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Seshasayee Paper & Boards Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤31st Jan 26

Summary : Seshasayee Paper and Boards Limited reported a decline in revenue and profit for the nine months ended December 31, 2025, while progressing with the acquisition and planned revival of Servalakshmi Paper Limited assets, despite pending legal appeals.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Cost of Materials consumed (9 months ended Dec 31, 2025): 824.91 crores.
  2. Consolidated Changes in inventories (9 months ended Dec 31, 2025): -138.78 crores.
  3. Consolidated Employee benefits expense (9 months ended Dec 31, 2025): 77.78 crores.
  4. Consolidated Cost of Power and Fuel (9 months ended Dec 31, 2025): 152.06 crores.
  5. Consolidated Total expenses (9 months ended Dec 31, 2025): 1088.27 crores.
  6. Consolidated Revenue from Operation (9 months ended Dec 31, 2025): 1118.60 crores.
  7. Consolidated Other Income (9 months ended Dec 31, 2025): 37.13 crores.
  8. Consolidated Total Income (9 months ended Dec 31, 2025): 1155.73 crores.
  9. Consolidated Reserves (excluding Revaluation Reserves) as of March 31, 2025: 1976.36 crores.
  10. Paid-up Equity Share Capital: 12.04 crores.
  11. Both standalone and consolidated financial results are presented.
  12. Consolidated results include Esvi International (Engineers& Exporters) Limited (wholly owned subsidiary) and Ponni Sugars (Erode) Limited (associate).

Corporate Overview

  1. Registered office in Pallipalayam, Namakkal District, Erode, Tamilnadu, India.
  2. Few appeals challenging NCLT's order regarding the acquisition of Servalakshmi Paper Limited assets are pending in NCLAT.
  3. Paper is the only reportable segment of operation.
  4. Formal and factual reporting of financial results.
  5. Single reportable segment: Paper.
  6. Company is taking steps for revival, refurbishment, and recommencement of operations for the acquired Servalakshmi Paper Limited assets.

Risk Factors

  1. Appeals pending against NCLT order.
  2. Decline in revenue from operations.
  3. Lower profit after tax reported.
  4. Increased inventory changes negatively impacting expenses.

Key Drivers

  1. Acquired Servalakshmi Paper Limited assets.
  2. Plans for revival of acquired operations.
  3. Refurbishment to recommence operations.

Auditor’s Report

  1. Limited Review Report, not an audit opinion.
  2. Consolidated results include a wholly owned subsidiary and an associate.
  3. Associate's financial results reviewed by other auditors.

Board Commentary

  1. Pending appeals in NCLAT regarding the Servalakshmi Paper Limited acquisition.
  2. Appeals challenging NCLT order for Servalakshmi Paper Limited acquisition are pending.
  3. Acquisition of Servalakshmi Paper Limited assets approved by NCLT.

Corporate Governance

  1. Audit Committee reviewed the financial results.

Management Discussion & Analysis

Future Strategy

  1. Revival, refurbishment, and recommencement of operations for acquired assets.

Operational Focus Areas

  1. Focus on integrating and operationalizing Servalakshmi Paper Limited.

Performance Drivers

  1. Acquisition of Servalakshmi Paper Limited assets as a Going Concern.

Critical Risks

  1. Pending appeals challenging the NCLT order for the acquisition.
Seshasayee Paper & Boards Ltd (SESHAPAPER) Quarterly Report Analysis & Insights | Dhanarthi