Orient Paper Q1 Results: Net loss narrows to ₹8.25 crore

Orient Paper & Industries reported a net loss of ₹8.25 crore for the quarter ended June 30, 2026, marking a shift from the ₹33.99 crore net profit recorded in the corresponding quarter of FY25. The result reflects a narrowing of operational pressures, although total income from operations contracted by 4.5% year-over-year to ₹227.61 crore. For shareholders, the key takeaway is the reduced loss magnitude compared to the prior year’s profitability swing and the ongoing revenue decline.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors on August 7, 2026. The unaudited results were subjected to a limited review by the company’s Statutory Auditors, who issued an unmodified report in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were published on August 8, 2026, pursuant to Regulation 47 of the SEBI (LODR) Regulations, 2015.

Financial Performance Highlights

Total income from operations stood at ₹22,761.36 lakh for Q1FY26, down from ₹23,834.35 lakh in Q1FY25. This represents a sequential increase from ₹23,147.02 lakh in the immediately preceding quarter (Q4FY25). The company incurred a loss before tax of ₹1,086.65 lakh, compared to a loss before tax of ₹1,784.67 lakh in the same quarter last year.

Particulars	Q1FY26 (₹ Lacs)	Q4FY25 (₹ Lacs)	Q1FY25 (₹ Lacs)	FY25 (₹ Lacs)
Total Income from Operations	22,761.36	23,147.02	23,834.35	90,595.14
Loss Before Tax	(1,086.65)	(1,378.40)	(1,784.67)	(10,341.62)
Net Profit / (Loss)	(825.03)	(1,094.25)	3,399.29	(2,880.56)
EPS (Basic & Diluted)	(0.39)	(0.52)	1.60	(1.36)

The basic and diluted earnings per share (EPS) for the quarter were negative ₹0.39, compared to positive ₹1.60 in Q1FY25. The full-year FY25 concluded with a net loss of ₹28.81 crore and total income of ₹905.95 crore.

Comprehensive Income and Equity

Other comprehensive income not to be reclassified to Profit & Loss in subsequent periods showed a positive value of ₹2,067.80 lakh for Q1FY26, reversing a loss of ₹5,180.70 lakh in Q4FY25. Consequently, total comprehensive income for the quarter was ₹1,242.77 lakh, compared to a total comprehensive loss of ₹6,274.95 lakh in the previous quarter.

The paid-up equity share capital remained unchanged at ₹2,121.96 lakh, with a face value of ₹1 per share. Other equity stood at ₹144,697.94 lakh as of March 31, 2026.

What the Numbers Show

The divergence between the improvement in loss before tax and the decline in revenue suggests cost containment measures or favorable one-time adjustments may have offset the top-line contraction. While revenue fell 4.5% year-over-year, the loss before tax narrowed significantly from ₹17.85 crore to ₹10.87 crore. This indicates that operating margins or non-operating expenses improved relative to the prior year, even as sales volumes or prices faced headwinds. The positive other comprehensive income further cushioned the bottom line, turning what would have been a higher net loss into a more manageable figure.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.70%	+6.50%	+9.33%	-10.32%	-33.54%	-40.29%

Orient Paper & Industries reported a net loss of ₹8.25 crore for the quarter ended June 30, 2026, marking a significant improvement from the ₹34 crore profit recorded in the corresponding quarter of the previous year. The company’s revenue from operations declined by 4.5% to ₹2,276.14 crore, down from ₹2,383.44 crore in Q1FY26. The Board of Directors approved the unaudited financial results on August 7, 2026, alongside key governance changes including the appointment of a new independent director.

The financial statement was reviewed by B S R & Co. LLP, the statutory auditors, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board also approved the appointment of Mrs. Anuradha Mookerjee as an Additional Director in the category of Independent Director, effective August 8, 2026, subject to shareholder approval. Concurrently, Mrs. Gauri Rasgotra will cease to be an Independent Director upon completing her second consecutive term on August 21, 2026.

Financial Performance

Revenue from operations declined to ₹2,276.14 crore in Q1FY27, compared to ₹2,383.44 crore in Q1FY26. Other income stood at ₹23.95 crore, contributing to a total income of ₹2,300.09 crore. Total expenses decreased to ₹2,408.75 crore from ₹2,589.77 crore in the prior year period, driven largely by lower material costs and other expenses.

Particulars	Q1FY27 (₹ Cr)	Q1FY26 (₹ Cr)	Change
Revenue from Operations	2,276.14	2,383.44	-4.5%
Other Income	23.95	27.87	-14.1%
Total Expenses	2,408.75	2,589.77	-7.0%
Loss Before Tax	(108.67)	(178.47)	Improved
Net Profit / (Loss)	(82.50)	339.93	Turnaround

The company incurred a loss before tax of ₹108.67 crore, an improvement from the ₹178.47 crore loss in Q1FY26. Tax expenses included a deferred tax credit of ₹26.16 crore. In the prior year, the significant profit was partly driven by a one-time deferred tax credit of ₹518.40 crore related to the option exercised under Section 115BAA of the Income-tax Act, 1961.

Segment Analysis

The paper & tissue segment, which constitutes the majority of the business, saw revenue decline to ₹1,867.50 crore from ₹1,952.26 crore in Q1FY26. This segment reported a loss of ₹42.15 crore, compared to a loss of ₹93.46 crore in the same period last year, indicating operational improvement despite lower sales. The chemicals segment generated revenue of ₹442.88 crore, slightly down from ₹465.77 crore, but remained profitable with a segment result of ₹61.04 crore.

Segment	Revenue Q1FY27 (₹ Cr)	Result Q1FY27 (₹ Cr)
Paper & Tissue	1,867.50	(42.15)
Chemicals	442.88	61.04

Total assets stood at ₹22,054.19 crore, while total liabilities were ₹7,247.70 crore as of June 30, 2026. The unallocated assets comprised ₹8,068.53 crore, reflecting corporate-level holdings and investments.

What the Numbers Show

The narrowing of the net loss is primarily attributable to improved operational efficiency in the paper & tissue segment, where the loss reduced by over 50% year-on-year despite a decline in revenue. The absence of the large one-time deferred tax credit seen in Q1FY26 makes the current quarter's performance a more accurate reflection of ongoing operations. While revenue pressures persist across both segments, the reduction in total expenses suggests cost-control measures are yielding results.