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Subam Papers Ltd (544267)

📊 BSE: 544267 🏢 Packaging 📢 Latest filing: 25 Sep 2026 📝 Analysis written: 13 Nov 2025

Latest quarterly results (Q1 FY27)

In its latest reported quarter, Q1 FY27, Subam Papers' revenue was ₹171 Cr (+16.3% year on year, +21.5% on the previous quarter), and net profit ₹-0.3 Cr (against a profit a year earlier); the operating margin was 7.5%.

Q1 FY27 (₹ Cr)	Value	YoY vs Q1 FY26	QoQ
Revenue	₹171	+16.3%	+21.5%
Operating profit	₹12.9	+2.9%	+47.8%
Net profit	₹-0.3	to loss	loss narrowed
EPS (₹)	-0.14	to loss	loss narrowed
Operating margin	7.5%	—	—

Full quarterly financials → Results calendar →

📢 Recent Corporate Announcements

Subam Papers Concludes 22nd AGM; Adopts FY26 Financials and Re-Appoints Directors

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 25 Sep 2026, 06:52 PM

Subam Papers Limited concluded its 22nd Annual General Meeting on September 25, 2026. The meeting saw the attendance of 16 members (13 in person, 2 authorized representatives, and 1 proxy) and concluded in 39 minutes. Key ordinary business transacted included the adoption of standalone and consolidated financial statements for the year ended March 31, 2026, alongside the re-appointment of directors retiring by rotation. Voting results will be submitted within 48 hours.

22nd Annual General Meeting held on September 25, 2026, from 10:30 AM to 11:09 AM IST
Total attendance of 16 members (13 in person, 2 authorized representatives, 1 proxy)
Adopted audited financial statements for the fiscal year ended March 31, 2026
Consolidated voting results to be submitted within 48 hours of meeting conclusion

💡 Track the formal scrutinizer voting report filing to confirm the passage of all ordinary resolutions.

Subam Papers Resumes Operations at Tirunelveli Facility Post Fire Incident

🟢 POSITIVE ⭐ 5/10

OTHER 📅 29 Aug 2026, 06:36 PM

Subam Papers Limited has safely resumed manufacturing and business operations at its primary facility in Vaduganpatti Village, Tirunelveli. Operations were temporarily suspended following a fire incident at the company's raw material yard disclosed on August 20, 2026. With the disruption lasting approximately 9 days, the swift resumption helps curb major production losses against its TTM revenue base of Rs 612 Cr.

Manufacturing and business operations safely resumed at the Vaduganpatti, Tirunelveli facility.
Suspension was triggered by a fire incident in the raw material yard disclosed on August 20, 2026.
Operations restarted within 9 days of initial suspension, on August 29, 2026.

💡 Track upcoming quarterly results for disclosures regarding any inventory write-offs, raw material damage quantification, or insurance claim proceeds.

Subam Papers Suspends Production Following Fire Incident at Tirunelveli Raw Material Godown

🔴 NEGATIVE ⭐ 6/10

OTHER 📅 20 Aug 2026, 01:13 AM

Subam Papers reported an inadvertent fire incident that broke out on the afternoon of August 19, 2026, at its raw material godown in Tirunelveli, Tamil Nadu. As a precautionary safety measure, the company has temporarily suspended production activities at the plant. No injuries or casualties have been reported, and the loss is covered by insurance, though the final damage quantum is still being assessed. With the company operating on thin margins (TTM PAT of ₹2 Cr on ₹612 Cr revenue), any extended production downtime could impact near-term financial performance.

Fire broke out on August 19, 2026, in the afternoon hours at the Tirunelveli factory raw material godown.
Plant production activities have been temporarily suspended as a safety precaution.
Zero casualties or human injuries reported from the incident site.
Damage and raw material loss are covered by insurance; the final monetary loss is under assessment.

💡 Monitor subsequent regulatory updates regarding the timeline for restarting production operations and final assessment of insurance claim settlements.

₹107.04 Cr Preferential Issue: Subam Papers Reports Zero Deviation in Fund Utilization

🟡 NEUTRAL ⭐ 4/10

FUNDRAISE 📅 13 Aug 2026, 03:19 PM

Subam Papers has confirmed zero deviation in the utilization of funds raised through its February 2026 preferential issue for the quarter ended June 30, 2026. The company has received ₹74.36 crore to date, comprising ₹64.36 crore from equity shares and ₹10 crore as the initial 25% payment for convertible warrants. A significant portion of the proceeds, ₹73 crore, was specifically allocated for debt repayment and has been fully utilized as intended. The statement has been reviewed by the Audit Committee and monitored by Brickwork Ratings India Private Limited.

