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Magnum Ventures Limited (MAGNUM)

₹18.07 +0.11% last close, 16 Oct

📊 NSE: MAGNUM 🏢 Paper 📢 Latest filing: 16 Oct 2026 📝 Analysis written: 14 Dec 2025

Latest quarterly results (Q1 FY27)

In its latest reported quarter, Q1 FY27, Magnum Ventures' revenue was ₹123 Cr, and net profit ₹-8.3 Cr; the operating margin was 12.7%.

Q1 FY27 (₹ Cr)	Value	YoY	QoQ
Revenue	₹123	—	-4.1%
Operating profit	₹15.7	—	-33.3%
Net profit	₹-8.3	—	to loss
EPS (₹)	-1.21	—	to loss
Operating margin	12.7%	—	—

Full quarterly financials → Results calendar →

MAGNUM delivery percentage

NSE end-of-day data for Fri, 16 Oct 2026

On Fri, 16 Oct 2026, 91.02% of the MAGNUM shares traded on NSE were taken to delivery, against the stock's own 20-session average of 74.99%. That is close to its usual level. Turnover was only ₹1 lakh, so a handful of trades can move this figure. Volume was 0.1 times its average, well below normal.

91.02%Delivery, 16 Oct

74.99%Own 20-session average

0.1×Volume vs its average

₹18.07NSE close · +0.11%

Delivery in the last 5 sessions: 94.3% · 64.3% · 75.0% · 91.7% · 91.0%

Delivery across the market →

A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed

📢 Recent Corporate Announcements

Magnum Ventures Sets Nov 20, 2026 NCLT-Convened Meeting for Scheme with Magnum Paperz

🔵 WATCH ⭐ 7/10

M&A 📅 16 Oct 2026, 03:56 PM

Magnum Ventures has scheduled an NCLT-convened meeting on November 20, 2026, for shareholders, debenture holders, and creditors to consider a Scheme of Arrangement with Magnum Paperz Limited. Remote e-voting is set from November 16 to November 19, 2026, with a cut-off date of November 13, 2026. As per post-scheme disclosures, the company's total equity base is indicated at 20,523,395 shares, with promoter holding maintained at 55.21%. The corporate restructuring follows the NCLT Allahabad bench order pronounced on September 22, 2026.

NCLT-directed general meeting scheduled for November 20, 2026, via Video Conferencing
Remote e-voting window opens on November 16, 2026 (9:00 AM) and closes on November 19, 2026 (5:00 PM)
Eligibility cut-off date fixed for Friday, November 13, 2026
Post-scheme equity shareholding stands at 2,05,23,395 shares with promoter share at 55.21% (1,13,30,266 shares)

💡 Track the outcome of the shareholder and creditor votes on November 20, 2026, followed by subsequent sanction filings before the NCLT Allahabad bench.

Magnum Ventures Submits Dematerialisation Certificate for Q2 FY27

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 13 Oct 2026, 02:44 PM

Magnum Ventures Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period from July 1, 2026 to September 30, 2026. The certificate from Registrar and Share Transfer Agent Mas Services Limited confirms that all securities received for dematerialisation were processed and confirmed within 15 days. Additionally, physical certificates were mutilated, cancelled, and depositories were updated in the register of members within the mandated timeframe. This is a standard quarterly procedural disclosure.

Compliance certificate submitted for the quarter ended September 30, 2026
Covers dematerialisation requests received between July 1, 2026 and September 30, 2026
RTA Mas Services Limited confirmed processing of securities within the mandatory 15-day window
Filing submitted to BSE and NSE on October 13, 2026

💡 Track upcoming announcements regarding the company's Q2 FY27 board meeting for quarterly financial results.

NCLT Approves First Motion for Demerger of Paper Business into Magnum Paperz

🟢 POSITIVE ⭐ 7/10

M&A 📅 25 Sep 2026, 06:48 PM

Magnum Ventures received the NCLT Allahabad Bench order approving the First Motion application for its Scheme of Arrangement. Under the proposed scheme, the company will demerge its core Paper Business into Magnum Paperz Limited, leaving the hospitality vertical (Country Inn & Suites by Radisson) in the listed entity. The tribunal has directed convening meetings for equity shareholders, secured debenture holders, and creditors, while dispensing with meetings for preference shareholders. This initiates the formal restructuring process to separate its capital-intensive paper operations (TTM revenue Rs 473 Cr) from its hotel division.

