Genus Paper profit jumps 80% on accounting change and asset sale
Net profit reached ₹14.58 crore for FY26, aided by a ₹4.30 crore reduction in depreciation and the divestment of a subsidiary.
— 1 earlier story on Genus Paper & Boards Ltd. →What's new
- Net profit rose 80% to ₹14.58 crore on revenue of ₹939.97 crore.
- Depreciation expense fell by ₹4.30 crore due to a change in the estimated useful life of machinery.
- The company sold subsidiary Genus Paper and Coke for ₹11.86 crore.
- A May 24 fire at the Muzaffarnagar stockyard damaged raw materials, but production remains unaffected.
Why this matters
The profit growth is heavily influenced by non-operational factors, specifically the accounting change to depreciation and the one-time sale of a subsidiary. Investors should look past the headline 80% increase to understand the underlying margin performance.
What we're watching
- The insurance claim process for the Muzaffarnagar fire damage.
- Whether the depreciation change provides a sustainable boost to future margins.
- Operational performance excluding the impact of the subsidiary divestment.
The full read
Genus Paper & Boards reported a net profit of ₹14.58 crore for the year ended March 31, 2026, an 80% increase over the prior year. Revenue from operations grew 10.6% to ₹939.97 crore. The bottom-line expansion relies on two non-operational items: a change in the estimated useful life of plant and machinery that cut depreciation by ₹4.30 crore, and the divestment of its subsidiary, Genus Paper and Coke, for ₹11.86 crore. Separately, the company disclosed a fire at its Muzaffarnagar stockyard on May 24. While the blaze damaged raw materials, management claims production remains unaffected and the losses are insured. The results show a company leaning on accounting adjustments and asset sales to inflate earnings, rather than purely operational gains. The next test is whether the core business can maintain these margins without the benefit of one-time divestments or depreciation changes.
Questions answered
- What drove the 80% increase in net profit?
- Profit growth was supported by a change in the estimated useful life of plant and machinery, which lowered depreciation by ₹4.30 crore, and the sale of a subsidiary.
- How much revenue did Genus Paper generate in FY26?
- Revenue from operations for the year ended March 31, 2026, was ₹939.97 crore, an increase of 10.6%.
- What was the impact of the fire at the Muzaffarnagar unit?
- A fire on May 24 damaged raw materials at the stockyard. The company states that production was not affected and the losses are covered by insurance.
- Did the company divest any assets during the year?
- Yes, Genus Paper completed the sale of its wholly owned subsidiary, Genus Paper and Coke, for ₹11.86 crore during the quarter.
Story so far
All notes on GENUSPAPER →- 26 May 2026 · 1:19 PM IST Genus Paper profit jumps 80% on accounting change and asset sale
- today Genus Paper & Boards profit jumps 80% as fire hits stockyard