Kay Power & Paper appointed Mrs. Deepa Agarwal as Managing Director effective August 12, 2026, while simultaneously reporting a standalone net profit of ₹13.42 crore for the first quarter ended June 30, 2026. The Board also approved plans for a new Kraft Paper Manufacturing Plant through its wholly owned subsidiary, Kay Pulp and Paper Mills Private Limited, targeting an installed capacity of 75,000 Tonnes Per Annum (TPA) and estimated first-year revenue of ₹200 crore. The appointment requires shareholder approval at the ensuing Annual General Meeting.

The Board meeting held on August 12, 2026, approved the unaudited financial results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ankush Shinde & Company, the statutory auditors, issued an unmodified review report. The consolidated figures mirror the standalone results as the wholly owned subsidiary, Satara Aerospace and Defence Industrial Park Private Limited, has not yet commenced operations.

Leadership and Strategic Expansion

Mrs. Deepa Agarwal, who holds 2,286,800 shares in the company, brings experience from fifteen other directorships. She is related to Ms. Aarushi Chandra, a Director on the Board, who is her mother. The appointment marks a significant governance update for the company.

Strategically, the company is advancing its proposed Kraft Paper Manufacturing Project. The facility, expected to be commissioned during Financial Year 2027-28, will utilize modern machinery and advanced manufacturing technology. Commercial production is anticipated thereafter, with financial performance reflecting in consolidated statements from Financial Year 2028-29 onwards. The project remains at the planning and development stage.

Financial Performance

Kay Power & Paper’s revenue from operations stood at ₹589.20 crore in Q1FY27, down from ₹711.73 crore in Q1FY25. Total revenue was ₹589.31 crore, including ₹0.11 crore in other income, compared to ₹741.45 crore in the prior year quarter. Total expenses were ₹581.24 crore, driven by cost of materials consumed at ₹338.26 crore and manufacturing expenses of ₹107.23 crore.

Profit before exceptional items and tax was ₹8.07 crore. The company recorded an exceptional loss of ₹5.35 crore due to the sale of assets in its Power Division. Despite this, net profit remained positive at ₹13.42 crore, with no tax expenses reported. Earnings per share (basic and diluted) were ₹0.04, up from ₹0.01 in Q1FY25.

Operational Context

The decline in revenue year-on-year reflects operational downtime during repair and maintenance work that concluded in April 2026. Production resumed on May 2, 2026. The sharp drop in other income from ₹29.72 crore in Q1FY25 to ₹0.11 crore in Q1FY27 contributed to lower total revenue, though operational profitability improved relative to the prior year’s low base.

Kay Power and Paper Ltd has expanded its operations by incorporating a wholly owned subsidiary, Kay Pulp and Paper Mills Private Limited, on July 15, 2026. The subsidiary will focus on the manufacturing of packing paper and related products, aligning with the parent company's core business activities. This strategic move aims to enhance production capabilities and broaden the product portfolio in the paper manufacturing sector.

The newly formed entity, Kay Pulp and Paper Mills Private Limited, has an authorized capital of Rs. 15,00,000. As the subsidiary has yet to commence business operations, its current turnover is nil. The incorporation was conducted in accordance with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Key Details of the Subsidiary

The object of the subsidiary is to carry on the business of manufacturing, processing, and trading various types of paper, including kraft paper, tissue paper, and packaging materials. It will also deal in raw materials, chemicals, and machinery required for paper production. The subsidiary is classified as a related party transaction, with the entire beneficial holding resting with Kay Power and Paper Ltd.

No specific governmental or regulatory approvals were required for this incorporation, and the contribution to the initial share capital was made at face value, Rs. 10 per share. The company submitted the intimation to the stock exchange on July 16, 2026, confirming the completion of the incorporation process.