Seshasayee Paper and Boards shares jumped over 10% on Monday, 26 October, after the company reported a strong performance for the quarter ended 30 September 2026, with profit and revenue registering sharp growth.
The paper manufacturer reported a 96% year-on-year rise in profit after tax (PAT) to ₹34.96 crore in the July-September quarter, compared with ₹17.80 crore in the corresponding period last year.
Revenue from operations increased 45.3% year-on-year to ₹502.99 crore from ₹346.25 crore in Q2 FY26. Earnings before interest, depreciation, taxes and amortisation (EBITDA) rose 48.1% to ₹58.72 crore from ₹39.64 crore, while profit before tax (PBT) nearly doubled to ₹46.76 crore from ₹24.08 crore.
The company’s operational performance also improved, with production increasing 22.8% year-on-year to 70,804 tonnes from 57,637 tonnes. Sales volumes rose 35.2% to 66,342 tonnes from 49,063 tonnes.
H1 FY27 performance
For the six months ended 30 September 2026, Seshasayee Paper and Boards reported a 36% year-on-year increase in revenue from operations to ₹994.99 crore, compared with ₹731.58 crore in the year-ago period.
EBITDA rose 54% to ₹115.83 crore from ₹75.30 crore, while PBT increased 95% to ₹91.86 crore from ₹47.14 crore. PAT surged 97% to ₹68.55 crore, compared with ₹34.86 crore in the first half of the previous financial year.
Production volumes grew 16% year-on-year to 1,38,241 tonnes, while sales volumes increased 27% to 1,32,368 tonnes. Domestic sales rose 17% to 1,14,453 tonnes, while export volumes jumped 187% to 17,915 tonnes.
The company said higher production and sales volumes, along with better realisations in domestic and export markets, supported improved profitability during the first half of FY27. Strong order inflows across key segments also helped drive double-digit growth in sales volumes.
Expansion and renewable energy projects
Seshasayee Paper and Boards said its Mill Development Plan-IV at the Erode unit is under execution. Major equipment, including the recovery boiler and evaporator, is planned for commissioning by the end of the current financial year.
The company expects renewable power from its hybrid solar and wind energy facilities to become available in the December quarter. The project comprises 52.8 MWp of solar capacity on a DC basis, equivalent to 35.2 MW AC, and 9 MW of wind power capacity under a group captive model.
Equipment for new copier-conversion machinery is planned for commissioning in the March quarter.
The company also said it was awaiting final orders from the National Company Law Appellate Tribunal (NCLAT) on an appeal filed by the former promoter of Servalakshmi Paper Limited, whose assets it acquired through an e-auction under insolvency proceedings.
Cost pressures cloud outlook
Despite the strong first-half performance, the company flagged potential margin pressures in the coming quarter due to rising input costs and higher freight rates.
Chairman N. Gopalaratnam said the ongoing West Asian conflict had pushed up the prices of chemicals, coal and other inputs, which is expected to affect margins in the December quarter. Wood prices are also expected to rise, adding to production costs.
Export margins could face further pressure from a steep increase in ocean freight rates. However, the company expects order inflows from both domestic and export markets to remain positive in Q3 FY27.
Seshasayee Paper and Boards share price today
Seshasayee Paper and Boards share price today opened at an intraday high of ₹219.90 apiece on the BSE, the stock touched an intraday low of ₹202.80 per share.
Gaurav Arora, Head of Research at SAHI, said Seshasayee Paper and Boards had rebounded around 7% to ₹214 after declining for five consecutive sessions to a 52-week low of nearly ₹197 on 23 October. Trading volumes were about 3.5 times the 60-day average, indicating buying interest at lower levels.
However, he noted that the broader technical structure remained weak, with the stock forming lower highs since peaking at ₹255 in mid-September. The stock was also trading below its 20-day EMA of around ₹221 and its 63-day moving average of nearly ₹229.
Arora said holding the ₹198–200 support zone could allow the rebound to extend towards ₹221–222, followed by resistance at ₹228–230. However, a break below ₹196 could push the stock to fresh lows, extending its downtrend.
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