Kanco Tea's Revenue Growth Masks a Profitability Squeeze
The tea producer posted a 12.5% yearly sales gain, but net profit margin narrowed slightly as costs rose.
Kanco Tea & Industries reported a 12.5% yearly rise in Q1 revenue, though profit growth lagged and margins contracted. The quarter marks a return to profitability after a loss.
Kanco Tea & Industries returned to profitability in the first quarter of FY27, with revenue rising 12.5% year-on-year. However, a slight contraction in net profit margin indicates costs grew slightly faster than sales, presenting a mixed picture for the tea producer.
The company's quarterly performance shows clear seasonal volatility. While revenue jumped a staggering 440.7% from the very weak prior quarter, profit swung from a significant loss to a modest gain of ₹2.5 crore. This return to the black is a positive step, but the underlying profitability has softened compared to the same period last year.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Jun 2026 | Mar 2026 | Jun 2025 |
| Revenue (₹ Cr) | 14.76YoY +13% | 2.73 | 13.12 |
| Profit (₹ Cr) | 2.50YoY +12% | -14.08 | 2.23 |
| Net Profit Margin (%) | 16.9YoY -0.6% | – | 17.0 |
The table highlights the company's erratic earnings path over the past year, with profitability heavily dependent on the quarter. The latest net profit margin of 16.9% is a solid showing but sits below the 17.0% margin from Q1 last year and far below the peak of 31.3% seen in Q2 FY26.
Looking at the trailing twelve months (TTM), the picture is less encouraging, with an overall net loss of ₹5.18 crore. This underscores how critical consistent quarterly performance is for Kanco Tea's full-year health. The company's stock has faced headwinds, declining over 25% in the past year, which may reflect investor caution around this earnings volatility.
For now, the focus is on whether the company can stabilize its operations and protect margins as it builds on its latest top-line growth.
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· KANCOTEA
(BSE)
ISIN: INE398L01017
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