KUANTUM Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
₹290 Cr
verification pending
Revenue YoY
—
reported change
EBITDA
₹39 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Kuantum Papers reported Q3 FY26 operational income of INR 290 crore, up 4% sequentially, driven by INR 850/ton price improvement and 1,701 tons higher sales volume. EBITDA reached INR 39 crore (13.55% margin, +125bps QoQ) while PAT came in at INR 10 crore. The industry continues facing headwinds from low-priced imports, particularly from ASEAN nations landing at $680-750/ton, impacting realizations. Management expects Q4 to marginally outperform Q3 and targets INR 1,800 crore topline with INR 300 crore EBITDA upon full capacity utilization post-PM2 and PM3 upgradation (scheduled Feb and May 2026). Raw material costs remain elevated due to Punjab wheat straw scarcity from prior floods, though new harvest season starting April should provide relief. Plant utilization stands at ~100% with PM4 achieving record 8,758 MT monthly output in December 2025. Forward pricing indicators show 2,000-4,000 INR/ton industry-wide hikes expected, supporting margin recovery trajectory toward 20%+ levels. Risks include import competition, capacity oversupply concerns from JK Paper and others entering packaging segments, and dependency on continued price recovery.
Colored figures show movement against the previous available record.
Guidance to track
- Management guided that Q4 will be marginally better than Q3 (INR 290 crore) on back of already implemented price hikes of INR 2,000/ton with another INR 2,000/ton expected before month-end.
- Upon completion of all four machine upgradations (PM4, PM1, PM2, PM3), annualized topline target of INR 1,800 crore with EBITDA of INR 300 crore (16.7% margin), to be achieved in FY27-28.
- Management indicated normalized EBITDA per kg should climb to INR 15-17/kg (vs current ~INR 13.5/kg) as price hikes materialize and raw material costs moderate post-April harvest.
- PM2 upgrade (INR 45 crore) scheduled for February 2026 with 30-day shutdown; PM3 upgrade (INR 140 crore) in May 2026 with 45-day shutdown, part of INR 735 crore total program.
Risks flagged
- Low-priced imports from ASEAN countries (Indonesia, China) landing at $680-750/ton plus INR 4-5,000/ton freight to NCR continue to weigh on domestic industry sentiment and pricing power. Analyst raised overcapacity concerns from industry-wide expansion.
- Wheat straw prices elevated at INR 6,000-6,400/ton due to Punjab flood impact affecting availability; management expects pressure to continue in Q4 with relief only from April harvest onward. This directly impacts gross margin compression.
- Zero GST on notebooks forces reversal of input tax credit, costing the industry ~INR 7,500/ton. Management clarified this cost is being passed through via price increases, but creates customer negotiation pressure.
- Management declined to commit to 30% EBITDA margins, stating 20-22% is more realistic 'in years to come.' Q4 guidance is only 'marginally better' than Q3 rather than definitive improvement, reflecting uncertainty on realization recovery pace.
Key quotes
- We've already seen a downtrend for more than 2 years and the turn has already happened... I am confident personally that financials will get better, EBITDA margins and margins will get better for us.
- The impact of such events and situations [freight disruptions] are not felt anymore... We are insulated from the lower value exports happening and that is how it is impacting us lesser as compared to other players who are based in the south and the west.
- We will need to look at how this really evolves over a period of time and see how the market functions because you see we have China as a very big competitor. China's total paper industry volume is almost 10 times our size.
Research modules