NCLT Allahabad Bench pronounced the First Motion order on 22nd September 2026 (uploaded 25th September 2026)
Paper Business to be demerged into Magnum Paperz Limited, which was incorporated on 22nd September, 2025
Shareholder and creditor meetings directed to be convened via video conferencing with e-voting facilities
Requirement to convene meeting of Preference Shareholders of the Demerged Company was dispensed with

💡 Track the notices and dates for the upcoming shareholder and creditor meetings, as well as the share entitlement ratio once formally notified.

Magnum Ventures Schedules 46th AGM on Sept 25, 2026; Book Closure from Sept 19 to 25

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 01 Sep 2026, 02:11 PM

Magnum Ventures Limited has announced that its 46th Annual General Meeting (AGM) will be conducted via Video Conferencing on Friday, September 25, 2026, at 02:00 PM IST. In connection with the AGM, the Register of Members and Share Transfer Books will remain closed from September 19, 2026, to September 25, 2026 (both days inclusive). This is a routine annual compliance filing with no direct impact on the company's financial operations or earnings.

46th Annual General Meeting scheduled for Friday, 25th September, 2026 at 02:00 P.M. IST.
Meeting to be conducted virtually through Video Conferencing (VC).
Share transfer books and register of members closed from 19th September, 2026 to 25th September, 2026 (both days inclusive).

💡 Investors should review the forthcoming detailed AGM notice and annual report for management commentary on paper segment capex and operational performance.

Magnum Ventures to Hold 46th AGM on Sept 25, 2026; Sets Voting Cut-Off for Sept 18

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 01 Sep 2026, 01:52 PM

Magnum Ventures Limited has issued notice for its 46th Annual General Meeting scheduled for September 25, 2026, through video conferencing. Key agenda items include adopting the audited standalone and consolidated financial statements for FY26 and ratifying cost auditor remuneration of Rs 1.35 lakh. Shareholders will also vote on the re-appointment of Managing Director Abhay Jain at a monthly remuneration of up to Rs 1.50 lakh and Whole-time Director Shiv Pravesh Chaturvedi at up to Rs 1.25 lakh per month for two-year terms commencing August 10, 2027.

46th AGM scheduled for September 25, 2026, via Video Conferencing
Cut-off date for e-voting entitlement set as September 18, 2026
Remote e-voting window runs from September 22, 2026 (09:00 AM) to September 24, 2026 (05:00 PM)
Proposed re-appointment of MD Abhay Jain (monthly pay up to Rs 1,50,000) and WTD Shiv Pravesh Chaturvedi (monthly pay up to Rs 1,25,000) from August 10, 2027
Proposed ratification of Cost Auditor remuneration of Rs 1,35,000 plus GST for FY27

💡 Eligible shareholders as of September 18, 2026, can participate in remote e-voting and monitor voting outcomes post-AGM on September 25, 2026.

Magnum Ventures Approves Re-appointment of MD, WTD, Independent Director and Auditors

🟡 NEUTRAL ⭐ 3/10

MANAGEMENT 📅 14 Aug 2026, 05:53 PM

Magnum Ventures Limited announced that its Board has approved the re-appointment of Managing Director Mr. Abhay Jain and Whole-time Director Mr. Shiv Pravesh Chaturvedi for a 2-year term starting August 10, 2027. Additionally, Ms. Shalini Rahul has been re-appointed as an Independent Director for a second term of 5 years commencing August 10, 2027, subject to shareholder approval. The company has also re-appointed M/s. GMB & Associates as Internal Auditors and M/s. V K Dube & Co. as Cost Auditors for FY27. These routine management extensions maintain leadership continuity for the Rs 136 Cr market-cap company.

