Emami Paper shares surge 20% as Q1 profit jumps 512%
Emami Paper Mills reported a 512% jump in first-quarter net profit, driven by significant margin expansion, pushing its stock to a 20% upper circuit and extending a sharp recovery from a prolonged downturn.
Emami Paper Mills shares surged to the 20% upper circuit after the company posted a dramatic improvement in its first-quarter earnings. Consolidated net profit for the quarter ended June 2026 jumped 512% year-on-year to ₹38.61 crore, up from ₹6.31 crore in the corresponding period last year. This marked a continuation of upward momentum, with the bottom line also rising 22.6% sequentially from the ₹31.50 crore reported in the March quarter.
The robust profit growth was driven by a combination of higher sales and significant operational leverage. Revenue from operations climbed 22% annually to ₹560 crore, compared to ₹459.76 crore a year earlier, and grew nearly 13% from the preceding quarter's ₹496.42 crore.
Underlying profitability improved even faster than the top line. EBITDA more than doubled to ₹83 crore from ₹38 crore in the first quarter of the previous fiscal year. This efficiency gain pushed the EBITDA margin up by a substantial 660 basis points, reaching 14.82%.
The results highlight a material shift in the operating environment for India's largest newsprint manufacturer. Operating out of Balasore in Odisha, the Emami Group company runs an installed newsprint capacity of 1.5 lakh tonnes per annum, producing a premium grade that competes directly with imports. It also holds a 2 lakh tonne capacity in the consumer packaging board segment across both recycled and virgin grades.
For investors, the earnings report validates the sharp rebound in the stock price following a prolonged downturn. After hitting a multi-year low in March, the shares rallied 39% in April and added another 11% in May. The post-earnings surge of 36% so far in July has pushed the total recovery to 116% from the March trough.
This trajectory has officially restored the stock's multibagger status and flipped it into positive territory for the calendar year, yielding a 36% year-to-date gain. Ownership structure remained locked during the quarter, with promoters holding a dominant 75% stake and public shareholders accounting for the remaining 25%.
