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.

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 ₹82.9 crore from ₹37.7 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 8.2% year-on-year. This improvement of 660 basis points 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 ₹82.9 crore from ₹37.7 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.

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.