Tamil Nadu Newsprint & Papers Ltd

Tamil Nadu Newsprint & Papers Limited: Trading window closed from 1st October, 2026 till 48 hours after the declaration of financial results for the quarter and half year ending 30th September, 2026.

AGM Details

• Date, time, mode: 24 September 2026, 12:30 PM, held via video conference.
• Quorum achieved: 71 shareholders joined via video conference.
• Cut-off for attendance: 17 September 2026.
• Remote e-voting window: 21–23 September 2026; AGM e-voting via CDSL.
• Results to be uploaded on TNPL site and stock exchanges.

Key Resolutions

• Item 1: Adoption of Financial Statements; Ordinary resolution.
• Item 2: Declaration of Final Dividend; Ordinary.
• Item 3: Appointment by rotation of Dr S Vijayakumar; Ordinary.
• Item 4: Fixation of Statutory Auditors’ Remuneration; Ordinary.
• Item 5: Ratification of Cost Auditors’ remuneration; Ordinary.

Dividend Proposal

• Final dividend proposed at 40% (Rs 4 per equity share) for FY 2025–26.

Governance: Directors & Auditors

• Director change: Dr S Vijayakumar to be reappointed by rotation.
• Statutory Auditor: M/s A John Moris & Co; remuneration to be fixed.
• Cost Auditor: M/s Geeyes & Co; remuneration to be ratified.

Voting Outcome

• Outcome: not final; subject to receipt of requisite votes.

AGM Details

• AGM held on 24 September 2026 at 12:30 P.M. via Video Conferencing.
• Record date for e-voting: 17 September 2026.
• Remote e-voting window: 21 September 2026 9:00 A.M. to 23 September 2026 5:00 P.M. IST.

Resolutions & Results

• Resolution 1: Adoption of Audited Financial Statements for FY2025-26; passed with 99.98% in favour.
• Resolution 2: Declaration of final dividend of Rs. 4 per equity share; passed.
• Resolution 3: Re-appointment of Dr S Vijayakumar, IAS, retiring by rotation; passed.
• Resolution 4: Fixation of Statutory Auditors' remuneration; passed.
• Resolution 5: Ratification of remuneration to Cost Auditors; passed.

Appointment of Auditors

• M/s. A. John Moris & Co., FRN 007220S, appointed as Statutory Auditors and Tax Auditors for FY 2026-27.
• Appointment approved by the Comptroller and Auditor General of India per letter dated 9 September 2026.
• Date of board approval: 24 September 2026; tenure one year for FY2026-27.
• Compliance under SEBI LODR Regulation 30 and related circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026.
• Effective date of appointment: 24 September 2026.

AGM Details

• AGM conducted via video conference.

Key Resolutions

• Adoption of audited financial statements for the fiscal year.
• Declaration of Dividend.
• Re-appointment of director by rotation.
• Fixation of statutory auditors' remuneration.
• Ratification of remuneration to cost auditors.

Voting Status

• Consolidated voting results to be announced within two working days.
• Resolutions deemed passed subject to requisite votes.

Rating Action & Facilities

• CARE Ratings reaffirmed TNPL's bank facilities.
• Instruments/amounts: ₹350 cr LT/ST, ₹1,692.94 cr LT, ₹1,725 cr ST.
• Total facilities rated: ₹3,767.94 crore.

Rationale

• FY26 TOI rose to ₹4,669 crore; PBILDT margin 10.81%.
• PAT ₹247.75 crore aided by ₹219 crore deferred tax credit.
• Q1FY27 PBILDT 10.02%; PAT ₹5.74 crore.
• TNPL remains a leading integrated PWP player with diversified product portfolio.
• Strengths: raw material sourcing, distribution network, and lender relationships.
• Weaknesses: leveraged capital structure; raw material and FX volatility; tissue and RSPS risks.

Outlook & Agency

• Outlook: Stable.
• Rating agency: CARE Ratings (CareEdge Ratings).

Credit Metrics & Liquidity

• Gearing 1.07x; TD/PBILDT 4.90x; ICR 2.61x (FY26).
• Cash from operations: ₹544 crore (FY26).
• Liquidity adequate; debt repayments ₹315-360 crore in FY27-28; capex ₹360 crore.

