tiprankstipranks
Trending News
More News >
Advertisement
Advertisement

Seshasayee Paper Flags Lower Profitability on Export Hit and Sluggish Domestic Paper Demand

Story Highlights
  • Seshasayee Paper posted higher production but weaker profitability as its Erode mill ran above capacity while Tirunelveli lagged on lower export orders and more work-in-progress.
  • Earnings were pressured by lower price realisations, a sharp fall in exports amid US tariffs, and subdued domestic demand under GST 2.0, despite cost savings from better operations.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Seshasayee Paper Flags Lower Profitability on Export Hit and Sluggish Domestic Paper Demand

Claim 50% Off TipRanks Premium

Seshasayee Paper & Boards Ltd. ( (IN:SESHAPAPER) ) has issued an update.

Seshasayee Paper & Boards Ltd reported its unaudited financial results for the quarter and nine months ended 31 December 2025, highlighting production of 182,802 tonnes and sales of 168,000 tonnes, with overall capacity utilisation at 94%. The Erode unit ran above rated capacity at 105%, but the Tirunelveli unit operated at only 73% due to reduced export orders and higher work-in-progress, contributing to weaker profitability alongside lower average realisations per tonne and a sharp drop in export volumes after US tariff hikes and suspension of shipments from June to September 2025. The company noted that some of the margin pressure was offset by lower production costs from operational improvements, while domestic demand remained sluggish in the third quarter amid GST 2.0 reforms that left notebook paper at zero GST, giving imported paper a 12–15% cost advantage over Indian manufacturers and intensifying competitive pressures in the local market.

More about Seshasayee Paper & Boards Ltd.

Seshasayee Paper & Boards Ltd is an Indian pulp and paper manufacturer based in Tamil Nadu, producing writing, printing and packaging grades of paper and boards. With manufacturing units at Erode and Tirunelveli, the company focuses on both domestic and export markets, operating at high utilisation levels at its main Erode facility while leveraging exports to markets including the US.

Average Trading Volume: 669

Technical Sentiment Signal: Hold

Current Market Cap: 14.2B INR

Find detailed analytics on SESHAPAPER stock on TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1