Financial Performance Summary
Satia Industries Limited announced its financial results for the first quarter ended June 30, 2026 (Q1 FY27).
Key Financial Metrics:
| Metric | Q1 FY27 | Q1 FY26 | YoY Change | Q4 FY26 | QoQ Change |
| Revenue from Operations (INR Mn) | 3,618 | 3,709 | -2% | 3,896 | -7% |
| EBITDA (INR Mn) | 508 | 632 | -20% | 236 | 116% |
| EBITDA Margin (%) | 14.0% | 17.0% | -300 bps | 6.0% | 800 bps |
| PAT (INR Mn) | -171 | 316 | -154% | 58 | -395% |
| PAT Margin (%) | -4.7% | 8.5% | -1325 bps | 1.5% | -622 bps |
| Diluted EPS (INR) | -1.71 | 3.16 | -154% | 0.58 | -395% |
Performance Analysis
Revenue: Revenue from operations for Q1 FY27 stood at INR 3,618 Mn, representing a 2% decrease year-over-year from INR 3,709 Mn in Q1 FY26 and a 7% decrease quarter-over-quarter from INR 3,896 Mn in Q4 FY26.
Volume and Pricing: During the quarter, pricing witnessed an uptick; however, volumes were impacted by the planned shutdown of PM3 (Paper Machine 3) from June 1, 2026.
Margins: Gross margins improved sequentially to 50.9% in Q1 FY27 from 48.0% in Q4 FY26, driven by better pricing realizations. EBITDA margin stood at 14.0%, improving by 800 basis points sequentially, primarily driven by higher realizations during the quarter.
Profitability: The Company reported a net loss of INR 171 Mn in Q1 FY27, compared to PAT of INR 316 Mn in Q1 FY26 and INR 58 Mn in Q4 FY26. The loss was attributable to a one-time, non-cash deferred tax charge arising from the transition to the concessional tax regime. This does not represent a corresponding cash outflow or a deterioration in operating performance.
Tax Regime Change: The quarter reflects the impact of the Company's decision to opt for the concessional tax regime from FY27, following which the Cogeneration Division is no longer reported as a separate segment.
Market Conditions: In addition to improved pricing, demand remained steady due to lower dumping activity. Geopolitical developments continued to influence global trade flows and logistics, resulting in an operating environment that remained dynamic through the period.
Operational Highlights
Modernization Program: During the quarter, the Company undertook a major modernization and upgradation program for Paper Machine 3 as part of its ongoing investment in manufacturing capabilities. The refurbishment work is expected to continue for 4-5 months. Upon completion, the project is expected to enhance production capacity, improve product quality, and strengthen operating efficiencies.
Sustainable Packaging: The Company's moulded cutlery business continued to operate during the quarter as part of its broader sustainable packaging portfolio.
Management Commentary
Executive Director Mr. Chirag Satia commented on the results:
"Demand remained steady during the quarter, while realizations improved on account of the moderation in import dumping. Against this backdrop, the Company remained focused on maintaining operational efficiency and prudent cost management."
"Looking ahead, FY27 will remain an important year from an execution standpoint as the Company progresses its ongoing modernization initiatives. We remain focused on the timely completion of key projects while continuing to strengthen our manufacturing platform and serve our customers effectively."
Company Background
Satia Industries Limited is one of the leading Writing and Printing paper manufacturers in India, incorporated by Dr. Ajay Satia in 1980 and commencing operations in 1984. The total installed production capacity exceeds 200,000 MTPA. The company is fully backward integrated with integrated pulping, chemical recovery, and power self-sufficiency. It has approximately 500 acres of eucalyptus plantations, a strong Pan-India distribution network with 100+ dealers, and three branch offices located in Delhi, Chandigarh & Jaipur with total employee strength of 2,600+.
Disclaimer
The document contains forward-looking statements subject to risks and uncertainties including government actions, local political or economic developments, technological risks, and other factors that could cause actual results to differ materially. The company undertakes no obligation to publicly update these forward-looking statements.