Andhra Paper delivered a mixed set of financial results for the quarter and year ended March 31, 2026, with revenue registering notable year-on-year growth even as net profitability declined significantly on an annual basis. For Q4, revenue from operations expanded to ₹52,704.77 lakhs from ₹40,737.20 lakhs in the same quarter of the previous year, reflecting strong top-line momentum. However, the full-year net profit after tax declined sharply to ₹1,861.67 lakhs from ₹8,891.07 lakhs in the previous year, indicating that elevated costs weighed heavily on the bottom line despite robust revenue growth. The Board of Directors, at its meeting held on May 14, 2026, approved the audited financial results and also recommended a final dividend for FY 2025-26. The statutory auditors, M/s. MSKA & Associates LLP, issued an unmodified audit opinion on the annual financial results.

Q4 and Full-Year Financial Performance

The following table summarises the key financial metrics for Q4 and the full year, highlighting year-on-year movements:

On the cost side, cost of materials consumed for the full year stood at ₹1,09,860.49 lakhs compared to ₹97,465.12 lakhs in the previous year, while employee benefits expense rose to ₹18,100.13 lakhs from ₹16,912.21 lakhs. Depreciation and amortisation expense increased to ₹10,731.05 lakhs from ₹8,832.04 lakhs year-on-year, reflecting the company's ongoing capital investment cycle. Finance costs for the full year were ₹1,822.05 lakhs versus ₹1,789.47 lakhs previously.

Balance Sheet Highlights

Andhra Paper's balance sheet as at March 31, 2026 reflects a total asset base of ₹2,53,809.49 lakhs compared to ₹2,60,462.59 lakhs as at March 31, 2025. The key balance sheet metrics are presented below:

The significant increase in capital work-in-progress from ₹2,981.91 lakhs to ₹27,895.71 lakhs reflects the company's active investment in capacity expansion, including the Tissue Machine Project. Current investments declined to ₹50,244.43 lakhs from ₹74,454.86 lakhs, while total current liabilities reduced to ₹35,314.38 lakhs from ₹44,031.03 lakhs, indicating improved liability management.

Cash Flow Performance

Andhra Paper's cash flow statement for the year ended March 31, 2026 reflects a significant improvement in operating cash generation. The key cash flow metrics are summarised below:

Operating profit before working capital changes stood at ₹9,130.40 lakhs for FY26 compared to ₹14,166.86 lakhs in FY25. The company's total financial liabilities (borrowings and lease liabilities) reduced to a closing balance of ₹23,215.29 lakhs from an opening balance of ₹28,252.86 lakhs during the year.

Board Recommends Final Dividend for FY 2025-26

At its board meeting held on May 14, 2026, the Board of Directors recommended a final dividend for FY 2025-26. The key details of the dividend recommendation are as follows:

The recommended dividend of Rs. 0.50 per equity share of Rs. 2/- each fully paid up is subject to the approval of members at the ensuing 62nd Annual General Meeting. The record date for ascertaining the eligibility of members will be decided by the authorised persons and intimated to the exchanges. If approved, the dividend will be paid within the stipulated time from the date of declaration, as prescribed under the Companies Act, 2013.

Managing Director Re-Appointment and Operational Update

The Board also approved the re-appointment of Mr. Saurabh Bangur (DIN: 00236894) as Managing Director of the Company for a period of 05 years with effect from October 1, 2026 up to September 30, 2031, subject to shareholder approval at the ensuing General Meeting. The re-appointment was made on the recommendation of the Nomination and Remuneration Committee. Mr. Saurabh Bangur is related to Mr. Shree Kumar Bangur (Father) and Mr. Virendraa Bangur (Brother) and is unrelated to other Directors. On the operational front, the company disclosed a subsequent event wherein operations at its manufacturing facility at Kadiyam were interrupted due to an illegal strike by a section of contract workmen from April 27, 2026, primarily relating to demands concerning revision of their contractual terms with their respective employers. Consequently, the company announced a lockout at the plant on May 01, 2026, which was ongoing as of the date of the Board meeting. The company is engaged in the manufacture and sale of pulp, paper and paperboards, which constitutes its single operating segment under Ind AS 108.

Andhra Paper Limited's Board of Directors convened a meeting on May 14, 2026, commencing at 02.45 P.M. and concluding at 04.14 P.M., during which it approved the re-appointment of Mr. Saurabh Bangur (DIN: 00236894) as Managing Director of the Company. The re-appointment is effective from October 1, 2026, for a period of 05 years, running through September 30, 2031, and remains subject to the approval of shareholders at the ensuing general meeting. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Re-appointment Details

The Board's decision followed the recommendation of the Nomination and Remuneration Committee, with Mr. Bangur's existing term as Managing Director scheduled to conclude on September 30, 2026. The key parameters of the re-appointment are outlined below:

Profile of Mr. Saurabh Bangur

Mr. Saurabh Bangur is a Commerce graduate with diverse experience spanning operations, marketing, finance, human resources, sustainability, stakeholder engagement, change management, and turnaround strategy. Since his elevation as Managing Director, he has steered the Company through a phase of significant operational and cultural transformation, with a strong focus on strategic growth, operational excellence, and long-term value creation.

His tenure has been marked by several key contributions to the Company's development:

• Instrumental in advancing the Company's modernization agenda through Board-approved capital expenditure initiatives
• Spearheading the Tissue Machine Project, a flagship initiative aimed at diversifying the Company's product portfolio and strengthening its competitive market positioning
• Led the Company's transition toward a high-performance work culture driven by accountability, merit-based incentives, and employee ownership
• Maintained a hands-on approach toward corporate governance and operational management, with emphasis on profitability and timely resolution of operational and strategic challenges
• Contributed to maintaining industrial harmony and fostering constructive relationships with employees, business partners, and other stakeholders

Director Relationships

As disclosed under Regulation 30 of the SEBI (LODR) Regulations, Mr. Saurabh Bangur is related to Mr. Shree Kumar Bangur (Father) and Mr. Virendraa Bangur (Brother), and is unrelated to other Directors of the Company.

The re-appointment disclosure was filed in accordance with SEBI circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, and was signed by Bijay Kumar Sanku, Company Secretary, on behalf of Andhra Paper Limited.