Re-appointment of Mr. Abhay Jain as MD for a 2-year term starting August 10, 2027
Re-appointment of Mr. Shiv Pravesh Chaturvedi as Whole-time Director for 2 years starting August 10, 2027
Re-appointment of Ms. Shalini Rahul as Independent Director for a second 5-year term from August 10, 2027
Re-appointment of GMB & Associates (Internal Auditor) and V K Dube & Co. (Cost Auditor) for FY 2026-27

💡 Track voting outcomes for director re-appointments in the upcoming shareholder meeting and monitor execution on the company's paper modernization capex.

₹123.4 Cr Q1 Revenue: Magnum Ventures Reports ₹8.28 Cr Net Loss Amid Auditor Concerns

🔴 NEGATIVE ⭐ 6/10

EARNINGS 📅 14 Aug 2026, 02:05 PM

Magnum Ventures reported a 6.6% YoY increase in Q1 FY27 revenue to ₹123.41 Cr, yet posted a net loss of ₹8.28 Cr. While the paper segment showed an EBIT profit of ₹3.76 Cr, the overall bottom line was dragged down by high finance costs of ₹9.20 Cr and a sharp sequential decline in hotel segment profitability. Auditors issued several observations, including the inability to verify physical inventory and fixed assets, and noted a pending SEBI penalty appeal scheduled for October 2026.

Revenue from operations stood at ₹123.41 Cr, up from ₹115.77 Cr in the year-ago quarter.
Net loss narrowed to ₹8.28 Cr compared to a loss of ₹18.16 Cr in Q1 FY26.
Finance costs of ₹9.20 Cr consumed nearly 7.5% of total quarterly revenue.
Auditors flagged trade receivables of ₹57.54 Cr, with ₹46.04 lakh currently under litigation.
Operating Profit Margin (OPM) remained negative at -3.51% for the quarter.

💡 Investors should monitor the outcome of the SAT hearing on October 15, 2026, regarding SEBI's market restraint order. Additionally, track the progress of the ₹90 Cr capex plan and whether debt refinancing successfully reduces the high interest burden.

Magnum Ventures Receives NSE/BSE No-Objection for Scheme of Arrangement with Magnum Paperz

🟢 POSITIVE ⭐ 7/10

M&A 📅 18 Jul 2026, 11:47 AM

Magnum Ventures has received 'No Objection' letters from both BSE and NSE on July 17, 2026, regarding its proposed Scheme of Arrangement with Magnum Paperz Limited. This regulatory clearance allows the company to proceed with filing the scheme before the National Company Law Tribunal (NCLT) within the next six months. The exchanges have mandated specific disclosures, including details on pending SEBI settlement applications and the impact of the scheme on the parent company's revenue-generating capacity. This restructuring is a key step in the company's strategy to potentially streamline its paper and hospitality segments.

Received formal 'No Objection' from NSE and BSE on July 17, 2026, for the Scheme of Arrangement.
The Observation Letter remains valid for 6 months, requiring NCLT filing by January 17, 2027.
Magnum Paperz Limited must complete listing and commence trading within 60 days of the NCLT order.
Company must disclose details of non-compliance with Takeover Regulations and pending SEBI settlement applications.
Share entitlement ratio recommendation was provided by a registered valuer on February 27, 2026.

💡 Investors should watch for the filing of the petition with the NCLT and the subsequent disclosure of the 'impact of scheme on revenue generating capacity' of Magnum Ventures, which will clarify the post-restructuring financial profile.

Magnum Ventures shifts Registered Office from Delhi to Uttar Pradesh effective July 9, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 10 Jul 2026, 07:03 PM

Magnum Ventures Limited has officially shifted its registered office from the National Capital Territory of Delhi to Ghaziabad, Uttar Pradesh. This administrative move follows an initial approval process that began with an intimation on August 13, 2025. The change became effective on July 9, 2026, after the certified order from the Regional Director was filed with the Registrar of Companies. This is a procedural update and does not affect the company's TTM revenue of ₹468 Cr or its operational capacity.

Registered office shifted to Room No. 101, 64/6, Site-IV, Sahibabad Industrial Area, Ghaziabad - 201010
Change effective from July 9, 2026, following the filing of the Hon'ble Regional Director's order
The shifting process was initiated via a prior intimation dated August 13, 2025
The company continues to operate with a TTM revenue of ₹468 Cr and a net worth of ₹689 Cr

💡 Investors should note the new address for future formal correspondence; no impact on business fundamentals or the ₹90 Cr capex plan is expected.

