Pakka Limited reported a 68% decline in net profit to ₹1,814.88 lakh for the financial year ended March 31, 2026, compared to ₹5,669.79 lakh in the previous year. Revenue from operations for FY26 stood at ₹35,579.54 lakh, down from ₹40,604.09 lakh in FY25. The Board of Directors approved the audited standalone financial results for the fourth quarter and financial year ended March 31, 2026, during a meeting held on May 30, 2026. The company also conducted an investor call on June 2, 2026, to discuss the financial performance under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company's statutory auditors, C N K & Associates LLP, issued an audit report with an unmodified opinion on the standalone financial results. However, the consolidated audited financial results could not be finalized due to pending audit of Pakka Inc., a USA-based wholly owned subsidiary. The Board decided to retain funds for major capacity expansion and consequently did not recommend any dividend for the financial year.

Financial Performance

For the quarter ended March 31, 2026, the company reported a profit of ₹384.47 lakh, a significant decrease from ₹1,257.21 lakh in the same quarter of the previous year. Revenue for Q4FY26 was ₹10,154.06 lakh, compared to ₹9,215.71 lakh in Q4FY25. Total expenses for the year increased to ₹34,157.37 lakh from ₹35,602.35 lakh in the prior year.

Segment Reporting

The company operates in two primary segments: Paper & Pulp and Moulded Products. The Paper & Pulp segment generated revenue of ₹30,354.72 lakh for the year, while the Moulded Products segment contributed ₹6,323.13 lakh. The Paper & Pulp segment reported a profit before tax of ₹3,836.51 lakh, whereas the Moulded Products segment recorded a loss before tax of ₹1,084.24 lakh.

Operational Updates

The plant was shut from June 16, 2025, to July 26, 2025, for the expansion of production facilities under Project Jagriti. Additionally, the Board approved the extension of the validity period of outstanding warrants from 12 months to 18 months. The company also issued Tranche IV under the Pakka Team Stock Option Plan, 2021, comprising 1,24,500 ESOPs with an exercise price of ₹152.31 per option.

Pakka Limited has filed a disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, providing a detailed bifurcation of the project cost and components of its ongoing "Jagriti Project." The disclosure, signed by Company Secretary & Legal Head Sachin Kumar Srivastava and dated May 12, 2026, was submitted to both the National Stock Exchange of India Limited and BSE Limited to ensure enhanced transparency to shareholders and stakeholders. This follows earlier disclosures made by the company in respect of the Jagriti Project, including a corrigendum to the notice of its Extraordinary General Meeting (EGM) scheduled for May 5, 2026.

Jagriti Project: Scope and Components

The Jagriti Project refers to Pakka Limited's ongoing capital expenditure programme at its existing manufacturing facility, aimed at capacity expansion, upgradation of existing facilities, and strengthening of integrated operations. The project is being implemented at the company's existing manufacturing location and constitutes a composite project involving capacity expansion as well as technological upgradation and backward integration. The key components of the Jagriti Project include:

• Installation of a new paper machine (PM-4) for the manufacture of paper and packaging products
• Upgradation and debottlenecking of existing paper machine(s), including PM-3
• Expansion and modernization of pulp mill and allied processing facilities
• Installation of captive power generation facilities along with associated utilities
• Development of chemical recovery, evaporation and related process systems
• Upgradation of effluent treatment plant (ETP), utilities and other supporting infrastructure

Detailed Cost Bifurcation

The total revised cost of the Jagriti Project is INR 744.00 crore, based on a revised Techno-Economic Viability (TEV) assessment reflecting the updated project configuration, including cost escalations on account of design changes, time overrun, and foreign exchange fluctuations. The following table presents the phase-wise cost bifurcation:

The bulk of the capital expenditure is concentrated in Phase II, which accounts for INR 644.53 crore of the total project cost, primarily driven by Plant & Machinery investments of INR 470.19 crore in that phase.

Phase-Wise Implementation Timelines

The Jagriti Project is being implemented in three phases, with tentative timelines for phase-wise completion as follows:

Certain components, including the upgradation of existing facilities, have already been completed or commissioned, while the balance components are under various stages of implementation.

Utilisation of Preferential Issue Proceeds

The proceeds of the preferential issue are proposed to be utilised towards funding the capital expenditure requirements of the Jagriti Project in line with the above scope and phases. The total estimated amount proposed to be utilised is Rs. 1,29,91,00,000, as detailed below:

Regulatory Compliance and Availability

The disclosure was made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015 for the information of shareholders and stakeholders at large. The equity shares of the company are frequently traded on the stock exchanges in terms of Regulation 164 of the SEBI (ICDR) Regulations, 2018. The information is also available on the company's website at www.pakka.com , as well as on the websites of BSE Limited and the National Stock Exchange of India Limited.