Shree Krishna Paper's profit jumps 17x. A land sale explains almost all of it.
Net profit hit ₹19.45 cr, up from ₹1.13 cr last year. A one-time land sale of ₹20.26 cr did the heavy lifting.
What's new
- Revenue rose 35% to ₹228 cr, but net profit jumped to ₹19.45 cr from ₹1.13 cr last year.
- The profit surge was driven by a one-time gain of ₹20.26 cr from selling a vacant land plot.
- Underlying operating profit, excluding the exceptional item, was ₹4.52 cr.
Why this matters
For a company with a ₹192 cr market cap, a ₹20.26 cr one-time gain is a major event. It inflates the headline earnings number to a degree that masks the modest underlying performance. The operating profit of ₹4.52 cr is the real story of the year.
What we're watching
- Whether the company has any more non-core assets to sell after this one.
- The trajectory of operating margins in the next fiscal year.
- How the market values the company once the one-time gain rolls off.
The full read
Shree Krishna Paper Mills saw its net profit jump 17x to ₹19.45 cr from ₹1.13 cr. The headline is misleading. Almost the entire profit comes from a ₹20.26 cr one-time gain on the sale of a vacant plot of land. Strip that out, and the underlying operating profit was ₹4.52 cr. That operating figure, set against revenue that grew 35% to ₹228 cr, shows genuine business improvement. But the company's ₹192 cr market cap now sits on top of an earnings base that is far smaller than the audited number suggests. The land is sold. The cash is in the books. What's left is a paper mill that made ₹4.52 cr operating profit last year.
Questions answered
- How much of the profit was from the core business?
- Operating profit, excluding the land sale, was ₹4.52 cr. The one-time gain of ₹20.26 cr was larger than the final net profit of ₹19.45 cr, indicating the core business itself was only modestly profitable.
- What was the revenue growth?
- Revenue for FY26 grew 35% to ₹228 cr from ₹169 cr in the prior year. This top-line growth appears to be the genuine operational improvement.
- What did the company sell?
- It sold a vacant plot of land, which generated a one-time exceptional gain of ₹20.26 cr. The filing provides no further details on the buyer or location.
- Is the profit growth sustainable?
- No. The 17-fold jump in net profit is entirely due to the land sale. The underlying operating profit of ₹4.52 cr, while an improvement, is a fraction of the headline number.