Magnum Ventures Submits Regulation 74(5) Compliance Certificate for Q1 FY27

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 07 Jul 2026, 11:12 AM

Magnum Ventures has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, for the period ending June 30, 2026. The certificate, issued by Mas Services Limited (the RTA), confirms that all share dematerialization requests were processed within the mandatory 15-day timeline. This includes the mutilation and cancellation of physical certificates and the updating of the register of members. This is a standard administrative filing and does not impact the company's financial position or operations.

Compliance certificate covers the quarter from April 1, 2026, to June 30, 2026
Dematerialization requests were confirmed or rejected within the 15-day regulatory limit
Physical security certificates were mutilated and cancelled after due verification
Register of members was updated with the name of the Depositories within 15 days of receipt

💡 No action is required as this is a routine procedural filing confirming administrative compliance with SEBI regulations.

Magnum Ventures Announces Trading Window Closure from July 1, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 24 Jun 2026, 06:05 PM

Magnum Ventures Limited has announced the closure of its trading window for all designated persons starting July 1, 2026. This action is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results for the quarter ending June 30, 2026. The window will remain closed until 48 hours after the quarterly results are officially released to the public. This is a routine administrative filing and does not reflect any change in the company's operational fundamentals.

Trading window closure begins on July 1, 2026
Closure is in anticipation of financial results for the quarter ended June 30, 2026
Restriction applies to Directors, Officers, and designated persons
Window will reopen 48 hours after the results are made public

💡 No action is required as this is a standard regulatory compliance notification. Investors should monitor the upcoming quarterly results for actual performance data.

Magnum Ventures Allots ₹50 Crore NCDs at 18% Interest Rate

🔵 WATCH ⭐ 7/10

FUNDRAISE 📅 16 Jun 2026, 12:05 PM

Magnum Ventures Limited has completed the allotment of 5,000 Listed, Rated, Secured, Redeemable, Non-Convertible Debentures (NCDs) to Neo Special Credit Opportunities Fund. The issuance raised ₹50 crore at a high coupon rate of 18% per annum, with interest payable monthly. The funds are intended to meet the company's working capital requirements. The debt instrument has a tenure of approximately 4 years and 9 months, with a final maturity date of March 31, 2031.

Allotted 5,000 NCDs of face value ₹1,00,000 each, aggregating to ₹50 crore on a private placement basis.
The NCDs carry a high coupon rate of 18% per annum, indicating a significant cost of capital.
The issue is secured by a pari passu charge on the Paper Division's assets and a pledge of 83,24,255 equity shares by Mr. Parv Jain.
Redemption is structured in quarterly installments starting March 31, 2027, through March 31, 2031.
The entire subscription was picked up by Neo Special Credit Opportunities Fund, managed by Neo Asset Management Pvt Ltd.

💡 Investors should exercise caution as the 18% interest rate is exceptionally high, suggesting a high-risk credit profile or urgent liquidity needs. Monitor the company's Paper Division performance and cash flow to ensure it can service these monthly interest payments and quarterly redemptions.

Magnum Ventures Raises ₹50 Cr via 18% NCDs; Promoter Pledges 83.24 Lakh Shares

🔵 WATCH ⭐ 7/10

FUNDRAISE 📅 09 Jun 2026, 11:19 PM

Magnum Ventures Limited has entered into an agreement to raise an additional ₹50 Crore through 18% Listed, Secured, Redeemable Non-Convertible Debentures (NCDs). This brings the total debt raised through this facility to ₹280 Crore, following previous disbursements of ₹230 Crore. To secure the loan, promoter group member Mr. Parv Jain has extended the pledge of 83,24,255 equity shares. The high interest rate of 18% indicates a high-cost borrowing structure which investors should monitor closely.

