Orient Paper & Industries Limited has informed the Exchange about Capacity addition
ORIENTPPR · price
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The Board approved a capital expenditure plan of approximately Rs. 125 crore for the company's paper manufacturing facility at Amlai, Madhya Pradesh. The plan covers debottlenecking, addition of 8,500 tonnes per annum (TPA) to the existing 1,00,000 TPA capacity (around 8.5% increase), and cost efficiency improvements. Current plant utilisation already stands at 93%, and the project is targeted for completion within 24 months, funded through a mix of debt and internal accruals. Separately, Q1 FY26 revenue from operations was largely flat at Rs. 238.34 crore versus Rs. 238.29 crore a year ago, but loss before tax widened to Rs. 17.85 crore from Rs. 9.96 crore YoY. A reported net profit of Rs. 33.99 crore was driven mainly by a one-time deferred tax credit of Rs. 48.49 crore from opting for the lower corporate tax rate under Section 115BAA.
The capex indicates management's confidence in demand growth but will add to debt and depreciation in the near term. Weakness in the core paper segment (Q1 loss of Rs. 9.35 crore) remains a concern, though the chemicals segment continues to deliver steady profits and is helping cushion overall performance.