Shree Ajit Pulp And Paper Ltd (538795)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Shree Ajit's revenue was ₹201 Cr (+13.6% year on year, +15.3% on the previous quarter), and net profit ₹18.5 Cr (+162.3% year on year); the operating margin was 17.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹201 | +13.6% | +15.3% |
| Operating profit | ₹35.9 | +56.2% | +36.2% |
| Net profit | ₹18.5 | +162.3% | +92.9% |
| EPS (₹) | 20.84 | +162.1% | +93.0% |
| Operating margin | 17.9% | — | — |
📢 Recent Corporate Announcements
Shree Ajit Pulp and Paper Ltd has announced that operations at Unit 1 (Salvav/Morai, Vapi) resumed on a trial basis from the evening of October 11, 2026. The plant's operations had been suspended since July 24, 2026, due to severe flooding in the area. With TTM revenue standing at ₹725 Cr across all operations, the resumption marks a path toward full operational recovery after nearly 2.5 months of disruption at this unit.
- Unit 1 operations restarted on a trial basis on the evening of October 11, 2026
- Disruption had been ongoing since letter intimation dated July 24, 2026
- Shutdown was caused by severe flooding at the Salvav/Morai plant location in Vapi, Gujarat
- Trial run commencement precedes full commercial ramp-up back toward normal capacity
Shree Ajit Pulp And Paper Limited announced the resignation of Ms. Reema Kalani (DIN: 07874899) from the position of Independent Director, effective from the close of business hours on August 24, 2026. The director cited personal reasons and pre-occupations, confirming there were no other material reasons for her departure. The company confirmed that it continues to comply with the statutory requirement of maintaining at least one-third of the board as Independent Directors under Section 149(4) of the Companies Act, 2013.
- Independent Director Ms. Reema Kalani resigned effective close of business hours on August 24, 2026
- Resignation attributed to pre-occupation and personal commitments, with no other material reasons cited
- Holds nil directorships or committee memberships in other listed entities
- Company confirms continued compliance with Section 149(4) board composition requirements
Ms. Reema Kalani has resigned as an Independent Director of Shree Ajit Pulp And Paper Limited effective from the close of business hours on August 24, 2026. The resignation was cited due to personal reasons and pre-occupation, with no other material reasons stated. The company confirmed that it continues to meet the statutory requirement of having at least one-third independent directors on its board. For context, the company operates with a market cap of Rs 250 Cr and reported TTM revenue of Rs 725 Cr.
- Independent Director Ms. Reema Kalani (DIN: 07874899) tendered resignation on August 24, 2026
- Resignation effective from close of business hours on August 24, 2026
- Company confirmed ongoing compliance with Section 149(4) requiring at least one-third independent directors
- No material reasons cited other than personal commitments and pre-occupation
Shree Ajit Pulp and Paper Limited announced the resignation of Ms. Reema Kalani (DIN: 07874899) from her position as an Independent Director, effective at the close of business on August 24, 2026. The director cited pre-occupation and personal commitments, confirming there are no other material reasons for the departure. The company noted that it continues to comply with Section 149(4) of the Companies Act, 2013, maintaining at least one-third of the board as independent directors. This administrative board change has no direct impact on the company's daily operations or financial performance (TTM revenue of ₹725 Cr).
- Independent Director Ms. Reema Kalani resigned effective close of business hours on August 24, 2026
- Resignation cited pre-occupation and personal commitments with no other material reasons confirmed
- Company affirmed ongoing compliance with the requirement under Section 149(4) for board independence
Shree Ajit Pulp and Paper Limited has appointed Ms. Nishtha Harivanshi Pamnani as an Additional Independent Director for a term of 5 consecutive years from August 14, 2026, to August 13, 2031, subject to shareholder approval. Ms. Pamnani, aged 33, is a qualified Company Secretary with over 8 years of experience in corporate governance, regulatory frameworks, and legal compliance. Concurrently, the Board has reconstituted its Audit, Nomination and Remuneration, and Independent Directors Committees. The update is procedural and governance-focused with no financial impact.
