BSE: 516108
SOUTH INDIA PAPER MILLS LTD.
Manufactures paper and paper products from its facilities at Nanjangud and Thandavapura in Karnataka, with paper and paper products accounting for 91.6% of segment revenue and power accounting for the remaining 8.4% over the period covered by the segment data. Revenue in FY26 was Rs 433.81 cr with a net profit of Rs 10.74 cr, after a swing from a loss in FY25. Materials are the dominant cost at 58.4% of revenue, followed by other operating expenses at 22.6% and employee costs at 7.8%. The power segment runs as a captive cogeneration operation linked to the paper mills, and the company is adding 11.6 million units of wind power a year through a 26% stake in Clean Wind Power (Manvi) Pvt Ltd to supply its industrial sites. Paper production was halted for 17 days in October 2025 for annual boiler inspection, and an FY24 fire incident has been generating insurance claims recognised as exceptional items. Total borrowings stand at Rs 1,559 lakhs with a debt-to-equity ratio of 0.70 and an ICRA credit rating of BB+. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Paper & Paper products (92%), Power (8%). Asset-heavy paper manufacturing with captive cogeneration power
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · standalone | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 305 | 288 | 312 | 369 | 434 |
| EBITDA (ex other income) | 40 | 7 | 17 | 22 | 51 |
| margin % | 13.2 | 2.4 | 5.4 | 6.0 | 11.7 |
| Owners' profit | 22 | (17) | (13) | (10) | 11 |
| EPS, as reported (₹) | 14.44 | (11.08) | (7.16) | (5.14) | 5.73 |
| ROE % · ROCE % | 10.5 · 8.6 | (7.1) · (2.1) | (6.1) · 0.2 | (4.6) · 2.1 | 4.8 · 10.6 |
| Debt / equity (x) | 0.96 | 0.82 | 0.90 | 0.83 | 0.70 |
| Cash from operations | 39 | 1 | (18) | 40 | 43 |
| Capex | (108) | (27) | (4) | (3) | (4) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 90 | 102 | 84 | 94 | 107 | 112 | 101 | 114 |
| Profit before tax | (4) | (2) | (4) | (3) | 1 | 4 | 3 | 6 |
| Net profit | (3) | (1) | (3) | (2) | 1 | 3 | 2 | 5 |
| EPS (₹) | (1.52) | (0.64) | (1.78) | (1.20) | 0.52 | 1.50 | 1.27 | 2.44 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| JK PAPER LIMITED | 6,799 | 20.5 | 1.17 | 9.4 | 4.7 | 4.4 | 20.8 | 17.0 |
| WEST COAST PAPER MILLS LT | 5,402 | 23.5 | 1.29 | 10.8 | 3.7 | 5.0 | 13.8 | 23.6 |
| ANDHRA PAPER LIMITED | 1,309 | 47.4 | 0.68 | — | 1.0 | 1.2 | — | 17.9 |
| SESHASAYEE PAPER & BOARDS | 1,210 | 12.2 | 0.59 | 8.3 | 4.0 | 4.1 | 16.9 | 11.3 |
| N R AGARWAL INDS LTD | 1,156 | 18.6 | 1.42 | — | 5.4 | 3.9 | — | 12.4 |
| TAMILNADU NEWSPRT & PAPER | 886 | 3.4 | 0.38 | — | 10.7 | 1.4 | — | 11.2 |
| PUDUMJEE PAPER PRO. LTD | 822 | 9.0 | 1.23 | — | 14.0 | 16.2 | — | 25.2 |
| EMAMI PAPER MILLS LIMITED | 696 | 7.4 | 1.21 | — | 10.7 | 8.1 | — | 14.8 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 20.4 | 13.8 | 26 of 36 | 29% |
| P/B | 1.0 | 0.7 | 21 of 36 | 43% |
| ROCE | 4.4 | 4.4 | 22 of 45 | 52% |
| ROE | 4.8 | 4.0 | 16 of 37 | 58% |
| Debt / Equity | 0.7 | 0.4 | 28 of 37 | 25% |
| EBITDA margin | 13.5 | 10.4 | 14 of 38 | 65% |
| Revenue growth | 21.1 | 11.5 | 14 of 39 | 66% |
| Profit growth | 302.6 | 60.9 | 5 of 42 | 90% |
| Market cap | 219 | 55 | 17 of 48 | 66% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 22 Oct 2026 · Open offer at Rs 120 per share by Modi acquirers for South India Paper Mills | compliance | minimal | — | — |
| 21 Oct 2026 · Open Offer at Rs 120 per share for 26 percent of South India Paper Mills | strategic transactions | high | — | — |
| 16 Oct 2026 · Independent Directors recommend open offer at Rs 120 per share as fair | compliance | minimal | — | — |
| 16 Oct 2026 · IDC recommends fair and reasonable open offer at Rs 120 per share | strategic transactions | high | — | — |
| 15 Oct 2026 · Modi acquirers open offer at Rs 120 per share; IDC finds it fair and reasonable | strategic transactions | high | — | — |
| 14 Oct 2026 · Open Offer Letter received: Modi family to acquire 26 percent stake at Rs 120 per share | strategic transactions | high | — | — |
| 14 Oct 2026 · Board Meeting on Oct 29 to approve Q2 FY26-27 results | results | low | — | — |
| 14 Oct 2026 · Modi family open offer at Rs 120 per share for 26 percent stake | strategic transactions | high | — | — |
| 14 Oct 2026 · Open Offer launched to buy 26 percent stake in South India Paper Mills at Rs 120 per share | strategic transactions | high | — | — |
| 10 Oct 2026 · Routine compliance certificate for Q2 FY26 demat remat details | compliance | minimal | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.