Star Paper Mills reports Rs 2.2394 crore quarterly loss

Star Paper Mills Limited reported a Rs 2.2394 crore loss for the quarter ended September 30, 2026, compared with profits in the preceding and year-earlier quarters. Revenue from operations fell to Rs 88.149 crore, while total expenses of Rs 92.8653 crore exceeded total income of Rs 90.2005 crore.

Why did Star Paper Mills make a loss in September 2026?

Star Paper Mills made a loss because total expenses exceeded total income by Rs 2.6648 crore in the quarter ended September 30, 2026. The resulting loss before tax was Rs 2.6648 crore, against profits before tax of Rs 14.7668 crore in the June 2026 quarter and Rs 10.8208 crore in the September 2025 quarter.

The company reported a loss for the period of Rs 2.2394 crore, reversing profits of Rs 11.0051 crore in the preceding quarter and Rs 13.0188 crore a year earlier. Basic and diluted earnings per share were negative Rs 1.43, compared with Rs 7.05 in June 2026 and Rs 8.34 in September 2025. Star Paper Mills said quarterly and half-year earnings per share are not annualised.

Revenue from operations declined to Rs 88.149 crore from Rs 103.4619 crore in June 2026 and Rs 104.3719 crore in September 2025. Other income also fell to Rs 2.0515 crore, from Rs 13.9396 crore sequentially and Rs 5.5443 crore a year earlier, reducing total income to Rs 90.2005 crore.

Which costs changed in Star Paper Mills' September quarter?

Star Paper Mills' total expenses declined to Rs 92.8653 crore from Rs 102.6347 crore in June 2026, but remained above total income of Rs 90.2005 crore. Cost of materials consumed was Rs 55.0914 crore, below Rs 56.0726 crore in the June quarter but above Rs 51.1413 crore in the year-earlier quarter.

Changes in inventories reduced expenses by Rs 8.5064 crore in the September 2026 quarter, compared with a Rs 1.0504 crore reduction in June 2026. In the September 2025 quarter, inventory changes added Rs 45.98 lakh to expenses, rather than reducing them.

Power and fuel expense fell to Rs 16.3758 crore from Rs 17.8948 crore in June 2026 and Rs 17.7148 crore a year earlier. Employee benefits expense declined to Rs 8.0743 crore from Rs 8.9091 crore sequentially, while other expenses increased to Rs 19.7481 crore from Rs 18.8484 crore and were close to Rs 19.6727 crore a year earlier.

Depreciation and amortisation was Rs 1.7527 crore, compared with Rs 1.7353 crore in June 2026 and Rs 1.6099 crore in September 2025. Finance costs rose to Rs 32.94 lakh from Rs 22.49 lakh in the preceding quarter and Rs 25.25 lakh a year earlier.

How did mutual-fund investments affect Star Paper Mills' other income?

Star Paper Mills' other income included an unrealised loss of Rs 2.717 crore on the fair valuation of mutual-fund investments in the September 2026 quarter. This compared with an unrealised gain of Rs 9.4652 crore in the June 2026 quarter and an unrealised gain of Rs 1.4184 crore in the September 2025 quarter.

The company also recorded a realised gain of Rs 1.4888 crore on the sale of mutual-fund investments in the September quarter. The corresponding realised gain was Rs 3.345 crore in June 2026, while there was no such gain in the September 2025 quarter.

For the half year ended September 30, 2026, other income was Rs 15.9911 crore, down from Rs 17.4109 crore in the corresponding prior-year half. The 2026 half-year amount included an unrealised gain of Rs 6.7482 crore and realised gains of Rs 4.8338 crore from mutual-fund investments.

What do Star Paper Mills' half-year results show?

Star Paper Mills remained profitable for the half year ended September 30, 2026, reporting profit of Rs 8.7657 crore, down from Rs 25.828 crore in the corresponding half of 2025. Profit before tax decreased to Rs 12.102 crore from Rs 27.1407 crore over the same comparison.

Half-year revenue from operations fell to Rs 191.6109 crore from Rs 205.5294 crore a year earlier, while total income declined to Rs 207.602 crore from Rs 222.9403 crore. Total expenses edged down to Rs 195.5 crore from Rs 195.7996 crore, leaving a lower profit before tax despite the small reduction in costs.

Materials consumed rose to Rs 111.164 crore in the first half from Rs 101.6728 crore a year earlier. This was offset in part by inventory changes, which reduced expenses by Rs 9.5568 crore in the 2026 half, compared with inventory changes that added Rs 1.0261 crore to expenses in the comparable prior-year period.

Star Paper Mills operates in a single segment comprising paper, paper board and related products. Its unaudited results for the quarter and half year ended September 30, 2026 were reviewed by the Audit Committee and approved by the Board of Directors on November 14, 2026; the statutory auditors carried out a limited review.

What changed in Star Paper Mills' balance sheet and cash flow?

Star Paper Mills reported total assets of Rs 848.9476 crore at September 30, 2026, compared with Rs 837.7075 crore at March 31, 2026. Total equity increased to Rs 713.2147 crore from Rs 708.2989 crore, while current liabilities rose to Rs 54.7838 crore from Rs 48.073 crore.

Cash generated from operating activities was Rs 10.5252 crore in the half year ended September 30, 2026, versus Rs 28.5581 crore in the prior-year half. After income-tax payments of Rs 4.1688 crore, net cash generated from operating activities was Rs 6.3564 crore, down from Rs 24.7098 crore.

Investing activities used Rs 12.769 crore in the 2026 half, compared with Rs 26.466 crore used a year earlier. Purchases of property, plant and equipment, including capital work in progress and capital advances, were Rs 6.4643 crore, against Rs 3.1942 crore in the prior-year half.

Cash and cash equivalents were Rs 3.4396 crore at September 30, 2026, down from Rs 9.3359 crore at the start of the period. The cash-flow statement recorded a net decrease in cash equivalents of Rs 5.8963 crore, compared with a decrease of Rs 2.1596 crore in the corresponding 2025 half.

Conclusion

Star Paper Mills moved from profit to a Rs 2.2394 crore quarterly loss as revenue from operations declined to Rs 88.149 crore and other income fell to Rs 2.0515 crore. Although quarterly expenses declined from Rs 102.6347 crore in June 2026, they exceeded total income in the September quarter; first-half profit consequently fell to Rs 8.7657 crore from Rs 25.828 crore a year earlier.

The filing does not disclose a forward operating target or scheduled business event. The next results will show whether operating revenue moves from the September-quarter level of Rs 88.149 crore and whether other income remains affected by mutual-fund valuations, which included an unrealised loss of Rs 2.717 crore in that quarter.