Pakka Ltd (PAKKA)

Forest Materials · Paper · NSE · Updated 1 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹76.17 ↓ 47.78% (1Y)

🎯 Key Takeaways

Pakka Ltd is in a consolidation and operational stabilization phase within the paper and packaging sector, marked by persistent margin volatility and modest profitability. Despite a 21% year-on-year revenue increase to ₹117 crore in Q1 FY27, profitability remains thin with an OPM of 9.
Revenue grew 15.5% QoQ to ₹117 in Q1FY27.
⚠️ 1) Persistent low margins and volatility in profitability despite revenue growth pose execution risk. 2) High sensitivity to raw material costs and de

Market Cap

₹363

P/E Ratio

24.8

P/B Ratio

0.85

ROE

3.3%

ROCE

5.6%

Debt/Equity

0.48

Promoter

39.3%

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📖 The Story

Pakka Ltd is in a consolidation and operational stabilization phase within the paper and packaging sector, marked by persistent margin volatility and modest profitability. Despite a 21% year-on-year revenue increase to ₹117 crore in Q1 FY27, profitability remains thin with an OPM of 9.4% and ROE of 3.3%, reflecting structural pressures in the forest materials industry. The company has corrected prior disclosures around fund utilization for its preferential issue, signaling attention to governance accuracy, but operational efficiency and margin expansion remain key challenges.

📰 What's Happening

In Q1 FY27, Pakka reported a 16% sequential revenue rise to ₹117 crore with operating profit of ₹11 crore, up from ₹5 crore in the previous quarter, indicating improved operational momentum. Management confirmed full deployment of ₹114.62 crore from the preferential issue proceeds, with no deviations in fund utilization, underscoring disciplined capital allocation. Additionally, a prior filing correction clarified that 77 lakh warrants were allotted to the Promoter Group at ₹110 per warrant, with ₹21.18 crore received upfront, reinforcing transparency in capital market disclosures.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	92	82	76	97	101	117
Operating Profit	2	2	-2	10	5	11
OPM %	1.8%	2.2%	-3.2%	10.1%	4.9%	9.4%
Net Profit	3	-2	-2	7	3	6
EPS	₹0.76	₹-0.34	₹-0.47	₹1.57	₹0.68	₹1.29

The company’s financial trajectory shows a clear inflection in revenue growth, with top-line expanding from ₹76 crore in Q3 FY26 to ₹117 crore in Q1 FY27, driven by higher realizations or volume recovery in core paper segments. However, this growth has not yet translated into sustained profitability, as OPM remains below 10% and net profit margins are compressed. The improvement in operating profit from ₹5 crore to ₹11 crore quarter-on-quarter suggests early benefits from cost management or product mix, but the path to margin normalization remains uncertain without clearer volume or pricing tailwinds.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance in the latest filing, but the confirmation of full and on-track utilization of preferential issue funds suggests confidence in execution of strategic investments, particularly the Jagriti Project. The absence of deviation commentary reinforces operational discipline, though no roadmap for margin improvement or revenue growth targets was disclosed. Investors should monitor future investor presentations or AGM remarks for strategic clarity on growth levers and capital allocation priorities.

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

🏦 Balance Sheet (₹ Cr)

Item	Mar 2024	Mar 2025	Mar 2025	Mar 2026
Equity Capital	39	39	45	45
Reserves	212	267	383	405
Borrowings	184	162	204	299
Total Liabilities	507	548	738	827
Fixed Assets	199	211	219	206
Investments	1	0	0	0
Total Assets	507	548	738	827

The balance sheet shows a steady rise in total assets from ₹548 crore to ₹738 crore to ₹827 crore over three fiscal years, indicating ongoing capital investment, likely tied to the Jagriti Project and capacity expansion. Borrowings have increased to ₹299 crore from ₹162 crore, reflecting financing of growth initiatives, while equity remains stable at ₹45 crore with reserves growing to ₹405 crore, suggesting retained earnings and capital reserves are being built, albeit without significant profit reinvestment yet.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2025
Operating	+11
Investing	-178
Financing	+178
Net Cash Flow	+12

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	41.6%	41.6%	41.6%	39.3%
FII	0.2%	0.1%	0.2%	0.1%
DII	8.0%	8.0%	8.0%	12.0%
Public	41.5%	42.0%	41.8%	41.2%
# Shareholders	40,734	39,496	38,108	37,643

Promoter holding has declined slightly from 41.65% to 39.27% in Q1 FY27, while FII ownership remains minimal at 0.05%, and DII has increased from 8.02% to 12.03%, suggesting growing institutional interest despite low overall foreign participation. The rising number of shareholders (37,643) may reflect retail engagement or employee stock plans. No pledging or exit signals are evident, but the modest promoter reduction could be due to strategic diversification or warrant allotment adjustments rather than a loss of control.

⚖️ 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

🔗 Peer Stock Analyses

JKPAPER WSTCSTPAPR SESHAPAPER ANDHRAPAP TNPL

⚠️ Risk Factors

1) Persistent low margins and volatility in profitability despite revenue growth pose execution risk. 2) High sensitivity to raw material costs and demand cycles in the paper industry could pressure earnings. 3) Limited pricing power and competitive fragmentation may constrain margin recovery. 4) Dependence on a few large customers or project-based revenue streams could amplify revenue volatility.

📋 Recent Filings

🧠 Analyst's Read

Pakka Ltd is navigating a critical phase where revenue growth is emerging but profitability remains fragile. The company’s disciplined capital use and governance corrections are positive, but sustainable value creation hinges on margin improvement and scalable operations. Investors should watch for clarity on growth drivers, margin targets, and whether institutional interest translates into broader market recognition.

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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