Synopsis:
South India Paper Mills Limited, a Paper Stock, reports 9.63% YoY revenue growth and a 186.73% QoQ net profit surge in Q2 FY26 results.
This Penny Paper stock, engaged in manufacturing paper, paperboards, cartons, and power generation, focusing on recycled paper products and quality packaging solutions for various industries, hit a 20 percent upper circuit after the company reported September quarterly results with a 186.73 percent QoQ increase in net profit.
With a market capitalization of Rs. 170.59 crores, the shares of South India Paper Mills Limited hit a 20 percent upper circuit of Rs. 94.26 per share on Friday, up from its previous closing price of Rs. 78.55 per share. Since then, the stock has retreated and is currently trading at Rs. 90.98 per equity share.
Q2 FY26 Result Walkthrough
Coming into the quarterly results of South India Paper Mills Limited, the company’s consolidated revenue from operations increased by 9.63 percent YOY, from Rs. 101.77 crore in Q2 FY25 to Rs. 111.57 crore in Q2 FY26, and grew by 4.38 percent QoQ from Rs. 106.89 crore in Q1 FY26.
In Q2 FY26, South India Paper Mills Limited’s consolidated net profit has turned from negative to positive, reaching a net profit of Rs. 2.81 crore compared to a net loss of Rs. 1.21 crore during the same period last year. As compared to Q1 FY26, the net profit has increased by 186.73 percent, from Rs. 0.98 crore. The basic earnings per share increased by 188.46 percent and stood at Rs. 1.50 as against Rs. 0.52 recorded in the same quarter in the previous year, FY2025.
South India Paper Mills Limited’s revenue has grown at a CAGR of 11.18 percent over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 1.40 percent and -5.19 percent, respectively, and its debt-to-equity ratio is 0.80x.
Company Overview
South India Paper Mills Limited (SIPM) was incorporated in 1959 and is headquartered near Nanjangud in Karnataka. The company is engaged in the manufacturing of paper, paperboards, cartons, and power generation.
The company operates a kraft paper manufacturing unit and a packaging division with an installed production capacity of 115,500 MT/year for paper and 36,000 MT/year for packaging.
South India Paper Mills Limited’s manufacturing process primarily involves recycling scrap paper (both imported and domestic) along with some purchased pulp, producing kraft liners, test liners, machine-glazed kraft paper, corrugated boards, and wraparound boxes. About 40-45 percent of its produced paper is consumed internally by its packaging division.
Written By – Nikhil Naik
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