Shree Karthik Papers Limited has submitted a regulatory disclosure to BSE Limited confirming that its promoters have maintained clean shareholdings without any encumbrance during the quarter ended December 31, 2025. The disclosure was filed in compliance with Regulation 31(4) of SEBI (Substantial Acquisition of shares and Takeovers) Regulations 2011.

Promoter Shareholding Details

The company's promoters collectively hold a significant stake in the organization, maintaining their commitment to the business without any financial encumbrances.

Regulatory Compliance

The disclosure fulfills the mandatory requirements under SEBI (SAST) Regulations 2011, which mandates listed companies to inform stock exchanges about any encumbrance or pledge of promoter shares. The company confirmed that no encumbrance was made directly or indirectly during the quarter ended December 31, 2025.

Clean Shareholding Structure

Shree Karthik Papers Limited emphasized that as of December 31, 2025, zero shares of the company are encumbered or pledged by the promoters. This clean shareholding structure reflects the promoters' confidence in the business and their commitment to maintaining unencumbered ownership. The absence of any pledge or encumbrance on promoter shares indicates financial stability and reduces potential risks for minority shareholders.

Shree Karthik Papers Limited , a manufacturer of writing and printing papers, has reported a net loss for the quarter ended September 30, 2025, despite an increase in total income. The company's financial results, approved by the Board of Directors on November 6, 2025, reveal a mixed performance with growth in revenue but a decline in profitability.

Financial Performance

The company's financial results for Q2 FY2026 show:

Key Highlights

• Revenue: Despite a slight decrease from the previous quarter, total income increased year-over-year to Rs 1,608.99 lakhs.
• Expenses: Total expenses rose to Rs 1,603.49 lakhs, with the cost of materials consumed being the largest component at Rs 958.74 lakhs.
• Profitability: The company reported a net loss of Rs 5.51 lakhs, a significant decline from the net profit of Rs 33.47 lakhs in the previous quarter and Rs 16.03 lakhs in the same quarter last year.
• Earnings Per Share (EPS): The company's EPS stood at Rs 0.03 for the quarter.

Operational Overview

Shree Karthik Papers Limited operates in a single business segment: the manufacture of writing and printing papers. The company's performance this quarter reflects the challenges faced in maintaining profitability despite revenue growth.

Balance Sheet Highlights

As of September 30, 2025:

• Total Assets: Rs 3,630.65 lakhs
• Total Equity: Rs 300.16 lakhs
• Total Liabilities: Rs 3,330.49 lakhs

The company's balance sheet shows a significant increase in non-current borrowings, rising from Rs 1.34 lakhs to Rs 114.43 lakhs, indicating a potential long-term financial strategy or investment in operations.

Cash Flow Statement

The cash flow statement for the half-year ended September 30, 2025, reveals:

• Net cash from operating activities: Rs 43.74 lakhs
• Net cash used in investing activities: Rs (35.83) lakhs
• Net cash from financing activities: Rs 85.83 lakhs

This resulted in a net increase in cash and cash equivalents of Rs 6.26 lakhs for the period.

Conclusion

Shree Karthik Papers Limited's Q2 FY2026 results present a complex picture. While the company has managed to grow its revenue year-over-year, the shift from profit to loss indicates pressures on margins and profitability. The company's future performance will likely depend on its ability to manage costs and improve operational efficiency in the face of challenging market conditions.