Seshasayee Paper climbs after Q1 PAT jumps 97% YoY to Rs 33 cr

Seshasayee Paper and Boards rallied 9.35% to Rs 252.65 after the company?s standalone net profit surged 96.89% to Rs 33.59 crore in Q1 FY27 from Rs 17.06 crore in Q1 FY26.

Revenue from operations increased 27.68% YoY to Rs 492 crore in Q1 FY27, supported by higher production, improved sales volumes, and better realizations in both domestic and export markets.

Profit from ordinary activity before tax soared 95.58% to Rs 45.10 crore compared with Rs 23.06 crore in Q1 FY26.

EBITDA rose 60.15% YoY to Rs 57.11 crore during the quarter, compared with Rs 35.66 crore in the year-ago period.

Operational performance remained robust, with production increasing 9.58% YoY to 67,473 tonnes in Q1 FY27 from 61,543 tonnes in Q1 FY26. Sales volumes grew 19.43% YoY to 66,026 tonnes.

The company attributed the strong operational performance to productivity improvements at both its manufacturing units and an improved order position across domestic and export markets. Higher production and sales volumes, coupled with better realizations, contributed to the significant improvement in profitability.

Demand during the June quarter was supported by an extended notebook season, healthy orders from large printers, government tenders, and strong export order inflows.

Looking ahead, the company cautioned that margins could come under pressure in the second quarter. It said the ongoing West Asian conflict has led to a sharp increase in input costs, particularly chemicals and coal. Domestic order inflows are also expected to remain challenging, while price hikes announced in the domestic market during Q1 were rolled back in July due to intense competition and pricing pressures. On the export front, the company expects margins to be impacted by a steep rise in ocean freight rates.

Seshasayee Paper & Boards manufactures and sells paper and paper boards, with production facilities located at Erode and Tirunelveli in Tamil Nadu.

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