Satia turns loss-making as tax charge exceeds pre-tax profit
Standalone operating profit was Rs 50.81 cr, but a Rs 46.24 cr tax charge against Rs 29.12 cr of pre-tax profit drove the quarterly loss.
Filed 14 Aug 2026, 14:57 IST · SATIA (SATIA)
Key takeaways
- Satia reported a standalone net loss of Rs 17.12 cr despite operating profit of Rs 50.81 cr.
- A Rs 46.24 cr tax charge, equal to a 158.79% tax rate, pushed profit before tax of Rs 29.12 cr into a loss.
- Management said Paper Machine 3 refurbishment would continue for 4-5 months, while new cup-moulding machinery is expected to start production from Q2FY27.
Tax charge erased operating profit
Satia remained profitable at the operating level, with Rs 50.81 cr of operating profit, but reported a Rs 17.12 cr standalone net loss. The key distortion was tax of Rs 46.24 cr against profit before tax of Rs 29.12 cr, producing a 158.79% tax rate. Other income contributed Rs 11.06 cr, but was not enough to offset the tax charge.
Paper Machine 3 refurbishment will run for 4-5 months
The company said it undertook a major modernization and upgrade of Paper Machine 3 during the quarter. Management said the work is expected to continue for 4-5 months and, after completion, is expected to increase production capacity, improve quality and strengthen operating efficiencies. Management also said new cup-moulding machinery is expected to begin production from Q2FY27.
Pricing conditions improved, but operating risks remain
Management said the quarter benefited from a more favourable pricing environment, reduced import intensity and steady demand. It also said moderation in dumping supported realizations, while geopolitical developments continued to affect trade flows and container availability. The company said all existing cutlery machines were operating at 100% capacity and that it was preparing to expand its cutlery opportunity.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹362 cr |
| Other income | ₹11 cr |
| Expenses | ₹311 cr |
| Operating profit | ₹51 cr |
| Operating margin (%) | 14.04% |
| Interest | ₹4 cr |
| Depreciation | ₹29 cr |
| Profit before tax | ₹29 cr |
| Tax | ₹46 cr |
| Net profit | ₹-17 cr |
| EPS (₹) | ₹-1.71 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The quarter had a more favourable pricing environment, reduced import intensity and steady demand.
- Satia undertook major modernization and upgradation work on Paper Machine 3 during the quarter.
- All existing cutlery machines were operating at 100% capacity.
Guidance & outlook
- Refurbishment of Paper Machine 3 is expected to continue for 4-5 months.
- The Paper Machine 3 project is expected to increase production capacity, improve quality and strengthen operating efficiencies after completion.
- New cup-moulding machinery is expected to begin production from Q2FY27.
Expansion
- The company undertook a major modernization and upgradation programme for Paper Machine 3.
- Satia is adding new machinery for moulding cups.
New initiatives
- Satia is modernizing and upgrading Paper Machine 3 as part of its manufacturing-capabilities investment.
- The company is preparing to fully capitalize on the cutlery business opportunity.
Problems & risks
- Geopolitical developments continued to affect global trade flows and container availability during the quarter.
- The operating environment remains affected by global developments, input costs, trade flows and market conditions.
- Dumping affected the operating environment, although its moderation supported realizations during the quarter.
What to watch
- Whether operating margin holds near 14.04% during the Paper Machine 3 refurbishment.
- Whether the new cup-moulding machinery starts production from Q2FY27.
- Whether the tax rate moves below 158.79% in the next reported quarter.