ANDHRA PAPER LIMITED (ANDHRAPAP) share price

₹64.45 on NSE as of 2026-09-04. +1.83% on the day. market cap ₹1,282 Cr. P/E 46.4. 52-week range ₹58.43 to ₹85.31. Forest Materials.

Andhra Paper Q1 FY27: Sales Flat at ₹394 Cr, Operating Profit Up 45%, and a Kadiyam Unit Running at 93%

At a glance

Two quarters, ₹394 crore of sales each, and almost nothing else in common. Andhra Paper's June 2026 quarter posted revenue of ₹394 Cr against ₹393 Cr a year earlier — a 0.09% move, which is the statistical equivalent of a company standing perfectly still for twelve months and hoping nobody photographs it.

Underneath that flat line, things moved. Operating profit came in at ₹49 Cr versus ₹34 Cr in June 2025, up 45%. Net profit was ₹30.32 Cr against ₹21.31 Cr, up 42%. EPS: ₹1.52 versus ₹1.07. Operating margin printed 12% against 9%.

The quarter also happened while one of the company's two mills was substantially not running. Operations at the Kadiyam Unit were suspended from April 27, 2026 following what the company describes as an illegal strike by a section of contract workmen; a lockout was declared May 1 and revoked May 29. Manufacturing partially resumed only on July 15 — two weeks after the quarter closed — and the unit is currently operating at approximately 93% of normal capacity, following a second paper machine restarting on July 23.

So the June quarter is a quarter of one-and-a-bit mills, and it still produced the best operating profit in five quarters. The full-year picture is a different animal entirely: FY26 net profit was ₹19 Cr on revenue of ₹1,701 Cr, against ₹340 Cr on ₹1,801 Cr two years earlier. Section 9 has that arithmetic laid out.

Introduction

Andhra Paper Limited manufactures and sells paper, pulp, and paper board. The company was incorporated in 1964 by the L.N. Bangur group as The Andhra Pradesh Paper Mills Limited, at Rajahmundry in what is now Andhra Pradesh. In 2011, International Paper Company acquired a controlling 75% stake through a subsidiary, and the name became International Paper APPM Limited in 2014-15.

In October 2019, West Coast Paper Mills Limited acquired a controlling stake of about 72% from the erstwhile holding company and public shareholders, and the name changed again — to the current one. Per India Ratings, WCPM took 55% from International Paper and a further 17.2% via open offer. Ind-Ra rates the two on a fully consolidated basis, citing strong operational and strategic linkages: of the ten directors on Andhra Paper's board, five including the chairman are common with WCPM, and treasury functions are centralised at group level. Ind-Ra notes management has indicated there is no ring-fencing of cash flows at either entity.

The recent operating record has a repeating feature. A workers' strike disrupted the Rajahmundry plant in January 2025, with a lockout declared January 6 and revoked January 7. In May 2026 the Kadiyam unit went the same way, with the company estimating daily production loss first at 70 MT, then revised to 220 MT effective May 1, and by June 4 reporting a 205 MT/day production loss and ₹143 lakh/day revenue loss.

Capital spending has continued through this. In August 2025 the board approved ₹178 Cr of capex to upgrade Paper Machine-3, adding 60 TPD over 13 months. A 35,000 TPA tissue paper line is being set up at Kadiyam. A ₹520 Cr upgradation of the pulp and recovery facility takes capacity from 550 TPD to 630 TPD, lifting paper production from 2.55 lakh MTPA to 2.90 lakh MTPA. A greenfield paper board facility at Kadiyam has been approved, adding 2,21,000 TPA of pulp and 1,56,000 TPA of paper board.

FY26 results were approved May 14, 2026, with a ₹0.50 dividend recommended and the Managing Director reappointed for five years.

Business model

They turn trees into the paper your child's textbook is printed on, and then into the cup your coffee comes in, and increasingly into the tissue you use afterwards. It is a business model with an unusually complete life cycle.

The product portfolio splits three ways. Writing and printing papers cover SS Maplitho and Non-SS Maplitho — uncoated paper for textbooks, notebooks and general office stationery — plus Reflection Copier, a premium-grade copier paper for high-speed printing. Industrial and packaging papers include Carton & Wrapper 3D and Cupstock, the latter feeding disposable paper cups and food packaging. Specialty papers cover the Sapphire range for wedding cards, invitations, posters, envelopes and soap wrappers; thermal paper for POS receipts and labels; and carbonless paper for duplicate and triplicate forms.

That last one deserves a moment of respect. Somewhere in an economy that has invented UPI, someone is still filling out a triplicate form, and Andhra Paper is manufacturing the paper for it.

Two mills, both in Andhra Pradesh. Rajahmundry sits on 300 acres and produces 1,82,400 TPA of finished paper and 200,000 TPA of bleached pulp, drawing virgin pulp from Casuarina, Eucalyptus and Subabul. Kadiyam occupies 150 acres and produces 73,150 TPA using recycled fibre and purchased pulp. There is a conversion centre at SN Palem in Krishna district. Total installed capacity is 2,55,550 TPA of paper.

The integration goes deeper than it looks. Per CARE, Rajahmundry sources 72.10% of its power from a captive 34-MW coal-fired steam turbine; Kadiyam runs a 5.74-MW coal-fired boiler with the balance from grid and DG set. The company salvages residual lignin from wood during pulping and burns it in the boiler, and uses bark as fuel to save coal. Coal linkages are with Mahanadi Coal Fields and Singareni Collieries.

Distribution runs through 53 dealers and 7 zonal offices, with 75% of dealers associated for over 15 years — a level of loyalty most consumer brands would frame and hang in reception. Geographic split of the network: South 52%, West 22%, North 14%, East 12%. Exports go to 11 countries. The Q3FY25 revenue split was India 92%, export 8%. Ind-Ra notes farm forestry coverage of around 0.3 million hectares, with roughly 35 million saplings distributed during FY26.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for ANDHRA PAPER LIMITED.

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