Andhra Paper Ltd (ANDHRAPAP)

Forest Materials · Paper · NSE · Updated 1 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹60.25 ↓ 24.52% (1Y)

🎯 Key Takeaways

  • Andhra Paper Ltd is in a transitional phase marked by leadership continuity and modest financial recovery, operating within the mature but capital-intensive forest materials sector. Despite stable promoter holding and a reappointed MD focused on operational transformation, the company remains constrained by weak profitability and persistent operational headwinds.
  • Revenue declined 25.3% QoQ to ₹394 in Q1FY27.
  • ⚠️ 1) Persistent volatility in quarterly revenue and profitability, with operating losses still possible despite recent improvements, posing earnings unc
Market Cap
₹1,198
P/E Ratio
43.4
P/B Ratio
0.62
ROE
1.4%
ROCE
2.4%
Debt/Equity
0.12
Div Yield
0.83%
Promoter
72.5%

📖 The Story

Andhra Paper Ltd is in a transitional phase marked by leadership continuity and modest financial recovery, operating within the mature but capital-intensive forest materials sector. Despite stable promoter holding and a reappointed MD focused on operational transformation, the company remains constrained by weak profitability and persistent operational headwinds. The business appears to be in a stabilization phase rather than growth or distress, with management prioritizing capital efficiency and shareholder returns amid sectoral challenges.

📰 What's Happening

The company reappointed Saurabh Bangur as Managing Director for five years effective October 1, 2026, following shareholder approval at the 62nd AGM on August 11, 2026, affirming leadership stability focused on operational transformation and the Tissue Machine Project. The board approved unaudited Q1 FY27 results (June 2026) showing revenue of ₹394 crore and operating profit of ₹22 crore, reflecting modest improvement from prior quarters. A final dividend of ₹0.50 per share was declared, with record date set for August 4, 2026, and TDS exemption details communicated to shareholders. Shareholders raised 18 questions during the AGM, indicating engagement but no major strategic announcements.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricSep 2025Dec 2025Mar 2026Jun 2026
Revenue362419527394
Operating Profit-34-12-222
OPM %-9.3%-2.9%-0.4%5.5%
Net Profit-2010830
EPS₹-1.02₹0.50₹0.39₹1.52

Quarterly revenue has shown sequential improvement from ₹362 crore (Sep 2025) to ₹527 crore (Mar 2026), though it declined to ₹394 crore in Jun 2026, likely reflecting seasonal or operational volatility. Operating performance has turned positive in the latest quarter with ₹22 crore OP compared to losses in previous quarters, suggesting early signs of stabilization. Net profit rose to ₹30 crore in Jun 2026 from ₹8 crore in Mar 2026 and a loss of ₹20 crore in Sep 2025, indicating improving profitability despite low margins. This trend aligns with management’s focus on operational continuity and cost discipline amid temporary unit disruptions.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue, margins, or growth targets in the reviewed filings. However, the reappointment of Saurabh Bangur underscores confidence in continued execution of the operational transformation agenda, particularly around the Tissue Machine Project. The board’s focus on maintaining capital structure and delivering consistent dividend payouts suggests a conservative, shareholder-friendly outlook. No new strategic initiatives or expansion plans were disclosed in the recent meetings.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2025Mar 2026Mar 2026
Equity Capital40404040
Reserves1,9021,9011,8861,900
Borrowings253283263224
Total Liabilities2,6372,6052,5632,538
Fixed Assets8141,0231,0251,000
Investments1,080909832650
Total Assets2,6372,6052,5632,538

The balance sheet shows a stable capital structure with equity and reserves holding steady at approximately ₹1,900 crore, while borrowings have slightly declined from ₹283 crore (Mar 2025) to ₹224 crore (Mar 2026), indicating modest deleveraging. Total assets remain flat around ₹2,560 crore, suggesting limited reinvestment or growth spending. The company maintains a low debt-to-equity ratio of 0.12, reflecting a conservative financial profile, but the lack of significant asset growth implies restrained capital allocation, likely due to operational constraints or focus on dividend sustainability.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2026
Operating+105
Investing+2
Financing-94
Net Cash Flow+12

👥 Shareholding Pattern

CategoryQ2FY26Q3FY26Q4FY26Q1FY27
Promoters72.5%72.5%72.5%72.5%
FII0.8%0.8%0.3%0.3%
DII4.7%4.7%5.8%5.5%
Public14.0%13.9%13.5%13.8%
# Shareholders45,27143,40641,46140,465

Promoter holding remains stable at 72.45% across all quarters, indicating strong control and confidence. Institutional interest shows mixed trends: FII holdings declined from 0.79% (Q3FY26) to 0.27% (Q1FY27), while DII increased slightly from 4.74% to 5.48%, suggesting selective institutional accumulation. The number of public shareholders decreased slightly, but total shareholder count remains high at over 40,000, reflecting broad retail participation. No signs of significant exit or accumulation by major investors were observed.

⚖️ Peer Comparison — Paper

Company MCap (₹ Cr) P/E ROCE ROE D/E
JKPAPER 7,187 21.7 8.0% 5.9% 0.44
WSTCSTPAPR 4,029 17.5 9.5% 6.6% 0.09
SESHAPAPER 1,439 13.9 6.7% 4.8% 0.00
ANDHRAPAP 1,198 43.4 2.4% 1.4% 0.12
TNPL 972 3.7 7.0% 12.5% 0.76
PDMJEPAPER 904 9.9 18.3% 13.6% 0.03
NRAIL 865 13.9 10.0% 7.6% 0.97
EMAMIPAP 667 7.5 15.6% 18.9% 1.65
KUANTUM 630 17.5 4.9% 2.9% 0.70
SATIA 570 3.9% -0.7% 0.22

⚠️ Risk Factors

1) Persistent volatility in quarterly revenue and profitability, with operating losses still possible despite recent improvements, posing earnings uncertainty. 2) Low ROE (1.4%) and ROCE (2.4%) highlight weak capital efficiency, limiting investor appeal. 3) Heavy reliance on dividend income for shareholder returns may constrain reinvestment capacity. 4) Operational disruptions at manufacturing units, as noted in filings, could impact consistent performance without disclosed mitigation plans.

📋 Recent Filings

🧠 Analyst's Read

Andhra Paper remains a stabilisation story with leadership continuity and improving profitability, but structural challenges in margins and returns persist. Investors should monitor execution of the Tissue Machine Project and any shift in capital allocation strategy beyond dividend maintenance.

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 2026-09-01.

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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