Emami Paper Mills Limited (NSE:EMAMIPAP) announced its unaudited financial results for the quarter ended 30 June 2026 on 22 July 2026. The board approved standalone profit after tax of Rs 38.61 crore on revenue from operations of Rs 560.16 crore. The board also noted the scheduled redemption of two series of optionally convertible redeemable preference shares totalling Rs 123.75 crore in July and September 2026.
Key Highlights
- Q1 FY27 standalone unaudited profit after tax stood at Rs 38.61 crore, up from Rs 6.31 crore in Q1 FY26, representing a year-on-year increase of 511.86 percent.
- Revenue from operations for Q1 FY27 was Rs 560.16 crore, compared with Rs 459.76 crore in the same quarter last year, marking a year-on-year growth of 21.83 percent.
- The board noted redemption of 7,50,000 unlisted Series II Tranche IV optionally convertible redeemable preference shares with face value Rs 100 each and redemption premium of Rs 500 each, aggregating Rs 45 crore, due on 31 July 2026.
- The board noted redemption of 11,25,000 unlisted Series III optionally convertible redeemable preference shares with face value Rs 100 each and redemption premium of Rs 600 each, aggregating Rs 78.75 crore, due on 16 September 2026.
- Earnings per share on a basic basis for Q1 FY27 were Rs 6.21, compared with Rs 0.84 in Q1 FY26.
- The company assessed an exceptional item of Rs 1.25 crore related to incremental retiral obligations arising from India's new labour codes effective 21 November 2025.
- The board meeting was held on 22 July 2026 and concluded within ten minutes, commencing at 12:30 p.m. and concluding at 12:40 p.m.
About the Company
Emami Paper Mills Limited, headquartered in Kolkata, West Bengal, is a manufacturer of paper and paperboard products including newsprint. The company operates a single reportable business segment focused on paper and paperboard manufacturing. Listed on both the National Stock Exchange (NSE:EMAMIPAP) and BSE (Scrip Code 533208), the company's registered office is at Emami Tower, 687 Anandapur, E.M. Bypass, Kolkata 700107. The company is part of the Emami Group conglomerate. As of 30 June 2026, the company had paid-up equity share capital of Rs 12.10 crore with a face value of Rs 2 per share, and convertible preference shares amounting to Rs 79.57 crore on the balance sheet. Other equity as of 30 June 2026 stood at Rs 483.64 crore.
Announcement in Detail
The board of directors of Emami Paper Mills Limited, at its meeting held on 22 July 2026, considered and approved the unaudited financial results for the quarter ended 30 June 2026. The limited review report from the statutory auditor, SK Agrawal and Co Chartered Accountants LLP, was issued in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) 34 for interim financial reporting as prescribed under Section 133 of the Companies Act 2013.
On the preference share redemptions, the board noted that 7,50,000 unlisted Series II Tranche IV optionally convertible redeemable preference shares (ISIN: INE830C04053) with a face value of Rs 100 each are due for redemption on 31 July 2026. The redemption premium applicable is Rs 500 per share, bringing the total redemption outlay to Rs 45 crore. In the same meeting, the board separately noted the scheduled redemption of 11,25,000 unlisted Series III optionally convertible redeemable preference shares (ISIN: INE830C04061) with a face value of Rs 100 each on 16 September 2026. The redemption premium for this series is Rs 600 per share, resulting in a total redemption amount of Rs 78.75 crore. Both redemptions are in accordance with the terms of issue of the respective preference shares as determined at the time of their issuance.
The company reported an exceptional item of Rs 1.25 crore for the financial year ended 31 March 2026, related to the assessment of incremental retrial obligations triggered by the Government of India's notification of four new Labour Codes effective from 21 November 2025. The company's assessment was based on draft Central Rules and frequently asked questions issued by the Ministry of Labour and Employment, and the company stated it will continue to monitor developments relating to these new codes and provide appropriate accounting effect as necessary.
Impact on Investors
Investors will note that the Q1 FY27 results demonstrate significantly improved profitability relative to Q1 FY26. Net profit increased to Rs 38.61 crore from Rs 6.31 crore, while revenue from operations grew by 21.83 percent year-on-year to Rs 560.16 crore. Earnings per share on a basic and diluted basis of Rs 6.21 and Rs 5.69 respectively represent substantial gains from Rs 0.84 and Rs 0.81 in the prior year quarter. The improvement in profitability is reflected in the operating margin profile and cost management, with cost of materials consumed as a percentage of revenue declining from 67.92 percent in Q1 FY26 to 62.97 percent in Q1 FY27. The filing shows that total comprehensive income for Q1 FY27 reached Rs 39.80 crore compared with Rs 5.42 crore in Q1 FY26, indicating strengthened earnings quality.
The filing shows that the company will pay out a combined Rs 123.75 crore in scheduled preference share redemptions during the July-September 2026 period. Shareholders should observe that these redemptions are contractual obligations based on the terms of the preference share issues and represent a use of cash resources. The preference share redemptions do not directly affect equity holders' stake percentage, but they do represent capital deployment. The company's other equity position of Rs 483.64 crore as of 30 June 2026 reflects the accumulated retained earnings and reserves available to support operations and meet disclosed liabilities. The disclosure of the Rs 1.25 crore exceptional item related to labour code compliance provides investors with visibility into contingent obligations arising from regulatory changes, which may require further adjustments as final rules are clarified.
Sector / Market Context
India's paper and paperboard sector encompasses newsprint, writing and printing papers, packaging grades, and specialty papers. The sector has historically been influenced by domestic demand from print media, packaging industries, and office use, as well as export demand. Domestic newsprint consumption in India is linked to the circulation and advertising revenue of print publications. The sector also faces input cost pressures from pulp, recycled fibre, and energy costs, which are pass-through factors reflected in manufacturer margins and pricing power. Emami Paper Mills' focus on paper and paperboard manufacturing positions it within this broader industrial products market, where revenue growth is tied to volume offtake and realisation across customer segments.
The company operates within a regulatory framework that includes the new Labour Codes notified by the Government of India in November 2025, which affect retrial benefit calculations and obligations. The financial results disclosed demonstrate the company's operational performance within this evolving regulatory environment. The Q1 FY27 revenue growth of 21.83 percent year-on-year and improved profitability reflect demand conditions and operational execution during the quarter, providing a reference point for understanding the company's competitive positioning within the paper and paperboard manufacturing sector.