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'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 ’s Board of Directors approved the issuance of secured, redeemable, non-convertible debentures (NCDs) aggregating up to INR 540 crores on a private placement basis. The decision, taken at a meeting held on 26th May 2026, aims to refinance existing term loan facilities through structured financing arrangements. The board also approved the voluntary withdrawal of existing CARE credit ratings as part of a broader financial restructuring and liability optimization strategy.

NCD Issuance Structure

The proposed NCD issuance is divided into two series: a Junior Series and a Senior Series. The instruments are unlisted, unrated, and secured, issued to eligible investors under the Companies Act, 2013. The table below summarises the key parameters:

Allotment for each tranche shall be made within 3 days of receipt of funds in the respective tranche, as per the debenture documents.

Security and Transaction Documents

The board approved the creation of a comprehensive security package in favour of a Security Trustee. This includes an equitable mortgage of immovable properties and a hypothecation over movable fixed and non-current assets related to the New Project and the Project. Additionally, a charge is placed over all current assets, including receivables and investments, as well as insurance contracts and proceeds. The security framework also encompasses a pledge over Pledged Securities of the Issuer and Pledged Securities of Yash Agro Products Limited.

Definitive agreements and transaction documents approved by the board include the Debenture Trust Deed, Deed of Hypothecation, Escrow Agreement, Debenture Subscription Agreement, Security Trustee Agreement, and Disclosure Document/Information Memorandum.

Voluntary Withdrawal of CARE Ratings

The board noted that the company's existing credit facilities are currently rated 'CARE BBB-' (Long Term) and 'CARE A3' (Short Term) by CARE Ratings Limited. Following the proposed refinancing and repayment or prepayment of the existing rated facilities, the board approved the voluntary withdrawal of these credit ratings. This action is subject to the completion of the NCD transaction and receipt of necessary approvals or no-objections from existing lenders and CARE Ratings Limited.

The board authorized Mr. Ved Krishna, Managing Director (Promoter), Mr. Gautam Ghosh, Executive Director, Mrs. Manjula Jhunjhunwala, Director (Promoter), and other officials to finalize terms, execute documents, and handle necessary compliances.