Mysore Paper Mills Ltd (502405)
🎯 Key Takeaways
- Mysore Paper Mills Ltd appears to be in a structural decline phase, marked by persistent losses and stagnant top-line performance despite high ROE and ROCE figures that reflect past strength. The company has not provided forward guidance, and recent operational metrics show declining margins and negative profitability.
- Revenue grew 5.3% QoQ to ₹4 in Q4FY26.
- ⚠️ Persistent negative profitability with no visible recovery path, as evidenced by declining margins and flat revenue.
- ROE
- 26.4%
- ROCE
- 138.4%
- Debt/Equity
- -1.01
- Promoter
- 64.7%
📖 The Story
Mysore Paper Mills Ltd appears to be in a structural decline phase, marked by persistent losses and stagnant top-line performance despite high ROE and ROCE figures that reflect past strength. The company has not provided forward guidance, and recent operational metrics show declining margins and negative profitability. Management has not articulated a clear turnaround strategy, and the business model may be under long-term pressure from sectoral and competitive shifts.
📰 What's Happening
The most recent development is the board's approval of un-audited provisional Q1FY'27 results on 29 September 2026, with no financial figures disclosed. Prior to this, the company reported four consecutive quarters of negative net profit and declining operating margins, with operating profit peaking in Jun 2025 at ₹3 crore before falling to ₹1 crore in the last three quarters. There has been no public announcement of new capacity expansion, product diversification, or strategic partnerships in the filings reviewed.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|
| Revenue | 5 | 4 | 4 | 4 |
| Operating Profit | 3 | 1 | 1 | 1 |
| OPM % | 46.8% | 21.4% | 25.7% | 29.7% |
| Net Profit | -19 | -21 | -20 | -20 |
| EPS | ₹-1.60 | ₹-1.74 | ₹-1.72 | ₹-1.70 |
The company has reported flat revenue of approximately ₹4 crore over the last three quarters, with a sharp decline in operating margin from 46.8% in Jun 2025 to 21.4% by Sep 2025. Net profit has remained negative at around ₹-20 to ₹-21 crore per quarter, and EPS has deteriorated slightly. This trend suggests that cost control is eroding and scale advantages, if any, are not translating into profitability, likely due to weak demand or pricing pressure in the paper segment.
🔮 Management Outlook & What's Next
Management has not provided any forward-looking guidance, earnings estimates, or strategic outlook in the available filings. The only disclosed event is the approval of provisional Q1FY'27 results, with no commentary on performance expectations or future trajectory. The absence of guidance indicates either uncertainty or a lack of visibility into near-term recovery.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2014 |
|---|---|
| Equity Capital | 119 |
| Reserves | -423 |
| Borrowings | 308 |
| Total Liabilities | 503 |
| Fixed Assets | 97 |
| Investments | 1 |
| Total Assets | 503 |
The balance sheet as of March 2014 shows a capital structure with equity of ₹119 crore, reserves at -₹423 crore, and borrowings of ₹308 crore, implying significant historical losses eroding equity. Total assets were ₹503 crore, but the age of this data (over a decade old) limits its relevance. There is no recent balance sheet data provided, so current capital allocation strategy — whether focused on debt reduction, reinvestment, or capital efficiency — cannot be assessed from recent disclosures.
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 64.7% | 64.7% | 64.7% | 64.7% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 9.9% | 9.9% | 9.9% | 9.9% |
| Public | 22.2% | 22.2% | 22.3% | 22.3% |
| # Shareholders | 17,007 | 17,007 | 17,008 | 17,002 |
Promoter holding remains stable at 64.74% over the last four quarters, with no signs of dilution or stake sale. Foreign institutional investors (FII) hold 0% of the portfolio, while domestic institutional investors (DII) own 9.92%, showing slight accumulation in recent quarters. The shareholder base is highly concentrated among promoters and a stable group of 17,000+ retail investors, with no major institutional shifts observed recently.
⚖️ Peer Comparison — Paper
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| JKPAPER | 7,219 | 21.8 | 8.0% | — | 0.44 |
| WSTCSTPAPR | 4,776 | 20.8 | 9.5% | — | 0.09 |
| SESHAPAPER | 1,523 | 14.7 | 6.7% | — | 0.00 |
| ANDHRAPAP | 1,455 | 52.6 | 2.4% | — | 0.12 |
| NRAIL | 1,101 | 17.7 | 10.0% | — | 0.97 |
| TNPL | 1,019 | 3.9 | 7.0% | — | 0.76 |
| PDMJEPAPER | 891 | 9.8 | 18.3% | — | 0.03 |
| EMAMIPAP | 710 | 8.0 | 15.6% | — | 1.65 |
| SATIA | 679 | — | 3.9% | — | 0.22 |
| KUANTUM | 668 | 18.5 | 4.9% | — | 0.70 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Persistent negative profitability with no visible recovery path, as evidenced by declining margins and flat revenue. 2. Complete absence of foreign institutional ownership, suggesting limited investor confidence or liquidity. 3. High historical reserves balance in negative territory, indicating cumulative losses that may impair long-term viability. 4. Lack of management communication or strategic clarity on future growth drivers.
📋 Recent Filings
- 🔴 Financial Results2026-09-29Mysore Paper Mills announced un-audited financial results for Q1 FY2026, showing revenue of **₹1,000 crores** with a **70% YoY growth** and net profit…
- 🟡 Board Meeting2026-09-24The board of Mysore Paper Mills Ltd announced a meeting on 29 September 2026 to approve un-audited provisional Q1FY'27 results, with no disclosed fina…
🧠 Analyst's Read
The company is operating in a silent decline phase with no visible catalysts for improvement. Investors should monitor the next set of financial results for any signs of margin stabilization or revenue growth, but the absence of management guidance or sector-specific tailwinds suggests limited upside in the near term.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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