Company Overview

Emami Paper Mills Limited, one of India's largest paper producers with plants at Balasore, submitted its Annual Report for FY 2025-26 to BSE and NSE under SEBI Regulation 34, comprising audited financial statements and board's report.

Financial Performance Summary (FY 2025-26)

Revenue & Profitability:

  • Revenue from operations: ₹1,907.23 crore (FY25: ₹1,928.04 crore)
  • EBITDA: ₹217.18 crore, up 48.48% from ₹146.27 crore in previous year
  • Profit Before Tax: ₹93.36 crore, up 179.6% from ₹33.39 crore
  • Net Profit: ₹61.38 crore vs ₹26.01 crore - 136% increase
  • Basic EPS: ₹9.34 vs ₹3.49

Balance Sheet Position:

  • Total assets: ₹1,822.48 crore (FY25: ₹1,808.14 crore)
  • Equity: ₹575.31 crore (FY25: ₹677.72 crore)
  • Total borrowings: ₹817.15 crore (FY25: ₹769.49 crore)

Operational Performance

  • Production Volume: 3.02 lakh tonnes against installed capacity of 3.40 lakh tonnes
  • Capacity Utilization: 100% achieved during the year
  • Product Mix: Packaging board (1.90 lakh tonnes), Newsprint (0.62 lakh tonnes), Writing & Printing paper (0.50 lakh tonnes)
  • CAPEX: ₹30.29 crores invested in FY 2025-26 including upgrade of Paper Machine No. 2
  • Solar Project: 7 MW group captive solar plant commissioned

Corporate Actions & Capital Structure

Dividend Declaration:

  • Final dividend of ₹3.20 per equity share (160%) for FY26
  • Dividend of ₹8 per preference share (8%) also proposed
  • Total dividend payment would be ₹14.58 crore (same as FY25)

Preference Share Changes:

  • Redeemed 7,50,000 preference shares during FY26 for ₹45 crore
  • Reclassified 15,00,000 shares from equity to debt due to variation in terms (extended tenure by 4 years)
  • Outstanding preference shares: 18,75,000 shares with fair value of ₹79.57 crore

Leadership Changes

  • CEO Change: Mr. Vivek Chawla resigned; Mr. Sushil Kumar Khetan appointed as CEO and Whole-time Director
  • CFO Confirmation: Mr. Mukesh Kumar Agarwal confirmed as CFO
  • Company Secretary: Mr. Sumit Jaiswal appointed replacing Mr. Debendra Banthiya

Audit and Compliance Matters

Auditor's Report:

  • S K Agrawal and Co Chartered Accountants LLP issued unqualified audit opinion
  • Financial statements comply with Indian Accounting Standards (Ind AS)

Key Audit Observations:

  • Quarterly returns filed with banks showed minor discrepancies with books of account due to provisional statements
  • No fraud noticed or reported during the audit
  • No whistle blower complaints received
  • Internal financial controls operating effectively

Working Capital & Borrowings

Inventory: ₹387.79 crore (raw materials: ₹290.18 crore)

Trade Receivables: ₹273.60 crore (82.4% not due)

Borrowings Structure:

  • Secured term loans: ₹294.61 crore
  • Unsecured preference shares: ₹224.27 crore
  • Demand loans: ₹105.26 crore

Related Party Transactions

Key Transactions:

  • Redemption of preference shares: ₹19.52 crore from Diwakar Finvest, ₹24.60 crore from Suraj Finvest
  • Dividend income from Emami Limited: ₹1.12 crore
  • Royalty and subscription charges to Emami Limited: ₹0.34 crore

Risk Management & Contingencies

Financial Risk:

  • Foreign currency exposure: USD 12.68 million (assets), USD 150.49 million (liabilities)
  • 73% of borrowings at variable rates

Contingent Liabilities: ₹25.69 crore (mainly excise/GST/customs matters)

Bank Guarantees: ₹184.61 crore

Corporate Social Responsibility

  • CSR Expenditure: ₹174.26 lakhs against prescribed ₹161.71 lakhs
  • Environmental initiatives: 71.05% water reuse, 1,16,000 tonnes waste recycled, 1,05,200 trees planted

Forward-looking Statements

The report contains forward-looking statements subject to risks including global economic conditions, raw material price volatility, competitive pressures, and regulatory changes. The company undertakes no obligation to update these statements.