Shree Rama Newsprint & Papers Ltd reported a consolidated loss of ₹1,049.9 lakh for the quarter ended June 30, 2026, widening slightly from ₹1,027.8 lakh in the corresponding period of FY26. The company’s Board of Directors approved the unaudited financial results on August 13, 2026, alongside the Director’s Report for FY26.

Financial Performance

Revenue from operations for continuing operations stood at ₹972.2 lakh, up from ₹917.3 lakh in Q1FY26. Total income reached ₹1,138.8 lakh, supported by other income of ₹166.7 lakh. However, total expenses surged to ₹2,077 lakh, driven primarily by finance costs of ₹919.5 lakh, which remained elevated compared to ₹904.8 lakh in the prior year quarter.

The company incurred a loss before tax from continuing operations of ₹938.2 lakh. Discontinued operations, relating to the Paper Division classified as such in FY23, contributed a further loss of ₹111.7 lakh. No tax expense was recognized due to accumulated losses and uncertainty regarding future taxable profits.

What the Numbers Show

Finance costs constitute 80.8% of total expenses for the quarter, highlighting a severe dependency on debt servicing relative to operational scale. With revenue from operations at ₹972.2 lakh and finance costs at ₹919.5 lakh, the core operating margin is effectively eroded by interest obligations, leaving minimal buffer for other operational expenditures such as raw materials (₹624.8 lakh) and employee benefits (₹29.8 lakh).

Auditor Concerns and Corporate Actions

Statutory auditors Batliboi & Purohit issued an unmodified conclusion but included a "Material Uncertainty Related to Going Concern" paragraph. They noted that current liabilities pertaining to continuing operations exceeded current assets by ₹12,626 lakh. The financial statements have been prepared on a going-concern basis, contingent on management’s plan to dispose of non-core assets and explore funding options.

Additionally, the auditors emphasized that during FY26, the company recognized a further impairment loss of ₹2,784.3 lakh on assets held for sale within the discontinued Paper Division. Management stated it does not foresee further impairment in this regard.

In other developments, the Board appointed M/s. A. H. Jain & Co., Chartered Accountants, as Internal Auditor for FY27. The company also scheduled its 35th Annual General Meeting for September 25, 2026, with September 18, 2026, as the cut-off date for remote e-voting.

Shree Rama Newsprint Limited has redeemed the second installment of its unlisted, secured redeemable Zero Coupon Non-Convertible Debentures (ZCDs), totaling ₹14.125 crore. The payment was made to Bank of India and Punjab National Bank on August 4, 2026, marking a key milestone in the company’s debt reduction strategy under its sanctioned terms. This redemption reduces the outstanding liability of these specific instruments by one-third, as per the agreed three-year annual repayment structure.

The redemption aligns with the plan approved by the Joint Lender Forum (JLF), which mandates that ZCDs issued to lender banks be redeemed in three equal annual installments starting at the end of the 10th year from issuance. By executing this second tranche, Shree Rama Newsprint demonstrates adherence to its regulatory and contractual obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Redemption Details

The company redeemed the debentures held by two major public sector banks. Each bank received one-third of their respective holdings, corresponding to the annual installment amount. The breakdown of the redemption is detailed below:

Each ZCD had a face value of ₹1,000. The total number of debentures redeemed in this tranche was 141,250 units across both lenders. The payments were processed digitally, with Company Secretary Shubham Ajmera signing off on the disclosure submitted to both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Regulatory Compliance and Future Outlook

The intimation was filed under Schedule III of the SEBI LODR Regulations, ensuring transparency for investors regarding the company’s debt servicing activities. As this is the second of three installments, the final redemption is scheduled for the subsequent year, completing the full payoff of this specific series of ZCDs.

This structured repayment reflects Shree Rama Newsprint’s commitment to managing its capital structure efficiently while maintaining good standing with its primary lending institutions. The successful execution of this tranche provides clarity on the timeline for the complete retirement of these zero-coupon instruments.