Upper Circuit Alert: This Paper Manufacturer Posts Q1 FY26 Results with 7.42% EBITDA Margin, Sustainability Measures to Save Rs 500 Per Tonne

Banganga Paper Industries Limited, a manufacturer and supplier of kraft paper products (Small-Cap segment), announced its unaudited Quarterly Results for Q1 FY26. Total Income stood at Rs 21.17 crore. EBITDA was Rs 1.57 crore, implying an EBITDA margin of 7.42 per cent. Net Profit came in at Rs 0.65 crore with a net margin of 3.08 per cent, and earnings per share (EPS) were Rs 0.05. For context, in FY25 the company reported Total Income of Rs 58.24 crore, EBITDA of Rs 4.90 crore, and Net Profit of Rs 1.88 crore. These quarterly results will be tracked by investors who follow small-cap names and IPO-era restructurings.

Operationally, the company continues sustainability initiatives that it expects will reduce costs by about Rs 500 per tonne of kraft paper produced. Key measures include approval from the Maharashtra Pollution Control Board to run its kraft paper unit until March 31, 2029; use of refuse-derived fuel alongside coal and agricultural waste in a 12-TPH boiler; and a 100 per cent Zero Liquid Discharge system that recycles treated water and chemicals back into production. Waste-to-value steps continue, with ETP sludge converted to manure and boiler ash supplied to brick manufacturers.

On the market front, Banganga Paper Industries’ share price was locked in a 3 per cent upper circuit in early trade after the results. As of 13:09 pm IST, the stock traded at Rs 59 per share, up 2.09 per cent. Investors tracking quarterly results, dividends, bonus or rights issue activity in small-cap and mid-cap paper companies may watch upcoming disclosures and commentary for further updates. 

Advertisement:

25% OFF on DSIJ's Stock Recommendations

Incorporated in 1984, Banganga Paper Industries Ltd (BPIL) is engaged in the manufacturing and supply of kraft paper catering to multiple industries. Through its subsidiary, Banganga Paper Mills, the company operates a modern facility in Dindori, Nasik, which produces corrugated papers and kraft paper in varied GSM ranges used in paper bags, cones, boards, and corrugated boxes. BPIL manufactures its products primarily from recycled paper and follows eco-friendly practices, reusing about 90–95 per cent of water and chemicals in its production process.

Disclaimer: The article is for informational purposes only and not investment advice.