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.

Kuantum Papers Limited has established August 24, 2026, as the final date for shareholders to claim unclaimed dividends, with failure to do so resulting in the transfer of equity shares to the Investor Education and Protection Fund (IEPF) Authority. The company is mandated to transfer shares for which dividends remain unpaid or unclaimed for seven consecutive years under Section 124(6) of the Companies Act, 2013. This measure specifically impacts shareholders who have not encashed dividends starting from the financial year 2018-19.

The company has communicated individually to affected shareholders via post, requesting the submission of necessary documents to its Registrar and Share Transfer Agent. The list of shareholders whose shares are liable for transfer is available on the company's official website. To avoid the transfer of shares, concerned shareholders must ensure their claims reach the designated agent by the stipulated deadline.

Exemptions and Recovery

Kuantum Papers clarified that shares will not be transferred to the IEPF if there is a specific court or tribunal order restraining such transfer, or if the shares are hypothecated or pledged under the Depositories Act, 1996. Once transferred, shareholders lose the right to claim the unclaimed dividend amount and the equity shares from the company. However, both the unclaimed dividends and shares can be reclaimed from the IEPF Authority by following the procedures prescribed under the IEPF Rules.

Contact Information

Shareholders seeking further information or clarification have been directed to contact the company or its Registrar and Share Transfer Agent. The communication must be directed to M/s. MAS Services Limited, which handles the share transfer activities for Kuantum Papers Limited.