Chadha Papers Limited , a paper manufacturing company, has reported a net loss of Rs 32.57 lakhs for the quarter ended September 30, 2025, marking a significant downturn from the profit of Rs 127.89 lakhs recorded in the same quarter of the previous year. The company's financial performance has been impacted by a decline in revenue and operational challenges.

Financial Performance

Chadha Papers' revenue from operations decreased to Rs 1,159.05 lakhs in Q2 FY2026, down from Rs 1,237.13 lakhs in the corresponding quarter of the previous fiscal year. This represents a decline of approximately 6.3% in top-line performance.

The sharp swing from profit to loss indicates a challenging quarter for Chadha Papers, with the company facing pressures on both revenue and profitability fronts.

Operational Challenges

A key operational challenge facing Chadha Papers is the expiry of the lease for part of its factory land at the Bilaspur manufacturing unit in Rampur. The company has disclosed that the land, which belongs to promoters and family members, was on a 30-year lease that commenced in 1991.

Management has stated that they are working on renewing the lease. As of now, the company has not received any eviction notice from the lessors. Chadha Papers maintains that there is currently no material implication on its operations due to this issue.

Management Commentary

While specific management quotes are not available, the company's stance on the land lease issue suggests that they are actively addressing the situation. The management's efforts to renew the lease indicate their commitment to resolving this operational challenge.

Looking Ahead

As Chadha Papers navigates through these financial and operational challenges, investors and stakeholders will be closely watching how the company addresses its revenue decline and resolves the land lease issue. The resolution of the lease renewal and any strategies to improve financial performance will be critical factors in the company's near-term outlook.

Investors should note that the paper industry can be sensitive to economic cycles and raw material costs. The company's ability to manage these factors, along with its operational challenges, will be crucial in determining its future financial health and market position.

Note: All financial figures are based on the standalone results provided in the company's regulatory filings.

Chadha Papers Limited has successfully completed a significant inter-se share transfer within its promoter group and filed the mandatory compliance report with SEBI. The company announced the completion of the transfer that was initially proposed in October 2025, along with the submission of required regulatory filings.

Transfer Details and Completion

The share transfer, executed through a gift deed between immediate relatives, has been completed as planned:

Shareholding Pattern Changes

The completed transfer has resulted in a significant consolidation of shareholding within the promoter group:

SEBI Compliance and Regulatory Filings

Chadha Papers Limited has completed all mandatory regulatory compliance requirements following the share transfer:

The company filed the report under Regulation 10(7) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 on the SEBI Intermediary Portal. The prescribed fee of ₹1,50,000 plus GST at 18% (₹27,000) totaling ₹1,77,000 has been remitted online.

Exemption and Regulatory Framework

This inter-se transfer falls under Regulation 10(1)(a)(i) of the SEBI SAST Regulations, which provides exemption from open offer requirements for transfers between immediate relatives within the promoter group. The company has emphasized that this transfer is a private family arrangement and does not result in any change in the overall shareholding of the promoter group.

The transfer represents a consolidation of ownership, with Mr. Rajinder Singh Chadha now holding a substantial 45.67% stake in the company. All disclosure requirements under various SEBI regulations have been duly complied with, including prior intimations and post-transfer filings with BSE Limited.