Andhra Paper Limited reported a 79% decline in net profit to ₹18.62 crore for the year ended March 31, 2026, compared to ₹88.91 crore in the previous year. Revenue from operations rose 10.4% to ₹1,701.23 crore, driven by record annual production and sales volumes.

The company achieved its highest-ever annual production of 2,59,266 MT and record sales of 2,60,438 MT during the financial year. This operational performance was achieved despite challenges such as a surge in imports, rising raw material costs and softening realizations.

Financial Performance

The decline in profitability was attributed to lower net sales realisations, higher raw material costs and increased fixed charges associated with recently commissioned assets. EBITDA declined to ₹150.89 crore from ₹223.29 crore in the previous year.

Operational Highlights

The company achieved several operational milestones during the year:

• Highest annual production of 2,59,266 MT.
• Highest annual sales of 2,60,438 MT.
• Highest domestic sales of 2,58,550 MT, a year-on-year increase of 19%.
• Highest Maplitho sales of 1,47,043 MT, a year-on-year increase of 63%.

Dividend Declaration

The Board of Directors, at its meeting held on May 14, 2026, recommended a dividend of ₹0.50 per equity share of ₹2 each for approval by the shareholders at the forthcoming Annual General Meeting.

Andhra Paper has reported a continued disruption of manufacturing operations at its Kadiam Unit in East Godavari, Andhra Pradesh, despite revoking the lockout effective May 29, 2026. The company disclosed that workmen have not resumed their duties following the lockout revocation, resulting in a production loss of approximately 205 tons per day and a revenue loss of ₹143 lacs per day. This ongoing disruption constitutes a material event under Regulation 30 of the SEBI (LODR) Regulations, 2015.

The disruption at the Kadiam Unit is attributed to demands raised by contract workmen regarding the revision of certain contractual terms. While the company has made all necessary arrangements for the immediate resumption of manufacturing operations, the non-resumption of duties by workmen has led to a significant loss in production capacity. The management is actively engaging with workmen representatives and concerned authorities to resolve the impasse and restore normal operations.

Operational Impact

The cumulative financial impact of the disruption since the lockout revocation is being assessed in accordance with the company's policy for determining materiality of events. The company anticipates a resolution within a short timeframe, allowing for a phased restoration to full operational capacity. Key details of the disruption are outlined below:

The company stated that all assets are covered by insurance. It will continue to monitor the situation and keep the stock exchanges informed of further developments until normalcy is restored.