RUCHIRA - Ruchira Papers
📢 Recent Corporate Announcements
Ruchira Papers Limited has announced a comprehensive reconstitution of its Board Committees effective February 13, 2026. This administrative change follows the unfortunate demise of Sh. Umesh Chander Garg on January 23, 2026. Key adjustments include the appointment of Sh. Kamal Sharma as the Chairman of the Stakeholders Relationship Committee, replacing Sh. Ranjit Singh Sidhu. The CSR, Nomination and Remuneration, and Project Committees have also been restructured to maintain governance standards.
- Reconstitution of four key committees: CSR, Nomination & Remuneration, Stakeholders Relationship, and Project Committee.
- Sh. Kamal Sharma appointed as Chairman of the Stakeholders Relationship Committee effective Feb 13, 2026.
- Formal notification of the death of Sh. Umesh Chander Garg, which occurred on January 23, 2026.
- The Project Committee now consists of Sh. Jatinder Singh (Chairman), Sh. Deepan Garg, and Sh. Jagdeep Singh.
Ruchira Papers Limited has formally recorded the cessation of its Promoter and Managing Director, Sh. Umesh Chander Garg, following his passing on January 23, 2026. During the board meeting held on February 13, 2026, the company also approved its un-audited financial results for the quarter and nine months ended December 31, 2025. To maintain governance, the board has reconstituted four key committees: CSR, Nomination and Remuneration, Stakeholders Relationship, and Project Committees. New chairpersons have been appointed to lead these committees as the company manages this leadership transition.
- Cessation of Sh. Umesh Chander Garg as Managing Director effective January 23, 2026, due to his demise.
- Board approved un-audited financial results for the quarter and nine months ended December 31, 2025.
- Reconstitution of four major board committees including CSR, NRC, Stakeholders Relationship, and Project Committees.
- Sh. Tilak Raj Vanaik designated as the new Chairman of the Nomination and Remuneration Committee.
- Sh. Kamal Sharma appointed as Chairman of the Stakeholders Relationship Committee.
Ruchira Papers reported a significant decline in financial performance for the quarter ended December 31, 2025, with Net Profit falling to ₹1.92 crore from ₹16.75 crore YoY. This sharp drop was primarily driven by a 36-day planned shutdown of the Writing and Printing unit for maintenance and modernization activities. The company also announced the passing of its Promoter and Managing Director, Sh. Umesh Chander Garg, on January 23, 2026. Consequently, the Board has reconstituted several key committees to manage the leadership transition.
- Net Profit (PAT) plummeted 88.5% YoY to ₹1.92 crore in Q3 FY26 from ₹16.75 crore in Q3 FY25.
- Total Income for the quarter decreased to ₹132.74 crore, down 21.7% from ₹169.45 crore in the same period last year.
- A 36-day shutdown of the Writing and Printing unit for modernization significantly impacted production and revenue during the quarter.
- Promoter and Managing Director Sh. Umesh Chander Garg passed away on January 23, 2026, leading to a vacancy in the MD position.
- Board committees including CSR, NRC, and Stakeholders Relationship have been reconstituted effective February 13, 2026.
Ruchira Papers reported a significant decline in financial performance for the quarter ended December 31, 2025, with net profit falling to ₹1.92 crore from ₹16.75 crore in the same period last year. This sharp drop was primarily caused by a 36-day planned shutdown of the Writing and Printing unit for maintenance and modernization. The company also announced the passing of its Promoter and Managing Director, Sh. Umesh Chander Garg, on January 23, 2026. Consequently, the board has reconstituted several key committees including the CSR, Nomination and Remuneration, and Project Committees.
- Net Profit for Q3 FY26 fell 88.5% YoY to ₹1.92 crore compared to ₹16.75 crore in Q3 FY25.
- Total Income from operations decreased to ₹132.74 crore from ₹169.45 crore in the prior year's quarter.
- A 36-day operational shutdown was undertaken for maintenance and modernization of the Writing and Printing unit.
- Promoter and Managing Director Sh. Umesh Chander Garg passed away on January 23, 2026, creating a leadership vacancy.
- Board committees were reconstituted effective February 13, 2026, with new chairpersons appointed for NRC and Project Committees.
Ruchira Papers Limited has reported the sad demise of its Managing Director and Promoter, Sh. Umesh Chander Garg, on January 23, 2026. Mr. Garg held 18,41,999 shares, representing a 6.17% stake in the company, and was a pivotal figure in its growth since inception. Following his passing, he will cease to be part of the promoter group as per SEBI LODR Regulations. The company now faces a leadership transition, making the appointment of a successor a key event for shareholders to monitor.
- Demise of Managing Director and Promoter Sh. Umesh Chander Garg on January 23, 2026
- Mr. Garg held a significant stake of 18,41,999 equity shares (6.17% of the company)
- Cessation of promoter status in accordance with Regulation 31A(6)(c) of SEBI LODR
- Leadership transition required as Mr. Garg was a visionary leader since the company's inception
Ruchira Papers Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited, covers the period ending December 31, 2025. This document confirms that the company and its Registrar and Share Transfer Agent have processed share dematerialization requests as per regulatory norms. This is a standard administrative filing required by all listed entities in India.
- Compliance certificate for the quarter ended December 31, 2025, submitted to BSE and NSE.
- Issued by RTA MUFG Intime India Private Limited (formerly Link Intime India Private Limited).
- The filing is pursuant to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
- Confirms standard processing of share dematerialization and transfer requests.
Ruchira Papers Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the declaration of the company's un-audited financial results for the quarter and nine months ending December 31, 2025. The restriction applies to all directors, key managerial personnel, and designated persons. The trading window will reopen 48 hours after the financial results are submitted to the stock exchanges.