- Appointment of Ms. Nishtha Harivanshi Pamnani as Independent Director for 5 years (August 14, 2026, to August 13, 2031)
- Appointee is a qualified Company Secretary with 8+ years of experience across listed and private firms
- Reconstitution of Audit, Nomination & Remuneration, and Independent Directors Committees effective August 14, 2026
Shree Ajit Pulp and Paper reported strong Q1 FY27 results, with revenue rising 13.6% YoY to ₹201.17 Cr compared to ₹177.09 Cr in Q1 FY26. Operating profit expanded significantly by 56.2% YoY to ₹35.92 Cr, driving an operating margin expansion to ~17.9%. Net profit surged 162.2% YoY to ₹18.54 Cr from ₹7.07 Cr in the corresponding quarter last year, yielding an EPS of ₹20.84 for the quarter. Growth was aided by higher capacity utilization and ramp-up of value-added grades from Unit II.
- Revenue for Q1 FY27 stood at ₹201.17 Cr, up 13.6% YoY from ₹177.09 Cr and up 15.3% QoQ.
- Operating profit reached ₹35.92 Cr, reflecting robust margin improvement compared to ₹23.00 Cr in Q1 FY26.
- Net profit surged 162.2% YoY to ₹18.54 Cr vs ₹7.07 Cr in Q1 FY26.
- Quarterly EPS rose to ₹20.84 compared to ₹7.95 in the year-ago period.
Shree Ajit Pulp and Paper Limited held its Board meeting on August 14, 2026, and approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The Board also appointed Ms. Nishtha Harivanshi Pamnani as an Additional Independent Director for a five-year term running from August 14, 2026, to August 13, 2031, subject to shareholder approval. In addition, the company reconstituted its Audit, Nomination & Remuneration, and Independent Directors committees. Ms. Pamnani brings over 8 years of compliance and governance experience to the board.
- Approved unaudited financial results (Standalone and Consolidated) for Q1 ended June 30, 2026
- Appointed Ms. Nishtha Harivanshi Pamnani as Independent Director for a 5-year tenure ending August 13, 2031
- Profile highlights 8+ years of experience in corporate governance, legal compliance, and securities regulations
- Reconstituted key board committees including Audit, NRC, and Independent Directors committees effective August 14, 2026
Shree Ajit Pulp And Paper Ltd has scheduled a board meeting for August 14, 2026, to approve its unaudited financial results for the quarter ended June 30, 2026. This follows a strong FY26 where the company achieved a revenue of Rs 701 Cr and a net profit of Rs 30 Cr. The market will be looking for the impact of the Unit II expansion, which brought total capacity to 2,02,500 MTPA. Insider trading has been restricted since July 1, 2026, in compliance with SEBI regulations.
- Board meeting scheduled for August 14, 2026
- Financial results to be reviewed for the quarter ended June 30, 2026
- Trading window closed from July 1, 2026, until 48 hours post-results
- Company operates with a total manufacturing capacity of 2,02,500 MTPA
Shree Ajit Pulp And Paper Ltd has received a credit rating reaffirmation from ICRA, maintaining its long-term rating at [ICRA] BBB+ and short-term rating at [ICRA] A2. The ratings remain unchanged from the previous assessment, indicating a stable credit profile. This is significant as the company manages a debt of Rs 256 Cr, which is nearly equal to its current market capitalization of Rs 254 Cr. The stable rating suggests the company's financial position is consistent with its recent expansion and revenue growth to Rs 701 Cr in FY26.
- Long-term credit rating reaffirmed at [ICRA] BBB+ (Stable).
- Short-term credit rating reaffirmed at [ICRA] A2.
- Company carries a total debt of Rs 256 Cr against a net worth of Rs 278 Cr.
- TTM revenue reached Rs 701 Cr, a significant increase from FY25's Rs 506 Cr.
- Operating profit margin (OPM) stands at 13.3% as of the latest TTM data.
Shree Ajit Pulp And Paper Ltd has resumed operations at its Unit 2 in Vapi, Gujarat, as of August 5, 2026. The facility had been non-operational since July 24, 2026, due to severe flooding in the region. This resumption is critical as Unit 2 is the primary driver for the company's projected 30-35% revenue growth in FY2026. The approximately 12-day shutdown represents a temporary halt for a company with TTM revenue of Rs 701 Cr.
