Seshasayee Paper Faces Financial Challenges Amid Declining Profitability and Efficiency Metrics

Seshasayee Paper & Boards has recently undergone a financial trend adjustment, reflecting ongoing challenges in its performance metrics. The company reported a significant decline in key financial indicators for the quarter ending September 2025. Notably, profit before tax (PBT) fell to Rs 15.37 crore, marking a decrease of 29.20%, while profit after tax (PAT) also saw a decline, landing at Rs 22.41 crore, down by 21.3%.
The return on capital employed (ROCE) is currently at a low of 3.84%, and the inventory turnover ratio stands at just 0.35 times, indicating inefficiencies in inventory management. Additionally, net sales reached Rs 346.32 crore, the lowest in recent times, and non-operating income constituted 46.46% of PBT, suggesting reliance on non-core activities for profitability.

In terms of market performance, Seshasayee Paper's stock has shown a mixed return profile compared to the Sensex. Over the past week, the stock returned -1.78%, while the Sensex gained 0.45%. Year-to-date, the stock has declined by 17.25%, contrasting with the Sensex's 8.45% increase. Despite a notable 95.90% rise over the past five years, the company's recent performance highlights significant challenges that need addressing.