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 Limited has partially resumed manufacturing operations at its Kadiam unit effective July 15, 2026, restoring approximately 70% of the facility's production capacity. The restart follows a period of disruption where workmen failed to report for duty despite the revocation of a lockout and the company's preparations for resumption. One paper machine with a production capacity of 150 MT per day is now operational, though full normalisation remains contingent on increased manpower attendance.

The company's permanent employees have returned to their respective shift schedules. However, the attendance of contract workmen engaged through third-party contractors continues to lag, currently standing at around 35% of the normal strength. This limited availability of contract support is causing operational constraints in supporting activities at the unit located in East Godavari, Andhra Pradesh.

The disruption was initially attributable to demands raised by contract workmen regarding the revision of certain contractual terms. The company confirmed that there has been no physical damage to assets and that all insurable assets are adequately covered. Consequently, no quantifiable loss or damage has been reported in the update submitted to the exchanges.

Operational Status at Kadiam Unit

The following table outlines the current operational parameters disclosed by the company:

Andhra Paper continues to monitor the situation closely and is implementing necessary operational measures to stabilise production. The company stated that it will inform the stock exchanges of any further material developments in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.