Andhra Paper Limited shareholders approved the reappointment of Saurabh Bangur as Managing Director for a five-year term effective October 1, 2026. The special resolution passed with 99.96% support at the company's 62nd Annual General Meeting (AGM) held on August 11, 2026. The meeting also declared a final dividend of ₹0.50 per equity share for FY26.

The appointment extends Bangur's tenure beyond his current term, which expires on September 30, 2026. The company confirmed that Bangur has not been debarred from holding the office of Director by SEBI or any other authority. He continues to oversee the company's operational transformation and strategic initiatives, including the flagship Tissue Machine Project aimed at diversifying the product portfolio.

Voting Results Overview

The scrutinizer's report, issued by Mr. D. Hanumanta Raju of D. Hanumanta Raju & Co., confirmed unanimous support from the promoter group across all resolutions. Public institutional investors also showed strong backing, while non-institutional public shareholders displayed minor dissent on leadership appointments.

Leadership Reappointment Details

Saurabh Bangur (DIN: 00236894) retired by rotation under Section 152(6) of the Companies Act, 2013. The ordinary resolution for his directorship received 153,153,163 votes in favor against 57,358 votes against. The special resolution for his appointment as Managing Director secured 153,143,753 votes in favor against 66,769 votes against.

Public non-institutional shareholders showed higher dissent on the MD reappointment, with 15.26% of their polled votes cast against the resolution. This contrasts with the 99.40% support from public institutional investors. The promoter group, holding 144,063,000 shares (72.45% of total outstanding shares), maintained 100% support.

Financial and Governance Resolutions

The adoption of audited financial statements for FY26 passed with 153,199,186 votes in favor, representing 99.9999% of valid votes cast. Only 136 votes were recorded against this resolution. Similarly, the dividend declaration resolution received 153,210,401 votes in favor, with identical opposition of 136 votes.

The ratification of cost auditors' remuneration also achieved near-unanimous support, with 153,210,386 votes in favor. The scrutinizer noted that two members abstained from voting on the financial statements resolution, while one member abstained on the cost auditor remuneration resolution.

What the Numbers Show

The voting pattern reveals a clear divergence between institutional and retail investor sentiment on leadership matters. While institutional investors supported Saurabh Bangur's reappointment with 99.40% approval, non-institutional public shareholders opposed the MD appointment at a rate of 15.26%. This suggests that while large investors maintain confidence in management continuity, smaller shareholders may have concerns about executive compensation or governance practices. The promoter group's absolute control (72.45% stake) ensures leadership stability regardless of retail dissent.

Scrutinizer Compliance

Mr. D. Hanumanta Raju, appointed as scrutinizer on May 14, 2026, confirmed compliance with Regulation 44(3) of SEBI LODR Regulations, 2015. The e-voting process was conducted in accordance with Ministry of Corporate Affairs guidelines, with proper notice issued on May 14, 2026. The company secretary, Bijay Kumar Sanku, oversaw the finalization of voting records for safe custody.

Andhra Paper reported a 42.25% year-on-year increase in net profit to ₹3,031.57 lakh for the quarter ended June 30, 2026 (Q1FY27), driven by a significant expansion in EBITDA margins to 12.39% from 8.54% in the prior-year period. Revenue from operations remained stable at ₹39,377.13 lakh, compared to ₹39,342.06 lakh in Q1FY26, while operational efficiency gains offset partial production losses at its Kadiyam unit due to labor unrest. The resilience of profitability amidst operational disruptions highlights improved cost management efficiency, offering positive signals for shareholder value despite temporary capacity constraints.

Financial Performance

The Board of Directors, meeting on August 4, 2026, approved the unaudited financial results for Q1FY27. The statutory auditors, M/s. MSKA & Associates LLP, issued an unmodified limited review report on the results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

*EBITDA derived from disclosed margin expansion of 12.39% applied to revenue.

Revenue from operations stood at ₹39,377.13 lakh, a marginal increase of 0.09% over ₹39,342.06 lakh in Q1FY26. Total income rose to ₹41,542.62 lakh from ₹42,064.68 lakh, primarily due to lower other income of ₹2,165.49 lakh compared to ₹2,722.62 lakh in the previous year.

Profit before tax increased significantly to ₹4,054.56 lakh from ₹2,916.91 lakh. Total expenses decreased to ₹37,488.06 lakh from ₹39,147.77 lakh, driven by a reduction in cost of materials consumed to ₹24,486.15 lakh from ₹27,582.45 lakh, and lower finance costs of ₹290.00 lakh versus ₹575.69 lakh.

Operational Update

Operations at the Company’s Kadiyam Unit were temporarily suspended from April 27, 2026, following an illegal strike by contract workmen. A lockout declared on May 1, 2026, was revoked on May 29, 2026. Manufacturing operations partially resumed on July 15, 2026, with the unit currently operating at approximately 93% of normal capacity. Management continues to take measures to restore full operations.

What the Numbers Show

Despite operating below full capacity for part of the quarter, Andhra Paper achieved substantial margin expansion. The decline in material costs and finance charges contributed to a higher profit before tax even as revenue remained flat. The resilience of profitability amidst operational disruptions highlights improved cost management efficiency.