Overview

Cella Space Limited and Sree Sakthi Paper Mills Ltd both reported their audited financial results for FY 2025-26, showing net profits of ₹467.89 lakh and ₹453.90 lakh respectively, alongside significant corporate developments and regulatory compliance matters.

Financial Performance

Cella Space Limited reported standalone net profit of ₹467.89 lakh (FY25: ₹5,140.26 lakh) with gross revenue from operations at ₹746.33 lakh (FY25: ₹246.19 lakh). The company showed total assets of ₹4,791.86 lakh with cash and equivalents of ₹207.01 lakh and significant loans and advances of ₹3,327.32 lakh to its subsidiary.

Sree Sakthi Paper Mills reported net profit of ₹453.90 lakh (FY25: ₹5,140.26 lakh) with revenue from operations at ₹746.33 lakh, showing a major revenue composition shift to hill earth supply (₹578.79 lakh) following the disposal of its paper plant assets in the previous year. The company maintained cash equivalents of ₹208.60 lakh with a current account overdraft of ₹1,198.85 lakh offset against fixed deposits.

Corporate Actions and AGM

Cella Space convened its 35th AGM on September 26, 2026, seeking shareholder approval for multiple resolutions including:

  • Appointment of new directors (Ms. Kolluru Bala Naga Manimala, Mr. Benny John, and Mr. Vignesh Rajkumar)
  • Approval of material related party transactions involving unsecured loans of up to ₹5 crore each to Shri Kailash Logistics (Chennai) Limited and OneAlpha Ventures Limited for working capital requirements
  • Special resolution for reduction of non-convertible redeemable preference share capital by ₹8 crore through cancellation and securities premium account reduction, subject to NCLT approval

Asset Structure and Subsidiaries

Cella Space divested its entire equity shareholding in wholly-owned subsidiary Vijay Logistics Parks Private Limited in May 2026 and incorporated five new wholly-owned subsidiaries in April 2026. Sree Sakthi showed significant asset structure changes with ₹3,333.80 lakh additions to property, plant & equipment, while maintaining investment property (temple land) at historical cost of ₹8.53 lakh.

Regulatory Compliance and Contingencies

Both companies disclosed regulatory penalties from BSE. Cella Space faced fines for non-submission of voting results and compliance failures, while Sree Sakthi disclosed contingent liabilities of ₹105.79 lakh including tax disputes, EPF demands, and a BSE penalty under appeal. Both companies maintained compliance with SEBI regulations and corporate governance requirements.

Key Management and Governance

Cella Space's board included Mr. S Rajkumar as Vice Chairman & Managing Director, with several director appointments and changes in key managerial personnel during the year. Sree Sakthi's financial statements were signed by S Rajkumar, Visakh Rajkumar, and other officials, with promoter holding at 58.49% as of March 31, 2026.

Outlook and Capital Structure

Neither company recommended dividends for FY26, opting to retain earnings for future business requirements. Cella Space maintained equity share capital of ₹2,015.12 lakh with preference shares of ₹998.13 lakh, while pursuing capital reduction. Sree Sakthi maintained similar equity structure with debt-equity ratio of 0.28 times and return on equity of 29.86%.