Seshasayee Paper & Boards Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The paper manufacturing company delivered mixed performance with revenue declining year-over-year while achieving significant improvement in operational profitability metrics and maintaining stable production levels.

Financial Performance Overview

The company's standalone financial results revealed revenue contraction in Q3 FY26, with revenue from operations decreasing to ₹386.81 crores compared to ₹431.27 crores in Q3 FY25. Despite the revenue decline, the company maintained profitability with net profit after tax of ₹15.53 crores, marginally lower than ₹15.81 crores recorded in the same quarter last year.

EBITDA Performance Shows Strong Improvement

A notable highlight of the quarter was the significant improvement in EBITDA performance. The company reported EBITDA of ₹34.91 crores in Q3 FY26 compared to ₹28.17 crores in Q3 FY25, representing a substantial increase. This improvement demonstrates enhanced operational efficiency despite challenging market conditions.

Production and Sales Performance

The company maintained stable production levels during the quarter, producing 60,363 tonnes compared to 60,329 tonnes in Q3 FY25. However, sales volumes declined to 56,670 tonnes from 60,308 tonnes in the corresponding previous quarter. Export volumes dropped significantly to 5,371 tonnes from 6,799 tonnes, primarily due to suspension of exports to the US from June to September 2025 due to steep tariffs imposed by the US Government.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹1,118.39 crores compared to ₹1,251.83 crores in the corresponding period of the previous year. Net profit after tax for the nine-month period stood at ₹50.39 crores against ₹78.93 crores in the previous year, showing a significant decline of 36.16%.

Market Challenges and Outlook

The domestic paper market remained sluggish during Q3 FY26, primarily due to confusions arising from GST 2.0 reforms announced in September 2025. The NIL GST on paper for notebooks resulted in imported paper having a 12-15% cost advantage over domestically manufactured paper. Average realisations in Q3 dropped by nearly 4% compared to the first half, mainly due to pressures from GST 2.0 reforms and the US tariffs situation.

Strategic Developments

The company continues progress on its Mill Development Plan – IV (MDP-IV), having obtained Environment Clearance from MoEF & CC for the project on August 1, 2025. The project, with a cost of ₹270 crores, aims to increase pulp and paper capacities by 20%. Additionally, the company invested ₹26.0 crores in September 2025 for developing 52.8 MWp Solar Power Capacity and 9 MW Wind Power Capacity through a special purpose vehicle.

Source: Company filing

Seshasayee Paper & Boards Limited has announced that its Board of Directors will convene on January 31, 2026, to review and approve the company's financial performance for the third quarter of fiscal year 2026. The meeting has been scheduled in accordance with Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Meeting Details and Purpose

The board meeting will specifically focus on considering and approving both standalone and consolidated unaudited financial results for two key periods. The directors will review the company's performance for the quarter ended December 31, 2025, as well as the nine-month period ending on the same date.

Regulatory Compliance

The announcement was formally communicated to both major stock exchanges where the company is listed. S Srinivas, Director (Finance) & Secretary, signed the official intimation on January 14, 2026, ensuring compliance with regulatory requirements. The communication was addressed to the National Stock Exchange of India Limited at Exchange Plaza, Bandra-Kurla Complex, and BSE Limited at Dalal Street, Mumbai.

Company Information

Seshasayee Paper and Boards Limited operates from its registered office and works located at Pallipalayam, Namakkal District, Erode, Tamil Nadu. The company maintains its corporate identification number as L21012TZ1960PLC000364 and holds multiple ISO certifications including 9001, 14001, 45001, and 50001 standards.

Stock Exchange Details

The company's shares are actively traded on both major Indian stock exchanges. Investors can track the company's performance using the designated script codes assigned by each exchange for seamless trading and monitoring purposes.

This scheduled board meeting represents a routine but important corporate governance activity, ensuring transparency and timely disclosure of financial information to shareholders and the investment community. The company's adherence to regulatory timelines demonstrates its commitment to maintaining proper listing obligations and stakeholder communication.