emami paper mills has received a Demand-Cum-Show Cause Notice from the Office of the Commissioner (Audit), GST & Central Excise, Bhubaneswar, alleging tax discrepancies amounting to approximately Rs 2.60 crore. The notice, dated July 20, 2026, cites alleged non-payment of GST under reverse charge on water charges paid to the Government of Odisha and security services received. It also flags the alleged wrongful availment of input tax credit on invoices issued by a cancelled supplier. The demand covers the period from FY 2020-21 to 2022-23 and includes applicable interest and a proposed penalty under Section 74 of the CGST Act, 2017.

The company stated that based on its current assessment, there is no material impact on its financial, operational, or other activities. Emami Paper Mills intends to file a reply to the Show Cause Notice before the Adjudicating Authority. The disclosure was submitted in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Demand

The notice outlines specific allegations regarding tax compliance during the assessed period. The aggregate demand of Rs 2.60 crore is broken down by the nature of the alleged violations.

Company Response

Emami Paper Mills has acknowledged the receipt of the communication and confirmed that it will respond appropriately to the authorities. The management maintains that the developments will not have a material effect on its operations. The filing was signed by Sumit Jaiswal, Company Secretary & Compliance Officer.

Emami Paper Mills Limited reported a net profit of ₹61.38 crore for the financial year ended March 31, 2026, marking a 136% increase from ₹26.01 crore in the previous year. The company’s revenue from operations for FY26 stood at ₹1,907.23 crore, slightly lower than the ₹1,928.04 crore recorded in FY25. The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 28, 2026.

For the quarter ended March 31, 2026, the company posted a net profit of ₹31.50 crore, compared to ₹3.92 crore in the same period last year. Revenue from operations for the quarter rose to ₹496.41 crore from ₹474.95 crore in the corresponding quarter of the previous year. Total income for the quarter was ₹510.19 crore. The statutory auditors, M/s. S K Agrawal and Co Chartered Accountants LLP, issued an unmodified opinion on the financial results.

The Board recommended a dividend of ₹3.20 per equity share (160%) on a face value of ₹2 each and ₹8 per preference share (8%) on a face value of ₹100 each for FY26. This recommendation is subject to shareholder approval at the ensuing Annual General Meeting. Additionally, the Board approved the appointment of M/s. V.K Jain & Co., Cost Accountants, as the Cost Auditors for the financial year 2026-2027.

Based on the recommendations of the Nomination and Remuneration Committee and the Audit Committee, the Board granted approval for the reappointment of Shri Manish Goenka as Whole-time Director and Vice Chairman for a period of three years, commencing from July 1, 2026, to June 30, 2029. This reappointment is also subject to shareholder approval. The company noted that the Government of India notified four Labour Codes effective November 21, 2025, leading to an exceptional item of ₹1.25 crore regarding incremental retiral obligations.

Financial Results for FY26

The company’s total assets as of March 31, 2026, stood at ₹1,822.48 crore, compared to ₹1,808.14 crore in the previous year. Equity and liabilities totaled ₹1,822.48 crore, with equity share capital remaining constant at ₹12.10 crore.