Seshasayee Paper & Boards Ltd(SESHAPAPER)

NSE: SESHAPAPERBSE: 502450

₹ 199.05-2.59%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 1,255 crNext results: 24 Oct 2026Website: www.spbltd.comUpdated: 24 Oct 2026

About

Seshasayee Paper & Boards Ltd is a Tamil Nadu-based manufacturer of paper and paper boards, operating two plants at Erode and Tirunelveli with a combined installed capacity of 2,55,000 tonnes per annum. In FY26, the company recorded its highest-ever annual production of 2,48,385 tonnes and reported revenue of Rs 1,710.45 crore. It sells domestically and exports to international markets including the US.^[1][2]

Business segments

Domestic paper sales (India segment) contributed Rs 1,532.39 crore in FY26, down from Rs 1,486.82 crore in FY25.^[1]
Export paper sales (Rest of the World segment) contributed Rs 157.86 crore in FY26, down from Rs 243.51 crore in FY25.^[1]
Trading activity in FY26 included petroleum products worth Rs 28.00 crore and notebooks worth Rs 1.78 crore, alongside the core paper business.^[1]

Products

Core product is paper and paper boards. Paper Machine 2 at Erode has been modified to produce multi-layer boards including cup-stock, carton board, and kraft liner board.^[1]
The company developed in-house pulp-based Virgin Kraft packaging papers for the food industry, eligible for FSSAI certification. Box boards, Absorption Kraft, and Virgin Kraft form a growing share of the product mix.^[1]
An additional sheeter was commissioned at Erode to supply high-realisation copier products to the US market.^[1]

Manufacturing capacity and utilisation

Total installed paper capacity is 2,55,000 tonnes per annum: Unit Erode at 1,65,000 tonnes and Unit Tirunelveli at 90,000 tonnes.^[1]
FY26 saw highest-ever annual production of 2,48,385 tonnes. Unit Erode ran at 106% capacity utilisation; Unit Tirunelveli at 81%.^[1]
The acquired Servalakshmi Paper Limited unit, expected to add 75,000 TPA capacity, had not commenced operations as of FY26; an appeal against the NCLT order remains pending before NCLAT.^[1]

Raw materials and wood sourcing

Unit Erode produced 25,294 tonnes of Wet Lap Pulp in FY26 (vs 26,275 tonnes in FY25) to partly supply Unit Tirunelveli's pulp requirements.^[1]
Bagasse is sourced from group company Ponni Sugars. Water is drawn from the River Cauvery (Erode) and River Thamirabarani (Tirunelveli).^[1]
The company sponsored Casuarina and Eucalyptus planting across approximately 25,000 acres of small and marginal farmer lands as part of its farmer-linkage programme.^[1]

Export volumes and markets

Total export proceeds were US$17.33 million in FY26, compared to US$28.81 million in FY25, reflecting a significant decline in export realisations.^[1]

Credit rating and borrowings

CRISIL rated the company's long-term bank facilities at CRISIL AA-; Negative and short-term facilities at CRISIL A1+ as of April 9, 2025.^[3]
As of March 2026, the company had nil short-term bank borrowings (PCFC/export packing credit), having repaid the Rs 81.86 crore outstanding at March 2025.^[1]

Expansion and capex

Capital work-in-progress increased from Rs 71.09 crore to Rs 92.91 crore in FY26, indicating continued capex activity.^[1]
The Servalakshmi Paper acquisition under IBC adds an expected 75,000 TPA capacity; the unit is yet to commence operations and NCLAT proceedings are ongoing as of FY26.^[1][3]

Market Cap

₹1,255 Cr

High / Low

₹311 / 210

Stock P/E

13.9

Price / Book

0.7

Book Value

₹324

EPS

₹13.1

No. of Shares

6.31 Cr

ROCE

5.6%

ROE

4.1%

OPM

5.7%

Debt / Equity

0.00

Sales

₹1,710 Cr

Net Profit

₹83 Cr

Promoter holding

43.3%

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