Seshasayee Paper and Boards Reports Q1 Results: Revenue Reaches Rs 492.00 Crs amid Margin Pressures

Seshasayee Paper and Boards Reports Q1 Results: Revenue Reaches Rs 492.00 Crs amid Margin Pressures​

Seshasayee Paper and Boards Limited announced its unaudited financial results for the quarter ending June 30, 2026. The Board of Directors approved the results, which showed growth in sales volumes but highlighted margin pressures across various operational fronts, including raw material costs and freight rates.

The company saw significant performance improvements in operations compared to the corresponding period last year, driven by strong demand in both domestic and export markets.

Operational Performance Highlights​

For the quarter ending June 30, 2026, total production reached 67,437 tonnes, an increase from 61,543 tonnes in Q1 of the previous year (FY25). Total sales amounted to 66,026 tonnes, marking a substantial rise compared to the prior year's 55,285 tonnes.

Production and Sales volumes across the company’s units were monitored as follows:


Sales were segmented into domestic and export categories. Domestic sales reached 56,715 tonnes from a prior year figure of 51,380 tonnes, reflecting a 10.4% growth. Export sales saw a particularly sharp increase, reaching 9,311 tonnes, up from 3,905 tonnes in the previous period (a 138.4% rise).

Profitability and Financial Status​

The operational efficiency translated into improved profitability compared to the prior year, supported by demand buoyancy across the paper industry, driven by factors such as the extended Notebook season and consistent government tenders. Export order intake also remained strong during the quarter.

Key financial metrics for the three months ended June 30, 2026, are summarized below:

Strategic Investments and Market Outlook​

Seshasayee Paper is advancing the Mill Development Plan-IV (MDP-IV) in its Erode unit, which aims to realize a 20% increase in pulp and paper capacities. The company has secured all necessary environmental clearances and Consent-to-Establish (CTE) from TNPCB for this project. Key equipment, including the Recovery Boiler and Evaporator, are planned for commissioning by the end of the current financial year.

Regarding future operational strength, the company is investing in hybrid solar and wind power generation facilities under a Group Captive Model. This facility includes 52.8 MWp (DC) / 35.2 MW AC Solar Power Capacity and 9 MW Wind Power Capacity, with renewable power expected to become available from September or October 2026.

Unit-III Status: Operations at Unit-III, assets acquired via e-auction from M/s. Servalakshmi Paper Limited (Corporate Debtor under Liquidation), continue while awaiting final orders from the Hon'ble NCLAT concerning an appeal filed by the ex-promoter of CD.

Looking ahead, the company faces several pressures. The prevailing West Asian war crisis is expected to cause a significant cost push on chemicals and coal prices, which is anticipated to affect margins in Q2. Furthermore, domestic market order intake is predicted to be challenging in Q2 as price increases announced in Q1 had to be rolled back due to intense competition and pricing pressures. For exports, margin pressure is anticipated due to steep increases in ocean freight rates.

SESHAPAPER Stock Price Movement​

Seshasayee Paper and Boards Limited rallied on Friday, closing at ₹230.23 after the stock gained 1.03%. The equity traded within a session range of ₹224.2 to ₹232.02, recording a volume of 66,022 shares.