The Board of Directors of chadha paper will convene on Tuesday, August 11, 2026, at 4:30 P.M. to consider the partial redemption of its 0.01% Redeemable Non-Convertible, Non-Cumulative Preference Shares. The meeting, held at the company’s corporate office in New Delhi, focuses on reducing the remaining outstanding share capital of this specific instrument, continuing a multi-year process of liability reduction initiated after the initial issuance in FY2015-16.

Redemption Context and History

The proposed action pertains to the remaining 23,76,610 units of 0.01% Redeemable Non-Convertible, Non-Cumulative Preference Shares. These shares are unlisted and were part of a larger issuance of 61,26,610 shares made during FY2015-16. The company has systematically redeemed portions of this block over the past few years, as detailed below:

The cumulative redemptions listed above account for a significant portion of the original issue, leaving the current balance of 23,76,610 shares available for further partial redemption consideration by the Board.

Trading Window Closure

In accordance with the Code of Conduct to Regulate, Monitor and Report Trading in Securities of the Company, the trading window for dealing in Chadha Papers Limited securities remains closed for all Designated Persons and their Immediate Relatives. This closure is effective until two days following the declaration of Unaudited Financial Results for the quarter ended August 14, 2026. This measure ensures compliance with insider trading regulations while sensitive financial data is being finalized.

Regulatory Compliance

The intimation regarding the Board meeting was issued pursuant to Regulation 50(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was submitted to BSE Limited on August 03, 2026, referencing Script Code 531946. Amanbir Singh Sethi, Whole Time Director, authorized the communication on behalf of the company.

What the Numbers Show

The structured approach to redeeming these low-coupon (0.01%) preference shares indicates a deliberate strategy to optimize the company’s capital structure. By retiring non-cumulative debt-like instruments that carry negligible interest costs, the company may be aiming to simplify its equity base or prepare for future capital allocation strategies. The consistent timeline of redemptions over three years suggests a planned execution rather than reactive financial management.

Chadha Papers Limited reported a net loss of ₹794.19 lakh for the financial year ended March 31, 2026, a significant decline from the net profit of ₹330.33 lakh recorded in the previous year. The company's revenue from operations for FY26 stood at ₹50,021.79 lakh, down from ₹51,333.59 lakh in FY25. For the quarter ended March 31, 2026, the company posted a net loss of ₹409.79 lakh, compared to a net profit of ₹100.07 lakh in the corresponding quarter of the previous year.

Financial Performance

The board of directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026 at a meeting held on May 29, 2026. Total income for the year decreased to ₹50,262.84 lakh from ₹52,282.13 lakh in the prior year. Total expenses rose to ₹51,277.64 lakh in FY26 from ₹51,796.71 lakh in FY25. The basic earnings per share (EPS) for the year was recorded at (₹7.78), compared to ₹3.24 in the previous year.

Operational Highlights and Disclosures

The statutory auditor, Dhana & Associates, issued an un-modified audit report. However, the auditor drew attention to an emphasis of matter regarding a lease deed for part of the factory land at Bilaspur (Rampur), where the paper manufacturing unit is located. The lease, which was for a period of 30 years since 1991, has expired. The management stated that it is in the process of getting the lease renewed and has not received any communication from the lessors for eviction, implying no material implications on operations currently.

The company noted that its wholly-owned non-material subsidiary, Manorama Paper Mills Limited, did not have any operations during the year ended March 31, 2026, that would impact the financial position of the holding company. Consequently, the consolidated financial results remain largely aligned with the standalone figures. The trading window for designated persons and their immediate relatives will remain closed until two days after the declaration of the audited financial results.