Shares of Emami Paper Mills hit the 20% upper circuit on Wednesday, touching a 10-month high of Rs 118.63 after the company reported a more than five-fold jump in June quarter profit.
The strong earnings triggered fresh buying interest, extending the stock's rally to a third straight session and reinforcing its sharp recovery from March lows.
The paper manufacturer's shares have now rebounded 116% from their March low, regaining multibagger status after a prolonged downturn.
Profit Jumps More Than Six Times in Q1
Emami Paper Mills reported a consolidated net profit of Rs 38.61 crore for the quarter ended June 2026, a 512% increase from Rs 6.31 crore in the corresponding quarter last year.
On a sequential basis, profit rose 22.6% from Rs 31.50 crore reported in the March quarter, indicating continued earnings momentum.
Revenue from operations also posted healthy growth, rising 22% year-on-year to Rs 560 crore from Rs 459.76 crore. Compared with the previous quarter, revenue increased nearly 13% from Rs 496.42 crore.
Operating Performance Improves Sharply
The company's operating performance strengthened significantly during the quarter.
EBITDA more than doubled to Rs 83 crore from Rs 38 crore a year earlier, while the EBITDA margin expanded by 660 basis points to 14.82%. The improvement reflects stronger operating efficiency and higher profitability despite a challenging environment for the paper industry.
The robust financial performance prompted investors to accumulate the stock, pushing it to its highest level in nearly 10 months.
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Stock Completes Remarkable Recovery
The latest rally has capped a remarkable turnaround for Emami Paper Mills.
After falling to a multi-year low in March, the stock began recovering in April with a 39% gain. It added another 11% in May and has climbed about 36% so far in July.
The sustained buying has helped the stock recover 116% from its March low and deliver a 36% gain so far this calendar year.
Company Strengthens Position in Paper Segment
Part of the Emami Group, Emami Paper Mills operates manufacturing facilities in Balasore, Odisha.
The company is India's largest producer of newsprint with an installed production capacity of 1.5 lakh tonnes per annum. It also has a significant presence in the consumer packaging board segment, with a combined installed capacity of 2 lakh tonnes per annum across recycled-grade and virgin-grade boards.
Its products cater to a wide range of packaging and printing applications, supporting demand from publishing, consumer goods and industrial sectors.
Shareholding Remains Stable
The company's shareholding pattern remained unchanged during the June quarter. Promoters continued to hold a 75% stake, while the remaining 25% was owned by public shareholders.
The strong quarterly performance and sustained improvement in profitability have renewed investor confidence in the stock, with markets betting that the company's earnings momentum could support its ongoing recovery.
Also Read: Emami Q4 Results: Profit Falls 12%; Revenue And Margin Decline
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