KUANTUM Q4 FY26 earnings call.
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Revenue
₹301 Cr
verification pending
Revenue YoY
—
reported change
EBITDA
₹48 Cr
latest reported figure
Source
manual review required
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Kuantum Papers reported Q4 FY26 operational income of INR 301 crore with EBITDA at INR 48 crore (15.9% margin, +234bps QoQ) and PAT at INR 14 crore (4.75% margin). The company achieved 22% QoQ EBITDA growth driven by improved NSR of INR 37,000/ton, though partially offset by INR 2,000/ton cost inflation. Full-year FY26 revenue stood at INR 1,093 crore (down 1% YoY) with EBITDA margin at 14.8% and PAT margin at 3.84%. Management targets 1.4 lakh-1.5 lakh tonne volume ramp to 2.3 lakh tonnes by FY28, expecting revenue to reach INR 1,600-1,700 crore. Debt stands at INR 720 crore with peak projected at INR 650-675 crore by FY27 end. Key risks include wheat straw pricing volatility (up 50-60% YoY), import dumping from China/Indonesia, and nil GST impact on notebooks (reduced from 22% to 7-8% of sales). Capex completion expected by FY27 with 5-8% OPEX reduction from AI/Industry 4.0 initiatives.
Colored figures show movement against the previous available record.
Guidance to track
- Management projects revenue of INR 1,400-1,500 crore for FY27 as new capacity (PM3 upgrade, pulp mill) comes online, ramping up volumes to 2,30,000 tonnes annually.
- Full capacity utilization expected to drive revenue to INR 1,600-1,700 crore by FY28 with stable market pricing assumed.
- Management targets PAT margins of 18-20% over next 2-3 years as debt reduces by ₹100-200 crore annually and new machines lower production costs.
- Industry 4.0 and AI-based Project Nirman targeting 5-8% reduction in total manufacturing cost across all machines (pulp mill and chemical recovery included) by FY27.
Risks flagged
- Wheat straw prices increased 50-60% YoY due to crop impact from floods and diversion to fuel. Although prices expected to normalize by June with rice sowing season, this represents a material input cost risk.
- West Asia conflict may redirect surplus paper inventories from China and Indonesia to India at predatory pricing, aggravating existing dumping. Management expects anti-subsidy duty to provide relief by FY27 end.
- Zero GST on notebooks forced company to reverse input tax credits, making the segment unviable. Company reduced exposure from 22% to 7-8% and plans complete exit, requiring offset from higher-margin segments.
- Analyst raised concern that May price hikes are not fully succeeding in the market. Management acknowledged price increases had to be rolled back, though claiming stability at ₹69,000-70,000/tonne.
Key quotes
- Whatever competition is there, we will have to sort of partake in that. And one of the other ways in which we are going to offset is by coming out with differential qualities of paper by way of sort of specialty papers which has very niche applications.
- We are very confident that our existing network itself will be able to take on this additional capacity and selling this will not be I'm not foreseeing any kind of problem in this because one is our dealer network is very widely stretched into the entire country length and breadth.
- We have our hands full with the current expansion the plan for tissue project only stands deferred. It's not shelved. It's deferred for certain point of time till we get our entire operation in control and as debt under control.
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