ASTRON - Astron Paper
📢 Recent Corporate Announcements
Astron Paper & Board Mill Limited has convened an Extraordinary General Meeting (EGM) on March 19, 2026, to seek shareholder approval for critical governance changes. The primary agenda includes the appointment of M/s. H K Shah & Co. as Statutory Auditors to fill a casual vacancy following the resignation of M/s. SNDK & Associates LLP on December 23, 2025. Additionally, the company is seeking to regularize Ms. Jankiben Patel as an Independent Director for a five-year term. These steps are essential for the company to maintain regulatory compliance and ensure continuous oversight of its financial reporting.
- Extraordinary General Meeting (EGM) scheduled for March 19, 2026, at 2:00 PM via Video Conferencing.
- Proposed appointment of M/s. H K Shah & Co. as Statutory Auditors to fill the vacancy until the 16th AGM.
- Regularization of Ms. Jankiben Patel as an Independent Director for a 5-year term ending December 22, 2030.
- The auditor vacancy was triggered by the resignation of M/s. SNDK & Associates LLP effective December 23, 2025.
- The meeting will be conducted entirely through VC/OAVM mode as per MCA and SEBI circulars.
Astron Paper & Board Mill reported a consolidated revenue of ₹144.71 Lakhs for the quarter ended December 31, 2025, a marginal increase from ₹137.00 Lakhs in the same period last year. The company posted a net loss of ₹505.52 Lakhs for the quarter, significantly impacted by finance costs of ₹409.91 Lakhs which exceed its total revenue. Critically, the company is currently undergoing insolvency proceedings under the IBC and SARFAESI Act, with secured lenders having taken symbolic possession of certain assets. Furthermore, the company is facing regulatory non-compliance due to the vacant position of Company Secretary.
- Consolidated revenue from operations stood at ₹144.71 Lakhs for Q3 FY26.
- Net loss for the quarter was ₹505.52 Lakhs, narrowing from a loss of ₹2,794.90 Lakhs in Q3 FY25.
- Finance costs of ₹409.91 Lakhs represent a massive overhead compared to the quarterly revenue of ₹144.71 Lakhs.
- The company is undergoing proceedings under the Insolvency and Bankruptcy Code (IBC), 2016.
- Secured lenders have taken symbolic possession of certain company assets under the SARFAESI Act, 2002.
Astron Paper & Board Mill reported a consolidated net loss of ₹505.52 lakhs for the quarter ended December 31, 2025, showing a reduction in losses compared to ₹2,794.90 lakhs in the previous year's quarter. However, revenue from operations remains critically low at just ₹144.71 lakhs, indicating severe operational distress. The company is currently undergoing Insolvency and Bankruptcy Code (IBC) proceedings, with secured lenders taking symbolic possession of certain assets under the SARFAESI Act. Furthermore, the company is facing regulatory non-compliance issues, including a vacant Company Secretary position.
- Consolidated net loss narrowed to ₹505.52 lakhs in Q3 FY26 from a loss of ₹2,794.90 lakhs in Q3 FY25.
- Quarterly revenue from operations stood at a meager ₹144.71 lakhs, reflecting a collapse in business scale.
- Company is undergoing IBC proceedings and SARFAESI enforcement actions by secured lenders.
- Finance costs of ₹409.91 lakhs on a consolidated basis continue to weigh heavily on the financial health.
- Board seeking shareholder approval via postal ballot for the appointment of statutory auditors and an independent director.
Astron Paper & Board Mill reported a consolidated net loss of ₹505.52 lakhs for Q3 FY26, a reduction from the ₹2,794.90 lakhs loss in the same quarter last year. Revenue from operations was extremely low at ₹144.71 lakhs, indicating a significant scale-down in business activities. The company is currently undergoing Insolvency and Bankruptcy Code (IBC) proceedings, and secured lenders have already taken symbolic possession of certain assets under the SARFAESI Act. Additionally, the company is facing regulatory non-compliance due to a vacant Company Secretary position.
- Consolidated net loss for the quarter ended December 31, 2025, stood at ₹505.52 lakhs.
- Revenue from operations was minimal at ₹144.71 lakhs compared to ₹9,534.44 lakhs in the 9-month period of the previous year.
- Company is undergoing IBC, 2016 proceedings and enforcement actions under the SARFAESI Act, 2002.
- Secured lenders have taken symbolic possession of certain company assets.
