Emami Paper Mills has received a significant legal reprieve as the Calcutta High Court extends an interim order restraining arbitration proceedings against the company. This development, disclosed in a regulatory filing, marks an important update in the ongoing legal matter involving the paper manufacturer.

Extended Court Order

The Calcutta High Court has extended its previous interim order, which was set to expire on November 11, 2025. The new order, issued on September 22, 2025, and communicated to the company on September 23, 2025, extends the restraint until December 24, 2025, or until further orders, whichever comes earlier.

Scope of the Order

The court order specifically prevents the defendants or judgment debtors from:

1. Proceeding with any arbitration before the London Maritime Arbitrators Association (LMAA) against Emami Paper Mills.
2. Taking any further steps against the company in the arbitration proceedings.

Company's Statement

In its disclosure to the stock exchanges, Emami Paper Mills stated:

"There is no material impact on the financial operations or other activities of the Company due to the aforesaid Order."

This statement suggests that the ongoing legal proceedings are not expected to significantly affect the company's day-to-day operations or financial performance.

Background

While the specific details of the arbitration case are not disclosed, this extension indicates an ongoing legal process that began at least as early as August 27, 2025, when the company made its previous disclosure about the interim order.

Investor Implications

For investors and stakeholders, this development provides temporary relief for Emami Paper Mills from potential arbitration proceedings. However, it's important to note that this is an interim measure, and the final resolution of the underlying dispute remains pending.

Shareholders and potential investors should continue to monitor further updates on this legal matter, as its eventual outcome could have implications for the company's operations and financial position in the long term.

Emami Paper Mills, part of the Emami Group, continues to operate its paper manufacturing business while navigating these legal challenges. The company's ability to secure this extended court order demonstrates its active management of legal risks, which is a crucial aspect of corporate governance and risk management in today's business environment.

Emami Paper Mills Limited , a prominent player in the paper industry, has released its unaudited standalone financial results for the quarter and half-year ended September 30, showcasing revenue growth amid changing market dynamics.

Q2 Financial Highlights

The company reported a quarterly revenue from operations of ₹495.09 crores, marking an 8.8% increase from ₹454.86 crores in the same period last year. However, profit after tax for the quarter saw a decline, coming in at ₹7.59 crores compared to ₹16.40 crores in the previous year's corresponding quarter.

Half-Year Performance

For the half-year period, Emami Paper Mills demonstrated resilience with revenue reaching ₹998.78 crores, a slight improvement from ₹994.11 crores in the previous year. Notably, the company managed to increase its profit after tax to ₹20.39 crores, up from ₹17.73 crores in the same period last year.

Financial Results Overview

All figures in crores (Cr)

Internal Auditor Reappointment

In a move to maintain robust internal financial controls, the Board of Directors has reappointed Ernst & Young LLP as the company's Internal Auditors. This appointment is set for the period from Q3 FY 2024-25 till Q2 FY 2026-27, based on the recommendation of the Audit Committee.

Management Commentary

While specific management comments were not provided, the reappointment of Ernst & Young LLP suggests a continued focus on maintaining high standards of financial oversight and corporate governance.

Looking Ahead

As Emami Paper Mills navigates through the evolving market conditions, the company's ability to grow revenue while managing profitability will be crucial. Stakeholders will likely keep a close eye on how the company leverages its internal audit processes to enhance operational efficiency and financial performance in the coming quarters.

The paper industry continues to face challenges and opportunities in the wake of changing consumer behaviors and environmental considerations. Emami Paper Mills' performance in the subsequent quarters will be instrumental in determining its trajectory in this dynamic market landscape.