Kay Power & Paper Ltd has announced the forfeiture of 16,00,000 warrants following the expiration of the conversion deadline. The decision was made during a board meeting held on October 16, 2025, as warrant holders failed to exercise their option to convert the warrants into equity shares within the stipulated 18-month period.

Warrant Details and Forfeiture

The company had initially issued warrants at a price of Rs. 30.10 per warrant, with holders required to pay 25% of the amount at the time of allotment. The remaining 75% was due upon conversion into equity shares. The conversion deadline was set for October 15, 2025, 18 months from the date of allotment.

The forfeited warrants were held by two entities:

Impact and Implications

The forfeiture of these warrants means that the company will retain the 25% upfront payment made by the warrant holders. This action is in line with the provisions of Regulation 169(3) of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

It's worth noting that both warrant holders had partially exercised their conversion rights:

• Chandra Trading and Investment Private Limited had initially applied for 71,00,000 warrants and converted 57,50,000 into equity shares.
• Shyam Mohan Gupta had applied for 4,00,000 warrants and converted 1,50,000 into equity shares.

The forfeiture of these remaining warrants may impact the company's capital structure and potentially affect its future fundraising plans.

Company Action and Disclosure

Kay Power & Paper Ltd has duly informed the BSE about this development, adhering to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting where this decision was made commenced at 05:30 PM and concluded at 06:00 PM on October 16, 2025.

Investors and stakeholders can find more information about this corporate action on the company's website at www.kaypowerandpaper.com .

This forfeiture underscores the importance for investors to stay informed about the terms and deadlines associated with convertible securities, as failure to exercise conversion rights can result in financial losses.

Kay Power & Paper Ltd , a prominent player in the paper industry, has announced its unaudited financial results for the first quarter of the fiscal year 2026, ending June 30, 2025. The company's performance shows a significant decline in revenue and profit compared to the previous quarter and the same period last year.

Financial Highlights

• Revenue: The company reported standalone revenue from operations of Rs 711.73 crore for Q1 FY2026, marking a substantial decrease from Rs 1,216.08 crore in the previous quarter (Q4 FY2025) and Rs 1,013.70 crore in the corresponding quarter of the previous year (Q1 FY2025).

• Net Profit: Net profit for the quarter stood at Rs 1.21 crore, significantly lower than the Rs 96.35 crore reported in the previous quarter and Rs 4.33 crore in Q1 FY2025.

• Earnings Per Share (EPS): The basic earnings per share for Q1 FY2026 was Rs 0.01, compared to Rs 0.44 in the previous quarter and Rs 0.04 in Q1 FY2025.

Operational Performance

The company's total expenses for the quarter amounted to Rs 740.24 crore, with the cost of materials consumed being the largest component at Rs 534.63 crore. Other significant expenses included:

Subsidiary Update

Kay Power & Paper Ltd incorporated a wholly-owned subsidiary, Satara Aerospace and Defence Industrial Park Pvt Ltd, on June 5, 2024. However, this subsidiary has not yet commenced operations, and therefore, the consolidated financial results remain the same as the standalone results for the current quarter.

Board Meeting and Approval

The Board of Directors of Kay Power & Paper Ltd approved these unaudited financial results at their meeting held on August 12, 2025. The meeting commenced at 3:00 PM and concluded at 3:35 PM.

Auditor's Review

R Y Kulkarni & Associates, Chartered Accountants, conducted a limited review of the financial results. Based on their review, they found no material misstatements in the financial information disclosed by the company.

Kay Power & Paper Ltd's performance in Q1 FY2026 reflects challenges in the operating environment, with significant decreases in both revenue and profit compared to recent quarters. Investors and stakeholders will be watching closely to see how the company navigates these challenges in the coming quarters and whether the newly incorporated subsidiary will contribute to future growth.