Subam Papers has approved its audited standalone and consolidated financial statements for the quarter and financial year ended March 31, 2026. The Board of Directors met on May 26, 2026, to finalize the results, which received an unmodified opinion from M/s. CNGSN & Associates LLP, Statutory Auditors. The meeting commenced at 5:30 P.M. IST and concluded at 8:50 P.M. IST. The company submitted the financial results to BSE Limited under Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statutory auditors confirmed that the financial statements present a true and fair view in conformity with the Indian Accounting Standards. The audit covered the standalone financial results of the company and the consolidated results of the group, which includes subsidiaries such as Subam Paper and Boards Private Limited and Subam Agro Ventures Private Limited, as well as associates like Saradhambika Paper and Board Mills Private Limited. The auditors noted that the consolidated financial results include the financials of certain subsidiary entities and associates that were not audited by them but were based on management-certified financial statements and reports of other auditors.

Q4 Financial Performance

Subam Papers reported a net loss of 26M Rupees for Q4, an improvement compared to a net loss of 34M Rupees in the same quarter of the previous year. Q4 revenue came in at 1.2B Rupees, up from 1.1B Rupees year-on-year, reflecting a recovery in top-line performance during the quarter.

Full Year Financial Performance

For the financial year ended March 31, 2026, the company reported a total income of ₹12,112.36 lakh on a standalone basis, compared to ₹14,251.62 lakh in the previous year. The standalone net profit for the year was ₹-242.70 lakh, a decrease from the prior period. On a consolidated basis, total income stood at ₹12,112.36 lakh, with a net profit of ₹-242.70 lakh for the year. Basic earnings per share (EPS) for the standalone entity were reported at ₹-1.02 for the year.

Key Financial Metrics

The audited statement of assets and liabilities indicated that the company's total assets increased to ₹56,499.65 lakh standalone and ₹71,122.94 lakh consolidated as of March 31, 2026.

Subam Papers Limited has announced the commencement of commercial production at its new automated Kraft paper manufacturing facility through its wholly owned subsidiary, Subam Papers and Boards Private Limited. The facility, located in Vaduganpatti Village, Tirunelveli, Tamil Nadu, represents a significant milestone in the company's strategic expansion plans.

Major Capacity Expansion Achievement

The completion of this state-of-the-art facility marks a transformative phase for Subam Papers Limited. The new automated plant incorporates the latest manufacturing technology, ensuring higher efficiency, superior product consistency, and greater operational flexibility. Full automation across the production process minimizes human error, reduces turnaround times, and significantly enhances the company's ability to service large-volume and quality-sensitive customers.

The expansion represents an overall capacity increase of approximately 70.97%, with Kraft paper manufacturing capacity growing by 96.78% from 1,32,000 MTPA to 2,59,750 MTPA.

Strategic Product Diversification

A defining feature of the new facility is its capability to manufacture Kraft paper in the 80-120 GSM (Grams per Square Metre) range. This specific GSM band serves as the primary raw material for paper carry bag manufacturing, a product category experiencing exponential demand growth across India driven by legislative, environmental, and consumer-led forces.

Market Opportunity in Paper Carry Bags

India's paper carry bag industry presents significant growth potential:

The demand stems from multiple high-growth sectors including retail and organized trade, e-commerce and quick commerce, food and beverage delivery, pharmaceuticals and healthcare, and FMCG companies transitioning to paper packaging solutions.

Energy Self-Sufficiency Initiative

Subam Papers is implementing a co-generation (COGEN) power plant under its subsidiary, expected to be commissioned by June 2026. This strategic infrastructure addition will dramatically improve the company's energy independence.

The COGEN plant will reduce external power purchases by 75.00%, from 20 Lakh Units to just 5 Lakh Units per month, providing significant cost savings and operational stability.

Strategic Advantages and Outlook

The management highlighted several key strategic advantages from this expansion:

• Revenue Potential: Near-doubling of revenue ceiling through substantial capacity increase
• Premium Positioning: Entry into high-growth, high-margin downstream segment with 80-120 GSM paper
• Regulatory Support: Strong regulatory moat from India's progressive ban on single-use plastics
• Scale Benefits: Enhanced competitive position among India's larger integrated Kraft paper manufacturers
• Diversification: Access to new customer segments including carry bag manufacturers and branded packaging companies

The company's management expressed confidence in the strategic direction, emphasizing that the successful commissioning marks the beginning of a significantly larger chapter for Subam Papers Limited. With consolidated capacity reaching 3,07,750 MTPA and a product portfolio aligned with India's fastest-growing paper packaging segments, the company is positioned to deliver sustainable long-term value to stakeholders.