Shree Rama Newsprint: standalone loss widens to ₹10.8 Cr as OPM turns negative YoY
PAT -6.14% YoY · revenue +17.91% · margins compressing
₹8.06 Cr
+17.91% YoY
₹-10.82 Cr
-6.14% YoY
-111.16%
-11.2pp YoY
₹-0.61
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.
Q2 FY-2027 vs prior quarters
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.
The stock went into the print at ₹27.2, down 5.7% over the past month of trading.
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.
W1
Progress on disposal of the ₹98.00 Cr of Paper Division assets classified as held-for-sale, which management says it is 'actively exploring' alternatives to realise
W2
Whether operating margin keeps improving sequentially (-7.7% in Q1 to -3.4% in Q2) toward breakeven, or reverses
W3
Any concrete funding or asset-sale action to close the ₹160.48 Cr working-capital deficit cited in the auditors' going-concern note
Figures in Rs. Lakhs, converted to Rs. Crore. PBT/tax shown for continuing operations only (Rs 10.00 Cr finance cost table line item + raw material etc.); profitAfterTax (-10.8249 Cr) is the total period result including the discontinued Paper Division's further -1.7581 Cr pre-tax loss (no tax on either segment) — the two don't net to PBT-tax unless the discontinued-ops loss is added. No exceptional items in either compared period. Auditors issued a material-uncertainty (going-concern) paragraph.