Dhunseri Tea & Industries rating cut to CARE A- on ₹147 crore facilities

Dhunseri Tea & Industries (NSE: DTIL) had its bank facilities reviewed by CARE Ratings, which downgraded long-term facilities to CARE A-; Stable from CARE A; Stable and short-term facilities to CARE A2 from CARE A2+, it said in a filing on 05 Nov 2026. Total rated facilities are ₹147.26 crore.

Key highlights

• Long-term bank facilities: ₹146.76 crore, CARE A-; Stable
• Short-term bank facilities: ₹0.50 crore, CARE A2
• Total rated facilities: ₹147.26 crore
• Group liquidity cited by CARE: about ₹930 crore at 31 Mar 2026

The rating action in numbers

A one-notch cut on a slightly smaller long-term amount

The long-term bank facilities fell from ₹148.93 crore to ₹146.76 crore, a reduction of ₹2.17 crore, and their rating moved from CARE A; Stable to CARE A-; Stable. The short-term facility of ₹0.50 crore moved from CARE A2+ to CARE A2.

Consolidated total operating income rose 5% from ₹456.38 crore in FY25 to ₹477.61 crore in FY26, and Q1FY27 consolidated PBILDT was ₹20.26 crore and PAT ₹4.52 crore, both unaudited.

It lists a PBILDT margin beyond 10% on a sustained basis as a positive factor.

Debt repayments and sale proceeds

CARE says the company has high debt repayments of about ₹35 crore each in FY27 and FY28. It expects the FY27 repayment to be met partly from cash accruals and from proceeds of gardens sold in FY26.

In FY26 the company sold Deohall Tea estate for about ₹23.50 crore and Balijan Tea Estate for about ₹35.00 crore. Receivables of about ₹23.88 crore were outstanding against these sales, of which about ₹18 crore was received in H1FY27, leaving about ₹5.88 crore (derived).

Promoter support and CARE's outlook

CARE says the ratings benefit from the promoters' experience, the company's track record in the tea industry and the group's liquidity, which it puts at about ₹930 crore as on 31 Mar 2026 in Dhunseri Investment Limited consolidated books. The promoter group has provided unsecured loans on a need basis, with ₹3.75 crore outstanding as on 31 Mar 2026.

What the rating change means for Dhunseri Tea & Industries' shareholders

The filing confirms a lower long-term rating and a smaller long-term amount, with the outlook unchanged at Stable. The filing does not say what the rating action means for the company's bonds or share price, and it gives no reason for the outlook beyond CARE's rationale in the enclosed press release, nor a timetable for using the FY27 repayment funds beyond the sources named.