Star Paper Mills Limited announced its 87th AGM for September 24, 2026. The board recommended a final dividend of Rs 2.50 per share. Despite a decline in annual profit to Rs 32.75 crore from Rs 41.14 crore, the company is prioritizing efficiency through new capital projects, including a 6.5 MV turbine and a chlorine dioxide plant, both slated for completion by December 2026.
Star Paper Mills Annual Results and Dividend Announcement
Profit After Tax stood at Rs 32.75 crore for FY 2025-26, down from Rs 41.14 crore in the previous fiscal year.
Revenue from operations reached Rs 409.94 crore, compared to Rs 436.34 crore reported in FY 2024-25.
Reader Takeaway: Dividend payout offers income, but watch for margin pressure from rising energy costs and import competition.
What just happened
Star Paper Mills has officially notified the exchange of its upcoming 87th Annual General Meeting, scheduled for September 24, 2026. Shareholders will vote on the approval of annual financial results and the board-recommended dividend of Rs 2.50 per equity share. The company has set September 17, 2026, as the record date for determining shareholder eligibility for the payout.
Why this matters
The financial results reflect a challenging year for the paper industry. Factors such as intensified import competition under Free Trade Agreements and a hike in GST rates—from 12% to 18% in September 2025—weighed on the company’s bottom line. Management also cited global supply-side shocks and elevated energy prices due to regional conflicts as external headwinds impacting operational margins.
What changes now
To combat rising input costs and improve product quality, the company is moving ahead with two major capital projects. The installation of a 6.5 MV turbine, costing Rs 13.30 crore, is aimed at lowering power expenses and reducing the firm’s carbon footprint. Additionally, a Rs 30.95 crore chlorine dioxide plant is under construction to improve paper pulp brightness and physical strength. Both projects are targeted for commissioning by December 2026.
Risks to watch
Market conditions remain sensitive to international trade dynamics and domestic energy pricing. Investors should monitor how effectively the company manages the transition to the higher GST tax regime and whether the new capital investments yield the expected cost efficiencies once they come online by the end of 2026.
Context metrics
- Credit Rating: Acuite Ratings and Research has reaffirmed 'Acuite A+ (Stable)' for Rs 100 crore in long-term bank facilities.
- Earnings Per Share (EPS): The company reported an EPS of Rs 20.98 for FY26, compared to Rs 26.36 in the prior year.