Sundaram Multi Pap Limited reported a net profit of ₹317.95 lakh for the financial year ended March 31, 2026 (FY26), marking a significant turnaround from a net loss of ₹512.07 lakh in FY25. The company's total income grew 7.6% year-on-year to ₹13,920.38 lakh, driven by expanded pan-India operations and improved operational efficiencies.

The stationery manufacturer attributed the return to profitability to higher sales volumes and effective cost optimization measures. While revenue from operations rose to ₹13,711.25 lakh from ₹12,742.55 lakh in the previous year, total expenses also increased to ₹13,643.99 lakh due to higher business volume.

Financial Performance

The company's EBITDA margin improved sharply to 6.01% in FY26, up from 1.46% in FY25. This expansion was supported by an operating profit margin of 2.02%, compared to -2.68% in the prior year. Finance costs declined significantly to ₹154.41 lakh from ₹267.51 lakh, aiding the bottom-line recovery.

What the Numbers Show

A notable divergence exists between the company's accounting profitability and its cash generation. While Sundaram Multi Pap posted a net profit of ₹317.95 lakh, it recorded negative cash flow from operating activities of ₹217.91 lakh. This outflow was primarily driven by a ₹784.16 lakh increase in inventory levels, which rose to ₹4,065.73 lakh at year-end. Simultaneously, trade receivables decreased by ₹122.17 lakh, indicating tighter collection cycles despite the inventory buildup.

Balance Sheet and Capital Structure

The company reduced its total borrowings to ₹2,001.74 lakh from ₹2,550.91 lakh in FY25. Current borrowings stood at ₹1,716.37 lakh, while non-current borrowings were ₹285.37 lakh. The debt-to-equity ratio improved to 0.42 times from 0.54 times. Net worth increased to ₹9,069.21 lakh, reflecting the retention of current-year profits.

Governance and AGM Details

The Board did not recommend any dividend for FY26, opting instead to retain profits to strengthen the financial position. The 32nd Annual General Meeting is scheduled for September 29, 2026, via video conference. Key agenda items include the reappointment of Managing Director Amrut P. Shah and Whole-Time Directors Shantilal P. Shah and Krunal S. Shah for three-year terms commencing April 1, 2027.

Independent Directors Jyoti C. Gala and Mahesh D. Bhanushali are also up for reappointment for five-year terms. The company continues to focus on scaling its digital education initiative, E-Class, alongside its core paper stationery business.

Sundaram Multi Pap Ltd, through its Digital Education division, has announced the launch of the next generation of its AI-powered Digital Learning Platform, marking a significant step in the company's mission to make quality education more accessible, engaging, and effective for students, teachers, and schools. The announcement was made on July 28, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The platform has been designed to support schools across Maharashtra while strengthening the company's long-term vision of providing technology-driven education solutions across India.

AI-Powered Features at the Core

The upgraded platform integrates Artificial Intelligence to assist in the creation and delivery of educational content, enabling a smarter, faster, and more personalized digital learning experience. The key AI-driven capabilities introduced in this enhanced version include:

• AI-assisted educational content generation
• AI-assisted generation of question banks, assessments, and practice tests
• Mind maps and visual learning resources generated instantly
• Personalized learning recommendations for students

The platform continues to provide curriculum-aligned digital classroom content while significantly expanding the capabilities available to educators and learners through Artificial Intelligence.

Designed for India's Diverse Classrooms

Recognizing the unique challenges of Indian classrooms, particularly in semi-urban and rural regions, the platform has been developed with a range of features that address infrastructure limitations and linguistic diversity. The following table outlines the key design parameters of the platform:

This approach enables schools with limited digital infrastructure to benefit from modern educational technology without dependence on continuous internet connectivity.

Supporting Maharashtra's Education Ecosystem

Sundaram Multi Pap Ltd has been serving the education sector for over a decade through its Digital Education initiatives. The company's solutions have been implemented across government, aided, and private educational institutions, with a focus on improving classroom engagement, digital accessibility, and learning outcomes. The AI-powered platform is intended to further strengthen teaching efficiency while enabling students to access richer educational resources in an intuitive and interactive manner.

Message from the Chief Executive Officer

Hardik Shah, Chief Executive Officer, highlighted the company's commitment to inclusive digital education. He noted that the integration of Artificial Intelligence into the platform represents the next phase of the company's journey, with AI designed to assist teachers rather than replace them. Shah emphasized that by reducing the time spent on creating educational resources and enabling personalized learning experiences, teachers can focus more on inspiring students and building strong conceptual understanding. He also underscored the company's commitment to providing high-quality educational resources in local and regional languages, stating that true digital inclusion can only happen when students learn in the language they understand best.

About Sundaram Multi Pap Limited

Sundaram Multi Pap Ltd, established in 1995, is a leading stationery brand with a strong presence across India, particularly in the states of Maharashtra and Gujarat. The company offers a range of products including notebooks, drawing books, scrapbooks, and office supplies. Sundaram Multi Pap is also actively engaged in digital education, empowering digital classrooms across the state of Maharashtra.