SHREYANIND - Shreyans Inds.
📢 Recent Corporate Announcements
Shreyans Industries reported a weak performance for Q3 FY26, swinging to a net loss of ₹2.55 crore from a profit of ₹9.10 crore in the same quarter last year. Revenue from operations declined 6.1% year-on-year to ₹159.20 crore, although it showed sequential growth of 11.9% from Q2. Profitability was severely hampered by a significant rise in raw material costs and power/fuel expenses, coupled with a loss in fair valuation of investments. Consequently, the EPS for the quarter turned negative at ₹(1.84).
- Net Loss of ₹2.55 crore in Q3 FY26 compared to a Net Profit of ₹9.10 crore in Q3 FY25.
- Revenue from operations stood at ₹159.20 crore, down 6.1% YoY but up 11.9% sequentially.
- Total expenses rose to ₹168.43 crore, with raw material costs increasing to ₹80.66 crore from ₹69.38 crore YoY.
- Power and Fuel expenses surged to ₹39.74 crore, up from ₹29.25 crore in the corresponding quarter last year.
- Earnings Per Share (EPS) fell to ₹(1.84) from ₹6.58 in Q3 FY25.
Shreyans Industries Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Skyline Financial Services, confirms that all physical share certificates received for dematerialization during the quarter ended December 31, 2025, were processed correctly. It verifies that the certificates were mutilated, cancelled, and the depository's name was updated in the company's records within the mandatory 15-day period. This is a standard procedural filing required for all listed entities.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Confirms adherence to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
- Verification that dematerialization requests were processed and records updated within 15 days.
- Certificate issued by Registrar and Transfer Agent, Skyline Financial Services Pvt. Ltd.
Shreyans Industries Limited has announced the closure of its trading window for all designated persons starting January 1, 2025. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's financial results announcement. The window will remain closed until 48 hours after the declaration of the Un-Audited Financial Results for the quarter and nine months ending December 31, 2025. This is a standard regulatory procedure to prevent insider trading during the sensitive period before earnings are made public.
- Trading window closure effective from January 1, 2025
- Applies to Promoters, Directors, KMPs, and other designated persons
- Window reopens 48 hours after the declaration of Q3 and nine-month financial results
- Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015
Financial Performance
Revenue Growth by Segment
Revenue from operations decreased by 11.78% YoY, falling from INR 699.17 Cr in FY24 to INR 616.77 Cr in FY25, primarily due to a decline in volume and Net Sales Realizations (NSR) in the Writing and Printing Paper (WPP) segment.
Geographic Revenue Split
Not specifically disclosed in available documents, though the company operates two manufacturing plants in Punjab (Ahmedgarh and Banah).
Profitability Margins
Net Profit Ratio declined from 12.58% in FY24 to 8.17% in FY25. Return on Equity (ROE) dropped significantly by 51.04%, from 25.53% to 12.50%, while Return on Capital Employed (ROCE) fell from 27.58% to 14.81% due to lower operational profits.
EBITDA Margin
EBITDA margin (before other income) contracted from 13.96% in FY24 to 11.27% in FY25, representing a YoY decline of 28.76% in absolute EBITDA value (from INR 97.59 Cr to INR 69.52 Cr).
Capital Expenditure
The company planned a capital expenditure of approximately INR 13.00 Cr in FY24, focused on quality improvements for Writing and Printing Paper, funded entirely through internal accruals.
Credit Rating & Borrowing
Long-term bank facilities (INR 30.45 Cr) and Fixed Deposits (INR 1.46 Cr) are rated 'CARE A-; Stable'; Short-term facilities (INR 55.00 Cr) are rated 'CARE A2+'. Ratings were reaffirmed in November 2025.
Operational Drivers
Raw Materials
The company utilizes agricultural residues and pulp for Writing and Printing Paper (WPP) production. Specific percentage of total cost per material is not disclosed, but margins are highly susceptible to raw material price volatility.
Import Sources
Raw materials are primarily sourced from regions proximal to the manufacturing plants in Ahmedgarh (Distt. Malerkotla) and Banah (Distt. S.B.S Nagar), Punjab.
Capacity Expansion
The company operates two plants: Shreyans Papers and Shree Rishabh Papers. While initial capacity was 10,000 MTPA, current focus is on quality-led capex (INR 13 Cr) rather than specific MTPA volume expansion.
Raw Material Costs
Profitability is constrained by raw material price volatility. While input prices softened in FY24, the benefit was offset by a decline in Net Sales Realizations (NSR) in FY25.
Manufacturing Efficiency
Decrease in operational profit led to a downfall in the Debt Service Coverage Ratio (DSCR) from 7.50x to 4.99x and Interest Service Coverage Ratio (ISCR) from 30.11x to 19.05x in FY25.
Logistics & Distribution
The company leverages its proximity to raw material sources in Punjab to optimize distribution and procurement costs.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
Growth is targeted through a 20% scale improvement and maintaining PBILDT margins above 15%. This will be achieved via quality-focused capex (INR 13 Cr), leveraging an established distribution network, and utilizing its 42-year track record in the WPP industry.
Products & Services
Writing and Printing Paper (WPP).
Brand Portfolio
Shreyans Papers and Shree Rishabh Papers.
New Products/Services
Focus is on quality improvement of existing WPP products to sustain market position.
Market Expansion
The company utilizes a well-established distribution network to maintain its market presence in the competitive WPP segment.
External Factors
Industry Trends
The Writing and Printing Paper industry is evolving with a focus on quality and sustainable sourcing. The industry is currently facing pressure from fluctuating realizations despite some softening in input costs.
Competitive Landscape
The industry is characterized by intense competition from both large organized players and unorganized local manufacturers.
Competitive Moat
The company's moat is built on 42+ years of experience, established promoter reputation, and strategic plant locations near raw material sources in Punjab, providing a sustainable cost advantage in logistics.
Macro Economic Sensitivity
Highly sensitive to industrial cycles and raw material price volatility which impacts PBILDT margins.
Consumer Behavior
Demand for WPP is driven by the education sector and commercial printing requirements.
Geopolitical Risks
Global paper demand-supply dynamics and international pulp prices impact domestic Net Sales Realizations.
Regulatory & Governance
Industry Regulations
Operations are subject to environmental norms and manufacturing standards applicable to the paper industry. The company maintains compliance with SEBI (LODR) and Companies Act 2013.
Environmental Compliance
Not specifically disclosed in INR values, though the company operates in a regulated industry regarding pollution and emissions.
Taxation Policy Impact
The company followed standard Indian Accounting Standards; Profit After Tax (PAT) for FY25 was INR 50.39 Cr on a PBT of INR 67.75 Cr, implying an effective tax rate of approximately 25.6%.
Legal Contingencies
The company has exposures toward litigations relating to various matters as of March 31, 2025. These are classified as Key Audit Matters due to the significant management judgment required to determine potential economic outflows.
Risk Analysis
Key Uncertainties
The primary uncertainty is the volatility of Net Sales Realizations (NSR), which caused a 42.72% drop in PAT in FY25. A decline in unencumbered mutual fund investments is a negative rating sensitivity factor.
Geographic Concentration Risk
Manufacturing is concentrated in Punjab, making operations sensitive to local raw material availability and state-level regulations.
Third Party Dependencies
Dependency on local agricultural residue suppliers for raw material procurement.
Technology Obsolescence Risk
The company is addressing technology risks through capex aimed at improving the quality of WPP to remain competitive.
Credit & Counterparty Risk
The company maintains a strong liquidity profile with unencumbered mutual fund investments and low reliance on working capital borrowings.