Seshasayee Paper & Boards delivered a strong start to FY27, with standalone net profit surging 97% year-on-year to ₹33.59 crore in the first quarter, driven by robust revenue growth and improved operating efficiency. The company's revenue from operations rose 28% to ₹492.00 crore, while profit before tax more than doubled to ₹45.10 crore from ₹23.06 crore in the corresponding period last year. Alongside these financial results, the Board of Directors appointed Sri R.J Ramesh as an Additional Director on July 25, 2026, strengthening its governance structure with a nominee from Tamilnadu Industrial Investment Corporation Limited (TIIC).

The Board approved the unaudited standalone and consolidated financial results pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and signed off by Chairman N Gopalaratnam. Statutory auditors Suri & Co issued a limited review report, confirming no material misstatements in the interim financial information prepared under Ind AS 34. Concurrently, the Board approved the Postal Ballot Notice to seek shareholder approval for Sri R.J Ramesh's appointment as a Nominee Director, not liable to retire by rotation.

Financial Performance Highlights

Operational efficiency improved markedly in Q1FY27 compared to Q1FY26. While cost of materials consumed rose to ₹315.72 crore from ₹286.10 crore, reflecting higher production volumes, other expenses increased to ₹50.50 crore from ₹34.53 crore. Despite this, profit from ordinary activities before tax expanded significantly. Consolidated net profit after tax stood at ₹31.91 crore, up from ₹15.43 crore in the prior year quarter.

The following table summarises key standalone and consolidated financial metrics for the quarter:

Earnings per share (basic) for the standalone entity rose to ₹5.58 from ₹2.83. On a consolidated basis, basic EPS increased to ₹5.30 from ₹2.56. The company's total comprehensive income for the standalone segment was ₹43.49 crore, benefiting from a net fair value gain on equity instruments through OCI of ₹11.51 crore.

Corporate Governance Update

The Board appointed Sri R.J Ramesh, Deputy General Manager (IA/ISO/PP) at Tamilnadu Industrial Investment Corporation Limited (TIIC), as an Additional Director in the capacity of a nominee director. He replaces Sri Kumar Jayant, IAS. The appointment is not liable to retire by rotation and requires shareholder approval via a postal ballot process. Sri R.J Ramesh holds a B.E. and MBA and has been nominated by TIIC, a government undertaking. Disclosure confirms he is not related to any other director on the board under Section 2(77) of the Companies Act, 2013.

Strategic Developments

The company continues efforts toward the revival and refurbishment of assets acquired from M/s Servalakshmi Paper Limited. The National Company Law Tribunal (NCLT), Chennai bench, had approved the e-auction sale of these assets in May 2023. Two of three appeals filed against this order have been dismissed as withdrawn, while the remaining appeal is reserved for orders by the NCLAT. Management stated it is taking steps to recommence operations at the facility.

Promoter group entities have increased their shareholdings in Seshasayee Paper and Boards Limited through separate open market transactions in late June 2026. Time Square Investments Private Limited acquired 3,767 equity shares on June 29, 2026, raising its total stake to 10.221%. Earlier, Dhanashree Investments Private Limited purchased 78,202 shares on June 25, 2026, increasing its holding to 4.944%. Both disclosures were submitted under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Time Square Investments purchased the shares at a price of ₹225.32 per share on the National Stock Exchange (NSE). Prior to this transaction, the acquirer held 6,442,502 shares, representing 10.215% of the paid-up share capital. Following the acquisition, the holding increased to 6,446,269 shares. The acquirer is classified as part of the promoter group.

Dhanashree Investments acquired its shares at ₹224.52 per share on the NSE. The purchase increased its stake from 4.820% to 4.944%. The total equity share capital of Seshasayee Paper and Boards Limited stands at 63,068,140 shares with a face value of ₹2 each.

Acquisition Summary

The filings confirm that no other instruments such as warrants or convertible securities were acquired or sold during these transactions. The total diluted share capital information was not available as per the disclosures.