- Board approved a postal ballot for the appointment of M/s H K Shah & Co. as Statutory Auditors to fill a casual vacancy.
Union Bank of India, leading a consortium of five banks, has issued an e-auction notice for the secured assets of Astron Paper & Board Mill Limited to recover outstanding dues of ₹83.07 Crores. The auction, scheduled for March 13, 2026, includes the company's offices in Ahmedabad and critical manufacturing assets like plant and machinery at its Halvad and Bhuj sites. This action under the SARFAESI Act, 2002, follows a default on secured debt and signifies severe financial distress. The potential loss of core production facilities poses a significant threat to the company's operational continuity.
- Total secured debt outstanding stands at ₹83,07,09,943.13 as of December 31, 2025.
- Lender consortium includes Union Bank of India, Bank of Maharashtra, ICICI Bank, Axis Bank, and SBM.
- E-auction is scheduled for March 13, 2026, between 12:00 PM and 05:00 PM.
- Assets under auction include two offices in Ahmedabad and industrial land/machinery in Halvad and Bhuj.
- Recovery action is being taken under the provisions of the SARFAESI Act, 2002.
M/s SNDK & Associates LLP has resigned as the Statutory Auditor of Balaram Papers Private Limited, a wholly-owned subsidiary of Astron Paper & Board Mill Limited, effective December 31, 2025. In their resignation letter, the auditors explicitly stated that the management failed to provide adequate and proper documents and audit evidence despite multiple requests. The firm also cited increased regulatory burdens and time constraints as reasons for their inability to continue. Such resignations, particularly those citing a lack of information, are significant red flags regarding corporate governance and internal controls.
- M/s SNDK & Associates LLP resigned as Statutory Auditor of Balaram Papers Pvt Ltd effective December 31, 2025.
- The auditor cited management's failure to provide adequate audit evidence and documents in a timely manner as a primary reason.
- Balaram Papers Private Limited is a 100% wholly-owned subsidiary of the listed entity Astron Paper & Board Mill Limited.
- The resignation letter highlights that the firm could no longer devote appropriate time to comply with quality standards and statutory reporting provisions.
Astron Paper & Board Mill Limited's wholly-owned subsidiary, Balaram Paper Private Limited, has successfully repaid its outstanding dues to Canara Bank. Following this repayment, the bank issued a No Dues Certificate on December 29, 2025, officially closing the credit facilities. The subsidiary has also regained physical possession of its land, plant, machinery, and inventories in Mehsana, Gujarat, which were previously under bank possession since October 11, 2025. This development clears the subsidiary's debt obligations and restores its operational assets.
- Wholly-owned subsidiary Balaram Paper Private Limited completed full repayment of dues to Canara Bank.
- Received No Dues Certificate dated December 29, 2025, confirming closure of all credit facilities.
- Regained physical possession of immovable property and machinery in Mehsana, Gujarat, on December 31, 2025.
- Assets recovered include land at Survey No. 258, plant, machinery, and inventories previously held under a possession notice.
Astron Paper's wholly-owned subsidiary, Balaram Paper Private Limited, has successfully repaid all outstanding dues to Canara Bank. Following this repayment, the bank issued a No Dues Certificate on December 29, 2025, and returned physical possession of the subsidiary's assets on December 31, 2025. These assets include immovable property in Mehsana, Gujarat, along with plant, machinery, and inventories that were previously under bank possession since October 11, 2025. This move strengthens the subsidiary's balance sheet and allows for the potential resumption of operations at the site.
- Balaram Paper Private Limited completed full repayment of outstanding dues to Canara Bank's Asset Recovery Management Branch.
- Received No Dues Certificate dated December 29, 2025, confirming closure of all credit facilities.
- Regained physical possession of Mehsana property, plant, machinery, and inventory on December 31, 2025.
- The assets were previously under bank possession since October 11, 2025, following a possession notice.
Astron Paper & Board Mill Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited, confirms that all share certificates received for dematerialization during the quarter ended December 31, 2025, were processed within the prescribed timelines. This filing confirms that the company's shareholding records are being maintained accurately and that physical certificates are being properly mutilated and cancelled upon conversion to electronic form. This is a standard administrative disclosure required by Indian stock exchanges.
- Compliance certificate issued for the quarter ended December 31, 2025.
- Confirmation provided by Registrar and Transfer Agent MUFG Intime India Private Limited.
- Verification that security certificates received for dematerialization were mutilated and cancelled.
