Synopsis: Emami Paper Mills Limited reported a robust performance for Q1 FY27, with revenue rising nearly 22 percent year-on-year and net profit jumping more than six-fold to Rs. 38.61 crore. Strong volume growth, improved operating margins and better capacity utilisation boosted investor sentiment, sending the stock nearly 20 percent higher.
Shares of Emami Paper Mills Limited were locked in the 20 percent upper circuit after the company reported a strong set of quarterly earnings for the quarter ended June 2026, driven by healthy revenue growth and a sharp improvement in profitability. The results indicate a significant recovery in the paper business amid improving demand and operational efficiencies.
Emami Paper Mills Limited has a total market capitalization of approximately Rs. 717 crore. The company’s shares were trading at Rs. 118.63 apiece after hitting the 20 percent upper circuit. The stock has gained 36.69 percent over the last month and touched a 52-week high of Rs. 122 and a 52-week low of Rs. 553.
According to the company’s financial results, revenue from operations increased to Rs. 560.16 crore in Q1 FY27, compared to Rs. 459.76 crore in the corresponding quarter last year, registering a 21.84 percent year-on-year growth. Total income also rose to Rs. 560.37 crore from Rs. 461.36 crore during the same period.
The company’s profitability witnessed a sharp improvement during the quarter. Profit before tax (PBT) surged to Rs. 53.26 crore, compared to Rs. 9.35 crore in Q1 FY26, while net profit increased to Rs. 38.61 crore from Rs. 6.31 crore, reflecting an impressive 511.9 percent year-on-year growth. Earnings per share (EPS) also improved significantly to Rs. 6.21, compared to Rs. 0.84 in the year-ago quarter.
The strong earnings growth was driven by a combination of higher sales volumes, improved product realisations and better operating leverage. Revenue grew at a faster pace than operating expenses, allowing the company to significantly expand margins. Stable finance costs and controlled employee expenses further supported profitability, while the absence of exceptional charges during the quarter also contributed to the sharp rise in earnings compared to the corresponding period last year.
The company also announced the redemption of 7.5 lakh Series II Tranche IV Optionally Convertible Redeemable Preference Shares, involving a payout of Rs. 45 crore, along with the planned redemption of 11.25 lakh Series III OCRPS amounting to Rs. 78.75 crore later this financial year. The redemption reflects the company’s commitment to meeting its financial obligations and optimising its capital structure.
India’s paper and paperboard industry continues to benefit from rising demand for packaging materials, increasing consumption of paperboard products by the FMCG and e-commerce sectors, and sustained demand from education, publishing and commercial printing. Growing environmental awareness and the shift towards recyclable paper-based packaging are also expected to create long-term opportunities for organised paper manufacturers.
For investors, the strong quarterly performance indicates improving business fundamentals after a relatively weak base in the previous year. The sharp expansion in profit, coupled with healthy revenue growth, suggests that the company is benefiting from improved operating efficiency and favourable market conditions. If demand remains robust and input costs remain stable, Emami Paper Mills could continue to deliver stronger earnings over the coming quarters.
Incorporated in 1981, Emami Paper Mills Limited is engaged in the manufacturing of writing and printing paper, newsprint and packaging boards. The company caters to publishing, education, commercial printing and packaging industries through an integrated manufacturing facility, with a diversified product portfolio serving both domestic and international markets.
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