Kuantum Papers LimitedConsumer GoodsKUANTUM
Q1 FY27 concall · earnings callKuantum Papers Limited
The company delivered revenue growth driven by sales volume but margins were pressured by increased costs linked to the West Asia conflict and local raw material prices, with profitability expected to improve after completing machine upgrades.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Operational Income | ₹304 Cr | 36% | |
| Paper Sales Volume | 42,922 metric tons | 35% | |
| EBITDA | ₹40 Cr | broadly stable YoY | |
| EBITDA Margin | 13.2% | — | |
| Profit After Tax | ₹6 Cr | — | |
| Blended NSR Increase | INR3,400 per ton | — | |
| Cost Increase | INR4,200 per ton | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹270.08 Cr-10.4% YoY-3.1% QoQ | ₹20.97 Cr-50.2% YoY-29.9% QoQ | ₹2.40-50.3% YoY-30% QoQ |
| Q2 FY25 | ₹278.86 Cr-6.3% YoY-0.7% QoQ | ₹29.90 Cr-29.9% YoY-21.7% QoQ | ₹3.43-29.9% YoY-21.7% QoQ |
| Q1 FY25 | ₹280.75 Cr-10.2% YoY-6.1% QoQ | ₹38.19 Cr-41.4% YoY+12.7% QoQ | ₹4.38-41.3% YoY+12.9% QoQ |
| Q4 FY24 | ₹298.85 Cr-13.1% YoY-0.9% QoQ | ₹33.89 Cr-47.9% YoY-19.6% QoQ | ₹3.88-47.9% YoY-19.7% QoQ |
| Q3 FY24 | ₹301.47 Cr-14% YoY+1.3% QoQ | ₹42.15 Cr-26.4% YoY-1.2% QoQ | ₹4.83-26.4% YoY-1.2% QoQ |
TL;DR
- Operational income grew 36% year-on-year to INR304 crores.
- Paper sales volume increased 35% year-on-year to 42,922 metric tons.
- EBITDA was INR40 crores with a margin of 13.2%, broadly stable year-on-year.
- Net sales realization improved by INR3,400 per ton quarter-on-quarter, but costs rose by INR4,200 per ton.
- Key upgrades included commissioning a DDS digester system, a starch system, and a wrapping machine, while PM3 is shut for a rebuild.
- Debt is expected to peak at INR760-770 crores and reduce by about INR175 crores annually over the next 3 years.
Said on the call
“If you don't take debt, you don't grow. If you want to grow, you have to take debt and you have to bite that bullet for some time.”
From the Q&A
| Topic | What management said |
|---|---|
| Financial Guidance & Margins | Management is positive on guidance, expecting EBITDA margins of 16-18% by year-end post-PM3 commissioning, and turnover of INR1,300 crores plus for the year, revised down from prior INR1,400-1,500 crores due to lower realizations and West Asia cost pressures. |
| Debt and Repayment | Peak debt is seen at INR760-770 crores, with annual repayments of about INR175 crores over the next 2-3 years, aiming to reduce debt to under INR300 crores in three years. |
| Raw Material Costs and Sourcing | Pulp mix is 50% agro and 50% wood, sourced locally; wheat straw prices are coming down and expected to reduce further in Q2, while about 50% of the recent cost increase is attributed to the West Asia conflict. |
| Import Competition | Imports are showing a diminishing trend due to high shipping and logistics costs, and prices are stable; the company has filed for anti-dumping duties on writing and printing paper. |
| Specialty Paper and Realizations | Specialty paper contribution is currently under 20%, targeting 30%; the company aims for 5-6% incremental topline from specialty grades with EBITDA margins above 20% on those products. |
| Capacity and Future Revenue | With all four machines running at peak capacity post-PM3 commissioning, conservative top line is INR1,500 crores, potentially reaching INR1,600-1,650 crores if pricing improves to INR72,000-75,000 per ton. |
Guidance
- EBITDA margins expected to reach 16-18% by year-end.
- Turnover for the year expected at INR1,300 crores plus.
- Annual debt reduction of about INR175 crores over next 2-3 years.
- Target to increase specialty paper contribution to 30%.
- AI integration by FY28 expected to reduce costs by 4-5%.
- Conservative top line target of INR1,500 crores at peak capacity, potentially INR1,600-1,650 crores with better pricing.
Source
Summary written from the transcript filed by Kuantum Papers Limited for the call held on 14 Aug 2026; published 21 Aug 2026, 23:25 IST.
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