Financial Highlights (FY 2025-26)

  • Revenue from operations: ₹2,089.49 million (9.84% increase from ₹1,902.27 million in FY 2024-25)
  • Profit before taxation: ₹552.38 million (2.81% increase from ₹537.26 million in FY 2024-25)
  • Tax expense: ₹137.89 million (compared to ₹138.33 million in FY 2024-25)
  • Total comprehensive income: ₹434.26 million (compared to ₹397.92 million in FY 2024-25)
  • Earnings Per Share (EPS): ₹94.36 (compared to ₹90.87 in FY 2024-25)
  • Exceptional item: ₹50.97 million provision for gratuity due to new Labour Codes effective November 21, 2025

Share Capital

  • Paid-up share capital: ₹43,925,590 comprising 4,392,559 equity shares of ₹10 each
  • No change in capital structure during the year

Dividend

  • Board recommended final dividend of 100% (₹10 per equity share) totaling ₹43.93 million (gross)
  • Subject to shareholder approval at 56th AGM
  • Payment within stipulated time subject to TDS at applicable rates

Key Operational Metrics

  • Exports (excluding Nepal): ₹355.68 million
  • Foreign exchange earnings: ₹373.24 million (actual inflows)
  • Foreign exchange expenditure: ₹719.02 million (actual outgo)
  • R&D expenditure: ₹70.31 million (3.37% of total turnover)
  • Solar power generation: 3,234 MWh mitigating 2,351 tons carbon emissions
  • Solar energy cost savings: ₹25.19 million

Corporate Actions and Changes

Board Changes

  • Appointment: Dr. Ram Sewak Sharma (DIN: 02166194) as Non-Executive Independent Director for 5 years from March 1, 2025, approved via Postal Ballot on April 17, 2025
  • Retirement by rotation: Mr. R. Krishna Kumar (DIN: 05344619) offered himself for re-appointment as Managing Director

Key Managerial Personnel Changes

  • Mr. Deepak Behl appointed as Company Secretary & Compliance Officer from December 3, 2025, replacing Mr. C.S. Gugliani who superannuated

Related Party Transactions

  • All transactions conducted at arm's length basis in ordinary course of business
  • Material RPTs with fellow subsidiaries:
  • JM Voith SE & Co. KG: Sale and purchase of goods
  • Voith Paper (China) Co. Ltd.: Sale of goods, purchase of goods and materials
  • Voith US Inc.: Sale of goods, purchase of materials and stores
  • Shareholder approval obtained for material RPTs at 55th AGM held on August 21, 2025
  • Omnibus approval obtained from Audit Committee and Board

Corporate Social Responsibility (CSR)

  • CSR obligation: ₹9.84 million (2% of average net profit of ₹492 million)
  • CSR expenditure: ₹9.842 million across healthcare, education, and skill development initiatives
  • Key beneficiaries: Sambharye Foundation (medical equipment), PHD Rural Development Foundation (school infrastructure), Impact Guru Foundation (wheelchairs distribution)

Corporate Governance

  • Board composition: 6 Directors including Chairman, Managing Director, 1 Non-Executive Non-Independent Director, and 3 Independent Directors (including 2 women)
  • Board meetings: 4 meetings held during FY 2025-26
  • Committees: Audit Committee, Stakeholders' Relationship Committee, CSR Committee, Nomination and Remuneration Committee
  • Director remuneration: Sitting fees of ₹100,000 per Board meeting and ₹50,000 per Committee meeting for resident Non-Executive Directors

Key Dates and Events

  • 56th AGM: August 19, 2026 at 3:30 PM through video conferencing
  • Record date for dividend: August 12, 2026
  • Book closure: August 13-19, 2026 (both days inclusive)
  • Dividend payment date: Within 30 days of AGM approval

Regulatory and Compliance Matters

  • SEBI fine: ₹11,800 for delay in disclosure of related party transactions in FY 2023-24
  • Pending litigation: Income tax matters totaling ₹50.62 million and custom duty matters of ₹1.41 million
  • Labour cases: Ongoing proceedings with 15 ex-contractual employees seeking reinstatement
  • Provident fund: Provision made from date of Supreme Court order regarding allowance applicability

Risk Factors

  • Dependence on volatile raw material prices (synthetic yarn & fibers)
  • Geopolitical tensions affecting supply chains and input costs
  • Competition from cheaper imports impacting domestic market
  • Digitalization threat to traditional paper segments

Future Outlook

  • Indian paper industry expected to grow at 3-4% annually driven by packaging, e-commerce, and education sectors
  • Focus on sustainable paper making and technological innovation
  • Expansion through collaboration with Voith Group companies in international markets
  • Continued investment in operational excellence and cost optimization