Peria Karamalai Tea & Produce Company: Company Overview
A 1913 Valparai Tea Estate With Three Businesses
The Peria Karamalai Tea & Produce Company Limited (NSE: PKTEA, ISIN INE431F01018) grows and processes orthodox, CTC and green tea at its Valparai estates in Tamil Nadu. It also grows pepper, coffee and avocados, sells solar and wind power, and runs a sizeable investment book. The company reports three segments: Tea, Power and Investment.
Part of the L.N. Bangur Group
The company belongs to the L.N. Bangur Group. After an NCLT-approved amalgamation, Maharaja Shree Umaid Mills Limited (MSUML) became its holding company, with an aggregate direct and indirect stake of about 51.66%, according to Note 8 of the company's FY26 results. Mrs. Alka Lakshmi Niwas Bangur has been Managing Director since 1993 and was reappointed from 17 September 2026. Market capitalisation is about ₹310 crore.
Peria Karamalai Tea & Produce Company FY26 Financial Analysis
A Loss in the P&L, a Windfall in OCI
In FY26 the company reported a standalone net loss of ₹6.67 crore (EPS ₹-21.55). Yet total comprehensive income was ₹237.86 crore, because a ₹323.68 crore fair-value gain on its MSUML entitlement went through Other Comprehensive Income (OCI). OCI is where Indian accounting rules book valuation gains that never pass through the P&L.
Net Worth Doubled Without Any Cash Coming In
Net worth rose 112%, from ₹211.97 crore to ₹449.52 crore. No cash came in with this increase. The gain comes from 93,590 Placid Limited shares, which carried a book cost of ₹63.36 crore and were swapped for 4,81,98,850 unlisted MSUML shares. Those shares were still pending allotment on 31 March 2026.
| Metric (Standalone, ₹ Cr) | FY26 | FY25 |
|---|---|---|
| Revenue from operations | 68.30 | 50.57 |
| Net profit / (loss) | (6.67) | 0.24 |
| Total comprehensive income | 237.86 | 21.06 |
| Net worth | 449.52 | 211.97 |
Source: Company's audited FY26 results filed with NSE on 26 May 2026.
Peria Karamalai Tea & Produce Company Dividend History Table
| Financial Year | DPS (₹) | % of FV | EPS (₹) | Payout | Outflow (₹ lakh) |
|---|---|---|---|---|---|
| FY26 | 0.75 | 7.5% | -21.55 | Paid from reserves | 23.22 |
| FY25 | 1.00 | 10% | 0.78 | 128.2% | 30.96 |
| FY24 | 1.00 | 10% | 17.25 | 5.8% | 30.96 |
| FY23 | 0.50 | 5% | -10.85 | Paid from reserves | 15.48 |
| FY22 | 1.00 | 10% | 1.62 | 61.7% | 30.96 |
| FY21 | 1.50 | 15% | 36.82 | 4.1% | 46.44 |
| FY20 | 0.50 | 5% | -11.69 | Paid from reserves | 15.48 |
| FY19 | 0.75 | 7.5% | 9.50 | 7.9% | 23.22 |
| FY18 | 0.75 | 7.5% | 20.25 | 3.7% | 23.22 |
| FY17 | 1.00 | 10% | 3.17 | 31.5% | 30.96 |
| FY16 | 0.75 | 7.5% | -7.07 | Paid from reserves | 23.22 |
Face value has stayed at ₹10 and equity capital at ₹3.10 crore throughout, so no bonus or split adjustment is needed. Sources: TipRanks dividend history, Screener.in, company filings. Outflows are ShareBazaar calculations on 30.96 lakh shares.
Analyst Commentary on the Peria Karamalai Tea & Produce Company Dividend
A Token Dividend, Not an Income Signal
The ₹23.22 lakh payout is 0.07% of market value. Its main job is to keep a dividend record unbroken. The company has now paid a dividend in all four loss years since FY16. A ShareBazaar Online analyst view is that the dividend is too small to tell investors anything about the business.
The Real Story Is on the Balance Sheet
Two figures matter more than the dividend. First, the MSUML stake is valued at ₹387.04 crore, about 1.25x the company's market cap. MSUML is also Peria Karamalai's own parent, so the two companies now hold each other's shares. Second, ₹26.15 crore of inter-corporate loans were given during FY26 while short-term debt was ₹39.26 crore.
