Malu Paper Mills Limited , a paper manufacturing company, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company reported a net loss of Rs 559.12 crore for Q2 FY2026, showing a slight improvement from the Rs 615.16 crore loss in the previous quarter.

Financial Performance

The company's financial performance for Q2 FY2026 and H1 FY2026 is summarized in the table below:

All figures in Rs crore

Key Highlights

• The company's total expenses for Q2 FY2026 included employee benefit expenses of Rs 207.99 crore, finance costs of Rs 252.53 crore, and depreciation of Rs 174.80 crore.
• Earnings per share (EPS) for Q2 FY2026 stood at negative Rs 3.27.
• The company's paid-up equity share capital remains at Rs 1,705.93 crore.

Operational Challenges

Malu Paper Mills faced significant challenges during the quarter:

1. Unit II of the company remained shut for 61 days due to weak market demand, adversely impacting overall profitability.
2. The company reported subdued sales realization driven by challenging market conditions and heightened price competition, which negatively affected operational margins.

Strategic Initiatives

Despite the current challenges, Malu Paper Mills is taking several steps to improve its position:

1. The company has entered new market segments of Paper Bag and Writing Printing Paper, prioritizing government supply tenders as a key driver for sustainable growth.
2. Promoters have reaffirmed their commitment to the company's revival by pledging further capital infusion as and when required.
3. The company is actively pursuing the monetization of its surplus land assets to strengthen its balance sheet, improve liquidity, and enhance overall net worth.

Management Commentary

The management of Malu Paper Mills expressed confidence that its strategic initiatives, operational realignments, and promoter support will position the company for sustainable growth and improved financial performance in the coming periods.

The financial results were approved by the Board of Directors at a meeting held on November 12, 2025. The company operates in only one segment, i.e., paper, and therefore segment reporting is not required as per Ind AS 108.

Investors and stakeholders are advised to monitor the company's progress in implementing its strategic initiatives and the evolving market conditions in the paper industry.

Malu Paper Mills Limited , a prominent player in the Indian paper industry, has released its unaudited financial results for the first quarter, revealing significant challenges and strategic plans for revival.

Financial Performance

The company reported a net loss of ₹615.16 lakhs for the quarter, a substantial increase from the ₹196.84 lakh loss recorded in the same quarter of the previous year. Despite the widening losses, Malu Paper Mills saw a considerable rise in total income from operations, which increased to ₹9,443.63 lakhs from ₹5,765.83 lakhs year-over-year, marking a growth of about 63.80%.

Key Financial Highlights:

Operational Challenges

The financial results highlight several operational challenges faced by the company:

• An EBITDA loss of ₹476.86 lakhs
• A cash loss of ₹730.39 lakhs
• Elevated input costs adversely affecting operational margins

Strategic Initiatives

In response to these financial headwinds, Malu Paper Mills has outlined several strategic initiatives:

1. Capital Infusion: Promoters have pledged further capital infusion as needed to support the company's revival efforts.

2. Asset Monetization: The company is taking steps to monetize surplus land assets, aiming to strengthen its balance sheet and improve liquidity.

3. Strategic Refocus: Malu Paper Mills is adopting a focused approach toward the Writing and Printing Paper segment.

4. Market Expansion: Plans are in place to expand into the Kraft Paper market, specifically targeting the manufacture of paper bags and sacks.

Management Commentary

Banwarilal Malu, Joint Managing Director of Malu Paper Mills Limited, stated, "While we face significant challenges due to elevated input costs, we are committed to turning around our performance. Our strategic initiatives, including the monetization of surplus assets and expansion into new market segments, are designed to strengthen our financial position and drive future growth."

Looking Ahead

As Malu Paper Mills navigates through these challenging times, the effectiveness of its strategic initiatives will be crucial in determining the company's future performance. Investors and industry observers will be keenly watching how the company executes its plans to return to profitability and capitalize on the growing demand in the paper industry.

The company's board meeting to approve these results was held on August 8, as per the regulatory filings with the stock exchanges.

Note: All financial figures are in Indian Rupees (₹) and in lakhs, as per the company's financial statements.