Chadha Papers posts ₹7.7 crore net loss in FY26 on revenue decline
- Chadha Papers reported a net loss of ₹7.7 crore in FY26, down from a profit of ₹3.5 crore in FY25
- Revenue from operations declined 4% to ₹500.2 crore, while total income fell to ₹502.6 crore
- The company scheduled its 36th AGM for September 30, 2026, to approve key corporate actions
- Shareholders will ratify related-party transactions totaling ₹236 crore for FY27
- Cost auditor remuneration and secretarial auditor appointments are up for approval
*this image is generated using AI for illustrative purposes only.
Chadha Paper Limited reported a consolidated net loss of ₹7.7 crore for FY26, reversing a profit of ₹3.5 crore recorded in the previous year.
The company scheduled its 36th Annual General Meeting (AGM) for September 30, 2026, to approve related-party transactions and auditor remuneration alongside adopting financial statements.
Financial Performance
Total income fell to ₹502.6 crore in FY26 from ₹522.8 crore in FY25, driven by a decline in revenue from operations to ₹500.2 crore from ₹513.3 crore. Other income dropped sharply to ₹2.4 crore from ₹9.5 crore, primarily due to the absence of significant gains on financial liabilities measured at amortised cost that contributed ₹6.2 crore in the prior year.
Total expenses decreased slightly to ₹512.8 crore from ₹517.9 crore. Cost of raw materials consumed rose to ₹345.3 crore from ₹331.4 crore, while other expenses fell significantly to ₹121.9 crore from ₹153.8 crore. Finance costs increased to ₹11.0 crore from ₹9.7 crore.
| Metric | FY26 (₹ crore) | FY25 (₹ crore) |
|---|---|---|
| Revenue from operations | 500.2 | 513.3 |
| Total Income | 502.6 | 522.8 |
| Net Profit / (Loss) | (7.7) | 3.5 |
AGM and Corporate Governance
The Board of Directors approved the notice for the AGM during a meeting held on September 6, 2026. The meeting will transact special business items including the ratification of cost auditor remuneration and approval of related-party transactions (RPTs) for the period October 1, 2026, to September 30, 2027.
Related-Party Transactions
Shareholders will approve transactions with four entities involving the purchase of raw materials and sale of finished goods:
| Entity | Transaction Value | % of Turnover |
|---|---|---|
| K Recycling Private Limited | ₹200 crore | 39.98% |
| ATPAC Industries | ₹30 crore | 6% |
| Amanbox Factory Private Limited | ₹5 crore | 1% |
| Wave Distilleries And Breweries Limited | ₹1 crore | 0.20% |
Mr. Amanbir Singh Sethi, Whole Time Director, is identified as a related party for K Recycling Private Limited and Amanbox Factory Private Limited and will abstain from voting on these resolutions.
Auditor Appointments
The meeting will ratify the appointment of M/s Verma Khushwinder & Co. as Cost Auditor for FY27 with remuneration of ₹60,000 plus taxes. M/s Anuj Gupta & Associates has been appointed as Secretarial Auditor for five consecutive years from FY26 to FY30.
Historical Stock Returns for Chadha Paper
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
How will the rising cost of raw materials, which increased to ₹345.3 crore, impact Chadha Paper's ability to restore profitability in FY27?
What are the strategic implications of relying on K Recycling Private Limited for nearly 40% of turnover through related-party transactions?
Will management implement specific operational efficiencies to offset the decline in other income and reverse the net loss trend?
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