McLeod Russel Reports Narrowing of Q3 Net Loss at ₹36.41 Crore, Revenue Rises 20%

Why It Matters

The loss reduction signals a tentative turnaround, yet persistent distress and legal hurdles highlight significant risk for investors and the broader tea sector.

Key Takeaways

• Net loss fell to ₹36.41 crore
• Revenue rose 20% to ₹445.45 crore
• ICDs and interest remain outstanding
• Forensic audit and TEV study completed
• OTS offers and legal petitions pending

Pulse Analysis

McLeod Russel, one of India’s largest tea producers, posted a markedly narrower Q3 loss, reflecting modest operational recovery amid a historically volatile sector. The 20% revenue uplift stems from higher tea prices and improved estate yields, yet the company’s balance sheet remains strained by legacy inter‑corporate deposits and accrued interest. This duality underscores the delicate balance between top‑line growth and deep‑seated debt burdens that have plagued the firm for years.

The restructuring framework follows RBI‑mandated stressed‑asset protocols, with all lenders signing an Inter‑Creditor Agreement and commissioning a forensic audit to trace fund utilisation. A comprehensive Techno‑Economic Viability study and asset valuation, prepared by SBI Capital Markets, provide a data‑driven roadmap for potential resolution. While the parent has floated One‑Time Settlement offers, multiple creditors have lodged petitions with the Debt Recovery Tribunal and NCLT, indicating that consensus on a final plan is still elusive.

For investors and industry watchers, McLeod Russel’s trajectory offers a bellwether for the Indian tea market’s health. A narrowed loss may boost confidence, but the unresolved legal and debt issues could constrain cash flow and limit future capital investments. Stakeholders should monitor the outcome of the ICA implementation and any court‑ordered resolutions, as these will dictate whether the company can transition from distress to sustainable profitability.

McLeod Russel reports narrowing of Q3 net loss at ₹36.41 crore, revenue rises 20%

Updated · February 13, 2026 at 09:41 PM

Bulk tea producer McLeod Russel on Friday reported narrowing of its consolidated net loss to ₹36.41 crore for the third quarter this fiscal from ₹87.33 crore for the corresponding period last fiscal, as its revenue from operations grew 20 percent year‑on‑year.

Revenue from operations rose to ₹445.45 crore for Q3FY26 from ₹370.56 crore for Q3FY25, according to a stock‑exchange filing.

The company said its financial position continued to be under stress and it is passing through prolonged financial distress over a considerable period of time. The realisation against tea has also been affected significantly, having an impact on the volume of operations and the company’s performance on an overall basis. “The Inter‑Corporate Deposits (ICDs) given to various promoter groups and certain other entities in earlier years along with interest to the extent accrued earlier are lying outstanding as on this date,” it said.

Notably, the stressed‑assets resolution process for the company under the Reserve Bank of India’s guidelines was initiated long back in earlier years. An Inter‑Creditor Agreement (ICA) for arriving at and implementing the resolution plan was signed by all the lenders. Moreover, the forensic audit for the utilisation of funds borrowed in the past conducted on behest of the lenders, Techno‑Economic Viability (TEV) study, valuation of tea estates and other assets and credit rating for draft resolution plan prepared by SBI Capital Markets, one of the leading investment bankers, were completed.

“Even offers for One‑Time Settlement (OTS) of the entire amount outstanding against their loans including interest thereon were made at the behest of the lenders by the parent. Meanwhile, certain lenders and other creditors have filed petitions before Debt Recovery Tribunal (DRT) and under Insolvency and Bankruptcy Code, 2016 (IBC) with National Company Law Tribunal, Kolkata (NCLT) against the parent, which are pending as on this date,” the tea major said.

Published on February 13, 2026