Peria Karamalai Tea & Produce Company Dividend Outlook
Q1 FY27 Started Strong, But Q1 Usually Does
Q1 FY27 (June 2026) net profit was ₹9.90 crore on sales of ₹20.56 crore, according to Screener.in. Q1 was also strong in FY26, at ₹7.85 crore, but the full year still ended in a ₹6.67 crore loss. A single strong first quarter has not yet produced a profitable year.
What Could Change the Payout
The dividend has stayed between ₹0.50 and ₹1.50 for 11 years, a 10-year average of about ₹0.86. A bigger payout would most likely need cash from the investment book, such as MSUML dividends or asset sales, rather than from tea. Shareholders approved a ₹700 crore Section 186 limit for loans and investments at the 2026 AGM. That points to more capital going into group companies, not to higher dividends.
Dividend Snapshot: Peria Karamalai Tea & Produce Company
- Dividend Type: Final Dividend, FY 2025-26
- Dividend Per Share: ₹0.75 (7.5% of ₹10 face value)
- Yield on CMP (₹1,001.35): 0.075%
- Total Outflow: ₹0.23 crore (₹23.22 lakh)
- Record Date: 19 September 2026
- Ex-Date: 18 September 2026 (inferred)
- AGM Approval: 26 September 2026
- Payment Date: Not Disclosed by Company. The statutory deadline is 26 October 2026.
The Peria Karamalai Tea dividend for 2026 is 25% lower than FY25's ₹1.00. It is being paid in a year the company made a net loss, so it comes out of accumulated reserves rather than FY26 profits. CMP is the NSE close on 25 September 2026 (source: TipRanks price history).
Peria Karamalai Tea & Produce Company Dividend Announcement Summary
What the Board Decided on 26 May 2026
At its 26 May 2026 meeting, the board approved audited FY26 results and recommended a dividend of ₹0.75 per ₹10 share, subject to shareholder approval. It also reappointed Mrs. Alka Lakshmi Niwas Bangur as MD for three years. The auditors, Jayaraman & Krishna, gave an unmodified opinion, meaning they raised no qualification on the accounts.
One Key Audit Matter
The auditors flagged the MSUML fair value as a Key Audit Matter. The stake is unlisted and was valued at ₹80.30 per share on a net-asset-value basis by a registered valuer appointed by MSUML's management. Under Ind AS 113, this is a Level 3 valuation: it relies on inputs that cannot be checked against a market price. The 113th AGM declared the dividend on 26 September 2026.
Peria Karamalai Tea & Produce Company Record Date, Ex-Date and Key Dates
- 26 May 2026: Board recommended ₹0.75 final dividend
- 4 Sep 2026: Record date and book closure disclosed to NSE
- 18 Sep 2026 (Friday): Ex-date (inferred)
- 19 Sep 2026 (Saturday): Record date
- 20–26 Sep 2026: Book closure
- 26 Sep 2026: 113th AGM declared the dividend
- By 26 Oct 2026: Payment due within 30 days of declaration (Companies Act, Section 127)
The record date fell on a Saturday, a non-trading day. Under T+1 settlement, the ex-date moves to the last trading day before it, 18 September, so 17 September was the last day to buy shares that carried the dividend. This date is inferred and matches Yahoo Finance's ex-date listing. Confirm it against the NSE corporate-action circular. Shareholders on the register as of 19 September were eligible.
Peria Karamalai Tea & Produce Company Dividend Yield: The 7.5% Illusion
Headline vs Reality
The headline "7.5% dividend" is calculated on the ₹10 face value. On the market price the yield is about 100 times smaller:
- On face value: 7.50%
- On the ex-date close of ₹910.00: 0.082%
- On the CMP of ₹1,001.35: 0.075%
- On the announcement-day close: Not Independently Verified
Why the Yield Is So Low
The yield is low because the share price rose, not because the dividend was cut. The stock went from ₹739.50 on 1 September to ₹1,136.30 on 9 September, a 53.7% jump in six sessions. On the ex-date it fell ₹11.25. That move is 15 times the dividend, so price swings, not the payout, drive shareholder returns here.
Peria Karamalai Tea & Produce Company Dividend History Analysis
Classification: Consistent Token Payer
The company has paid a dividend in all 11 years from FY16 to FY26, a total of ₹9.50 per share. There were no special dividends and no years skipped. The amount does not grow, though. The FY26 dividend of ₹0.75 equals the FY16 dividend.
