Century Paper & Board Mills Ltd (CEPB) significantly reduced its losses in FY26 as higher sales volumes and lower finance costs supported earnings, according to an analyst briefing note issued by AKD Research.

The research house said the company posted a loss of Rs58 million in FY26, compared with a loss of Rs345 million a year earlier, mainly due to a one-off SIDC reimbursement and improved operating performance.

Net sales rose 3.8pc year-on-year to Rs38.7 billion, driven by an 8.5pc increase in sales volumes, while total production increased to 169,000 tonnes from 158,000 tonnes in FY25.

AKD Research noted that packaging boards accounted for 75pc of revenue, followed by containerboard at 14pc and paper products at 11pc. However, gross margins narrowed to 6.6pc from 7.1pc due to lower average selling prices.

Management expects revenue to grow by 4-5pc in FY27, supported by improving domestic demand and stronger enforcement against the unorganised sector, while margins are projected to improve as paper prices recover.

The company also plans to reduce energy costs through a 2MW solar project and a 5MW battery energy storage system at its Gadap facility, expected to become operational during the second half of FY27.