Balkrishna Paper Mills Limited reported a consolidated net loss of ₹1.79 crore for the quarter ended June 30, 2026, marking a significant improvement from the ₹2.76 crore loss recorded in the previous quarter. The company’s Board of Directors approved the unaudited financial results on August 12, 2026.

Income from operations rose sharply to ₹17.9 lakh, up from ₹9.5 lakh in the March 2026 quarter. This nearly doubling of revenue helped narrow the pre-tax loss to ₹143.2 lakh, compared to ₹214.2 lakh in the prior period.

Financial Performance

The company’s financial position reflects a divergence between operational revenue growth and persistent losses across its business segments.

Continuing operations contributed a net loss of ₹143.2 lakh, while discontinued operations added a loss of ₹36.5 lakh. In the prior quarter, discontinued operations had incurred a larger loss of ₹61.6 lakh, which included an exceptional item loss of ₹21.3 lakh. No exceptional items were recorded in the current quarter.

What the Numbers Show

Despite the 87% quarter-on-quarter increase in income from operations, the company remains deeply unprofitable. The pre-tax loss of ₹143.2 lakh is substantially larger than the operating revenue of ₹17.9 lakh, indicating that fixed costs or other expenses continue to far exceed current revenue generation. The narrowing of the total net loss was primarily driven by the absence of exceptional losses in discontinued operations rather than a fundamental shift in operating profitability.

Earnings Per Share

Basic and diluted earnings per share stood at (₹0.56) for the quarter, an improvement from (₹0.86) in the previous quarter. The paid-up equity share capital remained unchanged at ₹322.2 lakh.

Balkrishna Paper Mills Limited has secured shareholder approval to reduce its share capital, a move aimed at adjusting accumulated losses and reorganizing its capital structure. The resolutions were passed via a postal ballot conducted through remote e-voting, which concluded on July 2, 2026. The scheme involves reducing the face value of equity shares from ₹10 to ₹1 and cancelling the entire preference share capital of ₹110 crore.

Scheme of Reduction of Share Capital

The special resolution for the capital reduction received overwhelming support, with 99.94% of votes cast in favor. Under the approved scheme, accumulated losses totaling ₹52,28,37,029 as on September 30, 2025, will be adjusted against the Securities Premium Reserve and the paid-up equity share capital. Consequently, the issued, subscribed, and paid-up equity share capital will be reduced from ₹32,21,95,320 to ₹3,22,19,532. The 6.5% Non-Cumulative Redeemable Preference Shares worth ₹110 crore will be cancelled, with the consideration payable treated as an unsecured non-interest bearing loan until funds are available.

Material Related Party Transactions

Shareholders approved three ordinary resolutions concerning material related party transactions. These transactions involve entities such as Futuristic Concepts Media LLP, Sanchna Trading and Finance Limited, and S P Finance and Trading Limited. The approval covers the discharge of preference share capital consideration and the entering into of inter-corporate deposits (ICDs) for the financial years 2026-27 and 2027-28.

Voting Results

The voting process was scrutinized by Shri Prasen Naithani of M/s. P. Naithani & Associates. A total of 14,883 shareholders were eligible to vote as on the record date of May 22, 2026. The table below summarizes the voting outcomes for the key resolutions:

Inter-Corporate Deposits

Specific approval was granted for availing ICDs up to ₹25 crore for FY 2026-27 and up to ₹25 crore for FY 2027-28 from S P Finance and Trading Limited and Sanchna Trading and Finance Limited. These deposits will carry an interest rate of up to 12% per annum and will be conducted on an arm’s length basis. The company stated that the shareholding pattern and the number of equity shares will remain unchanged post-reduction, and the shares will continue to be listed on BSE and NSE.