Tamil Nadu Newsprint & Papers Ltd (TNPL) has reported a significant increase in its net profit for the second quarter, despite facing pressure on its profit margins. The company's financial performance shows a mixed picture of growth and challenges.

Financial Highlights

TNPL has demonstrated robust top-line growth, with revenue increasing by 21.40% year-over-year to ₹1,110.00 crore in the second quarter. This substantial rise in revenue has contributed to a remarkable 212.00% jump in net profit, which stood at ₹81.00 crore compared to ₹26.00 crore in the same period last year.

Profitability Concerns

Despite the impressive growth in revenue and net profit, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) remained relatively flat at ₹123.00 crore, compared to ₹124.00 crore in the previous year. This indicates potential challenges in operational efficiency or cost management.

The EBITDA margin saw a significant compression, declining from 13.57% to 11.09%. This 248 basis point reduction in margin suggests that the company is facing pressure on its profitability, possibly due to increased input costs or competitive pricing in the market.

Management Initiatives

The company's board of directors has taken several key decisions in their recent meeting:

1. Approval of unaudited financial results for Q2 and H1.
2. Appointment of Thiru Mathew Thomas as an Additional Independent Director for a three-year term, subject to shareholder approval.
3. Initiation of a postal ballot process for shareholder approval of the new director appointment.

These actions indicate that TNPL is focusing on strengthening its corporate governance and seeking to bring in fresh perspectives to its board.

Outlook

While TNPL has shown strong growth in revenue and net profit, the pressure on its EBITDA margin warrants attention. The company may need to focus on cost optimization and operational efficiency to maintain its profitability in the face of growing revenues.

Investors and analysts will likely keep a close eye on how TNPL manages its costs and improves its margins in the coming quarters, especially given the competitive nature of the paper industry and potential fluctuations in raw material costs.

The appointment of a new independent director might also signal TNPL's intentions to leverage new perspectives for improving its operations and competitiveness in the market.

As TNPL navigates these challenges and opportunities, its ability to maintain revenue growth while improving profitability will be crucial for its long-term performance and shareholder value creation.

Tamil Nadu Newsprint & Papers Limited (TNPL), a government enterprise, has announced significant changes to its board composition and the appointment of new statutory auditors following a board meeting held on September 18, 2025.

New Statutory Auditors Appointed

The company has appointed M/s. A. John Moris & Co., Chartered Accountants, as its statutory auditors for the financial year 2025-26. This appointment was made based on the designation by the Comptroller and Auditor General of India (CAG), as per Section 139 of the Companies Act, 2013.

M/s. A. John Moris & Co. brings a wealth of experience to TNPL, having provided professional services such as audit, assurance, and related services for three decades. The firm, established in 1996, boasts 31 partners and operates 23 branches across India.

Board Changes

TNPL also announced the completion of terms for two of its independent directors:

1. Dr. M. Arumugam (DIN: 01439166)
2. Thiru P. B. Santhanakrishnan (DIN: 03213653)

Both directors have concluded their second consecutive three-year terms as Independent Directors of the company. Their tenure ended at the close of business hours on September 18, 2025.

Committee Leadership Changes

As a result of these departures, several key committee leadership positions have been affected:

• Dr. M. Arumugam has stepped down as Chairman of the Risk Management Committee and the Corporate Social Responsibility Committee.
• Thiru P. B. Santhanakrishnan has relinquished his position as Chairman of the Audit Committee.

Annual General Meeting Highlights

The company also held its 45th Annual General Meeting (AGM) on the same day, where several important matters were addressed:

• The financial statements for the year ended March 31, 2025, were presented for adoption.
• A dividend declaration was proposed.
• The reappointment of Thiru T. Anbalagan, I.A.S., (DIN: 10402554) as a Director was considered.
• The remuneration for statutory auditors was fixed.
• The remuneration for cost auditors was ratified.
• The appointment of secretarial auditors was discussed.

The AGM, conducted through video conferencing, saw active participation from shareholders, with queries addressing various aspects of the company's operations and future outlook.