How did Subam Papers' profitability change year-over-year?

Standalone net profit dropped 35% to ₹10.04 crore in FY2026, down from ₹15.46 crore in FY2025. This decline occurred despite an increase in revenue.

What caused the decline in net profit?

Rising raw material and other costs squeezed margins. The net profit margin fell significantly to 2.21% from 5.77% the previous year.

Did the company's revenue grow?

Yes, revenue from operations rose to ₹494.8 crore for the year ended March 31, 2026, compared to ₹454.5 crore in the prior year.

Was there any issue with the audit?

No. The board approved the results on May 26, and the audit opinion is unmodified.

Earnings · Paper · Micro cap

Subam Papers profit drops 35% as margins shrink to 2.21%

Revenue grew to ₹494.8 crore, but rising raw material costs eroded the bottom line for the year ended March 31, 2026.

— 1 earlier story on Subam Papers Ltd. →

SUBAM 26 May 2026 · 9:16 PM IST Verify on BSE · NSE

Mkt cap₹611 cr

P/E22.86×

ROE8.35%

Debt / eq.0.51

₹10.04 cr Standalone net profit for FY2026, down from ₹15.46 crore.

What's new

Standalone net profit fell 35% to ₹10.04 crore for FY2026.
Net profit margin narrowed to 2.21% from 5.77% in the prior year.
Revenue from operations grew to ₹494.8 crore from ₹454.5 crore.

Why this matters

Top-line growth is failing to translate into earnings as input costs outpace sales. A margin compression of this scale suggests the company lacks pricing power in a competitive paper market.

What we're watching

Management commentary on cost-control measures.
Any further impact on consolidated profitability.
Future margin recovery.

The full read

Subam Papers grew its top line in FY2026, but the gains were wiped out by rising costs. Revenue reached ₹494.8 crore, up from ₹454.5 crore in the previous year.

Margins collapsed.

Standalone net profit fell 35% to ₹10.04 crore, down from ₹15.46 crore in the prior period. The most telling metric is the margin contraction: the net profit margin plummeted to 2.21% from 5.77%. The company's board approved these results on May 26 with an unmodified audit opinion. While the revenue growth shows demand, the inability to manage raw material costs is the primary issue. The market likely anticipated these results following recent plant commissioning news, but the sharp drop in profitability remains a significant hurdle for the company's bottom line.

Questions answered

How did Subam Papers' profitability change year-over-year?: Standalone net profit dropped 35% to ₹10.04 crore in FY2026, down from ₹15.46 crore in FY2025. This decline occurred despite an increase in revenue.
What caused the decline in net profit?: Rising raw material and other costs squeezed margins. The net profit margin fell significantly to 2.21% from 5.77% the previous year.
Did the company's revenue grow?: Yes, revenue from operations rose to ₹494.8 crore for the year ended March 31, 2026, compared to ₹454.5 crore in the prior year.
Was there any issue with the audit?: No. The board approved the results on May 26, and the audit opinion is unmodified.

Mentioned: Subam Papers Ltd. · FY2026

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

All notes on SUBAM →

26 May 2026 · 9:16 PM IST Subam Papers profit drops 35% as margins shrink to 2.21%
today Subam Papers backs its subsidiary with a ₹11.70 cr corporate guarantee