Ganga Papers India Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance with revenue growth offset by declining profitability. The Board of Directors approved these results during their meeting held on February 05, 2026.

Quarterly Financial Performance

The company's Q3FY26 performance showed modest revenue growth alongside reduced profitability compared to the previous year period.

The quarter witnessed a significant decline in other income to ₹0.12 lacs from ₹3.49 lacs in Q3FY25. Total expenses increased marginally to ₹7,075.24 lacs compared to ₹7,005.96 lacs in the corresponding previous period.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, demonstrated stronger revenue momentum while maintaining profitability challenges.

The nine-month revenue growth of 5.47% indicates sustained business momentum, though profitability remained under pressure with an 11.13% decline in net profit.

Cost Structure and Expenses

The company's expense analysis reveals key operational trends during Q3FY26:

• Cost of Material Consumed: ₹5,410.01 lacs (Q3FY26) vs ₹5,631.76 lacs (Q3FY25)
• Finance Costs: Increased significantly to ₹67.73 lacs from ₹30.24 lacs
• Other Expenses: Decreased to ₹1,219.58 lacs from ₹1,502.02 lacs
• Employee Benefits: Remained stable at ₹71.65 lacs vs ₹77.37 lacs

Finance costs more than doubled year-over-year, reflecting increased borrowing expenses, while the company managed to reduce other operational expenses substantially.

Corporate Governance and Compliance

The financial results underwent comprehensive review and approval processes. The Audit Committee reviewed the results before Board approval, and statutory auditors RAM K RAJ & ASSOCIATES conducted a limited review, issuing an unqualified review report. The company operates primarily in the paper manufacturing segment as a single business activity.

The paid-up equity share capital remained unchanged at ₹1,078.89 lacs with a face value of ₹10.00 per share. The trading window for designated persons will reopen 48 hours after the financial results declaration, in accordance with SEBI insider trading regulations.

Ganga Papers Limited, a paper manufacturing company, has released its unaudited financial results for the quarter ended June 30, revealing a significant drop in profit despite relatively stable revenue.

Financial Highlights

• Total revenue stood at Rs. 62.38 crore, down 3.21% quarter-on-quarter and 5.14% year-on-year
• Net profit declined to Rs. 0.31 crore, a sharp 49.18% decrease from the previous quarter
• Gross profit margin reported at 22.40%
• EBITDA margin at 2.60%
• Net profit margin at 0.49%

Revenue and Profit Analysis

Ganga Papers India experienced a slight contraction in its top line, with revenue from operations reaching Rs. 62.36 crore, compared to Rs. 64.17 crore in the previous quarter and Rs. 65.73 crore in the same quarter last year. The company's other income stood at Rs. 1.92 lakh, contributing to the total revenue of Rs. 62.38 crore.

Despite the revenue decline, the most notable change was in the company's profitability. Net profit for the quarter was Rs. 30.76 lakh, marking a substantial 49.18% decrease from the Rs. 61.46 lakh reported in the previous quarter. Year-over-year, the profit remained relatively stable with only a marginal 0.36% decline from Rs. 30.87 lakh in the same quarter of the previous year.

Cost Structure and Margins

The company's cost structure reveals that material costs continue to be the most significant expense:

The high material costs have impacted the company's margins, with the gross profit margin at 22.40%, EBITDA margin at 2.60%, and net profit margin at a slim 0.49%.

Operational Focus

Ganga Papers India Limited continues to operate solely in the paper manufacturing segment. The company's single-segment focus underscores its specialization in the paper industry, but also highlights its vulnerability to sector-specific challenges and raw material price fluctuations.

Auditor's Review

The statutory auditors, RAM K RAJ & ASSOCIATES, conducted a limited review of the financial results. They reported that nothing has come to their attention that causes them to believe the financial statements contain any material misstatements.

Management Commentary

Ramesh Kumar Chaudhary, Chairman of Ganga Papers India Limited, signed off on the financial results. While specific management commentary was not provided, the results were approved by the Board of Directors in their meeting held on August 13.

Looking Ahead

As Ganga Papers India Limited navigates through a challenging quarter with decreased profitability, investors and stakeholders will be keen to observe how the company plans to address the margin pressure and revitalize its growth in the coming quarters. The paper industry's dynamics, including raw material costs and market demand, will likely play crucial roles in shaping the company's performance moving forward.

Note: All financial figures are based on the unaudited results for the quarter ended June 30, as reported by Ganga Papers India Limited.