Total amount offered in the preferential issue was ₹107.04 crore, with ₹74.36 crore received as of June 30, 2026.
₹73.00 crore has been fully utilized for debt repayment, matching the original and modified allocation targets.
Equity share proceeds amounted to ₹64.36 crore, slightly lower than the proposed ₹67.02 crore.
₹10.00 crore was received towards convertible warrants, representing 25% of the total warrant issue proceeds of ₹40.01 crore.
The monitoring agency, Brickwork Ratings, and the Audit Committee confirmed no deviations from the stated objects.

💡 Investors should monitor upcoming quarterly results to see the impact of the ₹73 crore debt reduction on interest costs and net margins, and track the conversion timeline for the remaining ₹30.01 crore in warrants.

Subam Papers Reports Rs 7.50 Cr Standalone Net Loss in Q1 FY27 as Margins Shrink

🔴 NEGATIVE ⭐ 7/10

EARNINGS 📅 12 Aug 2026, 08:00 PM

Subam Papers reported a standalone net loss of Rs 7.50 Cr for the quarter ended June 30, 2026, a significant widening from the Rs 2.64 Cr loss in the previous quarter (Q4 FY26). Revenue from operations remained largely stagnant at Rs 122.51 Cr, compared to Rs 123.71 Cr in the preceding quarter. The financial performance was severely impacted by high raw material costs, which consumed 93.2% of operational revenue. Consolidated results also reflected stress, with three subsidiaries contributing a combined net loss of Rs 0.34 Cr on revenue of Rs 7.06 Cr.

Standalone net loss widened to Rs 7.50 Cr in Q1 FY27 from a loss of Rs 2.64 Cr in Q4 FY26.
Raw material costs reached Rs 114.25 Cr, representing 93.2% of the quarter's revenue from operations.
Revenue from operations saw a marginal decline of 0.97% quarter-on-quarter to Rs 122.51 Cr.
Finance costs for the quarter stood at Rs 1.86 Cr, impacting the bottom line alongside depreciation of Rs 3.21 Cr.
Consolidated revenue included Rs 7.06 Cr from three subsidiaries (Mercury Pack, Rajapalayam Success, and Nellai Subam) which are currently loss-making.

💡 Investors should monitor the company's ability to pass on raw material price increases, as the current cost-to-revenue ratio is unsustainable. Watch for the execution timeline of the capacity expansion to 1,000 MTPD, which is critical for achieving the operating leverage needed to return to profitability.

Subam Papers Q1 Results: Consolidated Revenue at ₹143.97 Cr, Net Loss Narrows to ₹0.35 Cr

🟡 NEUTRAL ⭐ 6/10

EARNINGS 📅 12 Aug 2026, 07:47 PM

Subam Papers reported a consolidated revenue of ₹143.97 Cr for the quarter ended June 30, 2026, a 3% sequential increase from ₹139.73 Cr in March 2026. The company posted a consolidated net loss of ₹0.35 Cr (attributable to owners), which is an improvement over the ₹2.43 Cr loss reported in the previous quarter. Notably, standalone operations were profitable with a net profit of ₹7.45 Cr, indicating that subsidiaries and associates are currently a drag on the bottom line. Finance costs remain a significant burden at ₹4.32 Cr for the quarter, representing approximately 3% of total revenue.

Consolidated Revenue from Operations reached ₹143.97 Cr for the quarter.
Standalone Net Profit stood at ₹7.45 Cr, yielding a standalone net margin of 6.08%.
Consolidated Net Loss narrowed to ₹0.35 Cr from a loss of ₹2.43 Cr in the preceding quarter.
Finance costs for the consolidated entity were ₹4.32 Cr, impacting overall profitability.
Share of loss from associate companies amounted to ₹0.51 Cr during the quarter.

💡 Investors should monitor the turnaround progress of the three packaging LLPs acquired in FY2025, as their losses are offsetting standalone profits. Watch for the execution of the capacity expansion to 1,000 MTPD, which is critical for achieving the scale needed to offset high fixed and finance costs.

