Malu Paper Mills Limited announced its unaudited financial results for the third quarter of FY26, revealing continued operational challenges amid a difficult market environment. The Nagpur-based paper manufacturer reported significant losses while taking strategic steps to strengthen its business outlook through government contracts and operational restructuring.

Financial Performance Overview

The company's Q3 FY26 performance reflected the ongoing market pressures in the paper industry. Key financial metrics demonstrated the impact of challenging operating conditions on the company's profitability.

Despite higher revenues, the company faced significant margin pressure. Total expenses increased to ₹8427.76 lacs from ₹6792.58 lacs in the corresponding quarter of the previous year, primarily driven by higher material costs and other operational expenses.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, showed mixed results with improved revenue performance but continued profitability challenges.

Strategic Business Developments

The company achieved a significant milestone by securing a tender for supplying Writing and Printing Paper to the Maharashtra State Board Textbook Publications. This prestigious government contract is expected to support improved capacity utilization and contribute positively to revenues and profitability in upcoming quarters.

Additionally, Malu Paper Mills has participated in tenders for paper supply to other State Boards, with outcomes pending. The company is strategically entering new market segments including Paper Bag and Writing Printing Paper, prioritizing government supply tenders as key drivers of sustainable growth.

Management Changes

The Board of Directors approved important organizational changes during their meeting held on February 11, 2026. The company appointed CS Priyanka Jaiswal, Proprietor of M/s Priyanka Jaiswal & Associates, as the new Secretarial Auditor for FY 2025-26, following the resignation of CS V. Ramachandran effective February 6, 2026.

Management Outlook

Management expressed confidence in the company's turnaround strategy, citing expected improvements in net worth through production strategy changes. The promoters have reaffirmed their commitment to the company's revival by pledging further capital infusion as required. The company is also actively pursuing monetization of surplus land assets to strengthen the balance sheet, improve liquidity, and enhance overall net worth.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors during their meeting on February 11, 2026, which commenced at 3:00 PM and concluded at 5:25 PM.

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.