Satia Industries Ltd, incorporated in 1980, is a prominent India-based company operating in the wood and agro-based paper manufacturing sector. The company has established itself as a significant player in the paper industry, specializing in the production of writing and printing paper alongside other diversified business activities.
The company holds ISO 9001, 14001, and 45001 certifications, demonstrating its commitment to quality, environmental management, and occupational health and safety standards. Satia Industries operates wood and agro-based paper plants in India, manufacturing paper using wood chips, veneer waste, wheat straw, and sarkanda.
Satia Industries operates through multiple business divisions that contribute to its diversified revenue stream. The company's divisions include paper manufacturing, yarn and cotton trading, agriculture, co-generation of power for captive consumption, and solar power generation. The paper division focuses on writing and printing paper production, along with the sale of chemicals, scrap, waste, and pulp.
The company supplies products to State textbook boards while also maintaining a strong presence in the open market through a Pan India network of over 100 dealers and three branch offices located in Delhi, Chandigarh, and Jaipur. This distribution network enables the company to reach customers across different regions effectively.
For the full year FY25, Satia Industries reported a decline in net profit by 43.83% to ₹118.62 crores compared to ₹211.19 crores in the previous year, while sales declined by 12.13% to ₹1,511.99 crores against ₹1,720.78 crores in FY24.
In Q4 FY25, the company's net profit declined by 10.19% to ₹35.43 crores compared to ₹39.45 crores in Q4 FY24, with sales declining by 7.88% to ₹396.67 crores against ₹430.59 crores in the previous year's corresponding quarter.
As of June 2025, Satia Industries has a market capitalization of ₹930 crores. The stock trades at a price-to-earnings (P/E) ratio of 7.84 and has a book value of ₹105 per share. The company offers a dividend yield of 1.09% and demonstrates a return on capital employed (ROCE) of 10.4% and return on equity (ROE) of 12.0%.
• Q4 FY25 Performance: Net Profit declined by 10.19% to ₹35.43 crores, Sales declined by 7.88% to ₹396.67 crores
• FY25 Performance: Net Profit declined by 43.83% to ₹118.62 crores, Sales declined by 12.13% to ₹1,511.99 crores
• Market Capitalization: ₹930 crores (as of June 2025)
• P/E Ratio: 7.84
• Book Value: ₹105 per share
• Dividend Yield: 1.09%
• ROCE: 10.4%
• ROE: 12.0%
• 52-week High: ₹143.49
• 52-week Low: ₹64.40
In FY25, the Indian paper industry faced significant challenges, particularly from increased imports affecting pricing and margins, yet the company managed to maintain sales volumes and reported a slight recovery in Q4 with sequential revenue improvement.
Despite overall decline in revenues and EBITDA margins, the company is implementing strategic capacity enhancements, including a major upgrade of the PM3 machine, which are expected to bolster production efficiency and profitability in the long term. The company has planned a ₹225 crores CAPEX for PM3 upgrade with a 6-month shutdown period.
The company is focusing on cost management through innovative sourcing strategies and operational upgrades, while actively engaging with stakeholders to maintain transparency amid market uncertainties. Additionally, positive pricing trends and government initiatives are anticipated to support future growth, despite temporary setbacks from planned machine shutdowns.
The company began production in 1984 with a single paper machine having a capacity of 4,950 MT, and by 1989, it had set up a second paper machine. Production crossed 10,000 MTPA by 1993. In 1998, the company installed its third paper machine along with a 200 MTD pulp mill, and subsequently installed a 5 MW power cogeneration plant in 2003, followed by a chemical recovery plant and another 5MW power plant in 2006.
The power plant capacity was expanded to 23.30 MW in 2011-12, and in 2014-15, the company installed a new chemical recovery plant of 400 TPD solids capacity along with a pulp bleaching plant.
The Board of Directors at their meeting held on May 24, 2025, recommended a final dividend of ₹0.2 per equity share (20%), subject to shareholder approval. This demonstrates the company's commitment to returning value to shareholders despite challenging market conditions.
Ajay Kumar Satia serves as the Chairman of the company, while Rakesh Kumar Dhuria holds the position of Company Secretary. The company's management team has been instrumental in guiding the organization through various growth phases and market challenges.
Satia Industries continues to adapt to changing market dynamics while maintaining its position as a significant player in India's paper manufacturing industry. With ongoing capacity enhancement projects and strategic initiatives, the company is positioned to capitalize on future growth opportunities in the paper sector.
