Seshasayee Paper and Boards Limited reported record production and sales in FY2025-26, but lower average realisations per tonne of paper pushed down its net profit and operating margins. The Seshasayee Paper FY26 numbers, reported by The Pulp and Paper Times on 15 October 2026, show revenue from operations of ₹1,710.17 crore against ₹1,754.11 crore a year earlier.
The company produced a record 2,48,385 tonnes and sold a record 2,49,714 tonnes, up about 4.5% from 2,39,073 tonnes in the previous year. Domestic sales were also a record at 2,28,955 tonnes.
Why Did Seshasayee Paper’s Margins Fall Despite Record Volumes?
The report attributes the lower profit mainly to weaker realisations in both domestic and export markets. Cost-reduction efforts did not fully offset the fall in prices, so operating margins declined. Exports were 8.4% of production, down from 11.6% in FY25, after US tariff disruptions in the first half of the year.
How Are the Mills Performing?
The Erode unit produced 1,75,205 tonnes, equal to 106% of capacity, while the Tirunelveli unit produced 73,180 tonnes at 81% utilisation. Total installed capacity is 2,55,000 tonnes a year, split between Erode at 1,65,000 tonnes and Tirunelveli at 90,000 tonnes.
Paper Machine 2 at Erode was modified under the MDP-III programme to make multi-layer boards, and the company developed a food-grade virgin kraft packaging paper. A Wet Electrostatic Precipitator installed at the Erode recovery boiler cut particulate emissions from the 100-120 range to 40-45 mg/Nm3, which the report describes as the first of its kind in the Indian paper industry. Power supply agreements for solar and wind signed in April and May 2025 are expected to start delivering from the first quarter of FY27.
Market Reaction and Industry Response
The source report did not include a share-price reaction or analyst commentary, so none is reported here.
What Happens Next?
The company expects margins in the first and second quarters of FY27 to stay under pressure from higher costs of imported pulp, waste paper, chemicals and coal, which it links to the West Asia conflict. Industry forecasters expect paper consumption to grow at a compound annual rate of 6-7% in FY27, according to the report.
Frequently Asked Questions
What was Seshasayee Paper’s FY2025-26 revenue?
Revenue from operations was ₹1,710.17 crore, compared with ₹1,754.11 crore in FY25.
Why did profit fall?
The company cites lower average realisations per tonne of paper in domestic and export markets, which cost savings did not fully offset.
What is the outlook for FY27?
Margins are expected to stay pressured in the first two quarters of FY27 by higher input costs, while industry forecasters expect 6-7% annual growth in paper consumption.
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