Dividends Do Not Follow Profits
Payout ratios range from 3.7% to 128%. In four loss years (FY16, FY20, FY23 and FY26) the dividend was paid from reserves. The board cut the dividend to ₹0.50 after the FY20 and FY23 losses but only to ₹0.75 after FY26's larger loss. That suggests the board sets the dividend by precedent, not by what the year earned.
Peria Karamalai Tea & Produce Company Dividend vs Profit: Financial Performance
| Growth FY26 vs FY25 | Change |
|---|---|
| Revenue from operations | +35.1% |
| Tea segment revenue | +0.9% |
| Investment segment revenue | +241.4% |
| EBITDA (₹5.61 Cr to ₹3.34 Cr) | -40.5% |
| PAT | ₹0.24 Cr profit to ₹6.67 Cr loss |
Almost all of the 35% revenue growth came from investment gains, not tea. Other expenses jumped 156%, but that was mostly a ₹21.56 crore mark-to-market loss on mutual funds. Excluding it, other expenses rose only 2.9%, and realised fund gains of ₹23.78 crore largely offset the loss. Finance costs rose 50.7%. The tea segment lost ₹3.90 crore for a second straight year. Of the ₹2.59 crore other income, 75% came from one-time land and property sales. A tax charge of ₹3.85 crore on a pre-tax loss turned the result deeply negative.
Peria Karamalai Tea & Produce Company Cash Flow Analysis
Operations Barely Generated Cash
- Operating cash flow: ₹0.08 crore
- Capex: ₹10.80 crore
- Free cash flow: ₹-10.72 crore
- OCF coverage of dividend: 0.34x
Receivables fell to ₹1.34 crore from ₹2.34 crore even as revenue grew, so weak collections are not the problem. The problem is that the business itself generated almost no cash.
How the Dividend Is Funded: Cash Reserves
Sales of mutual fund units brought in a net ₹39.90 crore. That money paid for capex, ₹26.15 crore of inter-corporate loans and ₹4.59 crore of debt repayment. The dividend is therefore funded from cash reserves and investment sales, not from FY26 earnings. The FY25 dividend of ₹30.96 lakh paid during FY26 matches the cash flow statement exactly.
Peria Karamalai Tea & Produce Company Balance Sheet Strength
From Net Cash to Net Debt
- Total borrowings: ₹45.23 Cr, down 2.2%
- Liquid assets (cash, deposits, current investments): ₹31.97 Cr, down from ₹67.95 Cr
- Net debt: ₹13.26 Cr, against ₹21.72 Cr net cash a year earlier
- Interest coverage (EBIT to interest): 0.27x
Book Value Depends on One Valuation
Book value per share is ₹1,452, which puts the stock at 0.69x book. Of that, ₹1,250 per share is the unlisted MSUML stake. Excluding MSUML and its ₹82.28 crore deferred tax, book value would be about ₹468 per share. Debt-to-equity is 0.10x as reported but 0.31x without MSUML.
Peria Karamalai Tea & Produce Company Dividend Sustainability
| Test | Result | Verdict |
|---|---|---|
| Earnings coverage (EPS to DPS) | -28.7x | Fail |
| OCF coverage | 0.34x | Fail |
| FCF coverage | Negative | Fail |
| Liquidity coverage (liquid assets to outflow) | 137.7x | Pass |
Verdict: Moderately Sustainable. At ₹23.22 lakh a year, the dividend is small enough for the balance sheet to keep paying for years. But three of the four tests fail, because operations do not fund it. Debt was flat, not rising, while the dividend was paid. The payout is secure only because it is tiny. If losses in the tea segment continue, it depends entirely on the investment book.
Peria Karamalai Tea & Produce Company vs Tea Plantation Peers
| Company | Mcap (₹ Cr) | P/E | Div Yield | ROCE |
|---|---|---|---|---|
| Peria Karamalai Tea | 301.85 | Loss | 0.07% | -0.26% |
| Goodricke Group | 492.48 | 10.18 | 0.89% | 5.11% |
| Jay Shree Tea | 259.93 | Loss | 0.56% | 0.51% |
| United Nilgiri Tea | 214.85 | 10.58 | 0.74% | 11.20% |
| Neelamalai Agro | 211.49 | 5.75 | 0.59% | 9.68% |
| Rossell India | 192.87 | 16.25 | 0.78% | 9.37% |
Source: Screener.in Tea & Coffee industry table, 28 September 2026. Peer payout ratios and ROE were not verified independently.
