RUCHIRA - Ruchira Papers

📊 NSE: RUCHIRA 🏢 Paper 📅 Last Updated: 12/14/2025 12:30

💰 Financial Performance

Revenue Growth by Segment

Revenue for FY 2024-25 was INR 659.23 Cr, a marginal increase of 0.25% YoY. Segmental split was Writing and Printing Paper (WPP) at 56% and Kraft Paper at 44%. H1 FY26 revenue stood at INR 328.25 Cr, down 1.1% from H1 FY25.

Geographic Revenue Split

The company maintains a PAN India distribution network. Specific regional percentage splits are not disclosed in available documents.

Profitability Margins

Net Profit margin for FY 2024-25 was 10.21% (INR 67.33 Cr), improving significantly from 7.48% (INR 49.19 Cr) in FY 2023-24 due to lower raw material costs. H1 FY26 PAT margin was 10.00% (INR 32.81 Cr).

EBITDA Margin

EBITDA margin grew to 16.25% (INR 107.11 Cr) in FY 2024-25 from 12.43% (INR 81.77 Cr) in FY 2023-24, representing a robust 30.98% growth in absolute EBITDA.

Capital Expenditure

The company undertook a sizeable capex for expansion and integrated facilities (chemical recovery and power co-generation). H1 FY26 fixed asset purchases totaled INR 16.20 Cr.

Credit Rating & Borrowing

ICRA maintains a Stable outlook. Ratings are sensitive to Total Debt/OPBITDA exceeding 2.0x. Finance costs for FY 2024-25 were INR 4.12 Cr, representing 0.62% of revenue.

⚙️ Operational Drivers

Raw Materials

Agro-based 'Tree-Free' materials including wheat straw and bagasse, which accounted for 62.48% of total revenue (INR 411.87 Cr) in FY 2024-25.

Import Sources

Sourced primarily from agricultural regions in North India (Himachal Pradesh, Punjab, and Haryana) near the Kala Amb manufacturing facility.

Capacity Expansion

Current Kraft paper capacity is approximately 450 Tons Per Day (TPD), having grown from an initial 7 TPD. Total production volume reached 1,51,785 MT in FY 2024-25, up 2.3% YoY.

Raw Material Costs

Raw material costs decreased by 7.7% YoY to INR 411.87 Cr in FY 2024-25, which was the primary driver for margin expansion from 12.4% to 16.2% EBITDA.

Manufacturing Efficiency

Proactive investments in chemical recovery and effluent treatment plants enhance resource recovery and operational sustainability.

Logistics & Distribution

Strategic plant location in Himachal Pradesh with connectivity to state and national highways supporting a PAN India distribution network.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

Growth will be driven by capturing India's rising paper consumption, projected to reach 30 Million Tons by FY27. Strategy includes optimizing the product mix toward higher-margin WPP (currently 56% of revenue) and leveraging the 'Tree-Free' sustainable brand positioning.

Products & Services

Writing and Printing Paper (WPP) for high-volume print and Kraft Paper for packaging applications.

Brand Portfolio

Ruchira Papers.

Market Expansion

Expansion of the PAN India distribution network to increase market penetration in the writing, printing, and packaging sectors.

🌍 External Factors

Industry Trends

India's per capita paper consumption is ~15kg compared to a global average of 57kg, indicating long-term growth potential. The domestic market is evolving toward sustainable, eco-friendly packaging solutions.

Competitive Landscape

Highly competitive and cyclical industry with numerous regional and national players.

Competitive Moat

Sustainable moat derived from 'Tree-Free' agro-based production and cost leadership through integrated chemical recovery and power co-generation, which are difficult for non-integrated players to replicate.