SHRENIK - Shrenik
📢 Recent Corporate Announcements
Shrenik Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, provided by MUFG Intime India Private Limited, pertains to the quarter ended June 30, 2025. Notably, the Registrar confirmed that no dematerialization or rematerialization requests were received or processed during this specific period. This is a standard regulatory disclosure ensuring the accuracy of the company's shareholding records.
- Compliance certificate filed for the quarter ended June 30, 2025
- Registrar MUFG Intime India Private Limited confirmed zero demat or remat requests during the period
- The filing ensures adherence to SEBI (Depositories and Participants) Regulations, 2018
- Confirms that the register of members is updated with depository names where required
Shrenik Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by the Registrar and Share Transfer Agent MUFG Intime India Private Limited, pertains to the quarter ended June 30, 2025. The registrar specifically confirmed that no dematerialization or rematerialization requests were received or processed during this period. This is a standard regulatory filing to ensure the integrity of the company's share register.
- Compliance certificate submitted for the quarter ended June 30, 2025.
- Registrar MUFG Intime India Private Limited confirmed zero demat or remat requests were received during the quarter.
- The filing confirms adherence to SEBI (Depositories and Participants) Regulations, 2018.
- Confirmation that the name of depositories is correctly substituted in the register of members where applicable.
Shrenik Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, provided by MUFG Intime India Private Limited, covers the period ending June 30, 2025. Notably, the registrar confirmed that no requests for dematerialization or rematerialization were received during this specific quarter. This is a standard administrative filing required by all listed companies in India to maintain regulatory transparency.
- Quarterly compliance certificate submitted for the period ending June 30, 2025.
- Registrar MUFG Intime India Private Limited confirmed zero demat or remat requests during the period.
- The filing confirms adherence to SEBI (Depositories and Participants) Regulations, 2018.
- The document was formally received and recorded by the National Stock Exchange (NSE).
Shrenik Limited reported a strong performance for the quarter ended December 31, 2025, with total revenue reaching ₹918.54 Lakhs, an 86% increase compared to ₹493.95 Lakhs in the same quarter last year. The company achieved a net profit of ₹107.05 Lakhs, a significant turnaround from a net loss of ₹6.58 Lakhs in Q3 FY25. For the nine-month period, the company turned profitable with a net profit of ₹122.10 Lakhs against a loss of ₹16.31 Lakhs in the previous year. This growth is primarily driven by its core paper-trading business and improved operational efficiency.
- Total Revenue for Q3 FY26 stood at ₹918.54 Lakhs, up from ₹493.95 Lakhs in the year-ago period.
- Net Profit surged to ₹107.05 Lakhs in Q3 FY26 compared to a marginal profit of ₹1.21 Lakhs in the preceding quarter.
- The company reported a 9-month net profit of ₹122.10 Lakhs, reversing a loss of ₹16.31 Lakhs in the same period last year.
- Total expenses for the quarter were managed at ₹811.47 Lakhs, which is lower than the ₹905.17 Lakhs recorded in Q2 FY26 despite higher revenue.
- Earnings Per Share (EPS) improved to ₹0.02 for the quarter, up from a negative ₹0.001 in Q3 FY25.
Shrenik Limited reported a standalone net profit of ₹107.05 lakhs for the third quarter of FY26, a decline from ₹121 lakhs in the same period last year. While quarterly revenue grew marginally to ₹918.54 lakhs, the nine-month (9M) performance remains in a net loss of ₹16.31 lakhs. However, 9M revenue showed strong growth, rising 28% year-on-year to ₹2,338.56 lakhs. The company's profitability is being pressured by rising operational expenses in its core paper-trading business.
- Q3 FY26 net profit stood at ₹107.05 lakhs compared to ₹121 lakhs in Q3 FY25.
- Nine-month revenue grew by 28% to ₹2,338.56 lakhs from ₹1,826.04 lakhs YoY.
- The company reported a net loss of ₹16.31 lakhs for the nine months ended December 2025.
- Total expenses for the quarter increased to ₹811.47 lakhs from ₹784.88 lakhs in the previous year.
- Earnings per share (EPS) for the quarter remained flat at ₹0.02.
Financial Performance
Revenue Growth by Segment
The company operates in a single segment, 'Paper-Trading'. Revenue from operations declined by 29.57% YoY, falling from INR 48.56 Cr in FY23 to INR 34.19 Cr in FY24. Total revenue saw a sharper decline of 64.92% YoY, dropping from INR 134.23 Cr to INR 47.09 Cr, primarily due to an 84.95% collapse in 'Other Income'.
