South India Paper Mills swings to ₹10.74 cr profit in FY26
After a ₹9.64 crore loss last year, the paper manufacturer returned to profitability on the back of a 17.5% revenue jump.
— 2 earlier stories on South India Paper Mills Ltd. →What's new
- Annual revenue climbed to ₹433.81 cr from ₹369.31 cr in the prior year.
- Q4 net profit reached ₹4.57 cr, reversing a ₹2.26 cr loss in the same quarter of 2025.
- Statutory auditors provided an unmodified opinion on the annual results.
Why this matters
For a nano-cap with a market valuation of roughly ₹178 cr, this return to the black is a material shift in stability. The company has successfully moved from a loss-making position to generating double-digit crore profits in a single fiscal year.
What we're watching
- Whether the company can sustain these margins in the current fiscal year.
- Any commentary on raw material costs impacting future performance.
- Management's outlook on demand for its paper products.
The full read
South India Paper Mills has moved from a net loss of ₹9.64 crore in FY25 to a net profit of ₹10.74 crore for the fiscal year ended March 31, 2026. This recovery is underpinned by a 17.5% increase in annual revenue, which reached ₹433.81 crore compared to ₹369.31 crore in the previous year. The momentum carried into the final quarter, where the company posted a net profit of ₹4.57 crore, a stark contrast to the ₹2.26 crore loss reported in the same period of 2025. For a company with a market valuation of approximately ₹178 crore, this shift in bottom-line performance is a critical development. The auditors have signed off with an unmodified opinion. The company has successfully stabilized its operations after a difficult prior year.
Questions answered
- How does the FY26 profit compare to the previous year?
- The company reported a net profit of ₹10.74 crore for FY26, a sharp turnaround from the net loss of ₹9.64 crore recorded in FY25.
- What was the primary driver of the annual performance?
- The turnaround was supported by a 17.5% increase in annual revenue, which rose to ₹433.81 crore from ₹369.31 crore in the prior year.
- Did the company show profit growth in the final quarter?
- Yes, South India Paper Mills posted a net profit of ₹4.57 crore for the fourth quarter, compared to a loss of ₹2.26 crore in the same period last year.
- What is the auditor's view on these results?
- The statutory auditors issued an unmodified opinion on the financial results for the year ended March 31, 2026.
Story so far
All notes on SIPAPER →- 29 May 2026 · 1:36 PM IST South India Paper Mills swings to ₹10.74 cr profit in FY26
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