Satia Industries Defers PM3 Redevelopment Amid Challenging Q2, Reports Net Loss

Satia Industries Limited (SIL) has deferred its PM3 paper machine redevelopment to maintain operational continuity, following a challenging Q2 FY26 with a net loss of INR 245 million compared to a profit of INR 123 million a year ago. Revenue fell 9% year-on-year to INR 3,111 million due to lower paper realizations caused by increased import competition and subdued demand. Operating costs, especially for wood, remained high due to supply chain disruptions and floods in Punjab. Additionally, recent GST rate changes have created an inverted duty structure, compressing margins. Despite these headwinds, SIL remains optimistic about margin recovery with expected easing of wood prices and lower fuel costs in the coming months.