Shree Rama Newsprint: standalone loss widens to ₹10.8 Cr as OPM turns negative YoY

Shree Rama Newsprint's standalone net loss (continuing + discontinued operations) widened to ₹10.82 Cr in Q2 FY27 from ₹10.20 Cr a year ago (+6.1% YoY, i.e. the loss deepened) and from ₹10.50 Cr in Q1 FY27 (+3.1% QoQ). Revenue from operations actually grew 17.9% YoY to ₹8.06 Cr (from ₹6.83 Cr) even as it fell 17.1% sequentially from ₹9.72 Cr — so the YoY story is revenue growth that did not translate into a smaller loss, because costs grew faster. The margin bridge explains the gap: operating margin (EBITDA/revenue, ex finance cost and depreciation) swung to -3.4% from +3.2% a year ago, as raw-material and packing costs rose to ₹5.33 Cr (from ₹3.33 Cr) on the higher revenue base, outpacing the topline gain. Sequentially OPM did improve from -7.7% in Q1, a partial recovery rather than a trend reversal. Finance costs of ₹9.42 Cr on the continuing business alone were larger than total income of ₹9.74 Cr and remain the dominant drag, sitting on ₹350 Cr of non-current borrowings against a company with negative net worth. The discontinued Paper Division, which the company has been winding down piecemeal since FY23, added a further ₹1.76 Cr pre-tax loss this quarter as management continues to dispose of its remaining ₹98.00 Cr of held-for-sale assets. There is no management guidance on record (db and web both show none) and no analyst coverage — a TipRanks check confirms zero analysts cover the stock, so there is no street consensus to beat or miss; this is a distressed microcap outside formal sell-side coverage. No separate press release accompanied the filing beyond the regulatory outcome letter, which simply reports the Board's approval. The auditors' review report carries a material-uncertainty-on-going-concern paragraph: H1 FY27 total comprehensive loss of ₹21.29 Cr, current liabilities exceeding current assets (continuing operations) by ₹160.48 Cr, and total equity now at ₹(103.92) Cr versus ₹(82.63) Cr at FY26-end. Management's stated mitigant — disposing non-core/Paper Division assets and exploring funding options — is unchanged from prior filings and remains unexecuted at scale. Going into Q3 FY27, the quarter sets up around whether the sequential OPM recovery continues, whether any of the ₹98 Cr held-for-sale assets actually convert to cash, and whether the working-capital/going-concern gap narrows.