South India Paper Q1 FY26: Revenue up 19%, Profit Back

Stock snapshot and key context

South India Paper Mills Ltd, a Nanjangud-based paper manufacturer, reported a return to profitability in Q1 FY26 (quarter ended June 2025) after losses in preceding quarters. The stock was last shown at Rs 94.30 on BSE, down 0.08%, with a 52-week high of Rs 99 and a 52-week low of Rs 65.1. The company is listed on BSE under 516108 and is stated as not traded on NSE in the provided data.

Where the company operates

The company’s registered address is listed as Chikkayana Chatra, Nanjangud, Karnataka - 571302. Contact details in the disclosure include telephone 08221-228265, fax 08221-228270, and email corporate@sipaper.com. The website is http://www.sipaper.com.

Q1 FY26 results: top line grows, profit turns positive

For Q1 FY26 (Jun 2025), South India Paper Mills reported Total Revenue of Rs 106.89 crore, compared with Rs 94.14 crore in Mar 2025, a QoQ rise of 13.54%. Against Jun 2024 revenue of Rs 89.83 crore, the company reported YoY growth of 18.99%. The quarter’s Profit After Tax (PAT) was Rs 0.98 crore, compared with a loss of Rs 2.26 crore in the previous quarter (Mar 2025) and a loss of Rs 2.84 crore in Jun 2024, as per the quarterly comparison table.

The Diluted Normalized EPS for the quarter stood at Rs 0.52, compared with Rs -1.20 in Mar 2025 and Rs -1.52 in Jun 2024. The quarterly result set also shows an Adjusted EPS of Rs 0.52 for Jun 2025, indicating a clear shift from negative per-share earnings in prior periods.

Cost line and operating performance

In the quarterly result table (Dec 2024 to Dec 2025), Jun 2025 shows Net Sales of Rs 106.89 crore with Total Expenditure of Rs 96.48 crore, resulting in Operating Profit of Rs 10.41 crore. Operating profit expanded further in Sep 2025 to Rs 12.93 crore and remained elevated at Rs 12.17 crore in Dec 2025, even as net sales eased to Rs 101.37 crore.

However, the same quarterly table highlights a key pressure point: interest cost stayed high and steady, at Rs 5.10 crore in Jun 2025, Rs 5.17 crore in Sep 2025, and Rs 4.90 crore in Dec 2025. Depreciation also remained around Rs 4.15 crore to Rs 4.17 crore through these quarters. These fixed charges materially influence reported profitability even when operating profit improves.

Profitability bridge: from operating profit to PAT

For Jun 2025, the quarterly table reports Profit Before Tax (PBT) of Rs 1.31 crore and Tax of Rs 0.33 crore, translating into PAT of Rs 0.98 crore. In contrast, Mar 2025 recorded PBT of Rs -2.92 crore and PAT of Rs -2.26 crore. The improvement in operating performance is visible, but the interest and depreciation levels show why the conversion from operating profit to PAT remains limited.

A separate narrative in the provided data states operating margins improved to 9.75%, the highest in eight quarters, while the PAT margin remained low at 0.92%, attributed to interest and depreciation.

H1 FY26 update: revenue and PBT in the black

The company also announced unaudited financial results for Q2 and H1 FY26. Revenue from operations for Q2 FY26 increased 9.62% YoY to Rs 111.5657 crore (Rs 11,156.57 lakh). For H1 FY26, revenue from operations rose 14.02% YoY to Rs 218.4541 crore (Rs 21,845.41 lakh).

On profitability, the disclosure shows a Profit Before Tax of Rs 3.7612 crore (Rs 376.12 lakh) for Q2 FY26, and Rs 5.0733 crore (Rs 507.33 lakh) for H1 FY26, described as a shift from losses in the prior year period.

Annual trend: sales growth alongside rising finance cost

In the annual Profit and Loss table (all figures in crore), Net Sales rose to Rs 369.31 crore in Mar 2025, from Rs 312.31 crore in Mar 2024. Over the same period, interest cost increased to Rs 19.97 crore in Mar 2025, from Rs 18.62 crore in Mar 2024. The combination underscores why higher scale does not automatically translate into strong net profitability when finance costs are elevated.

The snapshot section also lists ROE of -4.47% and ROCE of 1.79%, pointing to ongoing return pressures despite improved quarterly profitability.

Promoter holding trend

Shareholding data in the provided table indicates promoter holding decreased from 32.63% (Mar 2025) to 27.81% (Mar 2026). The quarterly decline is visible across intermediate periods: 31.28% (Jun 2025), 30.85% (Sep 2025), and 27.91% (Dec 2025).

Regulatory and disclosure timeline

The company communicated an intimation regarding closure of the trading window for Q1 results commencing from 1 July 2026 until 48 hours after the declaration of unaudited financial results for the quarter ended 30 June 2026. It also informed BSE that a board meeting was scheduled on 28 May 2026 to consider and approve audited financial results for the year ended 31 March 2026, alongside the statement of assets and liabilities and the cash flow statement.

Key numbers at a glance

Why the numbers matter

The latest quarter shows a clear operational recovery, with revenue growth and positive PAT after a run of losses. But the quarterly bridge also shows how quickly interest and depreciation absorb operating profit, keeping net margins thin even when operating performance improves. For investors tracking smaller paper manufacturers, this mix typically shifts attention from just revenue growth to the trajectory of finance costs, cash generation, and consistency of quarterly profitability.

Conclusion

South India Paper Mills’ recent disclosures show stronger revenue momentum and a return to profit in Q1 FY26, followed by positive PBT in Q2 and H1 FY26. The next key update for the market, based on the company’s stated timeline, is the declaration of unaudited results for the quarter ended 30 June 2026, after the trading window closure that starts 1 July 2026.