BALKRISHNA - Balkrishna Paper

📊 NSE: BALKRISHNA 🏢 Paper 📅 Last Updated: 12/13/2025 18:59

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 62.2% YoY to INR 9.10 Cr in FY25 from INR 5.61 Cr in FY24. The 'Paper and Paper Board' manufacturing segment at Ambivali has been discontinued, shifting the business focus entirely to the 'Trading of plastic & packaging materials' segment.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates primarily out of its registered office in Mumbai, Maharashtra.

Profitability Margins

The company reported a PAT margin of -1267.54% in FY24, with a reported loss of INR 71.14 Cr. Profitability is severely impacted by the discontinuance of manufacturing operations and a negative net worth of INR 172.47 Cr as of September 30, 2025.

EBITDA Margin

Interest coverage was negative at -0.54 times in FY24, indicating that the company is not generating sufficient operating profit to cover its interest obligations.

Capital Expenditure

Not disclosed in available documents; however, the company is looking to utilize existing resources for new business areas rather than committing to new heavy CAPEX given its negative net worth.

Credit Rating & Borrowing

CRISIL Ratings withdrew the ratings for INR 113 Cr of bank loan facilities on October 18, 2024, following the company's request and receipt of a no-dues certificate. Previous ratings were CRISIL BB/Stable/A4+ (Issuer Not Cooperating).

⚙️ Operational Drivers

Raw Materials

Recycled waste paper and pulp (historically represented the primary cost for paper board manufacturing).

Capacity Expansion

Manufacturing of Paper and Paper Board at the Ambivali facility is discontinued; no planned expansion is mentioned as the company transitions to a trading-based model.

Raw Material Costs

Not disclosed for the current trading operations; historically, raw material costs were the primary driver of the INR 71.14 Cr loss in FY24 as manufacturing became unviable.

Manufacturing Efficiency

Manufacturing efficiency is no longer a primary metric as the Ambivali plant is discontinued; the company is now focused on the efficiency of its trading operations.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is pursuing growth by pivoting to the trading of sustainable plastic and packaging materials and exploring new business areas to optimize the use of existing resources. This shift aims to stabilize cash flows following the shutdown of its loss-making manufacturing unit.

Products & Services

Sustainable plastic, packaging materials, and coated duplex/triplex paper boards (trading).

Brand Portfolio

Balkrishna.

New Products/Services

Sustainable plastic and packaging materials are the primary new product lines expected to drive future trading revenue.

Market Expansion

The company is looking towards entering new areas of business to put existing resources to optimum use, though specific target regions are not disclosed.

🌍 External Factors

Industry Trends

The paper and packaging industry is seeing a shift toward sustainable materials; the company is positioning itself as a trader in sustainable plastics to align with these regulatory and consumer shifts.

Competitive Landscape

The company faces competition from established traders and manufacturers in the sustainable packaging space, though specific competitors are not named.

Competitive Moat

The company currently lacks a durable moat due to its distressed financial state and the transition from a specialized manufacturer to a general trader.

Macro Economic Sensitivity

The company is highly sensitive to the shift in environmental regulations regarding plastics, which drives demand for its new sustainable packaging trading business.

Consumer Behavior

Increasing consumer preference for sustainable and eco-friendly packaging is the primary driver for the company's new business direction.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI (LODR) Regulations 2015; the discontinuance of manufacturing at Ambivali was a major regulatory and operational event.

Environmental Compliance

The company is focusing on sustainable plastic to comply with evolving environmental norms and consumer demand.

Legal Contingencies

No specific court cases or case values are disclosed, but auditors have issued a qualified opinion regarding the company's ability to continue as a going concern.

⚠️ Risk Analysis

Key Uncertainties

There is a 100% uncertainty regarding the 'Going Concern' status as the company's net worth is negative INR 172.47 Cr and its primary manufacturing facility is closed.