Seshasayee Paper and Boards delivered exceptional Q1 FY27 results with standalone net profit surging 96.89% year-on-year to ₹33.59 crore from ₹17.06 crore in Q1 FY26. According to reports from Business Standard, the company's revenue from operations increased 27.68% YoY to ₹492 crore during the quarter. Profit from ordinary activity before tax soared 95.58% to ₹45.10 crore compared with ₹23.06 crore in the year-ago period. The company also reported consolidated net profit after tax of ₹31.91 crore, up from ₹15.43 crore in the prior year quarter, with consolidated EBITDA of ₹437 million compared to ₹220 million in Q1 FY26.
The company's operational performance remained robust with production increasing 9.58% YoY to 67,473 tonnes in Q1 FY27 from 61,543 tonnes in Q1 FY26. As reported by Business Standard, sales volumes grew 19.43% YoY to 66,026 tonnes. EBITDA rose 60.15% YoY to ₹57.11 crore during the quarter, compared with ₹35.66 crore in the year-ago period. The strong operational performance was attributed to productivity improvements at both manufacturing units and an improved order position across domestic and export markets. EBITDA margin expanded significantly to 8.9% from 5.71% year-on-year, demonstrating improved operational efficiency despite higher production volumes.
The Board of Directors appointed Sri R.J Ramesh, Deputy General Manager (IA/ISO/PP) at Tamilnadu Industrial Investment Corporation Limited (TIIC), as an Additional Director on July 25, 2026. As reported by Business Standard, the appointment is not liable to retire by rotation and requires shareholder approval via a postal ballot process. Earnings per share (basic) for the standalone entity rose to ₹5.58 from ₹2.83, while on a consolidated basis, basic EPS increased to ₹5.30 from ₹2.56. The company's total comprehensive income for the standalone segment was ₹43.49 crore, benefiting from a net fair value gain on equity instruments through OCI of ₹11.51 crore.
The market responded positively to the strong results, with Seshasayee Paper and Boards rallying 9.35% to ₹252.65 following the announcement. According to Business Standard, demand during the June quarter was supported by an extended notebook season, healthy orders from large printers, government tenders, and strong export order inflows. The company's stock price movement reflects investor confidence in the company's operational improvements and market positioning.
Looking ahead, the company cautioned that margins could come under pressure in the second quarter due to several factors. As reported by Business Standard, the ongoing West Asian conflict has led to a sharp increase in input costs, particularly chemicals and coal. Domestic order inflows are also expected to remain challenging, while price hikes announced in the domestic market during Q1 were rolled back in July due to intense competition and pricing pressures. On the export front, the company expects margins to be impacted by a steep rise in ocean freight rates. The company continues efforts toward the revival and refurbishment of assets acquired from M/s Servalakshmi Paper Limited, with the National Company Law Tribunal having approved the e-auction sale in May 2023.
