Satia Industries Reports INR 3,111 Mn Revenue for Q2FY26
Filing Summary
Satia Industries Limited announced its financial results for Q2FY26, reporting revenues of INR 3,111 Mn, a 9% decrease from Q2FY25. The company’s EBITDA declined significantly to INR 66 Mn, and it recorded a net loss of INR 245 Mn. The decline in financial performance is attributed to reduced paper realizations and increased import competition. Gross margins fell to 44.9% from 52.1% in the previous year. The company is addressing challenges such as high operating costs and market pressures. Satia Industries continues to focus on operational efficiency and sustainability.
Satia Industries Limited has released its financial results for the second quarter of the fiscal year 2026, ending September 30, 2025. The company reported revenues of INR 3,111 Mn, marking a 9% decline compared to INR 3,401 Mn in Q2FY25. This decrease is primarily due to reduced paper realizations and increased competition from imports.
The company’s EBITDA for Q2FY26 was INR 66 Mn, a significant decrease from INR 451 Mn in the same quarter of the previous year. The EBITDA margin dropped to 2.1% from 13.2% in Q2FY25. Satia Industries recorded a net loss of INR 245 Mn, contrasting with a net profit of INR 123 Mn in Q2FY25. The PAT margin also shifted to -7.9% from 3.6% in the previous year. The decline in profitability is attributed to lower realizations and increased input costs.
The operational challenges faced by Satia Industries include a reduction in paper realizations due to soft market conditions and heightened import competition, particularly from Southeast Asia. This has led to pricing pressures in the domestic market, affecting demand and average realizations. The company’s gross margins decreased to 44.9% from 52.1% in Q2FY25.
In the broader market context, the domestic paper industry is experiencing significant challenges, including high operating costs and market pressures from low-priced imports. Recent changes in GST rates have resulted in an inverted duty structure, impacting working capital needs and compressing margins. Satia Industries is addressing these challenges by focusing on operational efficiency and sustainability.
The company has deferred the redevelopment of its PM3 project to ensure operational continuity. Despite the current challenges, Satia Industries is optimistic about a phased recovery in profit margins, supported by initial easing of wood prices and better raw material availability. The company continues to focus on improving efficiency and expanding its value-added portfolio.
About Satia Industries Limited: Satia Industries Limited is a leading manufacturer of writing and printing paper in India. Established in 1980, the company has transformed its operations over the decades, becoming fully backward integrated with capabilities in pulping, chemical recovery, and power self-sufficiency. Satia Industries maintains a strong distribution network across India and is committed to sustainability and operational efficiency.