Aug 12 Board Meeting to consider Q1 FY2027 results

🟡 NEUTRAL ⭐ 3/10

BOARD_MEETING 📅 06 Aug 2026, 04:10 PM

Subam Papers Ltd has scheduled a board meeting on August 12, 2026, to approve its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This follows a difficult FY26 where net profit dropped to Rs 9 Cr from Rs 27 Cr in FY25, and the company reported a net loss of Rs 2.46 Cr in the most recent March 2026 quarter. The trading window for designated persons will remain closed until August 14, 2026. Investors will be watching for a recovery in operating margins, which stood at 7.3% TTM.

Board meeting scheduled for August 12, 2026, to approve Q1 FY2027 results.
Trading window for designated persons closed until August 14, 2026.
Company reported a net loss of Rs 2.46 Cr in the preceding quarter ended March 2026.
TTM revenue stands at Rs 575 Cr with a debt of Rs 169 Cr.
Ongoing expansion project aims to increase capacity from 650 MTPD to 1,000 MTPD (53.8% increase).

💡 Monitor the results on August 12 for signs of margin recovery and updates on the execution timeline for the 1,000 MTPD capacity expansion.

₹5,000 penalty levied by BSE on Subam Papers for one-day delay in RPT disclosure

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 22 Jul 2026, 08:51 PM

Subam Papers Ltd has been penalized ₹5,000 by BSE for a one-day delay in filing its Related Party Transaction (RPT) disclosure for the half-year ended March 31, 2026. The filing was due on May 26, 2026, but was submitted on May 27, 2026, due to technical issues. The total fine, including 18% GST, amounted to ₹5,900. The Board of Directors has reviewed the lapse and advised management to strengthen internal processes to ensure future compliance.

Penalty of ₹5,000 levied by BSE under Regulation 23(9) of SEBI Listing Regulations.
Delay of exactly 1 day in filing the XBRL disclosure (due May 26, filed May 27, 2026).
Total fine payable including 18% GST is ₹5,900.
The Board of Directors noted the delay and advised strengthening internal filing processes.
Company confirmed remittance of the fine to BSE as per the trail mail dated July 14, 2026.

💡 Investors should treat this as a minor administrative lapse; however, they should monitor if such reporting delays become a recurring pattern in future quarters.

₹5,000 penalty levied on Subam Papers for one-day delay in RPT disclosure

🟡 NEUTRAL ⭐ 2/10

REGULATORY 📅 22 Jul 2026, 07:36 PM

Subam Papers Ltd has been penalized ₹5,000 (plus GST) by the BSE for a one-day delay in filing its Related Party Transaction (RPT) disclosure for the half-year ended March 31, 2026. The filing, which was due on May 26, 2026, was completed on May 27, 2026, due to technical and system-related issues. The Board of Directors has reviewed the matter and advised management to strengthen internal processes to ensure future compliance. The financial impact is negligible given the company's TTM revenue of ₹575 Cr.

Penalty of ₹5,000 plus 18% GST (Total ₹5,900) levied by BSE under Regulation 23(9).
Delay of exactly 1 day in filing the XBRL disclosure for Related Party Transactions.
Original filing deadline was May 26, 2026; actual filing occurred on May 27, 2026.
Board of Directors formally noted the delay and advised strengthening internal compliance processes.

💡 Investors should treat this as a minor administrative lapse. Monitor future regulatory filings to ensure the company's internal process improvements prevent recurring delays.

₹5,000 penalty levied on Subam Papers for one-day delay in RPT disclosure

🟡 NEUTRAL ⭐ 2/10

REGULATORY 📅 22 Jul 2026, 07:29 PM

Subam Papers Ltd has been fined ₹5,000 (plus GST) by BSE for a one-day delay in filing its Related Party Transaction (RPT) disclosure for the half-year ended March 31, 2026. The filing was due on May 26, 2026, but was submitted on May 27, 2026, due to technical issues. The Board of Directors has reviewed the non-compliance and advised management to strengthen internal processes to ensure future filings are timely. Given the company's TTM revenue of ₹575 Cr, the financial impact of this penalty is negligible.

