Chadha Papers posts Rs 4.61 crore profit on tax credit

Chadha Papers Limited posted standalone profit after tax of Rs 4.61 crore for the quarter ended 30 September 2026, reversing a Rs 1.33 crore loss a year earlier, after a Rs 2.66 crore deferred-tax credit exceeded its Rs 1.94 crore profit before tax.

How did Chadha Papers return to quarterly profit?

Chadha Papers returned to reported profit in the September 2026 quarter because its Rs 1.94 crore profit before tax was supplemented by a Rs 2.66 crore deferred-tax credit. This produced profit after tax of Rs 4.61 crore, compared with a Rs 1.33 crore loss after tax and a Rs 1.68 crore loss before tax in the quarter ended 30 September 2025.

The quarterly outcome also differed from the preceding June 2026 quarter. Chadha Papers reported Rs 2.71 crore profit before tax in June, but a Rs 3.25 crore deferred-tax expense resulted in a Rs 54.06 lakh loss after tax. In September, the movement in deferred tax changed the conversion of pretax earnings into reported profit.

Chadha Papers reported total comprehensive income of Rs 4.67 crore for the September 2026 quarter, compared with a Rs 48.13 lakh comprehensive loss in June 2026 and a Rs 1.29 crore comprehensive loss a year earlier. The latest quarter included other comprehensive income in addition to the Rs 4.61 crore reported profit after tax.

What happened to Chadha Papers revenue and costs?

Chadha Papers increased revenue from operations by Rs 9.19 crore year on year to Rs 125.10 crore in the quarter ended 30 September 2026, from Rs 115.91 crore. Revenue was below the Rs 129.29 crore recorded in the quarter ended 30 June 2026, while total income was Rs 126.19 crore, including Rs 1.09 crore of other income.

Total expenses rose to Rs 124.25 crore from Rs 118.20 crore in the September 2025 quarter, but remained below total income, resulting in the Rs 1.94 crore pretax profit. Against June 2026, total expenses fell by Rs 2.47 crore to Rs 124.25 crore, while total income declined by Rs 3.24 crore, reducing pretax profit from Rs 2.71 crore.

Material costs were Rs 66.52 crore in September 2026, down from Rs 83.60 crore a year earlier and above Rs 60.23 crore in June 2026. Power and fuel expense rose to Rs 24.14 crore from Rs 18.29 crore a year earlier and Rs 21.40 crore sequentially, while changes in inventories reduced expenses by Rs 7.18 crore in the latest quarter.

What do Chadha Papers' half-year results show?

Chadha Papers reported Rs 4.27 crore profit after tax for the half year ended 30 September 2026, reversing a Rs 6.04 crore loss after tax in the corresponding period of 2025. Half-year profit before tax was Rs 4.65 crore, compared with a Rs 7.94 crore pretax loss in the prior-year half.

Revenue from operations for the six months rose to Rs 254.99 crore from Rs 238.22 crore, and total income increased to Rs 255.63 crore from Rs 239.46 crore. Total expenses also increased to Rs 250.97 crore from Rs 247.39 crore, leaving a positive gap of Rs 4.65 crore before tax rather than the prior-year loss.

The half-year tax expense was Rs 38.66 lakh, compared with a Rs 1.70 crore tax credit in the corresponding 2025 period. Material costs fell by Rs 4.26 crore to Rs 166.75 crore, while power and fuel expense rose by Rs 8.86 crore to Rs 44.55 crore over the same comparison.

How did Chadha Papers' balance sheet change by September 2026?

Chadha Papers' total equity rose to Rs 58.71 crore at 30 September 2026 from Rs 54.33 crore at 31 March 2026. Equity share capital was unchanged at Rs 10.20 crore, while other equity increased to Rs 46.51 crore from Rs 44.12 crore.

Total assets were Rs 317.88 crore at 30 September 2026, compared with Rs 317.82 crore at 31 March 2026. Non-current assets increased to Rs 171.34 crore from Rs 166.42 crore, including property, plant and equipment of Rs 148.84 crore, while current assets fell to Rs 146.55 crore from Rs 151.40 crore.

Trade receivables declined to Rs 33.55 crore at 30 September from Rs 42.06 crore at the March year-end. Current borrowings fell to Rs 70.42 crore from Rs 76.29 crore, whereas non-current borrowings increased to Rs 29.67 crore from Rs 28.56 crore; total current liabilities decreased to Rs 163.76 crore from Rs 171.04 crore.

What factory-land lease matter did Chadha Papers disclose?

Chadha Papers said the lease for part of the Bilaspur, Rampur land on which its paper manufacturing unit is located has expired. The land belongs to promoters and their family members and had been leased for 30 years from 1991, according to the notes accompanying the 30 September 2026 financial results.

Management said it was in the process of renewing the lease and that Chadha Papers had not received any communication from the lessors seeking eviction. The company therefore stated that there was no material implication for operations at the time of the 14 November 2026 announcement.

The September 2026 standalone results were reviewed by the statutory auditor under Regulations 33 and 52 of the Securities and Exchange Board of India listing regulations. The auditor said nothing had come to its attention to indicate that the standalone statement did not make the required disclosures or contained a material misstatement.

Conclusion

Chadha Papers' September-quarter turnaround combined higher year-on-year revenue with a return to pretax profit, but the Rs 4.61 crore reported profit was materially affected by the Rs 2.66 crore deferred-tax credit. Pretax profit of Rs 1.94 crore was lower than the Rs 2.71 crore recorded in the preceding June quarter, as total income fell more than total expenses sequentially.

The next results will show whether Chadha Papers can sustain pretax profitability as material costs, power and fuel expense and inventory movements change. Investors can also watch management's disclosed process to renew the expired lease for part of the Bilaspur factory land, for which the company said it had received no eviction communication as of 14 November 2026.