- Operations at Unit 2 resumed on August 5, 2026, following flood-related disruption.
- The shutdown lasted approximately 12 days, starting from the initial intimation on July 24, 2026.
- Unit 2 is essential for the company's total installed capacity of 2,02,500 MTPA.
- The unit focuses on value-added, premium-grade kraft paper intended as an import substitute.
Shree Ajit Pulp and Paper has temporarily suspended operations at its primary manufacturing facility in Vapi, Gujarat, effective July 23, 2026, due to severe flooding and waterlogging. The company is currently assessing damage to plant, machinery, and inventory, though total financial impact is not yet determined as access remains restricted. While the company maintains insurance coverage for these assets, the disruption affects a business with TTM revenue of Rs 701 Cr and a recently expanded capacity of 2,02,500 MTPA. This is described by management as an unprecedented situation for the company.
- Operations suspended effective July 23, 2026, due to heavy rainfall and severe waterlogging.
- Manufacturing facility located in Vapi, Gujarat, represents the company's core production hub with 2,02,500 MTPA capacity.
- TTM revenue of Rs 701 Cr is at risk of disruption; average quarterly revenue stands at approximately Rs 175 Cr.
- Management confirms insurance plans provide sufficient coverage for assets at the affected plants.
- Damage assessment for plant, machinery, and inventory is ongoing as water levels restrict access.
Financial Performance
Revenue Growth by Segment
Consolidated revenue from operations grew by 71.65% YoY to INR 505.51 Cr in FY2025, compared to INR 294.51 Cr in FY2024. This growth was primarily driven by a 27.97% increase in sales volume following the commercialization of Unit II. Q1 FY2026 revenue continued the trend, growing 50% YoY to INR 177 Cr.
Geographic Revenue Split
The company maintains a well-established distribution network across West and South India. While specific percentage splits per state are not disclosed, the manufacturing facilities are concentrated in Vapi, Gujarat, serving regional packaging hubs.
Profitability Margins
Operating profit margin (EBIT) improved to 7.24% in FY2025 from 6.23% in FY2024 due to lower operating costs and better fixed-cost absorption. However, Net Profit Margin declined to 1.86% in FY2025 from 2.68% in FY2024, a 30.59% decrease caused by a sharper drop in sales prices compared to the reduction in raw material costs.
EBITDA Margin
Operating margins improved to 10.1% in FY2025 and further to 13% in Q1 FY2026, compared to 7.1% in FY2024. This 83% relative improvement in Q1 FY2026 margins is attributed to the ramp-up of Unit II, which produces higher-grade, value-added kraft paper with better realizations.
Capital Expenditure
The company completed a major debt-funded capital expenditure project totaling INR 336 Cr to expand kraft paper capacity and modify the unit acquired from NR Agarwal Industries. This project was funded by approximately INR 247 Cr in debt and the remainder through internal accruals.
Credit Rating & Borrowing
The long-term credit rating is [ICRA]BBB+, with the outlook recently revised from Negative to Stable in August 2025. Short-term ratings are reaffirmed at [ICRA]A2. Borrowing costs are impacted by a leveraged structure, with interest coverage declining 34.68% to 1.62x in FY2025 due to increased borrowing for projects.
Operational Drivers
Raw Materials
The primary raw materials are wastepaper (imported and domestic) and coal for power generation. Wastepaper and coal represent the largest components of the cost structure, though specific percentage breakdowns per material are not disclosed.
Import Sources
A large portion of wastepaper is imported to ensure quality for high-grade kraft paper. Specific countries are not listed, but the company is noted to be vulnerable to global demand-supply dynamics and forex fluctuations due to these imports.
Key Suppliers
Not specifically disclosed in the provided documents, though the company has established long-term relationships with suppliers since 1995.
Capacity Expansion
Current installed manufacturing capacity is 2,02,500 Metric Tonnes Per Annum (MTPA) following the completion of Unit II. Phase II of the expansion commenced commercial operations in October 2024, significantly increasing the scale from previous levels.
Raw Material Costs
Raw material costs are highly volatile; in FY2025, margins improved as realizations stabilized, but FY2024 margins were squeezed because the contraction in sales realizations was sharper than the decline in raw material prices.
