Balkrishna Paper Mills returns to losses as auditors flag going-concern risk

Balkrishna Paper Mills ended FY26 with a net loss of ₹651.65 lakhs, a sharp reversal from the ₹818.67 lakhs profit posted in the prior year. While the company grew revenue from continuing operations to ₹473.22 lakhs, it failed to generate an operating profit. Finance costs reached ₹607.95 lakhs, further straining a balance sheet already crippled by a negative net worth of ₹17,544.16 lakhs. The underlying reality is a shell; manufacturing operations stopped in November 2024. Auditors have now formalised the distress with a qualified opinion, citing material uncertainty about whether the company can continue as a going concern. The firm is currently consuming more in finance costs than it can generate through its limited trading activities. The path forward remains unclear.