West Coast Paper Mills Limited reported a significant turnaround in profitability for the first quarter of fiscal year 2027 (Q1FY27), with consolidated net profit after tax (PAT) surging 163% quarter-on-quarter to ₹141.84 crore. This performance marks a substantial recovery from the previous quarter’s PAT of ₹53.98 crore, reflecting strong operational gains across its core divisions.

The company submitted its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE) on August 12, 2026. The filing was authorised by Brajmohan Prasad, Company Secretary & Compliance Officer.

Financial Performance Highlights

While revenue saw a modest decline, the company achieved substantial margin expansion. Consolidated revenue from operations decreased by 16% quarter-on-quarter to ₹1,051.26 crore, down from ₹1,245.30 crore in Q4FY26. However, this top-line contraction was offset by robust bottom-line growth, as EBITDA jumped 55% to ₹247.97 crore from ₹160.34 crore in the preceding quarter.

On a standalone basis, the company recorded a PAT of ₹108.68 crore, up 122% from ₹48.86 crore in Q4FY26. Standalone revenue declined by 10% to ₹638.10 crore. The earnings per share (EPS) for the consolidated entity stood at ₹20.21, compared to ₹7.85 in the previous quarter.

What the Numbers Show

The divergence between declining revenue and surging profits indicates a structural improvement in cost management and product mix rather than volume-driven growth. The consolidated PAT margin expanded by 900 basis points to 13%, while the standalone margin widened by 1,000 basis points to 17%. This suggests that the company successfully leveraged higher realisations and operational efficiencies to protect margins despite a softer revenue environment.

Management Commentary

S.K. Bangur, Chairman & Managing Director, attributed the improved performance to "better operational efficiency at the Paper Division and higher realisations together with a better product mix at the Cable Division." He stated that the company remains committed to further optimizing operational efficiencies to deliver sustainable long-term growth.

The financial figures presented in the press release have been rounded off to the nearest whole number where applicable, as per standard reporting practices.

West Coast Paper Mills reported a significant turnaround in profitability for Q1FY26, with standalone net profit jumping 165% year-on-year to ₹1,086.81 lakh from ₹410.47 lakh in the corresponding period last year. The company's consolidated net profit attributable to owners rose 145% to ₹1,334.92 lakh, reflecting robust demand in its core segments and effective cost management. On a consolidated basis, net profit stood at ₹1.33B versus ₹544M in the year-ago period, underscoring the breadth of the earnings recovery across the group.

The Board of Directors approved the unaudited financial results on August 12, 2026, pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by Singhi & Co., the statutory auditors, who issued a limited review report confirming that the statements comply with Ind AS 34 and contain no material misstatements. Executive Director Rajendra Jain signed off on the filings, which were simultaneously submitted to the BSE and NSE.

Financial Highlights

Standalone revenue from operations grew 14.8% to ₹63,809.58 lakh, while consolidated revenue expanded to ₹1,05,125.98 lakh from ₹95,000M in the year-ago period — reflecting a 10.5B versus 9.5B rupee trajectory on a consolidated basis. The profit before tax (PBT) for the standalone entity surged to ₹13,657.38 lakh from ₹5,938.92 lakh in Q1FY25. Consolidated PBT more than doubled to ₹18,124.65 lakh from ₹8,633.63 lakh, indicating strong top-line and bottom-line momentum across the group. A notable highlight was the sharp improvement in operating profitability, with consolidated EBITDA rising to ₹2.03B from ₹1.10B year-on-year, and EBITDA margin expanding significantly to 19.34% from 11.6%.

Segment Performance

The growth was primarily fueled by the Telecommunication Cables segment, which saw a dramatic improvement in profitability. Standalone revenue from this segment nearly doubled to ₹13,279.23 lakh from ₹6,857.81 lakh, with segment profit soaring to ₹6,639.34 lakh from just ₹39.31 lakh in the prior year. Consolidated cable revenue also jumped to ₹15,218.50 lakh from ₹7,394.11 lakh. While this segment accounts for only about 20% of standalone revenue, it contributed over 48% of the total standalone segment profit in Q1FY26, compared to less than 1% in the same period last year — highlighting its growing role as a primary earnings driver.

The Paper and Paper Board segment, the company's largest contributor, maintained steady performance. Standalone revenue stood at ₹50,529.23 lakh, up slightly from ₹48,725.30 lakh. Consolidated paper revenue reached ₹89,906.36 lakh, compared to ₹88,067.36 lakh in Q1FY25. The segment's standalone profit remained robust at ₹6,211.81 lakh.

Operational Updates

The filing disclosed operational disruptions at subsidiary Andhra Paper Limited (APL). Operations at the Kadiyam Unit were temporarily suspended from April 27, 2026, due to an illegal strike by contract workmen. A lockout declared on May 01, 2026, was revoked on May 29, 2026. Manufacturing partially resumed on July 15, 2026, with the unit currently operating at approximately 93% capacity. Management stated it is taking necessary measures to restore full operations.

The statutory auditors, Singhi & Co., noted that they did not review the financial information of three subsidiaries, including West Coast Opticable Limited, Andhra Paper Limited, Wesco Defense Limited, and Uniply Decoré Limited, relying instead on reports from other auditors. These subsidiaries reported combined revenue of ₹41,401.75 lakh and net profit after tax of ₹3,590.63 lakh for the quarter.