Ruchira Papers promoter Shashi Garg transferred 9,00,000 equity shares, representing 3.01% of the company’s voting capital, through an off-market gift transaction on August 21, 2026.

The disclosure was filed with stock exchanges on August 25, 2026, under Regulation 29(2) of the SEBI (Substantial Acquisitions of Shares and Takeovers) Regulations, 2011.

Transfer Details

The shares were gifted to three Hindu Undivided Families (HUFs) belonging to Shashi Garg’s sons:

• Deepan Garg (HUF): 3,00,000 shares
• Atul Garg (HUF): 3,00,000 shares
• Lucky Garg (HUF): 3,00,000 shares

Each donee HUF now holds 1.00% of the company’s equity. Since this stake is below the 5% threshold, no separate disclosure under Regulation 29(1) was required from the recipients.

Promoter Holding Structure

Shashi Garg’s individual shareholding decreased from 28,14,977 shares (9.43%) to 19,14,977 shares (6.42%). However, because the transferees are part of the promoter group, the aggregate promoter group holding remains unchanged at 68.67% (2,04,95,196 shares).

The total equity share capital of Ruchira Papers stands at ₹298,449,850, comprising 2,98,44,985 equity shares with a face value of ₹10 each. This figure remained constant before and after the transaction.

Ruchira Papers Limited reported a net profit of ₹6.14 crore for the quarter ended June 30, 2026, marking a 63.8% decline year-on-year as rising input costs pressured margins despite a 3.8% increase in revenue from operations. The Board of Directors, meeting on August 12, 2026, fixed September 22, 2026, as the record date for determining shareholders entitled to receive the final dividend for FY26, with payment scheduled on or after October 12, 2026, subject to Annual General Meeting (AGM) approval.

Revenue from operations rose to ₹174.92 crore in Q1FY27 from ₹168.53 crore in the corresponding period last year, reflecting modest top-line growth. However, this gain was offset by a significant surge in cost of materials consumed, which jumped to ₹139.92 crore from ₹108.01 crore in Q1FY26. Finance costs also more than doubled to ₹3.19 crore from ₹1.53 crore, further compressing profitability. Profit before tax fell to ₹8.22 crore from ₹22.68 crore, while total comprehensive income declined to ₹6.04 crore from ₹16.93 crore.

Key Financial Metrics

The company’s operational expenses increased by 14.7% year-on-year to ₹168.29 crore, outpacing revenue growth. Employee benefits expense remained relatively stable at ₹14.90 crore, while manufacturing expenses rose slightly to ₹16.33 crore. Selling, distribution, and establishment expenses decreased marginally to ₹3.25 crore from ₹3.42 crore. Depreciation and amortization expense stood at ₹5.25 crore.

What the Numbers Show

The divergence between revenue growth and expense inflation highlights margin compression risks. While top-line revenue grew by only 3.8%, total expenses surged by 14.7%, primarily driven by a 29.5% increase in material costs. This suggests that Ruchira Papers has not yet fully passed on higher input costs to customers or secured sufficient volume discounts to mitigate the impact, leading to a disproportionate drop in profitability.

Board Approvals and Corporate Actions

In addition to approving the unaudited financial results reviewed by M/s Moudgil & Co., Chartered Accountants, the Board decided to convene the 46th AGM on Tuesday, September 29, 2026, at 12:00 PM at Hotel Black Mango, Kala-Amb, Himachal Pradesh. The book closure period for the AGM is set from September 23 to September 29, 2026.

The Board also sought shareholder approval for several managerial appointments:

• Continuation of existing remuneration for Whole Time Directors Deepan Garg (Co-Chairman & Director Technical), Ruchica Garg Kumar (Director Marketing), and Daljeet Singh Mandhan (Director Commercial) for one year from October 1, 2026, to September 30, 2027.
• Re-appointment of Vipin Gupta as Whole Time Director, designated as CFO & Executive Director, for five years from November 1, 2026, to October 31, 2031.

M/s Sanjay Kumar Garg & Co., Cost Accountants, was appointed as the Scrutinizer for remote e-voting and voting at the AGM. The filings were made pursuant to Regulation 33 and Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.