Seshasayee Paper and Boards Limited has officially dispatched its postal ballot notice on February 09, 2026, to shareholders seeking approval for critical board appointments under the Companies Act, 2013 and SEBI LODR Regulations 2015. The paper manufacturing company requires shareholder consent for re-appointing its current Chairman and welcoming a new government nominee to the board.

Official Notice Dispatch and Communication

The company has sent the postal ballot notice in electronic form to shareholders' registered email addresses through their Depository Participants and Registrar and Share Transfer Agents. The notice is available on the company's website www.spbldt.com and NSDL's e-voting platform www.evoting.nsdl.com .

Chairman Re-appointment with Enhanced Remuneration

The company proposes to re-appoint N Gopalaratnam as Whole-time Director, designated as Chairman, for a three-year term commencing April 01, 2026. His current term expires on March 31, 2026, making this re-appointment essential for leadership continuity through a Special Resolution.

Gopalaratnam, aged 78 years, brings over 55 years of specialization in pulp and paper industry operations. His tenure since 1988 has witnessed significant company transformations, including major expansion programs worth ₹ 190 crores, establishment of a 20 MW captive power plant costing ₹ 65 crores, and implementation of mill development plans totaling ₹ 350 crores.

Government Nominee Director Appointment

The company seeks approval for appointing Anurag Mishra, IFS, Special Secretary, as a Nominee Director liable to retire by rotation through an Ordinary Resolution. Mishra was nominated by the Environment, Climate Change and Forests Department, Government of Tamil Nadu, and appointed as Additional Director on January 31, 2026.

E-Voting Process and Timeline

Shareholders can participate in the decision-making process through remote electronic voting exclusively, as physical ballot papers will not be distributed. The company has engaged National Securities Depository Limited (NSDL) to facilitate the e-voting process.

K Sankarasubramanian, Practising Company Secretary (Membership No. F 11241 / COP: 15994), has been appointed as Scrutiniser to ensure fair and transparent voting procedures. Results will be announced at the company's registered office in Pallipalayam, Tamil Nadu, and subsequently posted on the company website and stock exchange platforms.

Leadership Legacy and Strategic Vision

Gopalaratnam's leadership achievements include successful completion of multiple mill development plans, acquisition and turnaround of Subburaj Paper Mills in Tirunelveli, and pioneering environmental certifications including ISO 9001, ISO 14001, and Forest Stewardship Council accreditations. Under his guidance, the company achieved Two Star Export House status and received the Tamil Nadu Pollution Control Board Green Award in 2017.

The company has also embarked on ambitious renewable energy projects, including investment in 62 MW solar/wind power generation and implementation of MDP-IV in Unit-Erode for augmenting pulp and paper capacities by 40%. These strategic initiatives position the company for sustainable growth in the evolving paper industry landscape.

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