Andhra Paper Reports Q2 Loss Amid Revenue Decline and Operational Challenges

Andhra Paper Limited , a leading manufacturer of pulp, paper, and paperboards, has reported its financial results for the second quarter. 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:

Particulars (in crore rupees)	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Revenue from Operations	362.08	432.28	-16.24%
EBITDA	-6.80	52.30	-113.00%
Net Profit/(Loss)	-20.26	41.72	-148.56%

The company's revenue from operations decreased by 16.24% year-over-year to 362.08 crore rupees. Andhra Paper reported an EBITDA loss of 6.80 crore rupees, a significant drop from the 52.30 crore rupees EBITDA gain in the same quarter last year. The net loss for the quarter stood at 20.26 crore rupees, compared to a net profit of 41.72 crore rupees in Q2 FY2024-25.

Operational Challenges

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

Worker Strike: Operations at the Rajahmundry manufacturing facility were interrupted due to an illegal workers' strike from July 6. The strike was called for demanding revision in wage settlement with the management.
Temporary Lockout: Consequently, the company announced a lockout at the plant on July 11 to safeguard assets and personnel. The strike and lockout were resolved promptly, with both management and trade union calling off the strike on July 12, and normal operations resuming thereafter.
Planned Annual Outage: The company's production and earnings were further impacted by a planned annual outage for 14 days at the Rajahmundry manufacturing facility, which occurred from July 13 to July 26.

Management's Response

The management of Andhra Paper Limited has not provided specific comments on the financial results or the operational challenges faced during the quarter. However, the company's board of directors approved the unaudited financial results in their meeting held on November 6.

Auditor's Review

M/s. MSKA & Associates, the statutory auditors of the company, have carried out a limited review of the financial results and have issued an unmodified report. This indicates that the auditors did not find any significant discrepancies or concerns in the reported financial information.

Conclusion

Andhra Paper Limited faced a challenging second quarter, with operational disruptions and a planned outage significantly impacting its financial performance. The company may need to focus on improving operational efficiency and addressing labor relations to potentially reverse the negative trend in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.22%	-2.01%	-7.78%	+5.62%	-23.01%	+103.07%

Andhra Paper Limited , a prominent player in the paper industry, has announced significant changes to its board committees, set to take effect from October 29, 2025. This strategic move aims to strengthen the company's corporate governance structure and enhance its operational efficiency.

Key Committee Changes

The company has reconstituted four major committees: Audit, Nomination and Remuneration, Stakeholders Relationship, and Risk Management. Here's a detailed breakdown of the new committee structures:

Committee	Chairman	Members
Audit	Virendra Sinha	Ramesh Kumar Aggarwal, Papia Sengupta, Saurabh Bangur
Nomination and Remuneration	Virendra Sinha	Deepak Jalan, Shree Kumar Bangur
Stakeholders Relationship	Virendraa Bangur	Papia Sengupta, Mukesh Jain
Risk Management	Saurabh Bangur	Mukesh Jain, Deepak Jalan

Notable Appointments

Virendra Sinha: Takes on dual leadership roles as the chairman of both the Audit Committee and the Nomination and Remuneration Committee.
Ramesh Kumar Aggarwal and Papia Sengupta: Join as new members of the Audit Committee.
Deepak Jalan: Appointed as a new member in both the Nomination and Remuneration Committee and the Risk Management Committee.
Virendraa Bangur: Assumes the role of chairman for the Stakeholders Relationship Committee.

Balanced Composition

The reconstituted committees reflect a balanced mix of executive and non-executive directors, with a strong presence of independent directors. This composition aims to ensure objective decision-making and effective oversight of the company's operations.

Compliance and Transparency

Andhra Paper Limited has made these changes in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The company has promptly disclosed this information to the stock exchanges and made it available on its official website, demonstrating its commitment to transparency and regulatory compliance.

These strategic changes in the board committees are expected to enhance Andhra Paper Limited's corporate governance practices, potentially leading to improved decision-making processes and stakeholder confidence in the company's management.