Raama Paper Mills Reports Q2FY26 Loss of ₹166.27 Cr; Resolution Plan Awaits Approval
Raama Paper Mills Limited posted a net loss of ₹166.27 crores for Q2FY26 compared to ₹365.98 crores loss in the previous year, with revenue declining to ₹109.86 crores. The company continues operating under Corporate Insolvency Resolution Process with a resolution plan approved by creditors awaiting NCLT approval, while facing significant financial challenges including negative net worth of ₹4,812.37 crores.
*this image is generated using AI for illustrative purposes only.
Raama Paper Mills Limited has released its unaudited financial results for the quarter ended September 30, 2025, showing continued financial challenges as the company operates under Corporate Insolvency Resolution Process (CIRP).
Financial Performance Overview
The company's financial performance for Q2FY26 reflects the ongoing operational difficulties:
| Metric | Q2FY26 | Q1FY26 | Q2FY25 | Change (YoY) |
|---|---|---|---|---|
| Revenue from Operations | ₹109.86 cr | ₹12.39 cr | ₹182.50 cr | -39.82% |
| Total Income | ₹112.71 cr | ₹20.45 cr | ₹184.37 cr | -38.86% |
| Net Loss | ₹166.27 cr | ₹145.11 cr | ₹365.98 cr | -54.57% |
| Earnings Per Share | ₹(1.72) | ₹(1.50) | ₹(3.79) | - |
Half-Year Performance
For the six months ended September 30, 2025, the company reported:
| Parameter | H1FY26 | H1FY25 |
|---|---|---|
| Total Income | ₹133.16 cr | ₹606.64 cr |
| Net Loss | ₹311.38 cr | ₹767.37 cr |
| Accumulated Losses | ₹6,946.15 cr | - |
Corporate Insolvency Resolution Process
The company continues to operate under CIRP following NCLT's order dated June 7, 2024, which appointed an Insolvency Resolution Professional (IRP). Key developments include:
- Board of Directors remains suspended with powers exercised by Resolution Professional Sandeep Kumar Aggarwal
- Committee of Creditors approved a resolution plan on April 16, 2025
- Resolution plan is pending approval by NCLT
- Manufacturing operations suspended during Q1FY26, with revenue primarily from scrap/raw material sales
Financial Position and Going Concern
As of September 30, 2025, the company faces severe financial distress:
| Financial Indicator | Amount |
|---|---|
| Negative Net Worth | ₹4,812.37 cr |
| Current Liabilities Exceeding Assets | ₹3,200.54 cr |
| Total Assets | ₹5,610.55 cr |
| Total Liabilities | ₹10,422.93 cr |
The auditors have expressed material uncertainty regarding the company's ability to continue as a going concern, noting that survival depends on approval and implementation of the resolution plan.
Operational Challenges
Several operational issues persist:
- No physical verification of inventory conducted during April-September 2025
- Interest of ₹718.51 cr on secured inter-corporate deposits not provided since IRP appointment
- Non-compliance with MSME disclosure requirements
- Manufacturing operations remain suspended
The company operates in the paper manufacturing sector as a single reportable segment and continues to work toward resolution under the insolvency framework.
Historical Stock Returns for Rama Paper Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.45% | +10.56% | +31.35% | -5.63% | -23.13% | -30.59% |
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