Shree Rama Newsprint Limited has announced its quarterly financial results for Q3FY26 ended December 31, 2025, reporting significant losses alongside key corporate governance developments. The company also appointed a new independent director while continuing its asset disposal strategy.

Q3FY26 Financial Performance

The company's continuing operations showed challenging performance metrics for the quarter ended December 31, 2025:

Nine Months Performance Overview

For the nine months ended December 31, 2025, the company's financial position reflects continued operational challenges:

Board Appointments and Corporate Governance

The Board of Directors appointed Mr. Harshadbhai Baldevbhaji Patel (DIN: 01823595) as Additional Director in the category of Non-Executive Independent Director effective February 7, 2026. The appointment details are:

Mr. Patel brings extensive experience in accounting and banking services, having worked in cooperative banking with strong expertise in financial operations and compliance.

Paper Division Asset Disposal Strategy

The company continues its systematic disposal of paper division assets, which were classified as discontinued operations. The paper division assets are being disposed on a piecemeal basis for better value realization.

Going Concern and Material Uncertainty

The auditors highlighted material uncertainty regarding the company's ability to continue as a going concern. The company's current liabilities exceed current assets by Rs.11,675.13 lakhs, with total comprehensive losses of Rs.3,065.01 lakhs for nine months. Management remains committed to disposing non-core assets and exploring funding options to strengthen working capital position.

Shree Rama Newsprint & Papers Limited announced the disposal of equipment from its paper division on January 13, 2026, in compliance with SEBI Regulation 30. The company is disposing plant and machinery related to its paper division on a piecemeal basis to Bluecraft Agro Private Limited.

Transaction Details

The disposal involves equipment worth ₹2.00 crores plus applicable GST, with the sale agreement entered into on January 13, 2026. The transaction is expected to be completed by March 31, 2026.

Financial Impact of Paper Division

The paper division's contribution to the company's overall performance for the year ended March 31, 2025, shows modest revenue generation but significant other income contribution.

Related Party Transaction

The transaction qualifies as a related party transaction since Mr. Siddharth Chowdhary, Whole-Time Director of Shree Rama Newsprint Limited, is also a Director and shareholder of Bluecraft Agro Private Limited. The company has confirmed that the transaction is being conducted on an arm's length basis.

Regulatory Compliance

The disposal falls outside the Scheme of Arrangement, and the company has obtained necessary shareholder approvals. In a meeting held on September 26, 2023, shareholders approved the sale, lease, or disposal of the whole or substantially whole undertaking under Section 180(1)(a) of the Companies Act, 2013.

The company has duly complied with Regulation 37A of SEBI (LODR) Regulations, as public shareholders' votes in favour exceeded those against the resolution. The announcement was signed by Siddharth Chowdhary, Whole-Time Director, and communicated to both BSE Limited and National Stock Exchange of India Limited.