If you’ve ever had a cup of strong South Indian dust tea, chances are you’ve indirectly encountered A V Thomas & Co. Ltd (AVT). A legacy business dating back to 1935, AVT isn’t just about tea—it’s a diversified play across consumer products, trading, and logistics.
But here’s the interesting part: The company is growing… yet profitability is slipping.
Let’s break it down.
AVT’s revenue has steadily climbed over the last three years:
Particulars | 2023 | 2024 | 2025 |
|---|
| Revenue | 1,021.7 | 1,079 | 1,191 |
|---|
| EBITDA | 72 | 83.4 | 68.7 |
|---|
| PAT | 50.7 | 64 | 48.1 |
|---|
| EPS | 1,126.67 | 1,422.22 | 1,068.89 |
|---|
At first glance, this looks solid:
Revenue grew ~16% from 2023 to 2025
PAT peaked in 2024
EPS also hit a high in 2024
So far, so good.
Now comes the twist.
Margins | 2023 | 2024 | 2025 |
|---|
| Gross Margin | 21.04% | 21.63% | 19.45% |
|---|
| OPM | 7.05% | 7.73% | 5.77% |
|---|
| NPM | 4.96% | 5.93% | 4.04% |
|---|
Despite higher sales, profit margins are shrinking:
1. Rising Raw Material Costs
Cost of materials jumped sharply to ₹961 Cr in 2025
This directly squeezed gross margins
2. Operating Leverage Reversal
EBITDA dropped from ₹83.4 Cr (2024) → ₹68.7 Cr (2025)
Even with higher revenue, profits fell
3. Finance Cost Spike
Finance cost increased from ₹1.5 Cr → ₹3.5 Cr
AVT is not just a tea company.
1. Consumer Products
Tea, coffee, premixes
Flagship brand: AVT Premium
Strong presence in South India
2. Trading & Distribution
Cardamom, dairy, aluminum sheets
Vending machines and roofing materials
3. Services
Logistics and C&F operations
This diversification helps revenue stability—but also makes margins harder to control.
2nd largest dust tea brand in India
3rd largest in economy segment
4th largest tea player overall
Strong export presence in the Middle East
2024 was clearly the peak year.
Then 2025 showed:
Lower EBITDA
Falling margins
Decline in PAT and EPS
Commodity inflation (tea, cardamom, inputs)
Pricing pressure in mass-market segments
Increased operational or financing costs
Revenue growth without pricing power = margin compression.
The company has:
Strong legacy brand
Wide distribution
Diversified revenue streams
But the key question is:
👉 Can AVT pass on rising costs to customers?
If yes → margins recover
If no → growth continues, but profits remain under pressure
Business is stable and growing
Margins are the real concern
2024 might have been a cyclical high
2025 raises early warning signs
For investors tracking unlisted opportunities, AVT is not a “no-growth” story—it’s a “margin watch” story.