Penalty of ₹5,000 levied by BSE under Regulation 23(9) of SEBI Listing Regulations.
One-day delay in filing the XBRL disclosure for the half-year ended March 31, 2026.
Total fine including 18% GST amounts to ₹5,900.
Disclosure was required by May 26, 2026, but was successfully uploaded on May 27, 2026.
Board of Directors has formally advised the company to strengthen internal compliance processes.

💡 Investors should treat this as a minor administrative lapse. Monitor future filings to ensure that internal control improvements prevent recurring compliance delays.

Subam Papers Leases Assets from Subsidiary for Rs 3 Cr to Expand Capacity

🟢 POSITIVE ⭐ 6/10

EXPANSION 📅 22 Jul 2026, 07:21 PM

Subam Papers Ltd has entered into an 11-month lease agreement with its wholly-owned subsidiary, Subam Paper and Boards Private Limited, effective August 1, 2026. The company will pay a lease rent of Rs 2 crore for a paper production plant and an additional Rs 1 crore for a co-generation plant once power generation begins. This transaction is aimed at expanding operational capacity and optimizing group infrastructure, supporting the company's broader goal to increase capacity from 650 MTPD to 1,000 MTPD. The total lease commitment of Rs 3 crore is relatively small compared to the TTM revenue of Rs 575 crore, but it facilitates immediate operational scaling.

Lease rent of Rs 2 crore for the Paper Production Plant starting August 1, 2026
Additional Rs 1 crore lease rent for the Co-Generation Plant from the date of power generation
Lease tenure of 11 months from August 1, 2026, to June 30, 2027, with a renewal option
Supports the strategy to increase installed capacity from 650 MTPD to 1,000 MTPD (a 53.8% increase)
Transaction is between the holding company and its 100% wholly-owned subsidiary at arm's length

💡 Monitor the commencement date of the co-generation plant and the subsequent impact on operating margins, which stood at 7.3% TTM, as the company scales toward its 1,000 MTPD target.

₹5,000 penalty levied by BSE on Subam Papers for one-day delay in RPT disclosure

🟡 NEUTRAL ⭐ 2/10

REGULATORY 📅 22 Jul 2026, 07:18 PM

Subam Papers Ltd has clarified a minor regulatory penalty of ₹5,000 (plus GST) imposed by BSE for a one-day delay in filing its Related Party Transaction (RPT) disclosure for the half-year ended March 31, 2026. The disclosure was due on May 26, 2026, but was filed on May 27, 2026, due to technical issues. The company has already remitted the fine and the Board has advised management to strengthen internal compliance processes. Given the company's TTM revenue of ₹575 Cr, this penalty is financially immaterial.

Penalty of ₹5,000 plus 18% GST (Total ₹5,900) levied by BSE under Regulation 23(9).
Delay of exactly 1 day in filing the XBRL disclosure for Related Party Transactions.
Original due date was May 26, 2026; actual filing occurred on May 27, 2026.
Fine remittance details were submitted to the exchange on July 14, 2026.
Board of Directors has formally advised strengthening internal processes for timely filing.

💡 Investors should treat this as a routine administrative matter; however, watch for consistency in future regulatory filings to ensure internal process improvements are effective.

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💰 Financial Performance

Revenue Growth by Segment

The company's subsidiary/LLP investment, Mercury Pack and Paper Products LLP, saw revenue grow by 63.45% YoY, increasing from INR 9.03 Cr in FY2024 to INR 14.76 Cr in FY2025. Overall group revenue is driven by Kraft paper and Duplex board manufacturing, supported by a 53.8% planned capacity expansion from 650 MTPD to 1,000 MTPD.

Geographic Revenue Split

Operations are primarily concentrated in the South Indian region, specifically Tamil Nadu, which accounts for the majority of the customer base of over 1,000 direct clients. Specific regional percentage splits are not disclosed in available documents.

Profitability Margins

Operating profit margins are noted as vulnerable to cyclicality and raw material volatility. The Debt Service Coverage Ratio (DSCR) stood at 1.6 times in FY2025, which is below the negative rating trigger of 2.0 times, indicating tightened profitability relative to debt obligations.

EBITDA Margin

While specific EBITDA % is not provided, the company faces margin pressure from input costs. A Total debt/OPBDITA ratio of more than 2.3 times is identified as a downgrade trigger, suggesting current levels are monitored closely against this benchmark.