Additional ₹50 Crore raised via 18% NCDs from Neo Special Credit Opportunities Fund
Total NCD-based debt facility now stands at ₹280 Crore
Promoter Parv Jain pledged 83,24,255 equity shares as part of the security terms
Security includes a pari passu charge on all fixed and current assets of the Paper Division
Personal guarantees provided by promoters Mr. Pradeep Kumar Jain, Mr. Abhay Jain, and Mr. Parv Jain

💡 Investors should exercise caution due to the very high interest rate of 18% and increased promoter pledging, which may signal liquidity pressure or high-risk operations. Monitor the company's quarterly interest coverage ratio to ensure debt sustainability.

Magnum Ventures Approves FY26 Results and Finalizes ₹50 Crore NCD Issuance

🔵 WATCH ⭐ 7/10

EARNINGS 📅 27 May 2026, 04:45 PM

Magnum Ventures has approved its audited financial results for the year ended March 31, 2026, and finalized terms for a ₹50 crore NCD issuance. This issuance is part of a larger ₹400 crore fundraising plan approved earlier. The company has secured a ₹150 crore term loan from Tourism Finance Corporation of India to refinance existing debt. However, auditors have raised several points of emphasis, including unconfirmed balances and a pending SEBI appeal regarding a market ban on directors.

Approved issuance of 5,000 NCDs aggregating to ₹50 crore with a face value of ₹1,00,000 each.
Secured a ₹150 crore term loan from Tourism Finance Corporation India for repayment of existing debentures.
Total trade receivables stand at ₹6,051.20 lakhs, with ₹333.30 lakhs outstanding for over six months.
Auditors highlighted a ₹300 lakh deposit to Bank of Baroda for the withdrawal of various legal cases.
Ongoing SEBI litigation involves a ₹12 lakh penalty on the company and a one-year market access ban on directors.

💡 Investors should remain cautious due to the auditor's emphasis on unconfirmed balances and the regulatory overhang from the SEBI penalty. Monitor the company's progress in debt refinancing and the outcome of the SAT appeal scheduled for July 2026.

Magnum Ventures Approves Rs 50 Cr NCD Issuance and Reports FY26 Audited Results

🔵 WATCH ⭐ 7/10

BOARD_MEETING 📅 27 May 2026, 04:30 PM

Magnum Ventures has approved the issuance of Rs 50 crore in Non-Convertible Debentures (NCDs) as part of a larger Rs 400 crore fundraising plan. The company also released its FY26 audited financial results, revealing a secured term loan of Rs 150 crore from Tourism Finance Corporation India Limited to refinance existing debt. However, auditors highlighted several concerns, including a pending SEBI penalty appeal and unconfirmed balances for debtors and creditors. Trade receivables stand at Rs 60.51 crore, with a portion under litigation or long-term outstanding.

Approved issuance of 5,000 NCDs worth Rs 50 crore at a face value of Rs 1,00,000 each.
Secured a Rs 150 crore term loan from Tourism Finance Corporation India Limited for debt repayment.
Total trade receivables reported at Rs 60.51 crore, including Rs 3.33 crore outstanding for over six months.
SEBI imposed a Rs 12 lakh penalty on the company and Rs 54 lakh on directors; the matter is currently under appeal at SAT.
Auditors issued an 'Emphasis of Matter' regarding inventory valuation and unconfirmed debtor/creditor balances.

💡 Investors should monitor the outcome of the SEBI appeal on July 7, 2026, and the company's progress in refinancing debt. Exercise caution due to auditor notes regarding unconfirmed balances and inventory valuation methods.

View All MAGNUM Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

The Paper division revenue declined by 20.6% YoY to INR 210.22 Cr for 9M FY25, while the Hotel division revenue decreased by 10.1% YoY to INR 67.62 Cr. Total consolidated income for FY25 fell 14.1% to INR 397.26 Cr from INR 462.35 Cr in FY24.

Geographic Revenue Split

100% of operations are concentrated in the Northern region of India, specifically Sahibabad, Uttar Pradesh, where both the 5,00,000 sq. ft. paper unit and the hotel are located.

Profitability Margins

Net Profit Margin declined from 5.36% in FY24 to 2.40% in FY25 due to lower net sales. Operating Profit Margin turned negative at -0.24% in FY25 compared to 0.72% in FY24, primarily impacted by the decline in paper segment realizations.

