Three M Paper Boards profit drops 65% despite revenue growth

Three M Paper Boards Limited reported profit of Rs 4.02 crore for the half year ended September 30, 2026, down about 65% from Rs 11.35 crore a year earlier, despite revenue from operations increasing 15% to Rs 145.20 crore. Total expenses rose faster than total income, narrowing profit before tax to Rs 3.91 crore.

Why did Three M Paper Boards' September-half profit fall?

Three M Paper Boards' profit for the period fell to Rs 4.02 crore in the half year ended September 30, 2026, from Rs 11.35 crore in the half year ended September 30, 2025. Profit before tax declined to Rs 3.91 crore from Rs 10.19 crore over the same period, showing that the reduction occurred before tax expenses were recorded.

Total income increased to Rs 145.98 crore for the September 2026 half year from Rs 126.74 crore a year earlier, an increase of Rs 19.24 crore. Total expenses, however, rose by Rs 25.52 crore to Rs 142.07 crore from Rs 116.55 crore, exceeding the increase in income by Rs 6.28 crore.

The difference between total income and total expenses narrowed to Rs 3.91 crore in the September 2026 half year, compared with Rs 10.19 crore in the corresponding 2025 half. Three M Paper Boards reported no exceptional items in either period, so the change in profit before tax reflects the income and expense lines presented in the unaudited financial results.

How much did Three M Paper Boards' revenue grow?

Three M Paper Boards' revenue from operations rose 15% to Rs 145.20 crore in the half year ended September 30, 2026, from Rs 125.98 crore in the corresponding prior-year half. Other income was Rs 0.78 crore, compared with Rs 0.76 crore, resulting in total income of Rs 145.98 crore.

Revenue from operations increased by Rs 19.22 crore year on year, while total expenses increased by Rs 25.52 crore. The reported figures therefore show that the additional cost base was larger than the increase in operating revenue during the six-month period ended September 30, 2026.

Three M Paper Boards said it is exclusively engaged in the manufacture and sale of paper and paper boards. It therefore disclosed one business segment under Accounting Standard 17, Segment Reporting, rather than separate results for individual product categories, customer groups or geographical markets.

The September 2026 half-year revenue was lower than the Rs 153.86 crore reported for the half year ended March 31, 2026. Total income was Rs 145.98 crore in the September half, compared with Rs 154.88 crore in the preceding March half, a decline of Rs 8.90 crore between the two reported half-year columns.

Which costs rose at Three M Paper Boards?

Three M Paper Boards' cost of raw materials consumed increased to Rs 87.28 crore in the September 2026 half year from Rs 75.91 crore a year earlier. The Rs 11.38 crore rise was the largest increase among the separately stated expense categories in the half-year financial results.

Other expenses rose to Rs 36.56 crore from Rs 33.07 crore, an increase of Rs 3.49 crore. Employee-benefit expense increased to Rs 7.67 crore from Rs 6.73 crore, while the reported change in inventories of finished goods, work in progress and stock in trade was Rs 2.61 crore, compared with Rs 0.84 crore in the September 2025 half.

Finance costs were Rs 3.86 crore for the September 2026 half year, while the corresponding September 2025 column records nil finance costs. Depreciation and amortisation expense was Rs 1.09 crore in the latest half-year results, whereas the corresponding prior-year column also records nil; these reported movements occurred alongside the decline in profit before tax.

Raw-material consumption was lower than Rs 91.59 crore in the half year ended March 31, 2026, and other expenses were below Rs 40.80 crore in that preceding half. Revenue from operations also declined by Rs 8.66 crore from the March 2026 half to Rs 145.20 crore in the September 2026 half.

What changed in Three M Paper Boards' balance sheet and cash flow?

Three M Paper Boards reported total assets of Rs 294.63 crore at September 30, 2026, compared with Rs 271.81 crore at March 31, 2026. Property, plant and equipment declined to Rs 103.28 crore from Rs 107.35 crore, while capital work in progress increased to Rs 11.24 crore from Rs 1.41 crore.

Long-term borrowings rose to Rs 36.35 crore at September 30, 2026 from Rs 21.09 crore at March 31, 2026. Short-term borrowings were Rs 54.30 crore, compared with Rs 54.07 crore, while reserves and surplus increased to Rs 95.78 crore from Rs 91.77 crore.

The cash-flow statement recorded net cash used in operating activities of Rs 2.29 crore for the half year ended September 30, 2026. The reported operating cash movement included increases of Rs 11.06 crore in short-term loans and advances and Rs 10.84 crore in other current assets.

Investing activities used Rs 9.83 crore during the September 2026 half, including purchase of fixed assets of Rs 9.85 crore. Financing activities generated Rs 12.12 crore, comprising Rs 15.48 crore of net proceeds from long-term borrowings and Rs 3.36 crore of interest paid; cash and cash equivalents ended the period at Rs 9.55 lakh.

Conclusion

Three M Paper Boards delivered higher revenue in the half year ended September 30, 2026, but its earnings fell because the Rs 25.52 crore increase in total expenses was greater than the Rs 19.24 crore increase in total income. Raw-material consumption, other expenses, employee costs and finance costs were among the reported expense lines accompanying the decline in profit before tax to Rs 3.91 crore.

The next results will show whether revenue recovers from Rs 145.20 crore and whether operating cash flow improves from the Rs 2.29 crore outflow reported for the September half. The unresolved balance-sheet items to monitor are the rise in long-term borrowings to Rs 36.35 crore and the increase in capital work in progress to Rs 11.24 crore at September 30, 2026.