- Confirmation that the name of depositories has been substituted in the register of members within timelines.
Astron Paper & Board Mill Limited has officially shifted its registered office address within the city of Ahmedabad, Gujarat. The relocation from S.G. Highway to Science City Road became effective on December 23, 2025. This is a routine administrative change within local limits and does not impact the company's business operations or jurisdiction. The company has completed the necessary regulatory filings, including Form INC-22, to formalize the update.
- Registered office shifted from Ganesh Meriden, S.G. Highway to Satyamev Eminence, Science City Road.
- The change in address became effective starting December 23, 2025.
- The relocation is within the local limits of Ahmedabad, Gujarat, maintaining the same ROC.
- Compliance fulfilled under Regulation 30 of SEBI (LODR) Regulations, 2015.
Astron Paper & Board Mill Limited has informed the exchanges that its trading window will be closed starting January 1, 2026. This closure is in compliance with SEBI Insider Trading regulations for the upcoming declaration of Q3 financial results for the period ending December 31, 2025. The restriction applies to all directors, promoters, and designated persons. The window will reopen 48 hours after the financial results are officially announced to the public.
- Trading window closure effective from January 1, 2026
- Closure is related to the Unaudited Financial Results for the quarter ending December 31, 2025
- Restriction applies to Directors, Promoter Group, and Designated Persons
- Trading window to reopen 48 hours after the Q3 results declaration
Astron Paper & Board Mill Limited has announced the sale of freehold property in Halvad to settle bank dues and statutory payments, indicating liquidity pressure. The company's registered office has been shifted to a new location in Ahmedabad after the previous premises were sealed by Union Bank. Additionally, the Board approved the appointment of M/s H K Shah & Co. as Statutory Auditors and Ms. Jankiben Patel as an Independent Director. These developments suggest the company is undergoing significant financial and operational restructuring under duress.
- Sale of freehold plots at Umiya Township, Halvad, to fund bank and statutory payment requirements
- Registered office shifted to Sola, Ahmedabad, following the sealing of the previous office by Union Bank
- Appointment of M/s H K Shah & Co. as Statutory Auditors, subject to shareholder approval
- Appointment of Ms. Jankiben Patel as an Independent Director (DIN: 09183490)
- Board meeting concluded at 01:50 P.M. on December 23, 2025
Canara Bank has issued an e-auction sale notice for the assets of Balaram Papers Private Limited, a wholly-owned subsidiary of Astron Paper & Board Mill Limited. The auction involves the sale of plant, machinery, and approximately 10,217 sq. mtrs of industrial land located in Mehsana, Gujarat. This action is being taken under the SARFAESI Act, 2002, which typically follows a default in loan repayments. The parent company is currently evaluating legal implications and potential next steps to address the recovery action.
- Canara Bank issued an E-auction sale notice dated November 21, 2025, for subsidiary Balaram Papers.
- Assets include plant, machinery, and 10,217 sq. mtrs of NA industrial land in Ganeshpura, Mehsana.
- Action initiated under the SARFAESI Act, 2002, and Security Interest (Enforcement) Rules, 2002.
- Balaram Papers Private Limited is a 100% wholly-owned subsidiary of Astron Paper & Board Mill Limited.
- The company is seeking legal advice to evaluate the implications of this asset recovery action.
Canara Bank has issued an E-auction sale notice dated 21.11.2025 regarding assets of Balaram Papers Private Limited, a wholly-owned subsidiary of Astron Paper & Board Mill Limited. The auction is under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The properties include plant and machinery and NA Land located at Revenue Survey No. 258 in Mehsana. Astron Paper is evaluating the implications and will take legal steps.
- E-auction sale notice issued by Canara Bank on 21.11.2025
- Assets of Balaram Papers Private Limited to be auctioned
- Property located at Revenue Survey No. 258 in Mehsana
- Land area is about -10217 sq. mtrs
Financial Performance
Revenue Growth by Segment
The company operates in a single segment (Kraft Paper). Revenue witnessed a 39% degrowth over two years, falling from INR 512.84 Cr in FY2022 to INR 310.79 Cr in FY2024. For the full year ended March 31, 2025, revenue plummeted to INR 95.95 Cr, a 69% YoY decline. In H1 FY2026 (ended Sept 30, 2025), revenue was just INR 1.28 Cr compared to INR 93.70 Cr in H1 FY2025, representing a 98.6% decline.
