Kuantum Papers Limited reported a 63.6% decline in net profit for the financial year ended March 31, 2026, falling to ₹420 crore from ₹1,152 crore in the previous year. Revenue from operations for FY26 decreased marginally to ₹10,932 crore from ₹11,070 crore in FY25. Despite the profit decline, the board recommended a dividend of ₹2.50 per share, or 250% of the face value of Re. 1, subject to shareholder approval. The audited standalone financial results were reviewed by the Audit Committee and approved by the Board of Directors on May 26, 2026. The company published the audited financial results in the Financial Express (English) and Desh Sewak (Punjabi) on May 27, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net profit of ₹143 crore, a drop from ₹261 crore in the corresponding period of the previous year. Q4 revenue came in at ₹3,009 crore compared to ₹2,774 crore in the same quarter of the prior year. Total expenses for the full year rose to ₹9,314 crore, up from ₹8,644 crore, driven by higher costs of materials consumed and employee benefits. Finance costs also increased to ₹464 crore from ₹393 crore in the prior year.

The following table summarises the key annual and quarterly financial metrics:

Operational Highlights

The company maintained a higher production volume of 162,885 MT despite strategic shutdowns for upgradation. EBITDA margins for FY26 contracted to 14.8% from 21.9% in FY25, attributed to a drop in Net Sales Realization (NSR) by ₹2,000/MT and an increase in costs by ₹3,200/MT. The downward pressure on NSR was observed across the domestic paper industry due to cheaper imports and Nil GST on the notebook segment.

Mill Expansion and Upgradation

Paper Machine 2 rebuild was completed in March 2026, enhancing installed capacity to 75 TPD. The Two-stage Reausticizing Plant was commissioned at the Chemical Recovery Plant, improving process recovery efficiency. A Syncro Sheeter with 80 TPD capacity was installed for higher precision cutting. The Displacement Digester System (DDS) project for wood pulping is under extensive testing, with commissioning targeted by mid-June 2026.

Corporate Actions and Appointments

The Board of Directors approved the audited financial results for Q4 and FY26 in a meeting held on May 26, 2026. The board approved the re-appointment of Shri Pavan Khaitan as Vice Chairman & Managing Director for a further period of three years effective from April 1, 2027, subject to shareholder approval. Additionally, Shri Jagesh Kumar Khaitan, Director retiring by rotation, was recommended for re-appointment. The Board also re-appointed M/s R.J. Goel & Co. as Cost Auditors and M/s A. Gandhi & Associates as Internal Auditors for the financial year 2026-27.

AGM and Record Date

The 29th Annual General Meeting is scheduled for August 27, 2026, via Video Conferencing. The Register of Members and Share Transfer Books will remain closed from August 21, 2026, to August 27, 2026. The record date for dividend entitlement and voting rights is fixed for August 20, 2026.

Kuantum Papers Limited has filed its Annual Secretarial Compliance Report for the financial year ended 31st March, 2026, demonstrating complete adherence to regulatory requirements. The report was submitted to both BSE and NSE on 15th April, 2026, in compliance with Regulation 24(A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Clean Compliance Record

The secretarial audit, conducted by M/s S.K. Sikka & Associates, Practicing Company Secretaries, revealed zero violations or deviations during the review period. The comprehensive examination covered all applicable SEBI regulations and guidelines, confirming the company's robust compliance framework.

Regulatory Framework Coverage

The audit examined compliance across multiple regulatory frameworks, including several that were not applicable to the company during the audit period. The key regulations reviewed encompassed listing obligations, substantial acquisition rules, prohibition of insider trading, and depositories regulations.

Applicable Regulations:

• Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
• Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015
• Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018

Comprehensive Compliance Assessment

The report evaluated 13 key compliance parameters, with all applicable areas receiving positive confirmation. The assessment covered critical aspects of corporate governance and regulatory adherence.

Corporate Structure and Governance

The report confirmed that none of the company's directors are disqualified under Section 164 of the Companies Act, 2013. Additionally, the company does not have any subsidiary companies, simplifying its compliance requirements. The audit verified that all required disclosures under Regulation 30 were made within prescribed time limits.

Auditor Certification

The report was certified by Sushil Kumar Sikka, Proprietor of S.K. Sikka & Associates, with FCS number 4241 and CP number 3582. The certification confirms that no additional non-compliances were observed across all SEBI regulations, circulars, and guidance notes during the financial year under review.