Genus Paper & Boards Ltd., a key player in the recycled paper and kraft board manufacturing segment, has reported its consolidated financial results for the quarter ended June 2025. The company posted a net profit of ₹27.4 million and revenue from operations of ₹2.55 billion, reflecting a steady performance amid fluctuating raw material costs and competitive pricing pressures.
The results highlight Genus Paper’s continued focus on operational efficiency and product diversification, as it navigates a challenging demand environment in the packaging and industrial paper markets.
Key Highlights From Q1 FY26 Results
- Consolidated revenue from operations stood at ₹2.55 billion, up 5.2 percent year-on-year
- Net profit reached ₹27.4 million, compared to ₹24.1 million in the same quarter last year
- EBITDA margin remained modest at 8.6 percent, impacted by input cost volatility
- Earnings per share rose to ₹0.26 from ₹0.23 year-on-year
- No exceptional items or impairments were reported during the quarter
Business Segment Overview
1. Kraft Paper And Board Products
- Core segment contributed over 80 percent of total revenue
- Demand from FMCG, e-commerce, and industrial packaging sectors remained stable
- Product mix optimization and quality enhancements supported volume growth
2. Recycled Paper And Sustainability Initiatives
- The company continues to source raw material through domestic and imported waste paper channels
- Investments in cleaner production technologies and water recycling systems are underway
- ESG compliance and circular economy practices remain central to long-term strategy
3. Industrial And Specialty Grades
- Specialty kraft grades for heavy-duty packaging and export markets showed moderate traction
- Genus is exploring new applications in agro-based packaging and retail shelf-ready formats
- Customization and technical support for B2B clients helped retain key accounts
Operational Efficiency And Cost Management
- Raw material costs were volatile due to global pulp and waste paper price fluctuations
- Energy expenses were contained through captive power usage and process optimization
- Employee costs remained stable, with productivity-linked incentives
- Administrative overheads were reduced by 3.8 percent year-on-year through digital process integration
Strategic Developments And Corporate Governance
- Genus Paper is evaluating expansion of its installed capacity at its Moradabad facility
- The company is pursuing certifications for food-grade and export-compliant paper products
- Governance practices include quarterly board reviews, audit committee oversight, and transparent disclosures
- No major debt additions were made during the quarter, preserving financial flexibility
Market Position And Investor Sentiment
- Promoter holding stood at 72.4 percent, with no pledged shares
- The stock has delivered a 12-month return of 7.3 percent, reflecting cautious investor sentiment
- Market capitalization stood at ₹3.2 billion as of August 2025
- Analysts expect moderate growth in FY26, supported by infrastructure demand and packaging sector expansion
Outlook For FY26
Genus Paper & Boards is expected to maintain its growth trajectory through FY26, driven by demand in packaging, industrial applications, and sustainability-linked products. The company’s focus on operational efficiency, product innovation, and ESG compliance positions it well to navigate market challenges and capitalize on emerging opportunities.
With a stable start to the fiscal year, Genus Paper continues to reinforce its role as a reliable supplier in India’s recycled paper and kraft board industry.
Sources: Reuters, Moneycontrol, Genus Paper & Boards Ltd. Investor Disclosures.
