Seshasayee Paper & Boards Limited has announced board approval for a postal ballot notice regarding key director appointments following its board meeting held on January 31, 2026. The postal ballot will seek shareholder approval for two significant appointments in compliance with SEBI Listing Regulations.

Board Approved Appointments

The board has approved the postal ballot notice for two director appointments. The first involves the re-appointment of Sri N Gopalaratnam as Whole-time Director, designated as Chairman, liable to retire by rotation. The second appointment concerns Sri Anurag Mishra, IFS, as Nominee Director on the board, also liable to retire by rotation.

Postal Ballot Process Details

The company will circulate the postal ballot notice to shareholders whose names appear on the Register of Members and List of Beneficial Owners. The notice will be distributed via e-mail and will contain detailed information about both appointments, explanatory statements, and voting procedures.

Regulatory Compliance

The appointments have been made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Sri Anurag Mishra has been nominated to the board by the Government of Tamil Nadu, replacing Sri Ashish Kumar Srivastava, IFS. The company has confirmed that Sri Mishra is not related to any other director on the board under Section 2(77) of the Companies Act, 2013, and is not debarred from holding the office of director by any regulatory authority including SEBI.

The appointments strengthen the company's board composition, with Sri Mishra bringing expertise in environment and climate change matters, aligning with the company's operational requirements in the paper and boards manufacturing sector.

Seshasayee Paper & Boards Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The paper manufacturing company delivered mixed performance with revenue declining year-over-year while achieving significant improvement in operational profitability metrics and maintaining stable production levels.

Financial Performance Overview

The company's standalone financial results revealed revenue contraction in Q3 FY26, with revenue from operations decreasing to ₹386.81 crores compared to ₹431.27 crores in Q3 FY25. Despite the revenue decline, the company maintained profitability with net profit after tax of ₹15.53 crores, marginally lower than ₹15.81 crores recorded in the same quarter last year.

EBITDA Performance Shows Strong Improvement

A notable highlight of the quarter was the significant improvement in EBITDA performance. The company reported EBITDA of ₹34.91 crores in Q3 FY26 compared to ₹28.17 crores in Q3 FY25, representing a substantial increase. This improvement demonstrates enhanced operational efficiency despite challenging market conditions.

Production and Sales Performance

The company maintained stable production levels during the quarter, producing 60,363 tonnes compared to 60,329 tonnes in Q3 FY25. However, sales volumes declined to 56,670 tonnes from 60,308 tonnes in the corresponding previous quarter. Export volumes dropped significantly to 5,371 tonnes from 6,799 tonnes, primarily due to suspension of exports to the US from June to September 2025 due to steep tariffs imposed by the US Government.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹1,118.39 crores compared to ₹1,251.83 crores in the corresponding period of the previous year. Net profit after tax for the nine-month period stood at ₹50.39 crores against ₹78.93 crores in the previous year, showing a significant decline of 36.16%.

Market Challenges and Outlook

The domestic paper market remained sluggish during Q3 FY26, primarily due to confusions arising from GST 2.0 reforms announced in September 2025. The NIL GST on paper for notebooks resulted in imported paper having a 12-15% cost advantage over domestically manufactured paper. Average realisations in Q3 dropped by nearly 4% compared to the first half, mainly due to pressures from GST 2.0 reforms and the US tariffs situation.

Strategic Developments

The company continues progress on its Mill Development Plan – IV (MDP-IV), having obtained Environment Clearance from MoEF & CC for the project on August 1, 2025. The project, with a cost of ₹270 crores, aims to increase pulp and paper capacities by 20%. Additionally, the company invested ₹26.0 crores in September 2025 for developing 52.8 MWp Solar Power Capacity and 9 MW Wind Power Capacity through a special purpose vehicle.

Source: Company filing