Seshasayee Paper Q2 FY27: consolidated PAT soars 89% YoY to ₹42.3 Cr, margins expand

Seshasayee Paper and Boards reported consolidated revenue of ₹503.06 Cr for Q2 FY27 (quarter ended September 30, 2026), up 45.3% YoY from ₹346.32 Cr and a modest 2.2% QoQ from ₹492.08 Cr — the sharp YoY ramp that began in Q1 FY27 (then +27.7% YoY) has continued and accelerated. Consolidated PAT came in at ₹42.31 Cr, up 88.8% YoY from ₹22.41 Cr and 32.6% QoQ from ₹31.91 Cr, lifting basic EPS to ₹7.03 from ₹3.72 a year ago. Standalone PAT of ₹34.96 Cr (+96.4% YoY) tells a similar story; the ~21% gap between standalone and consolidated PAT is explained entirely by the ₹7.30 Cr share of profit from associate Ponni Sugars (Erode) Ltd, not a divergence in the core paper business — SPB's stake in PSEL rose from 32.40% to 35.78% during the quarter. No exceptional items appear in either the current or comparative periods, so these are clean, unadjusted growth rates. The growth is margin-led as much as volume-led: consolidated NPM expanded to 8.2% from 6.2% a year ago and 6.3% last quarter, and pre-associate operating profit (before tax) rose 94.5% YoY to ₹46.82 Cr — faster than the 45.3% revenue growth. The leverage shows up directly in the cost lines: cost of materials consumed grew only 17.8% YoY (₹268.24 Cr to ₹315.89 Cr) and power & fuel cost rose 20.4% (₹49.17 Cr to ₹59.18 Cr), both well below the 45%+ growth in income, while employee costs grew just 7.7%. That gap between revenue growth and input-cost growth is the entire story of this quarter's margin expansion, consistent with a pricing/realization improvement rather than a volume-only expansion — paper is SPB's only reportable segment and no volume disclosure separates price from quantity. SPB does not publish formal numeric guidance and none is on record from this or prior quarters, so this print cannot be graded against a company-stated target; there is also no prior concall read on record to check continuity against. A web search found no quarter-specific analyst consensus or brokerage preview for Q2 FY27 — this is a thinly covered small-cap and no estimate for this specific quarter turned up — so vs-street is marked unknown rather than assumed. No separate management press release accompanied this filing, so there is no company commentary to reconcile against the numbers. Among the quarter's other developments: the board appointed R.J. Ramesh as a Nominee Director (September 4, 2026) ahead of results, and ACIF-1 trimmed its holding to 3.30% (October 21, 2026) just before the print — neither moves the numbers but both are on record. Litigation around the Servalakshmi Paper Ltd asset acquisition (NCLT-approved e-auction) also remains unresolved, with one of three appeals still pending before the NCLAT — a carried-forward matter, not new to this quarter. H1 FY27 standalone PAT of ₹68.55 Cr has already surpassed full-year FY26 PAT of ₹67.78 Cr within two quarters, underlining how sharp the YoY turnaround has been off a weak FY26 base. Whether H2 sustains the current cost-income gap, or input costs catch up to revenue growth, is the key swing factor for the full year, with no management outlook on record to anchor expectations.