Balkrishna Paper Mills reported a net loss of ₹651.63 lakh for the financial year ended March 31, 2026 (FY26), a reversal from the net profit of ₹818.65 lakh recorded in FY25. The company has announced its 13th Annual General Meeting (AGM) for September 18, 2026.

The deterioration in profitability stems from significant operating losses in continuing operations, partially offset by gains from discontinued activities. Revenue from operations in continuing segments rose 103.6% year-on-year to ₹473.22 lakh, driven by trading activities after the cessation of paper manufacturing at its Ambivali plant in November 2024.

Financial Performance

Despite the revenue growth, the company faced heavy finance costs and operational expenses. The loss before tax from continuing operations widened to ₹688.58 lakh from ₹664.49 lakh in the previous year. This was primarily due to finance costs rising to ₹607.95 lakh from ₹585.69 lakh, alongside a sharp increase in other expenses to ₹67.36 lakh from ₹39.68 lakh.

Discontinued operations contributed a profit of ₹36.95 lakh in FY26, compared to ₹1,483.14 lakh in FY25. The prior year's figure included substantial exceptional items, including the write-back of provisions on preference shares.

What the Numbers Show

The financial data reveals a critical divergence between top-line growth and bottom-line performance. While revenue from continuing operations more than doubled, it was insufficient to cover the fixed financial obligations. Finance costs alone consumed over 128% of the total revenue from continuing operations, highlighting the severe leverage pressure on the business model as it transitions away from manufacturing.

Balance Sheet and Liquidity

As of March 31, 2026, the company’s net worth stood at a negative ₹17,544.16 lakh. Total borrowings increased to ₹16,605 lakh, comprising ₹14,250 lakh in non-current liabilities and ₹2,355 lakh in current liabilities. The auditor’s report qualified the financial statements, citing material uncertainty regarding the company’s ability to continue as a going concern due to its negative net worth and discontinued manufacturing activities.

Corporate Governance and AGM

The Board of Directors has proposed the re-appointment of Anuraag Poddar as Chairman and Managing Director, and Manish Malpani as Whole Time Director and CFO, for three-year terms. Additionally, shareholders will vote on the re-appointment of Prof. (Dr.) Mangesh D. Teli as an Independent Director for five years. No dividend has been recommended for FY26.

Balkrishna Paper Mills Limited has scheduled its 13th Annual General Meeting (AGM) for September 18, 2026, at 3:00 pm via video conferencing. The meeting will transact ordinary business, including the adoption of the audited financial statements for FY26 and the reappointment of key directors.

The company reported a net loss of ₹651.63 lakh for the financial year ended March 31, 2026, a reversal from the net profit of ₹818.65 lakh recorded in FY25. This shift was primarily driven by a widening loss from continuing operations, which deepened to ₹688.58 lakh from ₹664.49 lakh in the prior year.

Financial Performance

Revenue from continuing operations more than doubled to ₹484.02 lakh in FY26, up from ₹241.16 lakh in FY25. Despite the top-line growth, expenses surged significantly. Finance costs rose to ₹607.95 lakh from ₹585.69 lakh, while purchases of stock-in-trade increased to ₹440.26 lakh from ₹216.84 lakh.

Discontinued operations contributed a profit of ₹36.95 lakh in FY26, compared to ₹1,483.14 lakh in FY25. The previous year's higher gain was largely due to exceptional items, including the write-back of preference share dividends and gains on asset sales, which totaled ₹1,695.08 lakh. In contrast, FY26 saw an exceptional gain of only ₹172.00 lakh from sundry credit balance write-backs.

What the Numbers Show

The divergence between revenue growth and profitability highlights the company's cost structure challenges. While revenue from continuing operations grew by over 100%, finance costs remained sticky at roughly ₹600 lakh, consuming the majority of the top-line expansion. Additionally, the significant drop in discontinued operation profits—from over ₹1,400 lakh to under ₹40 lakh—indicates that the previous year's bottom line was heavily supported by one-off exceptional gains rather than operational consistency.

Corporate Actions and Governance

Shareholders will vote on the reappointment of Anuraag Poddar as Chairman and Managing Director for three years, effective February 11, 2027. His proposed monthly salary is ₹3.45 lakh, though he has forgone remuneration since April 2019 due to the company's financial position. Manish Malpani will be reappointed as Whole-time Director and CFO for three years, with a monthly salary of ₹2.53 lakh.

Prof. (Dr.) Mangesh D. Teli seeks reappointment as an Independent Director for five years. Notably, he will turn 75 during his term, requiring shareholder approval under SEBI regulations to continue beyond that age.

The Board has not recommended any dividend for FY26. The company has discontinued its paper manufacturing activities at Ambivali since November 2024 and is currently engaged in trading plastic and packaging materials. It has also approved entering real estate development activities.