Shree Karthik Papers Reports Net Loss Despite Revenue Growth in Q2 FY2026

Shree Karthik Papers Limited , a manufacturer of writing and printing papers, has reported a net loss for the quarter ended September 30, 2025, despite an increase in total income. The company's financial results, approved by the Board of Directors on November 6, 2025, reveal a mixed performance with growth in revenue but a decline in profitability.

Financial Performance

The company's financial results for Q2 FY2026 show:

Particulars (in Lakhs)	Q2 FY2026	Q1 FY2026	Q2 FY2025
Total Income	1,608.99	1,613.56	1,590.58
Total Expenses	1,603.49	1,580.09	1,574.55
Net Profit/(Loss)	(5.51)	33.47	16.03
EPS (in Rs.)	0.03	0.18	0.07

Key Highlights

Revenue: Despite a slight decrease from the previous quarter, total income increased year-over-year to Rs 1,608.99 lakhs.
Expenses: Total expenses rose to Rs 1,603.49 lakhs, with the cost of materials consumed being the largest component at Rs 958.74 lakhs.
Profitability: The company reported a net loss of Rs 5.51 lakhs, a significant decline from the net profit of Rs 33.47 lakhs in the previous quarter and Rs 16.03 lakhs in the same quarter last year.
Earnings Per Share (EPS): The company's EPS stood at Rs 0.03 for the quarter.

Operational Overview

Shree Karthik Papers Limited operates in a single business segment: the manufacture of writing and printing papers. The company's performance this quarter reflects the challenges faced in maintaining profitability despite revenue growth.

Balance Sheet Highlights

As of September 30, 2025:

Total Assets: Rs 3,630.65 lakhs
Total Equity: Rs 300.16 lakhs
Total Liabilities: Rs 3,330.49 lakhs

The company's balance sheet shows a significant increase in non-current borrowings, rising from Rs 1.34 lakhs to Rs 114.43 lakhs, indicating a potential long-term financial strategy or investment in operations.

Cash Flow Statement

The cash flow statement for the half-year ended September 30, 2025, reveals:

Net cash from operating activities: Rs 43.74 lakhs
Net cash used in investing activities: Rs (35.83) lakhs
Net cash from financing activities: Rs 85.83 lakhs

This resulted in a net increase in cash and cash equivalents of Rs 6.26 lakhs for the period.

Conclusion

Shree Karthik Papers Limited's Q2 FY2026 results present a complex picture. While the company has managed to grow its revenue year-over-year, the shift from profit to loss indicates pressures on margins and profitability. The company's future performance will likely depend on its ability to manage costs and improve operational efficiency in the face of challenging market conditions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.43%	+1.47%	-3.66%	+1.36%	-24.73%	+215.14%

Shree Karthik Papers Limited , a manufacturer of writing and printing papers, has reported a strong performance for the first quarter, marking a return to profitability and showcasing significant growth in key financial metrics.

Financial Highlights

Revenue Growth: The company's revenue from operations reached ₹15.95 crore, representing a growth of 10.7% year-on-year and 10.6% quarter-on-quarter.
Profitability: Shree Karthik Papers reported a net profit of ₹3.35 crore, a substantial improvement from the loss of ₹3.68 crore in the previous quarter and a 41.9% increase from the profit of ₹2.36 crore in the same quarter last year.
Total Income: The total income for the quarter stood at ₹16.14 crore, up 11.8% year-on-year and 13.4% quarter-on-quarter.

Operational Performance

Cost Management: Despite the increase in revenue, the company managed to control its costs effectively. The cost of materials consumed rose to ₹9.67 crore, an increase of 24.2% year-on-year but only 5.7% quarter-on-quarter.
Employee Expenses: Employee benefit expenses decreased to ₹0.41 crore from ₹0.56 crore in the previous quarter, indicating improved operational efficiency.
Finance Costs: The company reduced its finance costs to ₹0.10 crore from ₹0.13 crore in the previous quarter, suggesting better financial management.

Earnings Per Share

The company's improved performance is reflected in its earnings per share (EPS) figures:

Basic and diluted EPS: ₹0.18
This marks a significant improvement from the -₹0.19 EPS in the previous quarter

Management Approval and Auditor's Review

The Board of Directors of Shree Karthik Papers Limited approved these financial results. The results were reviewed by the Audit Committee before being presented to the Board.

According to the Limited Review Report issued by Paul & Aravind LLP, Chartered Accountants, the financial results are in accordance with applicable accounting standards and other recognized accounting practices and policies. The auditors found no material misstatements in the financial results.

Segment Information

Shree Karthik Papers Limited operates in a single segment, focusing on the manufacture of writing and printing papers, as per Indian Accounting Standard 108.

The company's return to profitability and strong revenue growth indicate a positive trajectory, potentially reflecting improved market conditions and effective management strategies in the paper manufacturing sector.