Satia Industries files FY26 sustainability report, details ESG metrics

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Reviewed by
Ashish TScanX News Team
Key Highlights
  • Writing and printing paper manufacturing contributed 99.58% of total turnover in FY26
  • Exports accounted for 6.38% of total revenue, serving five international countries
  • Total energy consumption fell to 6,899.55 TJ, with renewables comprising 98.94%
  • Permanent employee turnover rate was 15.75%, down slightly from 16.06% in FY25
  • Hazardous waste generation decreased to 3,038.46 MT from 3,800.82 MT in the prior year
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Satia Industries filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, in compliance with SEBI Listing Obligations regulations. The filing outlines the company’s operational footprint, governance structures, and environmental performance metrics for FY26.

Operational Overview

The company operates as an integrated wood and agro-based paper manufacturer. Its primary business activity is the manufacturing of writing and printing paper, which accounted for 99.58% of total turnover during the reporting period. Satia Industries serves a diversified customer base across domestic and international markets.

Exports contributed 6.38% of the total turnover in FY26. The company operates one plant and four offices nationally, with no international locations. It serves customers in 20 Indian states and union territories, alongside five international countries.

Workforce and Governance

As of the end of FY26, the company employed 672 permanent employees and 1,952 permanent workers. The workforce is predominantly male, with females constituting 2.23% of employees and 0.15% of workers.

The Board of Directors comprises 11 members, including one female director (9.09% representation). The company reported a turnover rate of 15.75% for permanent employees and 9.23% for permanent workers in FY26, compared to 16.06% and 12.39% respectively in FY25.

Environmental Metrics

Satia Industries disclosed detailed environmental data under Principle 6 of the BRSR framework:

Metric FY26 FY25
Total Energy Consumed (TJ) 6,899.55 7,821.77
Renewable Energy Share (%) 98.94% 99.34%
Water Withdrawal (KL) 57,73,111 53,48,107
Scope 1 Emissions (tCO2e) 3,15,479.83 3,33,343.12
Scope 2 Emissions (tCO2e) 6,327.08 2,465.67
Total Waste Generated (MT) 3,116.22 3,891.02

The company utilizes agricultural residues such as wheat straw and sarkanda in its manufacturing process. Treated effluent is reused for irrigation purposes, including eucalyptus plantations, supporting water conservation initiatives. No treated effluent was discharged into surface water bodies.

What the Numbers Show

While total energy consumption declined by approximately 11.8% from FY25 to FY26, renewable energy remained the dominant source, accounting for nearly 99% of total usage. This indicates that the reduction in energy intensity was driven by overall efficiency gains rather than a shift away from renewable sources. Additionally, hazardous waste generation decreased significantly, falling from 3,800.82 MT in FY25 to 3,038.46 MT in FY26, suggesting improved waste management practices.

Historical Stock Returns for Satia Industries

1 Day5 Days1 Month6 Months1 Year5 Years
-0.38%+0.76%+8.90%+14.22%-16.52%-28.83%

How might Satia Industries' heavy reliance on agricultural residues like wheat straw expose it to supply chain volatility due to changing farming patterns or climate conditions?

Given the significant drop in total energy consumption, what specific operational efficiencies or technological upgrades drove this improvement, and can these gains be sustained in FY27?

With exports constituting only 6.38% of turnover, what strategic initiatives is the company pursuing to expand its international market share amidst global paper demand shifts?

Satia Industries Q1FY27 net loss widens to ₹1,712 lakh on tax charge

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Reviewed by
Naman SScanX News Team
Key Highlights

Satia Industries posted a Q1FY27 net loss of ₹1,712 lakh, a sharp reversal from the ₹3,160 lakh profit in Q1FY26. The loss stems largely from a ₹3,933 lakh deferred tax charge linked to the new concessional tax regime, masking stable pre-tax profits of ₹2,912 lakh. Revenue declined 2.45% YoY to ₹36,181 lakh due to the planned shutdown of Paper Machine 3 for refurbishment.

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Satia Industries reported a net loss of ₹1,712.00 lakh for the quarter ended June 30, 2026, reversing a net profit of ₹3,160.31 lakh in the corresponding period of FY26. The deterioration in profitability was primarily driven by a significant one-time, non-cash deferred tax charge rather than operational performance.

Revenue from operations contracted by 2.45% year-on-year to ₹36,181.47 lakh, down from ₹37,092.07 lakh in Q1FY26. This decline coincides with the planned shutdown of Paper Machine 3, which began on June 1, 2026, for comprehensive refurbishment and modernization expected to last approximately five months.

Financial Performance

The company’s total income stood at ₹37,287.22 lakh for the quarter, against total expenses of ₹34,375.22 lakh. Profit before tax and exceptional items was ₹2,912.00 lakh, compared to ₹3,079.02 lakh in Q1FY26. However, the transition to the concessional tax regime under Section 200 of the Income-tax Act, 2025, triggered a remeasurement of deferred tax balances.

Metric Q1FY27 (₹ in Lakhs) Q1FY26 (₹ in Lakhs) Change
Revenue from Operations 36,181.47 37,092.07 -2.45%
Other Income 1,105.75 629.36 +75.70%
Total Income 37,287.22 37,721.43 -1.15%
Total Expenses 34,375.22 34,642.41 -0.98%
Profit Before Tax 2,912.00 3,079.02 -5.42%
Tax Expense 4,624.00 -81.29 N/A
Net Profit / (Loss) (1,712.00) 3,160.31 Turned to Loss

The tax expense for the quarter amounted to ₹4,624.00 lakh, comprising a current tax provision of ₹690.87 lakh and a deferred tax charge of ₹3,933.13 lakh. In contrast, the company recorded a net tax benefit of ₹81.29 lakh in Q1FY26. The company is no longer eligible for deductions under Section 80-IA for its Cogeneration Division following this regulatory shift.

What the Numbers Show

While operational profitability remained relatively stable with profit before tax at ₹2,912.00 lakh, the reported net loss highlights a significant divergence between operating cash generation and accounting profits due to tax accounting changes. The deferred tax charge alone exceeded the entire profit before tax for the quarter, indicating that the loss is non-cash in nature and does not reflect a deterioration in core business operations or cash flows.

Segment and Corporate Updates

The paper segment contributed ₹36,136.50 lakh to revenue, while the agriculture segment added ₹44.97 lakh. Segment profit before interest and tax for the paper business was ₹3,196.58 lakh, down from ₹3,548.79 lakh in Q1FY26.

The Board of Directors also approved the appointment of M/s Balwinder & Associates as Cost Auditor for FY27. The company’s 45th Annual General Meeting is scheduled for September 30, 2026, at its registered office in Sri Muktsar Sahib, Punjab. The register of members will remain closed from September 24 to September 30, 2026.

Historical Stock Returns for Satia Industries

1 Day5 Days1 Month6 Months1 Year5 Years
-0.38%+0.76%+8.90%+14.22%-16.52%-28.83%
Disclaimer: This article is AI-generated using data from LiveSquawk. ScanX is not liable for any inaccuracies.

How is Satia Industries planning to mitigate the revenue shortfall during the five-month shutdown of Paper Machine 3, and what is the expected capacity increase post-refurbishment?

What specific operational efficiencies or cost-saving measures are anticipated from the modernization of Paper Machine 3 to offset the loss of Section 80-IA tax benefits?

Will the transition to the concessional tax regime under Section 200 have a sustained impact on the company's effective tax rate and net margins in subsequent quarters beyond this one-time deferred tax charge?

More News on Satia Industries

1 Year Returns:-16.52%