Revenue surges 36%, but PAT halved—margin squeeze amid cost wars

Volume +35% to 42,922 MT, NSR up ₹3,400/ton QoQ supported claim

Delivered 13.2% OPM but NPM only 2.0%; YoY EBITDA flat contradicts prior 18–20% target path

Revised to ₹1,300 Cr+ citing West Asia, lower realizations, and cost pressure

Specialty at 18–19%, targeting 30%; incremental realization 5–6%, not yet achieved

Net margin compression ₹800/ton QoQ; ~50% of cost increase from West Asia conflict

Prior ₹1,400–1,500 Cr, now ₹1,300+ Cr (−₹100–200 Cr). Reason: lower price realization than expected, West Asia cost inflation persisting

Prior 18–20% target by year-end, now 16–18%. West Asia conflict, wheat straw cost pressures, limited price pass-through

FY28–29 peak at ₹1,500–1,650 Cr (vs prior ₹1,600–1,700 Cr FY28), citing commodity cycle extended downturn and margin recovery slower

Still targeting 30% by FY28–29 (18–19% currently), but timeline pushed. Incremental realization 5–6%, not yet achieved

Guidance is positive; EBITDA margins targeting 16–18% by year-end (now commissioned PM3 online). Previous 18–20% now 16–18%.

Peak ₹760–770 Cr, repayments ₹170–175 Cr/year next 2–3 years, to <₹300 Cr by end of 3 years.

50–50 split; sourcing within Punjab/neighboring states, no availability issues.

Diminishing imports due to logistics/shipping costs, pricing stable. No major competition expected.

Targeting +20% EBITDA on specialty; 5–6% initial realization uplift from specialty grades.

Prices higher than Q4, stabilized at current levels, no further rise expected. Wheat straw coming down Q2 vs Q1.

FY26–27 repayment ₹170 Cr, by 3 years debt to ₹300–350 Cr. Growth capex necessary; investments must fruit before profit retained.

NSR up ₹4,000/ton Y-o-Y (7% growth), not flat. Current ₹68–69K/ton targeting ₹72–75K/ton next 4–6 months.

Reducing notebook paper production; minimizing impact. Passed GST loss to customers; no real complexity.

Already filed ADD and anti-subsidy applications; coordinating with govt, hopeful of favorable outcome.

Q1 prior year had machine shutdown; Q1 FY27 vs Q4 FY26 production slightly up due to machine efficiency gains.

Yes, filing is on writing/printing paper segment, covers all GSM 40–140 Kuantum produces; 5-year protection expected.

Prior guidance assumed higher realizations; those are running below expectations. EBITDA margins strained by West Asia crisis, operational cost inflation. Conservative figures now.

Yes, continuous process; targeting 4–5% cost reduction by March 2028.

Working towards 30% target; currently 18–19% but efforts underway.

West Asia impacted all; our location in Punjab faces abnormally high raw material cost pressures locally. Gradual cost reduction underway.

Current: ₹1,400–1,500 Cr; FY23 realizations: >₹1,800 Cr (all 4 plants at peak capacity).

Yes, post PM3 commissioning within this month, all plants running at peak.

Primarily plant and scrap sales. Operational related; adds to reported EBITDA margin (14.4% ex-one-time).

Conservative ₹1,500 Cr; if pricing improves to ₹75K/ton could reach ₹1,600–1,650 Cr.

Input costs rising, not bottomed. Pricing has bottomed; expecting uptrends on margin recovery.

~50% from West Asia conflict; rest local sourcing. Out of ₹4,200, ₹3,400 passed on via price increase Q-o-Q.

Peak capacity at 100% paper machines operate ~330 days/year (35 days downtime). GSM mix also impacts output. ₹1,500–1,650 Cr is realistic.

Increasing specialty 5% annually, targeting 30%. But writing/printing legacy market strong; cannot abandon it overnight.

Yes, coming down. Q2 vs Q1 seeing reduction in procurement prices.

Pulp capacity increasing to 410–415 TPD. Filler ~150–180 TPD, imported pulp 40–50 TPD for product quality.

Q2 is leanest quarter, but pricing remained stable; no downward impact on our products.

$610–$620/ton; volumes not large enough to create negative impact.

Positive trend, stable or reducing 5–6%. Medium-term stable as rising labor/transport offset any base price decline.

Slack in inventory; pipelines relatively empty. Suggests demand surge coming, likely positive for pricing.

High-yielding, high-growth varieties; encouraging offtake trend. Target 40 lakh → 1 crore saplings/year in 3–4 years.

CSO clarified: not pure revenue play. Goal is reduce wood procurement cost. Future sustainability exercise when supply increases, will lower wood cost.

Driven by lower price realization than expected + West Asia cost pressures. Q1 delivered ₹304 Cr (~annualized ₹1,216 Cr base case); guidance implies acceleration H2.

Depends on pricing recovery from commodity low. Specialty ramp, AI cost cuts, full 4-machine operation assumed.

Q1 achieved 13.2%, guidance implies 300–500 bps improvement via raw material cost stabilization + specialty mix improvement + operational efficiency.

Dependent on commodity pricing recovery + successful specialty ramp + AI opex cuts 4–5%; West Asia conflict persistence is downside risk.

PM3 rebuild/commissioning on track; pulp capacity to 410–415 TPD. No major capex post-FY27.

Q1 cost inflation ₹4.2K/ton only 81% passed (₹3.4K/ton), net margin squeeze ₹0.8K/ton. Specialty ramp (18–19% mix) insufficient to offset bulk paper pricing pressure.

Peak debt ₹760–770 Cr, annualized interest >₹60–70 Cr consumes PAT; ₹6.2 Cr Q1 PAT insufficient to service debt + repay ₹175 Cr/year. Default risk low but leverage constrains returns.

Paper is commodity; import competition from China (despite antidumping efforts). Writing/printing segment seeing 1–3% CAGR demand; realization ₹68–69K/ton vs ₹75K+ aspirational. Limited ability to raise prices without volume loss.

PM3 rebuild on track for Aug 2026, but EC clearance still pending. Specialty paper 18–19% mix vs 30% target; ramp slower than guided. Peak capacity ₹1,500–1,650 Cr revenue assumes 330 working days, specific GSM mix; actual utilization may fall short.

Maplitho segment hit by inverted GST post-rate change; company reducing footprint but impact still material. ADD case filed but approval uncertain; 5-year horizon. EC clearance for PM3 delayed.