Sangal Papers Reports 11.6% Revenue Growth, Announces Key Leadership Reappointments

Sangal Papers Limited , a prominent player in the paper industry, has reported a robust financial performance for the quarter ended June 30, 2025, alongside significant corporate governance updates.

Financial Highlights

The company's unaudited financial results for Q1 FY2026 reveal a strong year-on-year growth:

Particulars (Rs. in lakhs)	Q1 FY2026	Q1 FY2025	YoY Change
Revenue from Operations	4,756.88	4,260.85	11.6%
Total Income	4,772.21	4,273.89	11.7%
Profit Before Tax	108.92	91.79	18.7%
Profit for the Period	80.37	66.64	20.6%

Sangal Papers witnessed a significant 11.6% increase in revenue from operations, rising to Rs 4,756.88 lakhs from Rs 4,260.85 lakhs in the same quarter last year. The company's profit for the period also saw a substantial boost, climbing 20.6% to Rs 80.37 lakhs compared to Rs 66.64 lakhs in the previous year's corresponding quarter.

Corporate Governance Updates

The Board of Directors, in their meeting held on August 13, 2025, approved several key appointments and reappointments:

Director Reappointments: The board recommended the reappointment of Vinayak Sangal and Tanmay Sangal as directors, who are set to retire by rotation.
Executive Leadership: Himanshu Sangal has been reappointed as Managing Director, and Amit Sangal as Executive Director, both for five-year terms from April 1, 2026, to March 31, 2031, subject to shareholder approval.
Auditor Appointments:
- D.K. Gupta & Co. appointed as secretarial auditor for five years (FY 2025-2026 to FY 2029-2030)
- S.R. Kapur appointed as cost auditor for FY 2025-2026
- Anurag Chauhan appointed as internal auditor for FY 2025-2026

Annual General Meeting

The 45th Annual General Meeting (AGM) of Sangal Papers Limited is scheduled for September 26, 2025, at 1:30 PM IST via video conferencing. The company will provide remote e-voting facilities to shareholders, with the cut-off date set as September 19, 2025.

Closing Remarks

The strong financial performance, coupled with the reappointment of key leadership and the introduction of new auditors, signals Sangal Papers' commitment to growth and robust corporate governance. As the company prepares for its upcoming AGM, shareholders and market watchers will be keen to see how these developments translate into long-term value creation.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.95%	-3.31%	-5.45%	+0.11%	-31.35%	+145.53%

Sangal Papers Limited, a paper manufacturing company, has announced a significant move to enhance its production capacity through a newly secured term loan. The company has obtained additional borrowings of Rs 6.00 crores from Axis Bank, as approved by its Board of Directors in a meeting held on July 24, 2024.

Loan Details and Purpose

The Rs 6.00 crore term loan is earmarked for a series of strategic upgrades aimed at boosting the company's production capabilities:

Turbine Upgrade: Replacement of the existing 3 MW turbine with a more powerful 4.5 MW turbine.
Boiler Modifications: Alterations to enable the use of Refuse-Derived Fuel (RDF), potentially improving energy efficiency and reducing environmental impact.
ETP Improvements: Enhancements to the Effluent Treatment Plant (ETP), likely to improve waste management processes.
Additional Equipment: Installation of various other machines to support the production capacity increase.

Board Approval and Disclosure

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Sangal Papers Limited has formally disclosed this development to the BSE Limited. The company's Board of Directors approved the additional borrowings in their meeting on July 24, 2024, coinciding with the loan sanction from Axis Bank.

Impact on Operations

The strategic investments funded by this term loan are expected to significantly enhance Sangal Papers' production capacity. The upgrade from a 3 MW to a 4.5 MW turbine represents a 50% increase in power generation capacity, which could translate to improved operational efficiency and output.

Moreover, the modification of the boiler to use RDF suggests a move towards more sustainable and potentially cost-effective fuel sources, aligning with growing industry trends towards environmental responsibility.

Looking Ahead

While the company has not provided specific projections, these infrastructure and equipment upgrades are clearly aimed at positioning Sangal Papers for increased production capabilities. The improvements to the ETP also indicate a focus on maintaining environmental standards alongside production growth.

Investors and industry observers will likely be watching closely to see how these capital investments translate into operational improvements and financial performance in the coming quarters.

Sangal Papers Limited is listed on the BSE with the scrip code 516096. As with any significant capital expenditure, stakeholders will be keen to monitor the implementation and return on investment of these production enhancements.