Satia Industries Q1 FY27 Revenue at ₹361.8 Crore, Reports Net Loss of ₹17.1 Crore
Satia Industries reported Q1 FY27 revenues of ₹361.8 crore, down 2% YoY. The company incurred a net loss of ₹17.1 crore due to a one-time deferred tax charge. EBITDA stood at ₹50.8 crore. A major modernization program for Paper Machine 3 is underway, expected to enhance capacity and efficiency.
The net loss and revenue decline are significant, but the impact is moderated by the explanation that the loss is due to a one-time tax charge and not operational performance. The ongoing modernization of PM3 is a positive long-term development.
The company reported a net loss in the quarter and a decrease in revenue year-on-year, despite sequential improvements in EBITDA margin and gross margins. The planned shutdown of a paper machine also impacted volumes.
Satia Industries Limited (SIL) announced its financial results for the first quarter ended June 30, 2026, reporting revenues of INR 3,618 million (₹361.8 crore) for Q1 FY27. This represents a year-on-year decrease of 2% from INR 3,709 million (₹370.9 crore) in Q1 FY26 and a 7% decrease quarter-on-quarter from INR 3,896 million (₹389.6 crore) in Q4 FY26. The company experienced an uptick in pricing during the quarter, but volumes were impacted by a planned shutdown of Paper Machine 3 (PM3) from June 1, 2026, which is expected to continue for 4-5 months.
Gross margins improved sequentially to 50.9% in Q1 FY27 from 48.0% in Q4 FY26, attributed to better pricing realizations. EBITDA for Q1 FY27 stood at INR 508 million (₹50.8 crore), a decrease from INR 632 million (₹63.2 crore) in Q1 FY26 but an increase from INR 236 million (₹23.6 crore) in Q4 FY26. The EBITDA margin was 14.0%, an improvement of 800 basis points sequentially, driven by higher realizations and steady demand due to reduced dumping activity.
The company reported a net loss of INR 171 million (₹17.1 crore) in Q1 FY27, compared to a profit after tax (PAT) of INR 316 million (₹31.6 crore) in Q1 FY26 and INR 58 million (₹5.8 crore) in Q4 FY26. This loss is attributed to a one-time, non-cash deferred tax charge arising from the transition to a concessional tax regime, which does not represent a cash outflow or a deterioration in operating performance. The Cogeneration Division is no longer reported as a separate segment following the company's adoption of the concessional tax regime from FY27.
Executive Director Mr. Chirag Satia commented that demand remained steady with improved realizations, and the company focused on operational efficiency and cost management amidst a dynamic operating environment. He highlighted the ongoing modernization and upgradation program for PM3, which is expected to enhance production capacity, improve product quality, and strengthen operating efficiencies upon completion. The company's moulded cutlery business also operated during the quarter as part of its sustainable packaging portfolio. Looking ahead, FY27 is anticipated to be an important year for execution of modernization initiatives.
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