Geographic Revenue Split
Not specifically disclosed by percentage, but the company notes that local market dynamics and container non-availability for exports significantly impacted the 39% revenue decline in previous cycles.
Profitability Margins
Profitability has collapsed due to operational suspension. H1 FY2026 reported a Loss Before Tax of INR 10.01 Cr on revenue of INR 1.28 Cr. In H1 FY2025, the loss was INR 25.52 Cr. Net margins are deeply negative as fixed costs and finance charges continue despite minimal revenue.
EBITDA Margin
Operating profit before working capital changes for H1 FY2026 was a loss of INR 1.13 Cr. Core profitability is non-existent due to the suspension of core activities effective September 2024.
Capital Expenditure
Property, Plant and Equipment (PPE) stood at INR 119.26 Cr as of September 30, 2025, a decrease from INR 122.45 Cr in March 2025 due to depreciation. Capital Work-in-Progress is stagnant at INR 0.27 Cr with no new planned expenditure disclosed.
Credit Rating & Borrowing
Ratings were downgraded to 'IVR D' (Default) on November 14, 2024, for bank facilities totaling INR 127.00 Cr (INR 62.00 Cr Long Term and INR 65.00 Cr Short Term) due to delays in debt servicing and liquidity issues.
Operational Drivers
Raw Materials
Waste paper and Kraft paper scrap (implied by industry). Volatile raw material prices are cited as a key risk factor impacting operating margins.
Capacity Expansion
Current capacity is effectively 0% utilized as core operations have been suspended since September 2024. No expansion is planned; the company is exploring strategic options for revival or asset monetization.
Raw Material Costs
Cost of materials consumed was INR 0 in H1 FY2026 due to the operational halt, compared to INR 75.71 Cr in H1 FY2025, which represented 80.8% of that period's revenue.
Manufacturing Efficiency
Manufacturing efficiency is currently nil as core activities are suspended. Previously, the group maintained an operating cycle of 58 days (as of March 2023).
Logistics & Distribution
Increased logistic costs and container non-availability were primary drivers for the initial revenue decline before the total operational halt.
Strategic Growth
Expected Growth Rate
-98.60%
Growth Strategy
The company is pursuing a revival plan through strategic investor participation, asset monetization, and operational realignment. A monitoring committee is overseeing these efforts to address the threat to going concern status.
Products & Services
Kraft paper of various quality grades used for packaging.
Brand Portfolio
Astron.
New Products/Services
No new products are planned; the current focus is entirely on the revival of existing Kraft paper operations.
Market Expansion
Market expansion is currently halted; the company is focused on maintaining its 'going concern' status through strategic options.
Market Share & Ranking
The company operates in a highly fragmented industry and currently holds negligible market share due to the operational shutdown.
Strategic Alliances
The company is actively seeking strategic investors to participate in its revival plan.
External Factors
Industry Trends
The Kraft paper industry is characterized by high fragmentation and volatile input costs. The industry is currently seeing a shift where distressed players like Astron require strategic realignment to survive.
Competitive Landscape
The industry is highly fragmented with numerous small and medium-sized players, leading to intense price competition.
Competitive Moat
The primary moat is the 50-year experience of promoters Mr. Kirit Patel and Mr. Ramakant Patel in the Kraft paper industry, though this is currently offset by severe financial distress.
Macro Economic Sensitivity
Highly sensitive to logistics costs and global container availability, which previously impacted export capabilities.
Consumer Behavior
Demand for Kraft paper is linked to the packaging industry, but the company has lost customer confidence due to its inability to supply products.
Geopolitical Risks
Global supply chain disruptions and container shortages have historically impacted the business risk profile.
Regulatory & Governance
Industry Regulations
The company is subject to pollution control norms and manufacturing standards typical for the paper and board industry.
Legal Contingencies
The company faces pending Income Tax Litigations for which legal counsel has been engaged. Auditors issued a disclaimer of opinion for FY2025 due to lack of sufficient audit evidence.
Risk Analysis
Key Uncertainties
There is a significant threat to the 'going concern' status of the company. Liquidity is poor, and the company's accounts are classified as NPA.
Third Party Dependencies
High dependency on banks for debt restructuring and potential strategic investors for the revival plan.
Credit & Counterparty Risk
Trade receivables stood at INR 21.01 Cr as of September 30, 2025, down from INR 25.48 Cr in March 2025, indicating some recovery of old dues but overall high credit risk.