Financial Performance

Emami Paper Mills Limited reported outstanding financial results for FY26 with net profit surging 136% YoY to ₹61.38 crore and revenue of ₹1,907.23 crore. EBITDA increased 48.48% to ₹217.18 crore while profit before tax grew 179.6% to ₹93.36 crore. The company achieved 100% capacity utilization, producing 3.02 lakh tonnes against installed capacity of 3.40 lakh tonnes, with sales volume of 3.06 lakh tonnes.

Dividend and Capital Actions

The Board recommended a final dividend of ₹3.20 per equity share (160%) and ₹8 per preference share (8%), subject to shareholder approval at the 44th AGM scheduled for September 4, 2026. The company redeemed ₹45 crore of preference shares during the year and varied terms of 15,00,000 preference shares from OCRPS to NCRPS. Total borrowings stood at ₹817.15 crore with debt-to-equity ratio of 1.42.

Operational and Sustainability Highlights

The company commissioned a 7 MW solar power project under group captive model and upgraded Paper Machine No. 2 with new headbox and calendaring section. Finance costs reduced from ₹61.09 crore to ₹53.72 crore. Sustainability metrics included 71.05% water treated and reused, 1,16,000 tonnes waste material recycled, and specific freshwater consumption of 10.9 m³/ton below CPCB benchmarks.

Regulatory Compliance and Governance

The Annual Report for FY25-26 was submitted to BSE and NSE under SEBI LODR Regulation 34. Auditors S K Agrawal and Co issued an unmodified opinion but noted a qualification regarding audit trail not enabled at database level. Key management changes included Mr. Sushil Kumar Khetan appointed as Whole-time Director & CEO and Mr. Sumit Jaiswal as Company Secretary & Compliance Officer.

Financial Position and Controls

Total assets stood at ₹1,822.48 crore with current ratio improving to 1.11. The company maintained proper records of Property, Plant and Equipment, conducted regular inventory verification, and had adequate internal financial controls operating effectively. Contingent liabilities totaled ₹25.69 crore primarily relating to tax matters.

Forward-looking Perspective

The Indian paper industry is projected to reach USD 19.57 billion by FY2031 at 6.13% CAGR. Emami Paper Mills plans to focus on deepening specialty product portfolio, strengthening customer relationships, and advancing digital capabilities while maintaining its growth trajectory and operational excellence.