Kuantum Papers

Kuantum Papers Limited reported operational income of Rs. 280 crores for Q2 FY26, marking a 25.5% sequential growth driven by higher paper production following the upgradation of paper machine 4. The company achieved its highest ever monthly production of 8,303 metric tons in September and highest daily production of 360 tons in July 2025. However, EBITDA margins contracted to 12.3% from previous quarter due to Rs. 3,200 per ton decline in net sales realization and Rs. 1,300 per ton increase in production costs, largely attributed to higher agro and wood-based raw material prices due to floods in Punjab. The company faces challenges from GST rate changes creating inverted duty structure, with paper and boards rising from 12% to 18% while converted products reduced to 5%, and notebooks made nil-rated. Management expects EBITDA margins to improve to 18-20% once capacity expansion from current 450 tons per day to 650 tons per day is completed, targeting 30-40% volume growth in FY27. The company is strategically moving away from the notebook segment and focusing on higher value-added Maplitho grades and specialty papers.

Kuantum Papers Limited reported a net profit of ₹5.77 crore for the quarter ended September 30, 2025, compared to ₹17.20 crore in the previous quarter and ₹29.90 crore in the same quarter last year. Revenue from operations increased to ₹278.42 crore from ₹221.92 crore in the previous quarter but declined from ₹275.90 crore in the corresponding quarter of the previous year. For the half-year period, net profit dropped to ₹22.97 crore from ₹68.10 crore in the same period last year, while revenue decreased to ₹500.34 crore from ₹554.84 crore. The company's finance costs rose to ₹11.90 crore from ₹10.39 crore in the previous quarter. Earnings per share for the quarter stood at ₹0.66 compared to ₹3.43 in the same quarter last year. The company operates solely in paper manufacturing and has no subsidiaries, associates, or joint ventures.

Kuantum Papers Limited has withdrawn its credit ratings from CARE Ratings Limited after switching to India Ratings and Research in July 2025. CARE Ratings reaffirmed and withdrew the ratings of CARE A-: Stable/CARE A1 assigned to the company's bank facilities with immediate effect, following the company's request and no-objection certificates from banks. The rating agency also placed the fixed deposit rating of Rs. 33.22 crores on notice of withdrawal for one year. The company reported a 9% decline in total operating income to Rs. 1,107.04 crores in FY25, with operating margins contracting by 706 basis points to 21.91%. In Q1 FY26, operating income declined 21% to Rs. 222.92 crores due to a 35-day shutdown of its primary machine PM4 for rebuilding. The company is undertaking a Rs. 735 crore expansion project to enhance capacity from 450 TPD to 675 TPD by March 2026.