Balkrishna Paper Mills Limited has announced its unaudited financial results for the quarter and nine months ended 31st December, 2025, showcasing a mixed performance with improved revenue but continued operational challenges.

Quarterly Financial Performance

The company's Q3FY26 results demonstrate significant revenue growth alongside persistent losses from continuing operations. The financial metrics reveal both progress and ongoing challenges in the company's operational performance.

Nine-Month Performance Analysis

For the nine-month period ended 31st December, 2025, Balkrishna Paper Mills recorded total income from operations of ₹388.75 lakhs compared to ₹172.64 lakhs in the corresponding period of the previous year. The net loss from continuing operations for the nine-month period stood at ₹474.41 lakhs against ₹527.16 lakhs in the previous year, indicating some improvement in loss reduction.

Discontinued Operations Impact

The company's discontinued operations showed a net loss of ₹12.87 lakhs in Q3FY26 compared to ₹37.93 lakhs in Q3FY25. For the nine-month period, discontinued operations recorded a loss of ₹94.77 lakhs versus ₹160.48 lakhs in the previous year, demonstrating improvement in this segment.

Earnings Per Share and Capital Structure

The company maintained its paid-up equity share capital at ₹3,221.95 lakhs with a face value of ₹10 per share. The earnings per share from continuing operations was ₹0.63 loss per share in Q3FY26 compared to ₹0.44 loss per share in Q3FY25. Total EPS including all operations was ₹0.07 loss per share for Q3FY26.

Corporate Governance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 7th February, 2026. The results comply with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with detailed formats available on stock exchange websites and the company's official website.

Balkrishna Paper Mills Limited's board of directors has approved a comprehensive scheme of reduction of share capital during a meeting held on December 23, 2025. The decision aims to address the company's accumulated losses of ₹278.39 crores and rationalize its capital structure to reflect its true financial position.

Board Meeting Outcomes

The board meeting, which took place from 2:00 PM to 6:00 PM at the company's registered office in Mumbai, resulted in several key approvals based on recommendations from the Audit Committee and Independent Directors.

The board approved various supporting documents including valuation reports from registered valuer M/s SSP & Co., fairness opinion from SEBI registered merchant banker M/s Rarever Financial Advisors Private Limited, and certification from statutory auditor DSM & Co.

Financial Restructuring Details

The scheme addresses the company's deteriorated financial position, with accumulated losses reaching ₹278.39 crores as of September 30, 2025. The company has incurred significant losses in its paper business operations, resulting in substantial erosion of net worth.

The restructuring involves a systematic process to adjust these accumulated losses against available reserves and share capital.

Capital Structure Changes

Under the proposed scheme, the company will implement significant changes to its capital structure:

Equity Share Modifications

• Face value reduction from ₹10 per share to ₹1 per share
• Number of shares remains unchanged at 3,22,19,532 equity shares
• Revised equity share capital: ₹3.22 crores
• No consideration payable to equity shareholders

Preference Share Treatment

• Complete cancellation of 1,10,00,000 preference shares of ₹100 each
• Total preference capital elimination: ₹110.00 crores
• Consideration to preference shareholders deferred until adequate funds available
• Amount recorded as unsecured non-interest-bearing loan

Loss Adjustment Mechanism

The accumulated losses will be systematically adjusted through the following process:

This structured approach ensures complete elimination of accumulated losses while maintaining equity shareholders' proportional holdings.

Regulatory Approvals Required

The scheme implementation depends on obtaining multiple statutory and regulatory approvals:

The management noted that the scheme benefits all stakeholders and will not adversely affect creditors, employees, or the company's ability to meet its obligations. The company is also evaluating new business opportunities, including real estate-related activities, as part of its strategic repositioning.

The board has approved a draft postal ballot notice for seeking shareholder approval through remote e-voting, marking the next step in the scheme's implementation process.