The company said that its financial position is under constant pressure and it has been going through a prolonged financial crisis for a long time.
Bulk tea producer McLeod Russel on Friday said its consolidated net loss narrowed to ₹36.41 crore in the third quarter of the current financial year from ₹87.33 crore in the corresponding period last fiscal, as its revenue from operations grew 20 per cent year-on-year.
According to the stock exchange filing, revenue from operations increased from ₹370.56 crore for Q3FY25 to ₹445.45 crore for Q3FY26.
The company said that its financial position is under constant pressure and it has been going through a prolonged financial crisis for a long time. Realization against tea has also been significantly impacted, impacting the volume of operations and the company’s performance on an overall basis. “Inter-corporate deposits (ICDs) granted in previous years to various promoter groups and certain other entities and interest to the extent previously accrued are outstanding as on this date,” it said.
Notably, the stressed asset resolution process for the company was initiated much earlier under the guidelines of the Reserve Bank of India. An Inter-Creditors Agreement (ICA) was signed by all the creditors to arrive at and implement the resolution plan. Additionally, forensic audit for utilization of funds borrowed in the past, Techno Economic Viability (TEV) study, valuation of tea gardens and other assets and credit rating for the draft resolution plan prepared by SBI Capital Markets, one of the leading investment bankers, were completed at the behest of the lenders.
“Even the one-time settlement (OTS) offered by the parent company of the entire amount outstanding against their loan including interest was made at the behest of the lenders. Meanwhile, some lenders and other creditors have filed petitions before the Debt Recovery Tribunal (DRT) and in the National Company Law Tribunal, Kolkata (NCLT) against the parent company under the Insolvency and Bankruptcy Code, 2016 (IBC), which till date are pending.”
Published on February 13, 2026
