Kuantum Papers Ltd has recommended a dividend of Rs 2.5 per share for the financial year 2025-26. The Board of Directors approved the recommendation at a meeting held on May 26, 2026. The dividend is subject to shareholder approval at the Annual General Meeting scheduled for August 27, 2026.

In terms of Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has fixed August 20, 2026, as the record date to determine shareholder eligibility. If declared, the dividend will be paid within 30 days from the date of the AGM through electronic modes.

The company has detailed the Tax Deduction at Source (TDS) provisions under the Income Tax Act, 2025. For resident shareholders, tax is deducted at 10% if a Permanent Account Number (PAN) is registered and 20% if it is not. No tax is deducted if the total dividend does not exceed Rs 10,000 or if Form 121 is submitted along with a PAN copy.

For non-resident shareholders, the withholding tax rate is 20% plus applicable surcharge and cess. Shareholders can opt for lower or Nil withholding tax by providing a certificate under Section 395 of the Income Tax Act, 2025, or by availing benefits under the Double Tax Avoidance Treaty.

Shareholders must submit necessary documents to determine the appropriate tax rate by 11:00 A.M. on August 17, 2026. Documents can be uploaded via the Registrar and Share Transfer Agent’s website or submitted through NSDL or CDSL for demat holdings. The company stated that tax deducted would be final and no claims would be entertained for higher deductions due to missing documents.

Kuantum Papers Limited reported a 46% quarter-on-quarter increase in profit after tax to INR14 crores for the quarter ended March 31, 2026, driven by improved operational efficiency and higher net sales realizations. Operational income for the quarter stood at INR301 crores, registering a sequential growth of 4%, while EBITDA surged 22% to INR48 crores. The EBITDA margin expanded significantly by 234 basis points to 15.90% despite input costs rising by nearly INR2,000 per metric ton due to geopolitical tensions affecting raw material and fuel prices.

For the full financial year 2025-26, the company reported an operational income of INR1,093 crores, a marginal decline of 1% year-on-year, with a production volume of 1,62,885 metric tons. Annual EBITDA stood at INR162 crores with a margin of 14.80%, while PAT for the year was INR42 crores. The margin pressure during the year was attributed to a reduction in net sales realizations and increased costs, partially offset by strategic capacity upgrades.

Operational and Expansion Updates

The company completed the rebuild of Paper Machine 2 in March 2026, enhancing its installed capacity to 75 tons per day. A 2-stage recausticizing plant was commissioned to improve process recovery efficiency, and a synchro sheeter with a capacity of 80 tons per day was installed to eliminate manual handling. The Displacement Digester System for wood pulping is under extensive testing, with commissioning targeted by mid-June 2026. Post-rebuild of Paper Machine 1 in December 2025, average daily production increased by almost 20 tons per day in Q4.

Financial Guidance and Outlook

Management expects the top line to reach INR1,400 crores to INR1,500 crores in FY27, gradually inching up to INR1,600 crores to INR1,700 crores as volumes increase to approximately 2,30,000 tons annually. The company targets an EBITDA margin of 18% to 20% in the coming years. Long-term debt as of March 31, 2026, was INR720 crores, with peak debt expected to be between INR650 crores and INR675 crores by the end of 2027. Annual debt repayment is projected at INR170 crores to INR180 crores over the next 2-3 years.

The transcript of the earnings conference call held on May 29, 2026, has been filed pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 and is available on the company's website.