Emami Paper Mills delivered a significant improvement in profitability for FY25-26, with EBITDA rising 48.48% to ₹217.18 crore from ₹146.27 crore in the previous year. Profit Before Tax (PBT) surged nearly 2.8 times to ₹93.36 crore, up from ₹33.39 crore, driven by disciplined cost management and a higher contribution from value-added specialty products. Despite a marginal 1% decline in turnover due to industry-wide realisation pressures, the company operated at 100% capacity utilisation. The Board of Directors recommended an equity dividend of ₹3.20 per share and a preference dividend of ₹8 per share for the financial year ended March 31, 2026.

The submission of the Annual Report under Regulation 34 of SEBI (LODR) Regulations, 2015, was filed on August 4, 2026. Dispatch of the report and the notice for the 44th Annual General Meeting is scheduled to commence on August 10, 2026. The audited financial statements were reviewed by Statutory Auditors S K Agrawal and Co Chartered Accountants LLP, with no qualifications or adverse remarks noted.

Financial Performance Highlights

The financial results reflect strong operational execution despite challenging market conditions.

Note: CSR obligation was ₹161.71 lakhs; actual spend was ₹174.26 lakhs.

Operational Drivers and Strategy

Management attributed the earnings growth to strategic pricing initiatives and an improved product mix. The company strengthened its portfolio in specialty papers, including Oil and Grease Resistant (OGR) paper and pharma insert paper, which offer sustainable margins. A shift towards Free On Board (FOB) buying reduced shipping freight costs by approximately 16-17%. Additionally, the upgrade of Paper Machine No. 2, including new headbox and calendaring sections, enhanced product quality and machine productivity. Total production volume reached 3.03 lakh tonnes against an installed capacity of 3.40 lakh tonnes.

What the Numbers Show

The divergence between the 1% decline in turnover and the 48% surge in EBITDA indicates a successful margin expansion strategy rather than volume-driven growth. This suggests that Emami Paper Mills is effectively leveraging its specialty product portfolio and cost-control measures—such as freight optimisation and energy efficiency—to protect profitability amidst subdued realisations in commoditised grades. The high capital expenditure of ₹30.29 crore underscores a continued commitment to operational modernisation, aiming to sustain this margin resilience in future quarters.

Corporate Governance and Dividends

The company transferred 15,050 equity shares to the Investor Education and Protection Fund (IEPF) during the year. As of March 31, 2026, 1,56,493 equity shares remained held by the IEPF Authority. The Board also redeemed preference shares, including 4,80,000 Series II Tranche II OCRPS on January 20, 2026, and 2,70,000 Series II Tranche III OCRPS on March 27, 2026. The dividend payout aligns with the company’s Dividend Distribution Policy under Regulation 43A of SEBI (LODR) Regulations, 2015.

Emami Paper Mills has reported a strong financial performance for the quarter ended June 30, 2026, with significant year-on-year growth in revenue and profitability. The company's board approved the unaudited financial results on July 22, 2026, reflecting a marked improvement in operational efficiency and margins compared to the corresponding period of the previous year. A subsequent corrigendum was issued on July 23, 2026, to correct the commencement time of the board meeting to 12:00 noon from the previously stated 12:30 p.m., while all other financial details remain unchanged. The results were published in the Business Standard and Aajkaal newspapers on July 23, 2026.

Revenue and Profitability Performance

Emami Paper Mills recorded revenue from operations of ₹560.16 crore for Q1FY27, a notable increase from ₹459.76 crore in the same quarter of the previous year. This top-line growth was accompanied by a sharp rise in net profit, which stood at ₹38.61 crore compared to ₹6.31 crore in the year-ago period. The company's EBITDA for the quarter more than doubled to ₹83.15 crore from ₹39.28 crore, driving a substantial expansion in operating margins.

The following table summarizes the key financial metrics for the quarter:

Operating Margin Expansion

The quarter witnessed a significant expansion in operating profitability, with the EBITDA margin widening to 14.8% from 8.5% year-on-year. This improvement underscores enhanced cost efficiency and operational leverage. Profit before tax also improved considerably, rising to ₹53.26 crore from ₹9.35 crore in the prior year quarter.

Key Highlights and Corporate Actions

• Revenue grew to ₹560.16 crore from ₹459.76 crore YoY.
• Net profit increased to ₹38.61 crore from ₹6.31 crore YoY.
• EBITDA more than doubled to ₹83.15 crore from ₹39.28 crore YoY.
• EPS (Basic) stood at ₹6.21 for the quarter, compared to ₹0.84 in the previous year.

The Board also noted the redemption of unlisted Optionally Convertible Redeemable Preference Shares (OCRPS). The company will redeem 7,50,000 Series II Tranche IV OCRPS on July 31, 2026, and 11,25,000 Series III OCRPS on September 16, 2026. The aggregate redemption amounts are ₹45 crore and ₹78.75 crore respectively.