Three M Paper Boards disclosed a share purchase by its promoter, Hitendra Dhanji Shah, on September 21, 2026. The transaction involved the acquisition of 2,000 equity shares through the BSE market. This move brings Shah’s total holding to 91,58,760 shares, representing 47.61% of the company’s paid-up capital.

The disclosure was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Prior to this transaction, Shah held 91,56,760 shares, which accounted for 47.60% of the company’s equity. The purchase was executed in the open market.

Transaction Details

The share acquisition reflects a marginal increase in the promoter’s stake. Below are the specifics of the transaction as reported in the SAST disclosure:

What the Numbers Show

The transaction represents an increase of 0.01% in the promoter's voting rights. Given the minimal change in percentage ownership from 47.60% to 47.61%, this small-scale addition suggests a routine adjustment rather than a significant strategic shift.

Three M Paper Boards reported a revenue increase of 11.9% to ₹2,971.86 crore for FY26, driven by higher volumes in domestic and export markets. However, net profit declined 28.3% to ₹71.70 crore as rising input costs and depreciation weighed on margins.

The Chiplun-based manufacturer filed its annual report and notice for the 37th Annual General Meeting (AGM), scheduled for September 29, 2026. The meeting will address the reappointment of Managing Director Rushabh Hitendra Shah and ratification of cost auditor remuneration.

Financial Performance

Revenue from operations grew to ₹2,971.86 crore in FY26 from ₹2,655.34 crore in FY25. Domestic sales accounted for approximately 80% of total revenue, while exports contributed the remaining 20%. EBITDA contracted 15.3% to ₹210.99 crore, reflecting the impact of volatile waste paper prices and energy costs.

Profit before tax fell to ₹64.61 crore from ₹120.58 crore. Depreciation expenses rose to ₹80.43 crore from ₹66.75 crore, partly due to capital expenditures undertaken during the year. Finance costs increased slightly to ₹65.94 crore.

What the Numbers Show

The divergence between top-line growth and bottom-line contraction highlights operational headwinds. While revenue expanded nearly 12%, EBITDA margins compressed from 9.4% in FY25 to 7.1% in FY26. This margin erosion occurred despite an 11.9% rise in sales, indicating that cost inflation in raw materials and energy outpaced pricing power or volume efficiencies during the period.

Operational Updates

Production volumes reached 76,983 metric tonnes, up from 73,043 metric tonnes in the previous year. Installed capacity was enhanced from 72,000 MT to 1,08,000 MT per annum. The company commissioned an RDF/MSW boiler to substitute fossil fuels with segregated non-recyclable plastic waste, aiming to improve energy efficiency.

Corporate Governance

The Board did not recommend a dividend for FY26, citing requirements for working capital and capital expenditure. Shareholding remained stable with no changes in authorized capital. Promoter holding stood at 47.49% for Hitendra Dhanji Shah. The AGM will be conducted via video conferencing, with remote e-voting open from September 26 to September 28, 2026.