EBITDA Margin

EBITDA margin improved significantly to 19.64% in FY25 from 11.68% in FY24, driven by upgraded machinery leading to increased manufacturing efficiency and favorable changes in raw material costs.

Capital Expenditure

The company has planned a total capital expenditure of INR 90 Cr to be completed by the end of FY26, with INR 40 Cr specifically allocated for the paper segment to enhance production capabilities.

Credit Rating & Borrowing

The company holds an 'ACUITE BB | Stable' rating for its INR 180 Cr Non-Convertible Debentures. It is currently refinancing INR 240 Cr of debt to reduce the coupon rate and extend repayment tenures.

⚙️ Operational Drivers

Raw Materials

The paper division utilizes 100% wastepaper as its primary raw material, which accounted for a significant portion of the INR 260.51 Cr cost of materials consumed in FY25.

Import Sources

Raw materials are primarily sourced domestically within India, leveraging the company's established supply chain in the Northern region.

Capacity Expansion

Current paper manufacturing capacity is 85,000 MTPA. The company is undertaking an INR 90 Cr capex program to be completed by FY26 to further expand or modernize this capacity.

Raw Material Costs

Cost of materials consumed was INR 260.51 Cr in FY25, representing approximately 65.8% of revenue from operations. Procurement strategies focus on 100% wastepaper recycling to align with sustainability trends.

Manufacturing Efficiency

The paper division achieved a capacity utilization of 103% in Q3 FY25, driven by increased production of higher GSM (Grams per Square Meter) paper products.

📈 Strategic Growth

Growth Strategy

Growth will be achieved through an INR 90 Cr capex plan for the paper segment, refinancing INR 240 Cr of debt to lower interest costs and improve cash flow, and expanding into higher GSM and specialty paper products to tap new market segments.

Products & Services

The company sells Newsprint, Duplex Board, Printing Paper, and Grey Board. The hotel segment provides hospitality services, including room stays and food and beverage services.

Brand Portfolio

Country Inn & Suites by Radisson (managed by Radisson Group) and Magnum.

New Products/Services

Expansion into higher GSM papers and specialty products is expected to contribute to future revenue growth, though specific percentage contributions are not yet disclosed.

Market Expansion

The company is focusing on tapping into new market segments through specialty products and maintaining its dominant position in the Northern Indian paper printing market.

Market Share & Ranking

Magnum is recognized as one of the largest paper printing concerns in the Northern region of India.

Strategic Alliances

The hotel segment is managed under a strategic agreement with the Radisson Group.

🌍 External Factors

Industry Trends

The paper industry is shifting toward 100% wastepaper and renewable energy. The hotel industry in India is seeing a recovery, with Magnum's occupancy rising from 80% in FY23 to 84% in FY24.

Competitive Landscape

The company operates in a highly competitive and fragmented industry for both paper manufacturing and hospitality services.

Competitive Moat

The company's moat is built on a 40-year track record in paper and hospitality, a strategic location in the NCR region, and a strong brand association with Radisson.

Macro Economic Sensitivity

Demand is highly sensitive to urbanization, literacy rates, and the growth of the packaging industry, which drive paper consumption.

Consumer Behavior

Increased demand for sustainable packaging and premium hospitality experiences is positively influencing the company's strategic shift toward specialty papers and hotel quality improvements.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to FSSAI standards for food safety in the hotel segment and environmental pollution control norms for the paper manufacturing unit.

Environmental Compliance

The company complies with environmental norms by using 100% wastepaper and renewable energy sources like solar and bio-diesel.

Taxation Policy Impact

The company benefited from a deferred tax credit of INR 9.61 Cr in FY25, which significantly supported the reported Profit After Tax of INR 9.50 Cr.

Legal Contingencies

The company received an order under Section 73 of the SGST Act. Other pending matters include historical SEBI penalties related to market access which are excluded per instructions.

⚠️ Risk Analysis

Key Uncertainties

Key risks include market volatility affecting paper prices, which caused a revenue decline in FY25, and the intensive working capital nature of the business.