Seshasayee Paper net profit nearly doubles to ₹33.59 cr in June quarter
Revenue surged 27.7% to ₹492 cr, marking a strong start to FY27. Profit grew 97% versus a 28% revenue rise, and the debt-free balance sheet offers flexibility.
— 2 earlier stories on Seshasayee Paper and Boards Ltd. →What's new
- Net profit nearly doubled to ₹33.59 cr from ₹17.06 cr a year ago.
- Revenue climbed 27.7% to ₹492 cr.
- R.J. Ramesh appointed as nominee director, replacing Kumar Jayant.
Why this matters
The profit surge follows a trailing PAT decline of 32% and shows profit growing twice as fast as revenue, indicating operational leverage or price gains. With a debt-free balance sheet and trailing P/E of 17x, the company can invest or return capital, but the quarterly beat needs to sustain to rebuild confidence.
What we're watching
- Whether revenue growth can continue amid paper demand cycles.
- Profit growth outpaced revenue — the open question is whether that gap can hold.
- Any guidance on raw material costs or capacity expansion from the company.
The full read
Net profit nearly doubled. Seshasayee Paper reported ₹33.59 crore for the June quarter, up from ₹17.06 crore a year ago, while revenue climbed 27.7% to ₹492 crore. Profit grew 97% on a 28% revenue rise — a clear operational improvement. Debt-free, with a trailing P/E of 17x and ROE of 4%. This quarter is a sharp turnaround from the trailing twelve months when PAT fell 32%, but the board offered no guidance on whether the momentum can continue. The nominee director appointment is routine. Consistency is the open question.
Questions answered
- What drove the near-doubling in net profit?
- Revenue rose 27.7% to ₹492 cr, while costs grew slower, pushing net profit to ₹33.59 cr from ₹17.06 cr. The exact cost breakdown isn't disclosed, but profit growth clearly outpaced revenue.
- Is this performance sustainable?
- Possible if demand stays firm and input costs remain benign. However, the company provided no forward guidance, and past quarters showed volatility — trailing PAT had fallen 32% before this quarter.
- Who is the new director and why does it matter?
- R.J. Ramesh from Tamilnadu Industrial Investment Corporation joins as a nominee director, replacing Kumar Jayant. It's a procedural change with no strategic impact on operations.
- How does this quarter compare to the trailing trend?
- Trailing twelve-month PAT fell 32% before this quarter, so the Q1 result is a sharp reversal. A single quarter doesn't confirm a trend, but it's a positive signal for a company with no debt.
Seshasayee Paper and Boards Ltd.
Latest quarter · Jun 2026
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All notes on SESHAPAPER →- 25 Jul 2026 · 2:08 PM IST Seshasayee Paper net profit nearly doubles to ₹33.59 cr in June quarter
- 3d ago Seshasayee Paper doubles profit to ₹33.59 cr, warns of margin squeeze ahead
- 3d ago Seshasayee Paper net profit nearly doubles to ₹33.59 cr in June quarter