Sangal Papers first-half profit rises to Rs 3.81 crore

Sangal Papers Limited reported profit for the six months ended 30 September 2026 of Rs 3.81 crore, compared with Rs 1.11 crore a year earlier, as profit before tax rose to Rs 5.28 crore from Rs 1.51 crore. Revenue from operations increased to Rs 112.32 crore from Rs 95.92 crore.

How did Sangal Papers’ first-half earnings change?

Sangal Papers’ first-half profit after tax increased by Rs 2.71 crore year on year to Rs 3.81 crore for the six months ended 30 September 2026. Profit before tax increased by Rs 3.77 crore to Rs 5.28 crore, and the results statement recorded no exceptional items in either first-half period.

Revenue from operations was Rs 112.32 crore, up Rs 16.41 crore from Rs 95.92 crore in the corresponding six months ended 30 September 2025. Other income increased to Rs 0.52 crore from Rs 0.47 crore, taking total income to Rs 112.85 crore from Rs 96.39 crore.

The change in pre-tax profit exceeded the increase in income because total expenses rose by Rs 12.69 crore, compared with a Rs 16.46 crore increase in total income. The difference between total income and total expenses was Rs 5.28 crore in the latest half year, against Rs 1.51 crore a year earlier, before tax.

Sangal Papers reported only one operating segment, production of paper products, and therefore did not provide segment-level revenue or profit disclosures under Indian Accounting Standard 108. The financial statements were prepared under the Companies (Indian Accounting Standards) Rules, 2015.

What changed in Sangal Papers’ first-half costs?

Sangal Papers’ material-consumption cost rose to Rs 96.97 crore in the half year from Rs 92.40 crore in the corresponding 2025 period. The Rs 4.57 crore increase was smaller than the Rs 16.41 crore increase in revenue from operations, although the filing does not give volume, selling-price or raw-material-price reasons for the movement.

Employee-benefit expense increased to Rs 4.51 crore from Rs 4.12 crore, finance costs rose to Rs 1.16 crore from Rs 1.12 crore, and depreciation and amortisation increased to Rs 1.19 crore from Rs 0.57 crore. Other expenses were Rs 4.82 crore, compared with Rs 4.35 crore a year earlier.

Changes in inventories of finished goods, work in progress and stock in trade were an expense of Rs 0.93 crore, against Rs 0.20 crore in the earlier first half. The company reported no purchases of stock in trade in the latest half year, compared with Rs 0.02 crore in the comparable period.

The results show these expense-line changes but do not attribute them to demand, production volumes or input costs. The absence of exceptional items means the reported Rs 5.28 crore pre-tax profit was not supplemented by a separately disclosed exceptional gain.

How did Sangal Papers perform in the September quarter?

Sangal Papers reported profit for the period of Rs 1.13 crore in the quarter ended 30 September 2026, compared with Rs 0.30 crore in the corresponding quarter of 2025. Quarterly profit before tax was Rs 1.57 crore, against Rs 0.42 crore a year earlier, while revenue from operations rose to Rs 53.32 crore from Rs 48.33 crore.

The September-quarter profit was below the Rs 2.68 crore reported for the preceding quarter ended 30 June 2026. Revenue from operations also declined from Rs 55.91 crore in the June quarter to Rs 53.32 crore in the September quarter.

Finance costs declined sequentially to Rs 0.56 crore from Rs 0.60 crore, while depreciation and amortisation was Rs 0.60 crore after Rs 0.59 crore in the June quarter. The quarter-to-quarter decline in profit occurred despite the lower finance-cost line.

Basic and diluted earnings per equity share were Rs 23.17 for the half year, compared with Rs 2.45 in the corresponding first half of 2025. For the September 2026 quarter, basic and diluted earnings per share were Rs 8.67, compared with Rs 2.31 a year earlier; paid-up equity share capital was Rs 1.31 crore at 30 September 2026.

What changed in Sangal Papers’ balance sheet and liquidity?

Sangal Papers’ total assets were Rs 105.25 crore at 30 September 2026, up from Rs 99.06 crore at 31 March 2026. Current assets increased to Rs 55.64 crore from Rs 49.71 crore, led by trade receivables rising to Rs 34.53 crore from Rs 23.95 crore.

Inventories moved in the opposite direction, declining to Rs 17.67 crore at 30 September from Rs 22.33 crore at 31 March. Cash and cash equivalents fell to Rs 0.60 crore from Rs 1.98 crore, a reduction of Rs 1.38 crore over the half year.

Total equity rose to Rs 50.42 crore from Rs 46.73 crore, including other equity of Rs 49.11 crore compared with Rs 45.42 crore. Non-current borrowings declined to Rs 11.41 crore from Rs 13.00 crore, while current borrowings fell to Rs 12.67 crore from Rs 18.10 crore.

Trade payables to creditors other than micro and small enterprises increased to Rs 17.90 crore from Rs 10.68 crore. The cash-flow statement, prepared under the indirect method prescribed in Indian Accounting Standard 7, reports cash and cash equivalents of Rs 0.60 crore at the period end.

When did Sangal Papers approve and review the results?

Sangal Papers’ board approved the unaudited standalone financial statements for the quarter and half year ended 30 September 2026 on 14 November 2026. The board meeting commenced at 12 noon and concluded at 12:45 pm, according to the company’s filing.

Raj Viyom & Co., the statutory auditor, issued a limited-review report dated 14 November 2026. The auditor said nothing had come to its attention to indicate that the results failed to disclose information required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and its conclusion was unmodified.

The filing also records the appointment of CMA Mr. Sourab Jain as cost auditor on 14 November 2026 for financial year 2026-27. The appointment filled the casual vacancy following the death of CMA Mr. Surendra Rai Kapur, whose cessation date was 18 October 2026.

The results are standalone and unaudited, rather than audited annual accounts. Sangal Papers said the results would be published and made available on its website and the stock exchange website.

Conclusion

Sangal Papers’ first-half results show profit rising to Rs 3.81 crore from Rs 1.11 crore as revenue from operations reached Rs 112.32 crore and pre-tax profit reached Rs 5.28 crore. The balance sheet also showed lower inventories and borrowings, alongside a Rs 10.58 crore increase in trade receivables and a Rs 1.38 crore decline in cash and cash equivalents since 31 March 2026.

The disclosed item to watch next is the cost audit for financial year 2026-27, for which Sangal Papers appointed CMA Mr. Sourab Jain on 14 November 2026. The next financial-results filing will also show whether the September-half trends in receivables, inventory, cash and borrowings continue.