- Trading window closure effective from Thursday, January 1, 2026.
- Closure pertains to the financial results for the quarter and nine months ended December 31, 2025.
- Applies to all Directors, KMPs, and Designated Persons under SEBI regulations.
- Window to remain closed until 48 hours post-result declaration.
Ruchira Papers Limited has announced the resumption of operations at its Writing and Printing Paper Plant (PM3) effective December 09, 2025. This follows a temporary shutdown announced on November 03, 2025, for annual maintenance and modernization activities. The company successfully completed these activities, allowing for the plant's reopening. This resumption ensures continued production capacity for writing and printing paper.
- Plant operations resumed on 09th December 2025
- Temporary shutdown announced on 03rd November 2025
- Shutdown was for annual maintenance and modernization of PM3
Financial Performance
Revenue Growth by Segment
Revenue for FY 2024-25 was INR 659.23 Cr, a marginal increase of 0.25% YoY. Segmental split was Writing and Printing Paper (WPP) at 56% and Kraft Paper at 44%. H1 FY26 revenue stood at INR 328.25 Cr, down 1.1% from H1 FY25.
Geographic Revenue Split
The company maintains a PAN India distribution network. Specific regional percentage splits are not disclosed in available documents.
Profitability Margins
Net Profit margin for FY 2024-25 was 10.21% (INR 67.33 Cr), improving significantly from 7.48% (INR 49.19 Cr) in FY 2023-24 due to lower raw material costs. H1 FY26 PAT margin was 10.00% (INR 32.81 Cr).
EBITDA Margin
EBITDA margin grew to 16.25% (INR 107.11 Cr) in FY 2024-25 from 12.43% (INR 81.77 Cr) in FY 2023-24, representing a robust 30.98% growth in absolute EBITDA.
Capital Expenditure
The company undertook a sizeable capex for expansion and integrated facilities (chemical recovery and power co-generation). H1 FY26 fixed asset purchases totaled INR 16.20 Cr.
Credit Rating & Borrowing
ICRA maintains a Stable outlook. Ratings are sensitive to Total Debt/OPBITDA exceeding 2.0x. Finance costs for FY 2024-25 were INR 4.12 Cr, representing 0.62% of revenue.
Operational Drivers
Raw Materials
Agro-based 'Tree-Free' materials including wheat straw and bagasse, which accounted for 62.48% of total revenue (INR 411.87 Cr) in FY 2024-25.
Import Sources
Sourced primarily from agricultural regions in North India (Himachal Pradesh, Punjab, and Haryana) near the Kala Amb manufacturing facility.
Capacity Expansion
Current Kraft paper capacity is approximately 450 Tons Per Day (TPD), having grown from an initial 7 TPD. Total production volume reached 1,51,785 MT in FY 2024-25, up 2.3% YoY.
Raw Material Costs
Raw material costs decreased by 7.7% YoY to INR 411.87 Cr in FY 2024-25, which was the primary driver for margin expansion from 12.4% to 16.2% EBITDA.
Manufacturing Efficiency
Proactive investments in chemical recovery and effluent treatment plants enhance resource recovery and operational sustainability.
Logistics & Distribution
Strategic plant location in Himachal Pradesh with connectivity to state and national highways supporting a PAN India distribution network.
Strategic Growth
Expected Growth Rate
13%
Growth Strategy
Growth will be driven by capturing India's rising paper consumption, projected to reach 30 Million Tons by FY27. Strategy includes optimizing the product mix toward higher-margin WPP (currently 56% of revenue) and leveraging the 'Tree-Free' sustainable brand positioning.
Products & Services
Writing and Printing Paper (WPP) for high-volume print and Kraft Paper for packaging applications.
Brand Portfolio
Ruchira Papers.
Market Expansion
Expansion of the PAN India distribution network to increase market penetration in the writing, printing, and packaging sectors.
External Factors
Industry Trends
India's per capita paper consumption is ~15kg compared to a global average of 57kg, indicating long-term growth potential. The domestic market is evolving toward sustainable, eco-friendly packaging solutions.
Competitive Landscape
Highly competitive and cyclical industry with numerous regional and national players.
Competitive Moat
Sustainable moat derived from 'Tree-Free' agro-based production and cost leadership through integrated chemical recovery and power co-generation, which are difficult for non-integrated players to replicate.
Macro Economic Sensitivity
Highly sensitive to GDP growth, education sector trends (for WPP), and e-commerce/industrial activity (for Kraft packaging).
Consumer Behavior
Increasing consumer preference for sustainable and renewable packaging materials over wood-pulp based products.
Regulatory & Governance
Industry Regulations
Operations are subject to pollution control board norms and agricultural procurement regulations.
Environmental Compliance
Significant investments in effluent treatment and chemical recovery plants to meet stringent environmental norms for the paper industry.
Taxation Policy Impact
Effective tax rate is approximately 25%, with INR 21.83 Cr provided on PBT of INR 90.43 Cr in FY 2024-25.
Risk Analysis
Key Uncertainties
Raw material price volatility (potential 10-15% margin impact) and cyclicality of the global and domestic paper markets.
Geographic Concentration Risk
100% of manufacturing capacity is concentrated at a single location in Kala Amb, Himachal Pradesh.
Third Party Dependencies
Dependency on local farming communities for the consistent supply of agro-residues.
Technology Obsolescence Risk
Low risk due to continuous upgrades in chemical recovery and power co-generation technology.
Credit & Counterparty Risk
Trade receivables stood at INR 86.69 Cr as of September 2025, representing approximately 13% of annual revenue.