Andhra Paper Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting mixed operational performance. The paper manufacturing company reported growth in revenue but faced significant pressure on profitability and operational efficiency metrics compared to the previous year.

Financial Performance Overview

The company's financial results for Q3FY26 showed contrasting trends in revenue and profitability metrics:

Despite revenue growth, the company's net profit declined from ₹1,164.87 lakhs in Q3FY25 to ₹984.89 lakhs in Q3FY26. Total income increased significantly to ₹44,740.88 lakhs from ₹40,100.02 lakhs, driven by higher revenue from operations and other income.

Operational Efficiency Under Pressure

The company's operational performance showed significant deterioration in key efficiency metrics:

The sharp decline in EBITDA from ₹283M to ₹154M reflects operational challenges, while the EBITDA margin compression from 7.34% to 3.68% indicates reduced operational efficiency and higher cost pressures.

Nine-Month Performance Analysis

The nine-month period results revealed more pronounced challenges for the company:

The nine-month performance showed a dramatic decline in profitability, with net profit falling by over 86% despite modest revenue growth. This indicates significant operational challenges during the current financial year.

Cost Structure and Expenses

The company's expense analysis revealed key areas impacting profitability:

Regulatory and Corporate Updates

The company highlighted the impact of new labour legislation in its financial results. The Government of India consolidated 29 existing labour legislations into four unified labour codes, effective from November 21, 2025. The incremental impact of these regulatory changes has been recognised in the current quarter's financial results.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors on February 04, 2026. MSKA & Associates LLP, the company's statutory auditors, conducted a limited review of the financial results and issued an unmodified report. The company maintains its focus on manufacturing and selling pulp, paper and paperboards as its single operating segment.

Andhra Paper Limited continues to operate with ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications, maintaining its commitment to quality and environmental standards despite the challenging operational performance in the current period.

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.