on the standalone quarterly figures, but rose 190.1% from the March 2026 level.

Operating margin improved to about 37.8% in June 2026 from a negative margin in March 2026, based on reported operating profit and net sales. In June 2025, operating profit was ₹15.38 crore on net sales of ₹72.43 crore. The June 2026 operating result was therefore higher despite lower sales, aided by lower expenditure.

The reported profit comparison also reflects the impact of exceptional items in the March quarter. Dhunseri Tea recorded ₹4.35 crore of exceptional items in that quarter, while no exceptional item was reported for June 2026. Other income declined to ₹1.38 crore from ₹5.02 crore sequentially.

What does the FY26 performance show about operations?

Dhunseri Tea reported standalone net profit of ₹5.90 crore for the year ended March 31, 2026, compared with ₹2.32 crore in FY25. At the consolidated level, however, the company reported a net loss of ₹2.50 crore in FY26, narrowing from a loss of ₹20.05 crore in the preceding year.

Indian tea manufacturing rose to 12.20 million kg in FY26 from 11.73 million kg in FY25. The increase was attributed to improved agricultural practices. Offshore tea manufacturing moved in the other direction, declining to 8.00 million kg from 9.16 million kg.

The company has also begun multi-crop cultivation at its Duamara Tea Estate, where turmeric was planted across 13 hectares. Production is expected in winter FY27, according to the disclosed update. Macadamia production increased to 0.32 million kg in FY26 from 0.25 million kg a year earlier.

Why do the June-quarter results matter for investors?

The June result is relevant because it follows a March-quarter operating loss and comes amid concerns about financial performance and repayment obligations. The cited rating assessment referred to weaker-than-expected performance in FY25 and FY26, including operating losses, and annual debt repayments of about ₹35 crore in FY27 and FY28.

The stable outlook in that assessment was supported by the promoter group's liquidity and historical track record. The June-quarter recovery provides a positive standalone data point, but the company had also recorded uneven results across recent quarters, including operating profits of ₹32.22 crore in September 2025 and ₹2.69 crore in December 2025 before the March loss.

For investors, the key reported measures are the sustainability of operating profitability, sales movement, interest costs and the company's ability to meet stated repayment requirements. The June-quarter result showed lower expenditure and a positive operating outcome, while annual consolidated performance remained loss-making in FY26.

Conclusion

Dhunseri Tea returned to standalone profitability in the June 2026 quarter, with net profit of ₹11.66 crore after a ₹32.93 crore loss in March. The improvement was accompanied by operating profit of ₹21.83 crore and a substantial sequential reduction in expenditure, though net sales were lower than the June 2025 level.

The next disclosed financial event is the board meeting scheduled in November 2026 to consider unaudited results for the September quarter and first half of FY27. Investors will watch whether the June operating recovery continues, alongside debt repayment requirements of about ₹35 crore annually in FY27 and FY28.