Subam Papers Limited has entered into a lease agreement with its wholly owned subsidiary, Subam Paper and Boards Private Limited, to take on lease plant and machinery for expanding operational capacity. The agreement, effective from July 22, 2026, involves leasing assets related to a Paper Manufacturing Plant and a Co-Generation Plant situated at Vaduganpatti village, Tirunelveli, Tamil Nadu. The transaction is classified as a related party transaction but is conducted at arm's length.

The Board of Directors of Subam Papers Limited reviewed and approved the lease agreement. The transaction is exempt from prior shareholder approval as per Regulation 23(5)(b) of SEBI LODR Regulations, which covers transactions between a holding company and its wholly owned subsidiary. The lease aims to optimize group infrastructure and support ongoing business operations.

The commercial terms of the lease specify a total rent of ₹3 crore. The rent for the Paper Production Plant and machinery is fixed at ₹2 crore, effective from August 1, 2026. Additionally, a rent of ₹1 crore is applicable from the date of power generation for the Co-Generation Plant. The lease tenure is set for 11 months, running from August 1, 2026, to June 30, 2027, with an option for renewal.

Lease Agreement Details

Subam Papers reported a net profit of ₹1,054.20 lakh for the financial year ended March 31, 2026, on a standalone basis, compared to ₹3,472.37 lakh in the previous year. On a consolidated basis, the company recorded a net profit of ₹952.53 lakh for the same period. The Board of Directors approved the audited standalone and consolidated financial statements on May 26, 2026. M/s. CNGSN & Associates LLP, Statutory Auditors, issued an unmodified opinion on the financial results, which were submitted to BSE Limited under Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Q4 Financial Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹400.72 lakh on a standalone basis, an improvement from a net loss of ₹320.52 lakh in the same quarter of the previous year. Q4 revenue from operations stood at ₹1,237.13 lakh, up from ₹1,098.30 lakh year-on-year.

Full Year Financial Performance

For the financial year ended March 31, 2026, total income on a standalone basis was ₹4,951.55 lakh, compared to ₹4,545.39 lakh in the previous year. On a consolidated basis, total income stood at ₹5,851.72 lakh. Basic earnings per share (EPS) for the standalone entity were reported at ₹4.53 for the year.

Key Financial Metrics

The audited statement of assets and liabilities indicated that the company's total assets increased to ₹5,649.97 crore standalone and ₹7,112.29 crore consolidated as of March 31, 2026.