Ruchira Papers Limited reported a sharp decline in profit for the quarter ended December 31, 2025, even as revenue rose year-on-year. The company also informed exchanges about the demise of its Promoter and Managing Director, Umesh Chander Garg, and announced the reconstitution of various board committees.

Q3 FY26 Financial Performance

For the third quarter of FY26, the company posted a net profit of Rs 203.64 lakh, significantly lower than Rs 2,107.01 lakh reported in the corresponding quarter of the previous financial year.

Revenue from operations for the quarter stood at Rs 13,158.87 lakh, compared with Rs 11,169.31 lakh in the year-ago period, reflecting growth in topline despite pressure on margins.

For the nine months ended December 31, 2025, net profit came in at Rs 3,461.14 lakh, down from Rs 4,893.03 lakh in the same period last year. Total income for the nine-month period stood at Rs 46,679.80 lakh.

The Board approved the unaudited financial results along with the Limited Review Report issued by the statutory auditor, Moudgil & Co., which stated that nothing had come to their attention to suggest any material misstatement in the financial results.

Dividend and Operational Update

During the reporting quarter, the company paid a dividend of Rs 5 per equity share of face value Rs 10 each for FY25, as approved at the Annual General Meeting held on September 29, 2025.

The company also undertook a 36-day shutdown of its Writing and Printing unit during the quarter for annual maintenance and modernization activities. This may have had an impact on production and margins during the period.

Ruchira Papers operates in a single business segment—paper manufacturing—and there are no separate reportable segments.

Demise of Managing Director

The Board placed on record the sad demise of Sh. Umesh Chander Garg, Promoter and Managing Director, who passed away on January 23, 2026.

In its statement, the Board acknowledged his visionary leadership and pivotal role in the company’s growth since inception. The Board also noted the resultant vacancy in the office of Managing Director and extended condolences to his family on behalf of directors and employees.

The company clarified that the cessation was due to his death and that further disclosures related to leadership succession would follow as per regulatory requirements.

Reconstitution of Board Committees

Following the leadership change, the Board approved the reconstitution of several committees with effect from February 13, 2026. These include:

• Corporate Social Responsibility Committee

• Nomination and Remuneration Committee

• Stakeholders’ Relationship Committee

• Project Committee

Sh. Tilak Raj Vanaik has been designated as Chairman of the Nomination and Remuneration Committee, while Sh. Kamal Sharma has been appointed Chairman of the Stakeholders’ Relationship Committee. Sh. Jatinder Singh has been designated Chairman of the Project Committee.

Apart from the cessation of Umesh Chander Garg from various committees due to his demise, other members will continue in their respective roles.

Outlook

While revenue growth indicates stable demand conditions, the steep fall in quarterly profit suggests margin pressures, possibly due to higher input costs, operational shutdown for maintenance, and other expenses.

Investors will closely monitor upcoming quarters for signs of recovery in profitability, operational efficiencies following modernization, and clarity on leadership succession.

Shares of Ruchira Papers (Scrip Code: 532785; Trading Symbol: RUCHIRA EQ) will remain in focus following the earnings update and corporate developments.

Join our Telegram Channel for Latest News and Regular Updates.

Start your Mutual Fund Journey  by Opening Free Account in Asset Plus.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.