Manufacturing Efficiency
Efficiency is driven by 'mature capacity utilization levels' and the successful ramp-up of Unit II, which has led to better fixed-cost absorption and an improved product mix favoring high-BF (Burst Factor) paper.
Logistics & Distribution
The company utilizes a well-established distribution network across West and South India to reach its diversified customer base in the packaging industry.
Strategic Growth
Expected Growth Rate
30-35%
Growth Strategy
Growth will be achieved through the full-year operations of Unit II, focusing on value-added, premium-grade kraft paper that serves as an import substitute. The company is targeting new customer additions and leveraging its increased capacity of 2,02,500 MTPA to meet rising demand in the e-commerce and FMCG sectors.
Products & Services
Different varieties of kraft paper, specifically Multilayer Testliner and Testliner Paper, primarily used for manufacturing corrugated boxes for the packaging industry.
Brand Portfolio
Shree Ajit Pulp and Paper Limited.
New Products/Services
High-grade, value-added kraft paper from Unit II, positioned as an import substitute, is expected to be the primary driver of the 30-35% revenue growth forecast for FY2026.
Market Expansion
The company is expanding its market reach by targeting the premium segment of the kraft paper market, moving away from low-BF products to higher-quality offerings that command better realizations.
Market Share & Ranking
Not disclosed, but the company is a significant player in the Vapi, Gujarat paper cluster with a 2,02,500 MTPA capacity.
Strategic Alliances
The company holds a 50% stake in Shree Samrat Pulp and Paper LLP (joint venture) and has a wholly-owned subsidiary, Shree Samrudhi Industrial Papers Private Limited, intended as a marketing arm.
External Factors
Industry Trends
The kraft paper industry is seeing a shift toward higher quality standards driven by e-commerce and organized retail. While the industry faces stiff competition from unorganized players, the long-term outlook is favorable due to the phase-out of plastic packaging and growth in FMCG and Pharma.
Competitive Landscape
Characterized by intense competition and pricing pressure from numerous unorganized players in the kraft paper segment.
Competitive Moat
The company's moat is built on its 30-year operational track record (since 1995), established distribution network, and integrated power generation. These advantages are sustainable but challenged by the low entry barriers for unorganized competitors in the lower-grade segments.
Macro Economic Sensitivity
Highly sensitive to GDP growth as packaging demand is a proxy for industrial and consumer activity. A general economic downturn leads to a corresponding fall in demand for testliner paper.
Consumer Behavior
Increasing consumer preference for sustainable packaging and the boom in e-commerce are driving higher demand for corrugated boxes and kraft paper.
Geopolitical Risks
Vulnerable to global trade dynamics affecting the supply and pricing of imported wastepaper.
Regulatory & Governance
Industry Regulations
Subject to wastepaper-related regulations regarding availability and usage of water. Environmental risks are significant as breaches in waste management or emissions could lead to material cost implications or operational shutdowns.
Environmental Compliance
The industry is under high scrutiny for air, water, and land pollution. SAPPL has implemented water treatment processes for pulping and bleaching effluents to meet environmental norms.
Taxation Policy Impact
Not specifically detailed beyond standard corporate tax compliance.
Legal Contingencies
The company received an unmodified audit opinion for FY2024-25, indicating no major reportable legal or financial irregularities in the reviewed statements.
Risk Analysis
Key Uncertainties
The primary uncertainty is the sustenance of earnings to meet sizeable debt repayment obligations of INR 39-42 Cr per annum through FY2028. Failure to maintain high capacity utilization at Unit II could lead to a liquidity crunch.
Geographic Concentration Risk
Manufacturing is concentrated in Vapi, Gujarat, making it vulnerable to regional regulatory changes or localized industrial disruptions.
Third Party Dependencies
High dependency on external suppliers for wastepaper and coal, particularly international suppliers for high-quality fiber.
Technology Obsolescence Risk
The recent INR 336 Cr investment in Unit II utilizes modern machinery for high-grade paper, mitigating immediate technology risks.
Credit & Counterparty Risk
Trade receivables increased in FY2025 due to higher sales; however, the debtors turnover ratio improved to 7.65, suggesting stable credit quality of customers.