Governance

• GoTN holds 35.32% stake; Chairman/MD appointed Apr 30, 2026.

Rating Sensitivities

• Positive: TD/PBILDT under 2.75x sustained.
• Positive: TOI growth above 5% with PBILDT 15-17%.
• Negative: TD/PBILDT above 5.5x sustained.
• Negative: TOL/TNW above 1.8x.

Material Changes

• No material change; rating reaffirmed with Stable outlook.

Disposal by ICICI Prudential Mutual Fund

• Target: Tamil Nadu Newsprint & Papers Ltd.
• Disclosing Party: ICICI Prudential Mutual Fund (non-promoter).
• Transaction Type: Disposal of voting-rights equity shares.
• Pre-Transaction Holding: 34,86,328 shares (5.04%).
• Sale: 18,01,237 shares sold (2.60%); Open Market.
• Post-Transaction Holding: 16,85,091 shares (2.43%).
• Date window: Mar 04, 2025 to Sept 07, 2026.
• Specific sale: Sept 07, 2026 (4,46,629 shares).
• Equity capital before/after: 69,21,06,000 (6,92,10,600 shares).
• Total diluted capital after disposal: 69,21,06,000.

Overview

• Standalone BRSR for FY2025-26; core activities: writing/printing paper, boards, cement.
• Turnover ₹4,644.89 Cr; net worth ₹2,315.98 Cr; paid-up capital ₹69.21 Cr.
• 11 plants (3 national); no international plants; exports 12% of turnover.

Key ESG Risks & Opportunities

• Climate change affects agro-based inputs; mitigated via input diversification and storage improvements.
• Pulp price volatility; internal pulping reduces external dependency.
• Rising demand for sustainable solutions; R&D for recyclable/biodegradable products; potential premium margins.
• Excess pulp planned for tissue paper plant; revenue diversification and circular economy benefits.

Governance & Policy Highlights

• Board oversight with governance framework; strong Code of Conduct and Whistle Blower Policy.
• Policies extended to value-chain partners; external audits; no independent annual evaluation.
• ISO certifications: 9001, 45001, 14001, 50001; ISO 27001/27701 for information security.
• No bribery/corruption cases against Directors/KMP in FY2025-26; no adverse regulatory orders.

Social Responsibility & Workforce

• Total employees 875; 778 male, 97 female; workers 7,932; 6,998 male, 934 female.
• Differently abled: 4 employees; 12 male, 5 female among workers.
• Board female representation 12.5%; KMP female 33.3%.
• On-site 24x7 health center; ESI and group insurance coverage.
• Safety governance with Safety Committee, near-miss reporting, audits; zero-accident goal.
• Grievance channels include Evening with ED; Grievance Redressal Committee; most grievances resolved on spot.
• 100% plants audited for child labour and sexual harassment; HR rights provisions in supplier contracts.

Environmental Performance

• Total energy consumption: 2,80,93,092 GJ; non-renewable energy dominance implied.
• Water use: 1,97,86,665 kilolitres; water intensity 0.00038 per turnover.
• Total waste generated: 6,31,661 tonnes; recycled 1,73,535; reused 3,49,997;
• GHG intensity: 0.000025 tCO2 per rupee turnover.
• 31,321 ECerts under PAT; 12,016 sold; environmental certifications in IMS.

Stakeholder Engagement & Complaints

• Stakeholder groups include communities, investors, shareholders, customers, dealers, and suppliers.
• Engagement channels: portal grievance platform, notices, emails, newspapers, meetings; periodic frequency.
• Grievances: 464 filings FY2025-26; 56 pending at year-end.

Other Notable Metrics

• Sustainable sourcing: 100% inputs sustainably sourced; Sustainable Procurement Policy published on website.
• Data privacy: Privacy Policy; consent-based data collection; rights to access; no data breaches reported.
• Direct procurement: 3% from MSMEs; 64% from within India.
• Waste and emissions: extensive waste management; PAT/ECerts activity; multiple energy-saving initiatives.