South India Paper Mills Limited announced its unaudited financial results for the quarter ended 31st December 2025, demonstrating a remarkable turnaround in profitability. The Karnataka-based paper manufacturer reported a net profit of ₹237.27 lakhs compared to a loss of ₹332.80 lakhs in the corresponding quarter of the previous year, marking a significant recovery in operational performance.

Financial Performance Overview

The company's quarterly performance showed substantial improvement across key metrics despite operational challenges. Revenue from operations increased by 21.29% year-on-year to ₹10,137.11 lakhs in Q3FY26, up from ₹8,357.24 lakhs in Q3FY25.

Nine-Month Performance Highlights

For the nine-month period ended 31st December 2025, South India Paper Mills achieved even more impressive results. The company recorded a net profit of ₹616.90 lakhs against a loss of ₹738.35 lakhs in the corresponding nine-month period of FY25.

Operational Challenges and Cost Management

Despite the strong financial performance, the company faced operational headwinds during the quarter. Paper production volume was lower in Q3FY26 due to a 17-day stoppage in October 2025 for annual boiler inspection and replacement of critical boiler parts. This maintenance activity impacted production capacity but was necessary for long-term operational efficiency.

Total expenses for the quarter were ₹9,826.92 lakhs compared to ₹8,838.10 lakhs in Q3FY25. The major expense components included cost of materials consumed at ₹5,776.72 lakhs, other expenses at ₹2,230.21 lakhs, and employee benefits expenses at ₹807.14 lakhs.

Regulatory and Compliance Updates

The company addressed the implementation of New Labour Codes, which became effective from 21st November 2025. South India Paper Mills noted that its current wage structure is aligned with the requirements of the New Labour Codes, and no material incremental liability is expected in respect of gratuity and leave obligations.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 15th January 2026. The board meeting commenced at 3:30 PM and concluded at 5:00 PM. The results have been subjected to limited review by B S Ravikumar & Associates, Chartered Accountants, Mysore.

Business Segment and Investor Relations

Based on Ind AS 108 Operating Segments guidelines, the company's business activity falls within a single operating segment of Paper and Paper Products. During the quarter ended 31st December 2025, the company received and resolved one investor complaint, with no complaints pending at the beginning or end of the quarter.

The company operates from its registered office and factory at Chikkayana Chatra, Nanjangud, Karnataka, with its corporate and marketing office located in Bangalore. The results were announced in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

South India Paper Mills Limited has announced its unaudited financial results for the quarter and half-year ended September 30, 2025, revealing a notable improvement in its financial performance.

Revenue Growth

The company reported a significant increase in revenue from operations for both the quarter and half-year periods:

This growth indicates a strong market demand for the company's paper and paper products.

Profitability Improvement

South India Paper Mills has shown a remarkable turnaround in its profitability:

The company's efforts to improve operational efficiency and manage costs appear to have yielded positive results.

Financial Position

As of September 30, 2025, the company's total assets stood at Rs 45,596.69 lakhs, up from Rs 44,308.89 lakhs on March 31, 2025, indicating a growth in the company's asset base.

Segment Information

South India Paper Mills operates in a single segment: Paper and Paper Products. This focused approach allows the company to concentrate its resources and expertise in its core business area.

Investor Relations

During the quarter, the company received and resolved 5 investor complaints, demonstrating its commitment to maintaining good investor relations and addressing shareholder concerns promptly.

Outlook

While the company has shown impressive growth and a return to profitability, it's important to note that these results are subject to limited review by the statutory auditors. The management's ability to sustain this positive momentum will be crucial for the company's long-term performance.

Investors and stakeholders should continue to monitor the company's performance in the coming quarters to assess the sustainability of this growth trajectory and profitability improvement.