The Mysore Paper Mills Limited (MPML) Board of Directors approved the unaudited financial results for the quarter ended June 30, 2026, during a meeting held on September 29, 2026. The company reported a net loss of ₹1,693.42 lakh against revenue from operations of ₹732.36 lakh, reflecting continued financial strain following the cessation of manufacturing activities.

The filing highlights that the company's operations remain unviable, with the Government of Karnataka having decided to lease out MPML mills to a third party. Consequently, the company has incurred significant finance costs totaling ₹2,151.78 lakh for the quarter, which vastly exceeds its operational income.

Financial Performance Overview

The following table summarizes key financial metrics for Q1FY27 compared to prior periods:

Operational Status and Lease Process

MPML is currently a Government of Karnataka undertaking with its primary business segment identified as Paper/Afforestation. However, due to continuous losses and unviable operations, the government issued an order in July 2017 to lease out the mill operations to a third party. The company has engaged Mile Infrastructure Development Corporation (Karnataka) Limited as a transaction consultant for this leasing process.

Key operational updates include:

• The Labour Department granted consent for the closure of mill operations in June 2019, a decision challenged by labor unions in court.
• A subsequent order in October 2021 permitted the closure of manufacturing activities, effective October 22, 2021.
• Closure compensation has been paid to the majority of employees under the muster roll.
• The company retains staff only for forest division plantation activities and minimal mill maintenance, funded periodically by the government.

What the Numbers Show

A critical divergence exists between the company's revenue generation and its fixed financial obligations. While revenue from operations stood at ₹732.36 lakh, finance costs alone amounted to ₹2,151.78 lakh. This indicates that interest expenses are nearly three times the total operational income, driving the substantial pre-tax loss. Furthermore, the statutory auditors have raised concerns about the company's ability to continue as a going concern in their report dated March 18, 2025, for FY2015-16, noting that accounts for April 2016 to March 2025 are yet to be finalized.

The Mysore Paper Mills Limited reported a net loss of ₹2,023.30 lakh for the quarter ended March 31, 2026, as its Board of Directors approved the unaudited financial results. The company recorded total income of ₹435.29 lakh for the quarter, while total expenses stood at ₹2,458.59 lakh, driven significantly by finance costs of ₹2,152.18 lakh. The meeting was held on June 30, 2026, at the company's registered office in Bengaluru.

The board approved the appointment of M/s Sharvari Kulkarni and Associates, Practicing Company Secretaries, as Secretarial Auditors for the financial year 2016-17, subject to shareholder approval. Additionally, the firm was appointed as a scrutinizer for the year 2016-17. The meeting commenced at 3:00 P.M. and concluded at 5:00 P.M.

The intimation to the Bombay Stock Exchange was submitted pursuant to Regulation 30, 33, and Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company noted that a technical server error on the BSE Listing Centre delayed the initial upload of the outcome.

The financial results were reviewed by the Audit Committee and approved by the Board. The statutory auditors had previously issued a "Disclaimer of opinion" on the books of accounts for FY 2015-16, raising concerns about the company's ability to continue as a going concern. The Government of Karnataka has decided to lease out the mill operations to a third party due to continuous losses and unviable operations.