Seshasayee Paper & Boards Limited, a prominent player in the Indian paper industry, has released its financial results for the quarter ended September 30, 2025, revealing a decline in revenue and profitability compared to the same period last year.

Financial Performance

The company reported a revenue from operations of ₹346.25 crores for Q2 FY2026, down from ₹398.40 crores in Q2 FY2025, marking a 13.1% year-over-year decrease. The net profit after tax also saw a significant drop, falling to ₹17.80 crores from ₹24.78 crores in the corresponding quarter of the previous year, representing a 28.2% decline.

For the half-year period ended September 30, 2025, Seshasayee Paper reported:

• Revenue: ₹731.58 crores (down from ₹820.56 crores)
• Net Profit: ₹34.86 crores (decreased from ₹63.12 crores)

Operational Highlights

Despite the challenging market conditions, Seshasayee Paper has been taking strategic steps to enhance its operational capabilities:

1. The company invested ₹26 crores in Navia One Power Private Limited, acquiring a 26.1% stake. This investment aims to develop solar and wind power capacity, potentially leading to cost efficiencies in the future.

2. The Board of Directors reviewed and approved these unaudited financial results in their meeting held on October 25, 2025.

Market Outlook

While the paper industry faces headwinds, Seshasayee Paper's investment in renewable energy sources suggests a forward-looking approach to managing operational costs. The company's focus on sustainable practices may position it well for future growth, despite the current market challenges.

Investor Notes

• Basic earnings per share (EPS) for Q2 FY2026 stood at ₹2.96, compared to ₹4.11 in Q2 FY2025.
• The company maintains a strong balance sheet with total assets of ₹2,407.24 crores as of September 30, 2025.

Seshasayee Paper & Boards Limited continues to navigate through a tough market environment. While the current financial results show a decline, the company's strategic investments and focus on operational efficiency may help in addressing the challenges ahead.

Seshasayee Paper & Boards Limited (SPB) has achieved a significant milestone in its growth strategy by securing environmental clearance for a substantial expansion of its manufacturing facility in Erode, Tamil Nadu. The company announced that it has received approval from the Ministry of Environment, Forests and Climate Change (MoEF & CC) to increase its pulp and paper capacities by 20% at its Erode plant.

Expansion Details

The environmental clearance, granted on August 1, 2025, pertains to the company's Mill Development Plan - IV (Phase-I) project. This approval marks a crucial step forward in SPB's efforts to enhance its production capabilities and meet growing market demands.

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, Seshasayee Paper and Boards Limited promptly disclosed this development to the stock exchanges.

Project Background

The journey towards this expansion began earlier, with the company submitting its initial application for environmental clearance. SPB had kept investors informed of the progress through a series of disclosures:

• April 29, 2023: Initial notification of the project application
• April 27, 2024: Update on the application process
• September 13, 2024: Further developments regarding the application

Impact and Outlook

The granted environmental clearance is a positive development for Seshasayee Paper and Boards Limited, as it allows the company to proceed with its expansion plans. This 20% increase in pulp and paper capacities is expected to strengthen the company's market position and potentially lead to improved operational efficiency and production output.

As the paper industry continues to evolve, this expansion could enable SPB to meet increasing demand and capitalize on new market opportunities. However, the company has not yet disclosed specific details about the timeline for implementing the expansion or its potential impact on financial performance.