Key Financial Figures (₹ Mn)

Q2 FY27 Performance (Quarter Ended September 30, 2026)

  • Revenue from Operations: ₹2,755 Mn
  • EBITDA: ₹61 Mn
  • EBITDA Margin: 2.2%
  • PAT: Loss of ₹275 Mn
  • PAT Margin: -10.0%
  • Diluted EPS: -₹2.75

Quarterly Comparison

Q2 FY27 vs Q2 FY26 (YoY):

  • Revenue: Decreased 11% (from ₹3,111 Mn)
  • EBITDA: Decreased 192% (from ₹66 Mn profit)
  • PAT: Loss increased 12% (from loss of ₹245 Mn)

Q2 FY27 vs Q1 FY27 (QoQ):

  • Revenue: Decreased 24% (from ₹3,618 Mn)
  • EBITDA: Decreased 112% (from ₹508 Mn profit)
  • PAT: Loss increased 61% (from loss of ₹171 Mn)

H1 FY27 Performance (Half Year Ended September 30, 2026)

  • Revenue from Operations: ₹6,373 Mn
  • EBITDA: ₹447 Mn
  • EBITDA Margin: 7.0%
  • PAT: Loss of ₹446 Mn
  • PAT Margin: -7.0%
  • Diluted EPS: -₹4.46

H1 FY27 vs H1 FY26 (YoY):

  • Revenue: Decreased 7% (from ₹6,820 Mn)
  • EBITDA: Decreased 36% (from ₹698 Mn)
  • PAT: Decreased 730% (from profit of ₹7 Mn)

Performance Drivers & Operational Highlights

  • Revenue Decline: The 11% YoY decrease in Q2 revenue was primarily due to reduced volumes resulting from the planned shutdown of Paper Machine 3 (PM3) for renovation and modernization. Paper realizations actually improved year-on-year.
  • Profitability Impact: The company reported an operating loss of ₹61 Mn in Q2 FY27 (compared to profit of ₹66 Mn in Q2 FY26). This was driven by elevated input costs, particularly agro-based raw materials including wheat straw, which offset the benefit of improved paper realizations.
  • Gross Margin: Stood at 40.1% in Q2 FY27, compared to 50.9% in Q1 FY27 and 44.9% in Q2 FY26.
  • PM3 Renovation: The renovation and modernization of PM3 was completed towards the end of September 2026, following which operations resumed. This project is expected to enhance production capabilities, improve product quality, and strengthen operating efficiencies.
  • Tax Regime Change: Effective FY27, the company has opted for the concessional tax regime. Consequently, the Cogeneration Division is no longer reported as a separate segment.
  • Moulded Cutlery Business: Continued to remain steady during the quarter.

Management Commentary

Executive Director Mr. Chirag Satia provided the following comments:

  • Demand remained steady during the quarter while realizations improved YoY amid moderation in import dumping.
  • Elevated raw-material costs continued to weigh on profitability.
  • The PM3 renovation marks an important milestone in strengthening manufacturing capabilities.
  • The focus has shifted to ramping up production and stabilizing operations with the upgraded machine.
  • The operating environment is showing encouraging signs with demand picking up and paper prices improving since the end of Q2 FY27.
  • Post-Diwali period typically witnesses stronger seasonal demand.
  • The company remains focused on progressively ramping up production and stabilizing operations following PM3 commissioning.
  • Future focus will be on improving capacity utilization and operating efficiencies while maintaining disciplined cost management.

Company Background

Satia Industries Limited is one of the leading writing and printing paper manufacturers in India, incorporated by Dr. Ajay Satia in 1980. The company commenced operations in 1984 with an initial capacity of 4,950 tonnes per year. Current 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 and a strong Pan-India distribution network with 100+ dealers and three branch offices (Delhi, Chandigarh, Jaipur). Total employee strength is 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 update these statements.