MALUPAPER - Malu Paper

📊 NSE: MALUPAPER 🏢 Paper 📅 Last Updated: 12/14/2025 9:29

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations reached INR 277.89 Cr in FY25, representing a marginal growth of 1.26% compared to INR 274.44 Cr in FY24; segment-specific growth percentages are not disclosed.

Geographic Revenue Split

The company markets products in China, Africa, and Asia, with foreign exchange earnings of INR 0.13 Cr in FY25, a significant 88% decrease from INR 1.11 Cr in FY24; regional percentage contributions are not disclosed.

Profitability Margins

Profitability deteriorated significantly with a Net Profit Margin of -4.37% in FY25 compared to 0.32% in FY24, primarily due to volatile raw material costs and high finance charges.

EBITDA Margin

EBITDA margin turned negative at -0.14% (INR -0.38 Cr) in FY25 from 6.33% (INR 17.37 Cr) in FY24, a YoY decline of 102.2% in absolute EBITDA value.

Capital Expenditure

Historical debt reduction was achieved through promoter support, but planned capital expenditure for future periods is not disclosed in available documents.

Credit Rating & Borrowing

CRISIL downgraded the long-term rating to 'CRISIL BB-/Stable' from 'CRISIL BB/Stable' due to moderated business risk and declining operating margins; finance costs stood at INR 11.42 Cr in FY25.

⚙️ Operational Drivers

Raw Materials

Waste paper is the primary raw material, representing the largest portion of the cost structure; specific cost percentages are not disclosed.

Capacity Expansion

The company operates manufacturing plants in Saoner Taluka, Maharashtra; current installed capacity and specific expansion timelines are not disclosed.

Raw Material Costs

Raw material costs are highly volatile due to the cyclical nature of waste paper prices, which historically caused operating margins to fluctuate between 1.83% and 8.56%.

Manufacturing Efficiency

Manufacturing efficiency is impacted by high working capital intensity; specific capacity utilization percentages are not disclosed.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is pursued through the maintenance of established relationships with stakeholders and expansion into international markets including China, Africa, and Asia, supported by over two decades of promoter experience.

Products & Services

The company manufactures and sells kraft paper, newsprint, and writing and printing paper.

Brand Portfolio

Malu Paper

Market Expansion

The company has successfully marketed products in China and continues to target existing markets in Africa and Asia to diversify its revenue base.

🌍 External Factors

Industry Trends

The industry is seeing demand catalysis from the e-commerce and packaging sectors, though it remains cyclical and sensitive to raw material volatility.

Competitive Moat

The company's moat is based on the promoters' 20+ years of experience and established relationships with suppliers and customers, though this is partially offset by high cyclicality.

Macro Economic Sensitivity

The business is highly sensitive to demand-supply balances in the paper industry and global waste paper price cycles.

Consumer Behavior

Increased demand for sustainable packaging and e-commerce growth are positive drivers for kraft paper demand.

Geopolitical Risks

Exposure to the China market presents potential geopolitical and trade-related risks to export revenue.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental and pollution norms for paper manufacturing; specific compliance costs are not disclosed.

Taxation Policy Impact

The company recorded a tax credit of INR 5.00 Cr in FY25 due to reported losses, compared to a tax expense of INR 0.58 Cr in FY24.

Legal Contingencies

Secretarial audit reports indicate compliance with the Companies Act and other statutory provisions; specific values for pending litigation are not disclosed.