Seshasayee Paper Prints A Strong Quarter: ₹592 Crore Revenue, ₹26 Crore Profit, And A Dividend For FY26

The Chennai-headquartered paper major (NSE: SESHAPAPER) disclosed its Q4 and full-year FY26 results today, May 12, 2026, at a board meeting convened specifically for this purpose. The board meeting was scheduled at the company's Chennai office at 109, Nungambakkam High Road, to consider audited standalone and consolidated financial results for the year ending March 31, 2026, and recommend a dividend for FY2025-26. All three announcements arrived together, giving investors a complete picture of the year's close.

The Revenue Story And What It Signals

Consolidated revenue from operations for Q4 FY26 came in at ₹592 crore, a meaningful sequential step-up from recent quarters. In Q3 FY26, the company had posted consolidated revenues of approximately ₹387 crore, with net profit of ₹19.56 crore, representing a 10.4% quarter-on-quarter revenue increase. The Q4 number at ₹592 crore suggests a strong closing push, likely aided by improved realisations and higher volumes. For the full year FY2025-26, revenue reached ₹1,822.98 crore and profit touched ₹102.98 crore, confirming a year of solid if hard-won recovery.

The Dividend Decision In Context

The ₹2 per share dividend recommendation for FY26 reflects caution balanced with commitment. In the prior year FY2024-25, the company had declared a dividend of ₹5 per share, and in FY2025-26 it had declared ₹2.50 as an earlier payout. The full-year payout signals that management is prioritising capital retention for the ongoing capacity expansion programme while still returning value to shareholders.

A Company Rebuilding After A Difficult Period

In Q3 FY26, EBITDA had surged 215% despite a 10% revenue decline year-on-year, a remarkable operational recovery that pointed to a significant turnaround in cost management. The Q4 FY26 revenue of ₹592 crore now confirms that both the top line and margins have been recovering in tandem.

Seshasayee Paper is the flagship company of the SPB-ESVIN Group, incorporated in 1960, and operates integrated pulp, paper, and paper board mills in Tamil Nadu under brands including Sprint, SPD, Color Sprint, and Success. The company has been investing in capacity expansion and renewable energy, with exports having dropped 44.4% due to US tariffs creating near-term revenue pressure.

Capital Expansion In Motion

The Board of Directors approved the Project MDP IV Phase 1 at the Erode unit in September 2024 for enhancement in pulp and paper capacities at a total project cost of ₹405 crore, making the dividend recommendation and earnings results today particularly important as investors assess the company's ability to fund growth while rewarding shareholders.

Key Highlights

• Q4 FY26 consolidated revenue from operations at ₹592 crore, a strong sequential step-up
• Q4 FY26 consolidated PAT at ₹26.05 crore
• Final dividend of ₹2 per equity share recommended for FY2025-26, subject to shareholder approval
• Full year FY26 consolidated revenue at ₹1,822.98 crore with PAT at ₹102.98 crore
• Q3 FY26 saw EBITDA surge 215% despite a 10% revenue decline, signalling robust cost optimisation
• Company operates integrated pulp and paper mills in Erode and Tirunelveli with 255,000 TPA combined capacity
• Project MDP IV Phase 1 at Erode underway at a total cost of ₹405 crore to expand pulp and paper capacity
• Exports under pressure following 44.4% drop due to US tariffs, creating revenue mix challenges
• Promoter holding at 43.1% with near debt-free balance sheet providing financial stability

Sources: NSE/BSE Exchange Filing, ScanX, Screener.in, Kotak Neo, Groww, INDmoney, Kotak Securities