Seshasayee Paper and Boards Limited has informed the Exchange regarding 'Letter to Shareholders - Un-audited Financial Results for the quarter June 30, 2025'
SESHAPAPER · price
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Seshasayee Paper and Boards reported weak Q1 FY26 results with revenue from operations falling to Rs. 385.33 crores from Rs. 422.16 crores a year ago, an ~8.7% decline. EBITDA nearly halved to Rs. 35.66 crores (vs Rs. 63.92 crores) and standalone net profit dropped sharply to Rs. 17.06 crores from Rs. 38.34 crores, translating to EPS of Rs. 2.83 vs Rs. 6.37. While production volumes rose marginally (1.3%) and domestic sales grew 5.4%, export volumes fell sharply (~35%) due to US tariffs and pending trade negotiations. The company blamed lower realisations per tonne, weak exports, and a sharp rise in wood costs for the profit decline, partly offset by cheaper chemicals, coal, and operational efficiencies. Management said the paper market is likely to remain weak through FY26, though softening wood prices may support margins ahead.
Shareholders face a significant quarter-on-quarter earnings drop with margins under pressure, but the company continues operations, pays dividends implied by healthy reserves (Rs. 1,899 crores), and is pursuing a Rs. 405 crore capacity expansion plus Servalakshmi Paper asset acquisition for future growth. Near-term stock sentiment is likely negative given the profit decline, though wood cost softening offers a potential medium-term cushion.