Kay Power & Paper Limited , a company in the paper manufacturing sector, has released its unaudited financial results for the second quarter and half-year ended September 30. The company reported a slight decrease in revenue and profit compared to the same period last year.

Key Financial Highlights

Revenue and Profitability

For the quarter ended September 30, Kay Power & Paper Limited reported revenue from operations of Rs. 762.57 lacs, marking a 13.3% decrease from Rs. 879.78 lacs in the corresponding quarter of the previous year. The company's net profit for the quarter stood at Rs. 1.96 lacs, down from Rs. 2.91 lacs in Q2 of the previous year.

The half-yearly results also reflected a similar trend. Revenue for H1 was Rs. 1474.30 lacs, compared to Rs. 1893.48 lacs in H1 of the previous year, representing a 22.1% decline. Net profit for the half-year period decreased to Rs. 3.17 lacs from Rs. 7.24 lacs in the previous year.

Operational Performance

The company's cost of materials consumed for Q2 was Rs. 480.94 lacs, lower than the previous year's figure, which aligns with the reduced revenue. Employee benefit expenses saw a slight increase to Rs. 39.08 lacs in Q2 from Rs. 31.28 lacs in Q2 of the previous year.

Balance Sheet Overview

As of September 30, Kay Power & Paper Limited reported total assets of Rs. 6482.14 lacs, a slight increase from Rs. 6232.91 lacs as of March 31. The company's equity share capital remained unchanged at Rs. 2209.00 lacs.

Subsidiary Update

The company has a wholly owned subsidiary, Satara Aerospace and Defence Industrial Park Pvt. Ltd., which was incorporated on June 5, 2024. However, this subsidiary has not yet commenced operations, and therefore, the consolidated financial results remain the same as the standalone results.

Management Commentary

The Board of Directors approved these results at their meeting held on November 12. The company has not provided any specific commentary on the factors affecting the quarterly performance or future outlook in the available information.

Conclusion

While Kay Power & Paper Limited has managed to maintain profitability, the company faces challenges with declining revenues. The marginal profit in a difficult operating environment suggests that the company may need to focus on cost management and operational efficiency to improve its financial performance in the coming quarters.

Kay Power & Paper Ltd has announced the forfeiture of 16,00,000 warrants following the expiration of the conversion deadline. The decision was made during a board meeting held on October 16, 2025, as warrant holders failed to exercise their option to convert the warrants into equity shares within the stipulated 18-month period.

Warrant Details and Forfeiture

The company had initially issued warrants at a price of Rs. 30.10 per warrant, with holders required to pay 25% of the amount at the time of allotment. The remaining 75% was due upon conversion into equity shares. The conversion deadline was set for October 15, 2025, 18 months from the date of allotment.

The forfeited warrants were held by two entities:

Impact and Implications

The forfeiture of these warrants means that the company will retain the 25% upfront payment made by the warrant holders. This action is in line with the provisions of Regulation 169(3) of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

It's worth noting that both warrant holders had partially exercised their conversion rights:

• Chandra Trading and Investment Private Limited had initially applied for 71,00,000 warrants and converted 57,50,000 into equity shares.
• Shyam Mohan Gupta had applied for 4,00,000 warrants and converted 1,50,000 into equity shares.

The forfeiture of these remaining warrants may impact the company's capital structure and potentially affect its future fundraising plans.

Company Action and Disclosure

Kay Power & Paper Ltd has duly informed the BSE about this development, adhering to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting where this decision was made commenced at 05:30 PM and concluded at 06:00 PM on October 16, 2025.

Investors and stakeholders can find more information about this corporate action on the company's website at www.kaypowerandpaper.com .

This forfeiture underscores the importance for investors to stay informed about the terms and deadlines associated with convertible securities, as failure to exercise conversion rights can result in financial losses.