What’s new

• Profit fell to ₹1.57 cr from ₹2.81 cr in FY25.
• Paper business posted a segment loss of ₹2.22 cr on negligible revenue.
• Long-term borrowings cut by ₹9.88 cr but net worth stays negative at ₹8.19 cr.

Why it matters

Saffron's pivot to real estate isn't yet offsetting the millstone of its legacy paper business. Debt reduction helps, but a negative net worth of ₹8.19 cr leaves little room for fresh capital or acquisitions. The stock (₹21 cr market cap) needs a path to positive equity or a clean break from paper.

What we’re watching

• Whether the paper segment can be restructured or shut down to stop the drain.
• If any real estate project completions can boost cash flow and equity.
• Any further reduction in borrowings or capital infusion to net worth positive.

The full read

Saffron's annual results tell a story of one step forward, one step back. Real estate revenue held firm at ₹6.86 cr, but the legacy paper business bled ₹2.22 cr in segment losses, slashing consolidated profit 44% to ₹1.57 cr. On the balance sheet, management cut long-term borrowings by ₹9.88 cr — a real achievement for a ₹21 cr market-cap firm. Yet net worth remains in the red at ₹8.19 cr, meaning the company still owes more than it owns. The paper drag is the open question here. Until Saffron either shuts that business down or turns it around, real estate profits will keep leaking into a hole.

Primary source: BSE · NSE