Kuantum Papers Q1 FY27: standalone PAT falls 48% YoY to ₹6.2 Cr despite 36% revenue growth
PAT -48.34% YoY · revenue +36.26% · margins compressing
₹303.75 Cr
+36.26% YoY
₹6.23 Cr
-48.34% YoY
2.03%
-3.4pp YoY
₹0.71
Kuantum Papers' standalone Q1 FY27 (quarter ended June 30, 2026) print is a margin story, not a growth one. Revenue from operations rose 36.3% YoY to ₹303.75 Cr (₹222.92 Cr in Q1 FY26) — though almost flat sequentially at +0.9% versus ₹300.94 Cr in Q4 FY26 — while standalone PAT fell 48.3% YoY to ₹6.23 Cr (₹12.06 Cr a year ago) and 56.6% QoQ (₹14.34 Cr). PBT dropped 33.7% YoY to ₹10.77 Cr. No consolidated figures exist since the company has no subsidiaries or JVs, so standalone is the only and primary basis.
Q1 FY-2027 vs prior quarters
The compression sits almost entirely on the cost side. Cost of materials consumed jumped 71.2% YoY to ₹129.34 Cr, cost of chemicals consumed rose 43.5% YoY to ₹60.35 Cr, and power & fuel expense climbed 44.8% YoY to ₹41.95 Cr — all comfortably outpacing the 36% revenue increase. Finance costs added further drag, up 39.9% YoY to ₹14.53 Cr. Net result: net profit margin fell to roughly 2.1% of revenue from 5.4% YoY (4.8% QoQ), and EBITDA margin (PBT + finance costs + depreciation, over revenue) slid to about 14.1% from roughly 18.1% YoY and 15.9-16.3% QoQ — a clear margin-trend reversal after a stronger Q4.
The stock went into the print at ₹84.25, up 9.6% over the past month of trading.
For context: revenue is at a 6-quarter high.
What the summary numbers don't show
Basic EPS ₹0.71, down from ₹1.38 YoY and ₹1.64 QoQ.
Management provided a positive outlook for the next 2-3 years, projecting a turnover in the range of INR 1,600 to 1,700 crores and EBITDA margins between 18% to 20%. They anticipate a significant increase in manufacturing and selling volumes to approximately 2,30,000 tons annually, a 40-50% growth. The company expects
— This quarter: missed
Management's own FY27 outlook, reiterated after Q4 FY26 results, projected full-year revenue of ₹1,400-1,500 Cr and an 18-20% EBITDA margin, with analysts penciling in 15-20% FY27 PAT growth; industry commentary at the time also flagged a pricing recovery from reduced dumping heading into Q1 FY27 (The Pulp and Paper Times). Against that, Q1's ~14.1% EBITDA margin and a YoY PAT decline sit below where the guided trajectory implies the year should be tracking, even allowing for one quarter out of four. No brokerage-specific PAT estimate for this exact quarter turned up in search, so vsStreet is marked unknown rather than guessed. The company disclosed no management press release beyond the filing itself, so there is no additional framing to reconcile.
W1
FY27 guidance calls for ₹1,400-1,500 Cr revenue and 18-20% EBITDA margin — Q1's ~14.1% margin needs sharp recovery over the next three quarters to stay on track.
W2
Paper Machine-3 upgrade completion and its effect on volumes and per-unit costs once fully back online.
W3
Use and impact of the ₹100 Cr NCD raise — whether it funds capex or working capital, and its effect on finance costs given they already rose 39.9% YoY.
Standalone only — company has no subsidiaries/JVs so consolidated results are not applicable (per Note 5 of the filing). No exceptional items disclosed. Entire Q1 tax charge (₹4.54 Cr) is deferred tax; current tax was nil vs ₹0.70 Cr in Q1 FY26.
Informational and educational content only. Not investment advice.