Peria Karamalai Tea has the lowest dividend yield and the lowest ROCE among these six peers. Its yield is less than a tenth of Goodricke's. It is also the only one whose market cap is smaller than a single investment it holds.
Peria Karamalai Tea & Produce Company Promoter Dividend Impact
Who Receives the ₹23.22 Lakh
- Promoters (66.33%): ₹15.40 lakh
- Public (29.66%): ₹6.89 lakh
- DIIs (3.41%): ₹0.79 lakh
- Government (0.60%): ₹0.14 lakh
Shareholding as of June 2026, from Screener.in.
Promoter Holding Keeps Rising
Promoter holding rose from 61.71% to 66.33% between September 2023 and June 2026. Over the same period, the number of shareholders fell from 3,509 to 3,251. For promoters, the dividend is immaterial. What matters is control, and group entities are steadily adding to their stake. Minority shareholders receive about ₹0.75 on shares worth roughly ₹1,000.
Peria Karamalai Tea & Produce Company Dividend Taxation
Rules for FY 2026-27
Dividends are taxed at the investor's slab rate as income from other sources. From 1 April 2026, TDS falls under Section 393 of the Income-tax Act, 2025. The rate is 10% with a PAN and 20% without, and no TDS is deducted if a resident's dividends from the company do not exceed ₹10,000 in the year. A holder would need more than 13,333 shares of this company before TDS applies.
Worked Example (1,000 shares, 30% slab)
Illustrative ₹10 dividend: gross ₹10,000; tax ₹3,000; net ₹7,000. Effective yield on ₹10,01,350 invested: gross 1.00%, net 0.70%.
Actual ₹0.75 dividend: gross ₹750; tax including 4% cess ₹234; net ₹516. Net yield: 0.052%.
Surcharge is ignored. Consult a tax adviser for your own situation.
Key Risks for Peria Karamalai Tea & Produce Company Shareholders
- Valuation risk: ₹387.04 crore, 65% of total assets, rests on a Level 3 NAV valuation of unlisted MSUML shares that had not been allotted at year-end.
- Circular holding: MSUML is both the parent and the largest investment, so a change in either company's value affects the other.
- Undisclosed loan recipients: the results do not name who received the ₹26.15 crore in inter-corporate loans. The AGM also approved material related-party transactions with promoter-group companies.
- Weak interest cover: EBIT covers interest only 0.27x, and finance costs rose 50.7%.
- Tea segment losses: the tea segment lost ₹3.90 crore, with revenue up only 0.9%.
- Low liquidity: about 1,300 shares trade on a typical day, and 20% circuit moves occurred in September 2026.
What to Monitor at Peria Karamalai Tea & Produce Company
- MSUML allotment and FY27 valuation: whether the ₹80.30 NAV per share holds up.
- Inter-corporate loans: who received them, at what interest rate, and whether new loans are made under the ₹700 crore limit.
- Q2 FY27 results: whether the June-quarter profit of ₹9.90 crore survives the lean second half of the year.
- Tea segment margin: South Indian auction prices compared with rising labour costs under the new Labour Codes.
- Finance costs compared with EBIT, to see whether interest cover recovers above 1x.
- Promoter holding creep beyond 66.33%, and any delisting-related disclosures.
Peria Karamalai Tea & Produce Company Dividend 2026: Conclusion
Positives
- 11-year unbroken dividend record
- Payout covered 137.7x by liquid assets
- Unmodified audit opinion
- Stock trades at 0.69x book value
Negatives
- 0.075% real yield, not 7.5%
- Net loss of ₹6.67 crore and negative FCF
- Book value depends on an unlisted parent's shares
- ₹26.15 crore in loans given to undisclosed recipients
The Peria Karamalai Tea dividend is a ₹0.75 token payout from a company whose financial picture now depends on its investment in MSUML more than on its tea estates. Readers should weigh the MSUML valuation and the loan disclosures ahead of the dividend.
Frequently Asked Questions About the Peria Karamalai Tea & Produce Company Dividend
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Disclaimer: Peria Karamalai Tea & Produce Company Dividend Analysis
This article is for educational and informational purposes only and is not investment advice. ShareBazaar Online is not a SEBI-registered investment adviser or research analyst and does not recommend buying, selling or holding any security. Figures come from company filings with NSE and third-party data providers as cited, and ShareBazaar calculations are based on them. Market prices change. Dates marked "inferred" should be checked against official exchange circulars. Consult a registered financial adviser before making any investment decision.