Geographic Revenue Split
Not disclosed in available documents, though the company is headquartered and operates primarily out of Ahmedabad, Gujarat.
Profitability Margins
Profitability is severely compromised; the company reported a 'negative financial situation'. In FY24, total expenses of approximately INR 281.80 Cr far exceeded total revenue of INR 47.09 Cr, leading to deep net losses. This was driven by a massive surge in 'Other Expenses' to INR 139.44 Cr and an inventory-related charge of INR 109.30 Cr.
EBITDA Margin
EBITDA margin is deeply negative. Core operational profitability is non-existent as 'Other Expenses' (INR 139.44 Cr) and 'Changes in Inventories' (INR 109.30 Cr) represent 296% and 232% of total revenue respectively.
Capital Expenditure
Historical records for Property, Plant and Equipment are maintained, but specific planned CAPEX for FY25-26 is not disclosed in available documents.
Credit Rating & Borrowing
As of September 30, 2025, the company has significant debt with Non-current Borrowings of INR 118.06 Cr and Current Financial Borrowings of INR 51.43 Cr. Finance costs were INR 0.45 Cr in FY24, a decrease from INR 3.51 Cr in FY23, likely due to debt restructuring or reduced utilization.
Operational Drivers
Raw Materials
Trading goods primarily consisting of Paper and paper-related products, which accounted for INR 33.06 Cr in purchases during FY24 (96.7% of operational revenue).
Capacity Expansion
As a trading entity, the company does not have traditional manufacturing capacity; expansion would relate to warehouse throughput or trading volume, which is currently declining.
Raw Material Costs
Purchases of trading goods stood at INR 33.06 Cr in FY24. The cost of goods sold is heavily impacted by a massive 'Change in Inventories' of INR 109.30 Cr, suggesting a significant write-down or liquidation of stock.
Manufacturing Efficiency
Not applicable as the company identifies 'Paper-Trading' as its only business segment.
Strategic Growth
Expected Growth Rate
0%
Growth Strategy
The documents do not outline a clear growth strategy; instead, they highlight a 'negative financial situation' and a significant contraction in revenue and other income. Management's focus appears to be on maintaining internal controls and statutory compliance amidst financial distress.
Products & Services
Trading of various grades of Paper and paper products.
Brand Portfolio
Shrenik.
External Factors
Industry Trends
The paper industry is facing a shift toward digitalization, which may reduce demand for traditional printing paper, though packaging paper demand remains a potential growth area. The company's current positioning is weak due to its negative financial situation.
Competitive Landscape
The company operates in the fragmented paper trading market; competitors are not named but include other large-scale paper distributors and direct-to-market mill sales.
Competitive Moat
The company lacks a strong moat as a pure-play trader; it faces high competition and has shown a significant decline in revenue and massive operational losses, suggesting low sustainable competitive advantage.
Macro Economic Sensitivity
Highly sensitive to industrial output and education sector cycles which drive paper demand.
Consumer Behavior
Shift toward digital media and paperless offices is a long-term threat to the core trading business.
Regulatory & Governance
Industry Regulations
Subject to standard commercial trading regulations and GST compliance in India. The company transitioned to IND-AS reporting effective April 1, 2017.
Taxation Policy Impact
The company reported a net loss before tax of approximately INR 234.71 Cr in FY24, resulting in no current tax liability for that period.
Legal Contingencies
The company was noted for non-compliance with SEBI (LODR) Regulations 17, 18, and 19 (related to Board and Committee compositions) during the March Quarter of 2024.
Risk Analysis
Key Uncertainties
The primary uncertainty is the company's ability to continue as a 'going concern' given the massive losses (INR 234.71 Cr loss before tax in FY24) and the 'negative financial situation' explicitly mentioned by management.
Geographic Concentration Risk
High concentration in Gujarat, India, where the registered office and primary operations are located.
Third Party Dependencies
High dependency on paper mills for supply and credit terms, which may be at risk due to the company's financial health.
Technology Obsolescence Risk
The shift to digital documentation poses a significant technology-driven risk to the long-term demand for paper trading products.
Credit & Counterparty Risk
The company faces significant credit risk; trade receivables and the quality of the loan book (if any) are critical given the high debt levels of INR 169.49 Cr.