Satia Industries Q2 net loss widens to Rs 27.5 crore
Revenue from operations declined 11% year on year to Rs 275.5 crore from Rs 311.1 crore. Sequentially, revenue fell 24% from Rs 361.8 crore in Q1 FY27.
Gross margin stood at 40.1% in Q2 FY27, compared with 44.9% in the year-ago quarter and 50.9% in the previous quarter.
The company reported an operating EBITDA loss of Rs 6.1 crore, compared with a profit of Rs 6.6 crore in Q2 FY26 and Rs 50.8 crore in Q1 FY27. The operating EBITDA margin stood at -2.2%, against 2.1% a year earlier and 14% in the previous quarter.
Profit before tax and exceptional items stood at a loss of Rs 38.7 crore, compared with a loss of Rs 25.1 crore in Q2 FY26. After exceptional items of Rs 5.1 crore, the loss before tax widened to Rs 43.7 crore. The company reported a tax benefit of Rs 16.3 crore during the quarter.
Total expenses declined 9% year on year to Rs 316 crore. Cost of goods sold fell 4% to Rs 165 crore, while employee benefit expenses increased 1% to Rs 29.6 crore. Finance costs declined 26% to Rs 4.2 crore, while depreciation and amortisation expenses fell 14% to Rs 30.2 crore. Other expenses declined 16% to Rs 86.9 crore.
The company said revenue and volumes were affected by the planned shutdown of Paper Machine 3 (PM3) for renovation and modernisation. The work was completed towards the end of September 2026, following which operations resumed. Improved paper realisations were not enough to offset higher input costs, particularly agro-based raw materials such as wheat straw.
Satia Industries generated net cash from operating activities of Rs 71.16 crore during H1 FY27, compared with Rs 85.83 crore in the corresponding period last year.
Managing director Chirag Satia said demand remained steady during the quarter, while paper realisations improved year on year amid moderation in import dumping. He said the company was focused on ramping up production and stabilising operations following the PM3 upgrade. The company expects the upgraded machine to improve production capabilities, product quality and operating efficiencies.
Satia Industries manufactures writing and printing paper and has an installed production capacity of more than 2 lakh tonnes per annum. Incorporated in 1980, the company operates an integrated manufacturing facility with pulping, chemical recovery and captive power capabilities. It has a pan-India distribution network of more than 100 dealers.
Shares of Satia Industries slumped 8.06% to settle at Rs 59.08 on Friday, 13 November 2026.
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