Star Paper Mills reported a net profit of ₹1100.51 lakh for the quarter ended June 30, 2026, down 14.1% year-on-year from ₹1280.92 lakh in Q1FY26. Despite a modest 2.3% rise in revenue from operations to ₹10,346.19 lakh, profitability was pressured by higher cost of materials and employee benefits, partially offset by significant unrealized gains in other income.

The Board of Directors approved the unaudited financial results at a meeting held on August 12, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Lodha & Co LLP, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

Revenue from operations increased to ₹10,346.19 lakh from ₹10,115.75 lakh in the corresponding quarter of the previous year. However, total expenses rose to ₹10,263.47 lakh from ₹9,670.42 lakh, squeezing operating margins. Cost of materials consumed jumped 10.9% to ₹5,607.26 lakh, while employee benefits expense grew 20.3% to ₹890.91 lakh. Power and fuel costs also edged up 6.3% to ₹1,789.48 lakh.

Other income contributed significantly to the bottom line, rising 17.5% to ₹1,393.96 lakh. This increase was primarily driven by an unrealized gain of ₹946.52 lakh on fair valuation of mutual fund investments, compared to ₹1025.20 lakh in Q1FY26. The company’s basic earnings per share (EPS) stood at ₹7.05, down from ₹8.21 in the prior year.

What the Numbers Show

The divergence between operational performance and other income highlights the company’s reliance on investment gains to support profitability. While core revenue growth remained steady at 2.3%, operational costs expanded faster than income, leading to a 9.5% drop in profit before tax. The substantial contribution from unrealized gains on mutual funds—accounting for nearly 68% of total other income—suggests that underlying operational margins face headwinds from rising input and labor costs.

Regulatory and Operational Notes

The company operates in a single segment comprising paper, paper board, and related products. Management noted that current emoluments are broadly aligned with the new Labour Codes notified by the Government of India effective November 21, 2025. The company continues to monitor developments regarding related rules and regulations to evaluate any consequential adjustments.

The figures for the quarter ended March 31, 2026, represent balancing figures between audited full-year results and unaudited year-to-date figures up to December 31, 2025. Previous period figures have been reclassified where necessary to correspond with current period classifications.

ISG Traders Limited, representing the Promoters Group and PAC of Star Paper Mills Limited , has declared that no shares of the company were encumbered directly or indirectly during the financial year 2025-26. The disclosure, dated April 7, 2026, was submitted to the Audit Committee of Star Paper Mills Limited in compliance with regulatory requirements.

The declaration was made specifically under Regulation 31(4)/(5) of the SEBI (Substantial Acquisition of Shares and Takeovers Regulations) 2011 for the year ended March 31, 2026. ISG Traders Limited confirmed that apart from any previously disclosed encumbrances, there were no new pledges or charges created on the shares held by the promoters during the specified period.

The communication was addressed to the National Stock Exchange of India Ltd and BSE Ltd, as well as the Audit Committee of Star Paper Mills Limited. ISG Traders Limited, registered at 31, Netaji Subhas Road, Kolkata, serves as the authorised signatory for the Promoters Group in this matter.

Key Disclosure Details

The filing ensures transparency regarding the holding status of the promoter group, providing assurance to the exchanges and shareholders that the promoter shareholding remains free from undisclosed encumbrances for the reported financial year.