Stock Report

Satia Industries Records INR 3,111 Mn Revenues in Q2FY26

Posted On : 2025-11-15 12:59:25( TIMEZONE : IST )

Satia Industries Limited (SIL), one of the leading writing and printing paper manufacturer in India, announced its results for the second quarter ended September 30, 2025.

Key Highlights

- Revenue for Q2FY26 declined 9% YoY to INR 3,111 Mn, compared to INR 3,401 in Q2FY25. The decline in revenue primarily was due to a reduction in paper realizations, which fell sharply due to soft market conditions and increased import competition. Additionally, higher imports from Southeast Asia intensified pricing pressure in the domestic market, leading to subdued demand and lower average realizations.

- Gross margins compressed from 52.1% in Q2FY25 to 44.9% in Q2FY26.

- EBITDA for Q2FY26 declined to INR 66 Mn as compared to INR 451 Mn in Q2FY25.

- The company reported net loss of INR 245 Mn in Q2FY26, as compared to profit of INR 123 Mn in Q2FY25. Profitability majorly declined due to lower realizations and margin pressure from higher input costs

Commenting on the financial results, Executive Director Mr. Chirag Satia, said: "The domestic paper industry faced significant challenges this quarter. Operating costs, especially for wood, remained high, and market realizations were dampened by a persistent flow of low-priced imports. Furthermore, recent GST rate changes have resulted in an inverted duty structure, elevating working capital needs and compressing near-term margins. Representations have been made to the Govt. to correct these imbalances and create a level playing field.

Our company demonstrated resilience against these headwinds. Though our revenues dipped 9% yearon-year, which is a reflection of temporary sector-wide stress, not diminished underlying demand. The PM3 redevelopment has been deferred to ensure operational continuity. Positive indicators, such as the initial easing of wood prices and better raw material availability and lower fuel cost in next half of the year, provide grounds for optimism regarding a phased recovery in profit margins.

Looking ahead, we continue to focus on improving efficiency, driving sustainability, and growing our value-added portfolio. With a solid foundation and focused execution, we are confident of restoring growth and delivering value to all stakeholders."

Shares of Satia Industries Limited was last trading in BSE at Rs. 70.51 as compared to the previous close of Rs. 74.28. The total number of shares traded during the day was 27776 in over 924 trades.

The stock hit an intraday high of Rs. 74.66 and intraday low of 69.99. The net turnover during the day was Rs. 1963957.00.