Naga Dhunseri Group Q2 Net Profit Surges 1,170% YoY to ₹92.7 Crore as Margins Expand

Key numbers

Promoter Holding	73.58%Unchanged QoQ
Market Cap	₹244.5 CrSmall Cap
RSI	52.47Neutral Zone
Price to Book	0.19xAdjusted BV

Key highlights

• Net profit soared by 1,169.9% year-on-year to ₹92.7 crore in Q2 FY27
• Consolidated revenue from operations grew 25.9% YoY to ₹219 crore
• Operating margins expanded to 38.6% from 10.0% in the year-ago quarter
• Other income surged to ₹12.6 crore from just ₹0.5 crore in Q2 FY26
• Treasury operations segment profit reached ₹66.10 crore before tax and interest
• Net profit grew 141.4% on a sequential basis compared to Q1 FY27

Diversified Revenue Streams Drive Operational Growth

Naga Dhunseri Group’s consolidated revenue of ₹219 crore for the September 2026 quarter reflects a balanced contribution from its investment activities and its tea plantation subsidiaries. The company reported ₹151.17 crore from the sale of products and services, primarily derived from its tea business, while treasury operations contributed significant fair value gains. This performance led to a sharp expansion in operating margins to 38.6%, up from 20.4% in the preceding quarter.

The group managed to triple its profit before tax sequentially to ₹89.3 crore, benefiting from a recovery in investment valuations and stable plantation outputs across its Indian and international holdings.

Treasury Turnaround and Subsidiary Performance

• Treasury operations segment revenue rose to ₹67.43 crore compared to ₹2.88 crore in Q2 FY26
• Sale of tea and macadamia nuts contributed ₹151.17 crore to the consolidated top line
• International tea operations outside India accounted for ₹45.25 crore of the quarterly revenue
• Share of profit from equity-accounted associate Dhunseri Investments Limited stood at ₹13.78 crore
• The company recorded a non-cash hyperinflationary adjustment loss of ₹1.51 crore for Malawi-based subsidiaries
• Other income reached ₹12.6 crore, primarily from purchase and sale activities in step-down subsidiaries

Malawi Plantation Fire and Hyperinflation Impacts

The company’s international operations faced unique challenges, including the application of Ind AS 29 for hyperinflationary economies in Malawi. This resulted in a non-cash restatement loss that marginally impacted the consolidated bottom line. Additionally, the group disclosed a post-reporting period fire incident at its Kawalazi Estate plantation in Malawi.

While identified as a non-adjusting event for the September results, the management is currently assessing the extent of damage and consequential financial impact. Despite these hurdles, the treasury segment's strong performance acted as a buffer, ensuring the group achieved a high double-digit operating margin for the quarter.

Market Valuation and Technical Standing

Trading at a current price of ₹2,445, Naga Dhunseri Group has a market capitalization of ₹244.5 crore. The stock has experienced a 32.9% decline over the past year, contrasting with the significant recent recovery in its financial earnings. Technical indicators such as an RSI of 52.47 suggest the stock is in a neutral momentum phase.

With a TTM Price-to-Earnings ratio of -746.56 against a sector average of 21.16, the stock's valuation reflects its recent transition from annual losses toward quarterly profitability. Promoter holding remains robust and stable at 73.58%, with no reported pledges.

What to watch next

• Damage assessment and financial impact report for the fire incident at Kawalazi Estate in Malawi
• Q3 FY27 financial results announcement scheduled for February 2027
• Ongoing monitoring of hyperinflationary restatements for African subsidiaries

Naga Dhunseri Group · financial snapshot

Share price	₹2445
Market capitalisation	₹244.50 Cr
Revenue (annual)	₹463.30 Cr
Net profit (annual)	-₹9.33 Cr
Revenue (latest quarter)	₹94.48 Cr+151.85% vs previous quarter
Net profit (latest quarter)	₹36.36 Cr+235.92% vs previous quarter
P/E (TTM)	-746.56×Sector 21.16×
Promoter holding	73.58%0.00% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.