Andhra Paper Limited , a prominent paper manufacturer, has voluntarily withdrawn its credit rating for bank facilities from CARE Ratings Limited. This strategic move, completed on November 28, 2025, comes after the company obtained necessary no-objection certificates from its lenders.

Key Details of the Credit Rating Withdrawal

Regulatory Compliance

In adherence to its regulatory obligations, Andhra Paper Limited promptly informed the stock exchanges about this development. This disclosure aligns with the company's commitment to transparency and compliance with listing regulations.

Implications and Analysis

The voluntary withdrawal of a credit rating is an uncommon move in the corporate world. While the specific reasons for this decision were not disclosed, it could indicate several possibilities:

1. Change in Financing Strategy: The company might be exploring alternative financing options that don't require a credit rating.
2. Debt Restructuring: There could be ongoing or planned changes to the company's debt structure.
3. Cost Management: Maintaining credit ratings incurs costs, and the company may have decided these are no longer necessary or beneficial.

It's important to note that this action does not necessarily imply any positive or negative change in the company's financial health. Investors and stakeholders should monitor future communications from Andhra Paper Limited for more context on this decision and its potential impacts on the company's financial strategy.

The company's proactive approach in seeking the withdrawal and ensuring proper communication with lenders and stock exchanges demonstrates a commitment to proper corporate governance practices. As the situation evolves, market participants will likely keep a close eye on any further developments or disclosures from Andhra Paper Limited regarding its financial position and strategies.

Andhra Paper Limited , a leading manufacturer of pulp, paper, and paperboards, has reported its financial results for the second quarter ended September 30, 2025. The company faced significant challenges during the period, resulting in a net loss and decreased revenue.

Financial Performance

Andhra Paper's financial performance for Q2 shows a marked decline compared to the same period last year:

The company's revenue from operations decreased by 7.97% year-over-year to Rs 362.08 crore. Andhra Paper reported a net loss of Rs 20.26 crore for the quarter, compared to a net profit of Rs 21.31 crore in the same quarter last year.

Operational Challenges

The company's performance was impacted by several factors during the quarter:

1. Worker Strike: Operations at the Rajahmundry manufacturing facility were interrupted due to a workers' strike from July 6 to July 12, 2025. The strike was called for demanding revision in wage settlement.

2. Temporary Lockout: Consequently, the company declared a lockout at the plant on July 13, 2025.

3. Planned Annual Outage: The company's production and earnings were further impacted by a planned annual maintenance outage for 14 days at the Rajahmundry manufacturing facility, which occurred from July 13 to July 26, 2025.

Half-Year Performance

For the half-year period, Andhra Paper posted a net profit of Rs 43.16 crore on revenue of Rs 755.50 crore. This indicates that despite the challenges in the second quarter, the company maintained profitability over the six-month period.

Business Segment

Andhra Paper Limited operates in pulp, paper, and paperboard manufacturing as its single business segment.

Conclusion

Andhra Paper Limited faced a challenging second quarter, with operational disruptions and a planned outage significantly impacting its financial performance. The company's focus on addressing labor relations and improving operational efficiency may be crucial for its performance in the coming quarters.