Shreyans Industries Ltd Q2 FY26 – From High Brightness Paper to Dull Quarter Profits: The Oswal Factory’s ‘Sheet’ Show Continues
1. At a Glance
Once upon a time, paper stocks were the toast of Dalal Street — now they’re more like the leftover pages of last year’s notebook. Shreyans Industries Ltd (SIL), the Ludhiana-based paper manufacturer promoted by the Oswal family, is currently priced at ₹183, down nearly 20% in three months. The company’s market cap sits at ₹253 crore — not bad for a business that literally sells “cream wove” paper while its investors are turning cream pale.
The latest Q2 FY26 numbers show sales of ₹142 crore, down from ₹153 crore last quarter (QoQ -7.4%), while net profit fell off a cliff to ₹2.23 crore (down a dramatic -75.4%). The stock trades at a P/E of 5.38 and a Price-to-Book of 0.58 — cheap enough to make value investors drool, but not cheap enough to stop the bleeding. ROE stands at 12.6%, ROCE at 16.3%, and the dividend yield at 1.64%.
Essentially, Shreyans is profitable, but tired — like an overused exam paper recycled too many times.
2. Introduction
Let’s begin with a confession: every time we look at a paper company’s quarterly results, we feel like opening Excel and writing “Ctrl+P” for pain.
Shreyans Industries, born in 1979, is one of those quiet, old-school manufacturers that never make headlines — unless the Competition Commission visits their Delhi office (as it did in November 2025). While tech companies chase AI models and SaaS valuations, these Ludhiana veterans still turn agricultural residue into paper and somehow generate ₹645 crore in sales a year.
Despite that, the Q2 FY26 report reads more like a “bleeding ink” scenario — profits evaporated faster than the moisture in their drying plant. The quarterly operating margin shrunk to 3.99%, compared to a healthy 10.34% just a quarter ago.
And yet, at 0.58x book value, this is the kind of company that makes contrarians whisper: “Isme kuch toh baat hai.”
But is there really? Let’s peel back the layers — or in this case, sheets.
3. Business Model – WTF Do They Even Do?
Shreyans Industries Ltd manufactures writing and printing paper, not to be confused with the kind of paper your printer refuses to pick up during deadlines. The company operates two manufacturing units in Punjab — at Ahmedgarh and Banah — with a combined installed capacity of ~94,000 MTPA.
They make paper ranging from 44 GSM to 200 GSM — from light notebook sheets to sturdy postal envelope paper. Their product catalogue reads like a stationery lover’s playlist: High Brightness Paper, Azure Laid Paper, Maplitho Paper, Stamp Paper, and even Rail Ticket Paper (nostalgic, right?).
Raw materials? Agricultural residue. That’s sugarcane bagasse and wheat straw transformed into paper, a nice ESG story if you ignore the smell of the pulp. Customers include textbook boards, publishers, railways, and stationery departments.
Exports form a tiny slice (3%) of total revenue — most of their goods end up in domestic tenders and private buyers. For every ton of paper sold, there’s also Soda Ash generated from chemical recovery, which brings in about 13% of revenue.
Basically, they recycle, reprocess, and resell — and somehow make ₹47 crore in annual PAT doing it. Old-school manufacturing at its finest.
The numbers scream what the chart already knows: this quarter was a paper cut straight to the bottom line. Revenue grew 7.4% YoY but that’s where the celebration ends — profit margins crumbled faster than a newspaper in monsoon.
When your OPM falls from 10% to under 4%, that’s not a blip — that’s a breakdown.
5. Valuation Discussion – Fair Value Range Only
Let’s run three classic valuation lenses for education (and
