Paper Sales Volume: 42,922 metric tons, representing 35% year-on-year growth
Blended Net Sales Realization (NSR): Improved by approximately ₹3,400 per ton quarter-to-quarter
Cost Increase: Rose by approximately ₹4,200 per ton quarter-to-quarter due to higher raw material, chemical and fuel prices
EBITDA: ₹40 crores, broadly stable year-on-year
EBITDA Margin: 13.2%
Profit After Tax: ₹6 crores
Other Income: Increased due to sale of plant and scrap sales (contributed to operational EBITDA margin of 14.4% when included)
Operational Highlights and Capacity Enhancements
Successfully commissioned DDS Double Displacement Digester System for wood pulping to optimize pulp quality and yield while reducing utility chemical costs
Commissioned advanced native starch system on Paper Machine 2 and Paper Machine 3 to improve paper properties and reduce uncooked starch losses
Installed state-of-the-art Folio Ream Wrapping Machine to automate wrapping and packaging of high folio sheets with integrated labeling and stacking capabilities
Paper Machine 3 shut for major rebuild, expected to be commissioned within August 2026 for enhanced production capabilities and improved quality
Successfully produced oil and grease resistant paper (OGR) for food wrapping applications on PM2, adding high-value specialty product to portfolio
Sustainability Initiatives
Achieved highest ever quarterly production of 17.28 lakh clonal saplings in in-house clonal propagation center
Added almost 1,300 acres of social farm forestry, taking total area under plantation to approximately 19,650 acres
Developing high-yielding varieties P29 and E2 seedlings, targeting 1 crore saplings annually in 3-4 years (current: 40 lakh annually)
Management Guidance and Outlook
FY27 Revenue Guidance: ₹1,300 crores+
FY28 Revenue Projection: ₹1,400-1,500 crores
EBITDA Margin Target: 16-18% by year-end (Q3 onwards expected visibility)
Peak Debt: ₹760-770 crores maximum
Debt Repayment: ₹170-175 crores annually for next 2-3 years
Debt Reduction Target: Under ₹300 crores in 3 years
Specialty Paper Contribution: Currently 18-19%, targeting 30% of production
AI Integration: Planned completion by March 2028 targeting 4-5% cost reduction
Market Conditions and Industry Context
Paper industry saw healthy demand supported by education, publishing, office consumption and broader economic activity
West Asia conflict intensified cost pressures across fuel, chemicals, raw materials, freight and logistics
Diminishing import trend observed due to shipping costs, container availability and logistic challenges
Imported paper prices trending between $610-620 per ton with minimal volumes
Antidumping duty and anti-subsidy duty applications filed with government for writing and printing paper segment (GSM 40-140)
Pipeline inventories with dealers described as minimal, suggesting potential demand surge
Raw Material Sourcing and Costs
Pulp mix: 50% agro pulp, 50% wood pulp
Sourcing primarily within Punjab and neighboring states (availability not an issue)
Wheat straw prices showing signs of reduction, expected to level out by September-October
Timber prices remaining stable with potential 5-6% reduction
Local raw material cost increases attributed primarily to wheat straw
Approximately 50% of cost increase due to West Asia crisis, remainder due to local factors
Capacity Details
Current pulping capacity: 200 tons each for agro and wood
Planned pulping capacity increase: 410-415 tons per day
Paper production will include 150-180 tons filler and 40-50 tons imported wood pulp daily for product quality
