This multibagger paper stock hits 20% upper circuit after net profit jumps 512% in Q1

Shares of Emami Paper Mills were locked in the 20% upper circuit in Wednesday's trade (22 July), hitting a 10-month high of ₹118.63 apiece and extending their winning streak to a third consecutive session. The sharp rally came after investors cheered the company's strong June quarter earnings, which reflected robust growth in both profitability and revenue.

The company reported a 512% year-on-year surge in consolidated net profit to ₹38.61 crore for the quarter ended June 2026, compared with ₹6.31 crore in the corresponding quarter last year. On a sequential basis as well, net profit rose 22.6% from ₹31.50 crore reported in the March quarter, indicating sustained earnings momentum.

Revenue from operations increased 22% year-on-year to ₹560 crore from ₹459.76 crore in the year-ago period. Sequentially, revenue grew nearly 13% from ₹496.42 crore reported in the preceding March quarter.

Operational performance also improved significantly during the quarter. EBITDA more than doubled to ₹83 crore from ₹38 crore in Q1 FY26, while the EBITDA margin expanded by 660 basis points to 14.82%, reflecting better operating efficiency and improved profitability.

Emami Paper Mills, a part of the Emami Group, operates paper manufacturing facilities in Balasore, Odisha. The company is India's largest manufacturer of newsprint, with an installed production capacity of 1.5 lakh tonnes per annum, producing premium-quality newsprint comparable with imported grades.

In addition, Emami Paper Mills has a strong 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, catering to a wide range of packaging requirements, according to the company's website.

The company's shareholding pattern remained unchanged during the June quarter, with promoters holding a 75% stake, while the remaining 25% was held by public shareholders.

After enduring a prolonged downturn that dragged the stock to a multi-year low, Emami Paper Mills staged a strong recovery in April, surging 39%.

The rally gathered further momentum in the following months, with the stock gaining another 11% in May. So far in July, it has advanced an additional 36%.

The sustained rally has helped the stock regain its multibagger status, with shares rebounding 116% from their March low. The sharp recovery has also pushed the stock into positive territory for the calendar year, with year-to-date gains of 36%.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continu...