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 announced a substantial reshuffling of shares within its promoter group, set to take place through an inter-se transfer. This move, which involves a significant portion of the company's equity, is scheduled to occur on or after November 10, 2025.

Key Details of the Share Transfer

Impact on Shareholding

The proposed transfer will result in a significant shift in the shareholding pattern within the promoter group:

Regulatory Compliance

The company has emphasized that this transfer falls under Regulation 10(1)(a)(i) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. As the transfer is between immediate relatives within the promoter group, it is exempt from open offer requirements.

Chadha Papers Limited has duly informed the BSE Limited about this proposed transfer, adhering to the disclosure requirements under Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Rationale and Implications

The company states that this transfer is a private family arrangement. While the exact motivations behind this significant reshuffling of shares are not disclosed, such moves can often be part of broader succession planning or restructuring within family-owned businesses.

This transfer represents a considerable consolidation of ownership within the promoter group, with Mr. Rajinder Singh Chadha set to increase his stake substantially. However, as this is an inter-se transfer within the promoter group, it does not alter the overall promoter holding in the company.

Investors and market watchers may want to monitor any potential changes in the company's management or strategic direction that could follow this significant shift in individual promoter holdings.