Capital Expenditure

The company is investing in a co-generation power plant expected to be commercialized by Q4 FY2026. Additionally, a capital contribution of INR 10.00 Cr was made for a 51% stake in Mercury Pack and Paper Products LLP in January 2025.

Credit Rating & Borrowing

ICRA reaffirmed a rating of [ICRA]A- (Stable) for INR 177.90 Cr of bank facilities in June 2025. However, CRISIL classified the company as 'Issuer Not Cooperating' in June 2025 due to lack of information. Borrowing includes term loans of INR 52.64 Cr and cash credit of INR 102.00 Cr.

⚙️ Operational Drivers

Raw Materials

Recycled paper (waste paper) serves as the primary raw material, supplemented by chemicals for paper processing and fuel for power generation. Specific cost percentages per material are not disclosed.

Import Sources

Sourced from diversified raw material sources to cater to the Tamil Nadu market; specific countries or states of origin are not detailed beyond local proximity advantages.

Capacity Expansion

Current installed capacity is over 650 MTPD across multiple locations. The company is expanding this to over 1,000 MTPD (a 53.8% increase) through ongoing expansion projects.

Raw Material Costs

Raw material costs are subject to high volatility; the company maintains a substantial storage facility to mitigate supply disruptions and ensure consistent production quality.

Manufacturing Efficiency

Efficiency is driven by an integrated manufacturing setup and the use of ERP technology to streamline processes from sourcing to final manufacturing.

Logistics & Distribution

Distribution is focused on a direct-to-customer model with over 1,000 direct customers in the packaging industry.

📈 Strategic Growth

Expected Growth Rate

54%

Growth Strategy

Growth will be achieved by increasing installed capacity from 650 MTPD to 1,000 MTPD and through forward integration. The company acquired 51% to 80% stakes in three packaging LLPs (Nellai Subam, Mercury Pack, Rajapalayam Success) in FY2025 to create business synergies in the corrugated box segment.

Products & Services

Kraft Paper, Duplex Board, Paper Cones, Corrugated Paper, and Paper Board Containers.

Brand Portfolio

Subam Papers, Subam Agro, Nellai Subam Packaging.

New Products/Services

Expansion into high-quality corrugated boxes and printed cartons through the newly acquired LLP partnerships, contributing to a diversified packaging portfolio.

Market Expansion

The company is transitioning from a regional paper manufacturer to an integrated packaging solution provider, targeting the growing Indian manufacturing and e-commerce sectors.

Market Share & Ranking

Established market presence in Tamil Nadu; specific industry ranking is not disclosed.

Strategic Alliances

Entered LLPs with Nellai Subam Packaging (80% share), Mercury Pack and Paper Products (51% share), and Rajapalayam Success Packagings (51% share) in FY2025.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable packaging and recycled paper. The Indian government is lowering tax rates for new manufacturing units to turn India into a global hub, benefiting packaging firms.

Competitive Landscape

Faces competition from large organized paper mills and numerous small unorganized players, limiting bargaining power.

Competitive Moat

Moat is built on cost leadership through 15.7 MW of captive renewable energy and proximity to the Thambaraparani River for water (25,000 gallons/hour), which is critical for paper quality.

Macro Economic Sensitivity

Highly sensitive to India's manufacturing GDP and government initiatives like 'Make in India' which promote the development of the packaging sector.

Consumer Behavior

Increasing demand for eco-friendly packaging and corrugated boxes driven by e-commerce growth.

Geopolitical Risks

Vulnerable to global supply chain disruptions affecting the availability and pricing of imported waste paper.

⚖️ Regulatory & Governance

Industry Regulations

Subject to water drawl permissions (currently authorized for 25,000 gallons/hour from the Thambaraparani River) and environmental norms for paper manufacturing.

Environmental Compliance

High focus on ESG through the use of recycled paper, 15.7 MW of renewable energy, and a 10 lakh liter/day rainwater harvesting system.

Taxation Policy Impact

Benefits from government strategies to lower tax rates for new manufacturing companies to promote India as a global manufacturing hub.

Legal Contingencies

The statutory and secretarial audit reports for FY2025 do not contain any qualifications, reservations, or adverse remarks.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timely ramp-up and stabilization of the new 1,000 MTPD capacity to improve debt protection metrics. Failure to do so could lead to a rating downgrade if Debt/OPBDITA exceeds 2.3x.