Satia Industries Limited has released its comprehensive investor presentation for February 2026, highlighting the company's financial performance and strategic developments during Q3FY26. The integrated paper manufacturer, established in 1984, continues to demonstrate operational resilience despite challenging market conditions in the Indian paper industry.

Q3FY26 Financial Performance

The company reported strong quarter-on-quarter growth in its core revenue metrics for Q3FY26. Revenue from operations reached ₹3,803 Mn, representing a significant 22% increase from Q2FY26's ₹3,111 Mn. However, on a year-over-year basis, revenue remained relatively stable with a modest 1% growth compared to Q3FY25's ₹3,758 Mn.

The company achieved profitability of ₹280 Mn in Q3FY26, a remarkable turnaround from the loss of ₹245 Mn recorded in Q2FY26. This represents a 42% year-over-year increase compared to Q3FY25's profit of ₹198 Mn.

Cutlery Business Expansion

Satia Industries has made significant strides in diversifying its product portfolio through strategic expansion of its tableware cutlery segment. The company added 5 new cutlery machines during the period, bringing the total number of cutlery units to 14. All machines are currently operating at 100% capacity, indicating strong market demand and operational efficiency.

Operational Infrastructure and Capacity

The company operates with a total installed capacity of over 2,00,000 MTPA across four paper machines. In FY22, Satia Industries commissioned its fourth state-of-the-art paper machinery with a capacity of 1,00,000 MTPA, significantly enhancing its production capabilities. The company maintains a completely integrated manufacturing setup including 100% in-house power generation and advanced effluent treatment facilities.

Satia Industries serves the market through a robust pan-India distribution network comprising 100+ dealers and three strategically located branch offices in Delhi, Chandigarh, and Jaipur. The company's regional sales distribution shows strong concentration in North India at 58%, followed by West (14%), East (13%), South (8%), with Central India and exports contributing 2% and 5% respectively.

Leadership Perspective and Market Outlook

Executive Director Mr. Chirag Satia acknowledged the challenging macro environment facing the Indian paper industry, citing elevated input costs, particularly wood, and continued influx of low-priced imports as key pressures on margins. However, he expressed confidence in the company's operational resilience and expects easing raw material prices and ongoing efficiency initiatives to support margin recovery in the coming periods.

Satia Industries Limited announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating a strong recovery in profitability during Q3FY26. The Punjab-based paper manufacturer reported significant improvements across key financial metrics, with the cogeneration division leading the performance turnaround.

Financial Performance Overview

The company's financial performance for Q3FY26 showed marked improvement compared to the previous quarter and year-over-year growth in profitability:

The company achieved a profit before tax of ₹2,630.55 lakhs in Q3FY26, a significant turnaround from the loss of ₹2,511.99 lakhs in the previous quarter. Other income contributed substantially at ₹2,864.66 lakhs, compared to ₹599.99 lakhs in Q3FY25.

Segment-wise Performance Analysis

Satia Industries operates through three primary business segments, with varying performance across divisions:

The cogeneration division emerged as the standout performer, generating segment results of ₹3,789.24 lakhs compared to ₹3,078.03 lakhs in Q3FY25. This division's strong performance offset losses in the paper segment, which reported a loss of ₹654.44 lakhs, though this represented an improvement from the ₹1,232.55 lakhs loss in the corresponding quarter last year.

Nine-Month Performance

For the nine months ended December 31, 2025, the company's performance reflected mixed results:

The nine-month results showed revenue decline and reduced profitability compared to the previous year, indicating challenges faced during the initial quarters of FY26.

Balance Sheet Highlights

The company maintained a stable capital structure with paid-up equity share capital of ₹1,000 lakhs (10 crore shares of ₹1 each). Total segment assets increased to ₹1,62,514.27 lakhs from ₹1,48,844.64 lakhs in the previous year, while segment liabilities rose to ₹54,428.62 lakhs from ₹47,502.75 lakhs.

Corporate Governance

The Board of Directors, in their meeting held on February 12, 2026, considered and approved the unaudited financial results. The results were reviewed by the Audit Committee and subjected to limited review by the statutory auditors N Kumar Chhabra and Co., Chartered Accountants. The company operates with ISO 9001, 14001, and OHSAS 18001 certifications, manufacturing quality writing, printing, and specialty paper with ECO MARK certification from its facility in Punjab.