Emami Paper Q1 FY27: PAT jumps to ₹38.6 Cr as margins expand, revenue up 22% YoY
PAT +511.89% YoY · revenue +21.84% · margins expanding
₹560.16 Cr
+21.84% YoY
₹38.61 Cr
+511.89% YoY
6.89%
+5.5pp YoY
₹6.21
Emami Paper Mills reported a standalone Q1 FY27 (quarter ended 30 June 2026) that improved on every line. Revenue from operations rose 21.8% YoY to ₹560.16 Cr (from ₹459.76 Cr) and 12.8% sequentially (from ₹496.41 Cr in Q4 FY26). Net profit came in at ₹38.61 Cr, more than six times the depressed ₹6.31 Cr of the year-ago quarter and up 22.6% QoQ from ₹31.50 Cr. Basic EPS was ₹6.21 versus ₹0.84 a year ago. The steep YoY profit jump is genuine operating recovery, not an accounting artefact — there was no exceptional item in either the current or the year-ago quarter (the ₹1.25 Cr labour-code exceptional charge sat only in Q4 FY26).
Q1 FY-2027 vs prior quarters
The story is margin expansion. Net profit margin widened to 6.89% from 1.37% a year ago and 6.17% last quarter, while operating margin (EBITDA basis) improved to roughly 14.8% from about 8.2% in Q1 FY26. The bridge sits on cost-of-materials leverage: raw-material consumption was ₹352.84 Cr against revenue of ₹560.16 Cr (63.0% of sales) versus ₹312.30 Cr on ₹459.76 Cr (67.9%) a year ago — a near-5-point gross-margin swing that flowed straight to the bottom line. Power and fuel (₹34.00 Cr) and employee costs (₹23.94 Cr) stayed broadly flat, and finance costs held at ₹16.96 Cr, so the topline growth carried through with minimal cost inflation. Other income was negligible at ₹0.21 Cr, so this is an operationally-driven print, not a one-off gain.
The stock went into the print at ₹117, up 35.5% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.
The company operates a single reportable segment (paper and paperboard including newsprint) and has no subsidiaries, so only standalone figures exist — there is no consolidated number to reconcile against. Emami Paper gives no formal guidance and no analyst consensus is published for this smallcap, so the result cannot be scored against street or management targets. Alongside the results, the board noted upcoming redemptions of two OCRPS tranches — ₹45 Cr due 31 July 2026 and ₹78.75 Cr due 16 September 2026, ₹123.75 Cr in total — a cash-outflow item worth tracking against the quarter's improved earnings run-rate.
W1
Whether the ~5-point raw-material gross-margin gain (materials at 63.0% of sales) holds as pulp/waste-paper input prices move next quarter
W2
Cash impact of the ₹123.75 Cr OCRPS redemptions (Jul & Sep 2026) against the ₹38.6 Cr quarterly profit run-rate
W3
Sustainability of the 6.89% net margin after a year-ago base of just 1.37% — confirm in Q2 FY27
Clean digital filing, standalone only (note 6: no subsidiary/associate, consolidated N/A). No exceptional item this quarter (the Rs 1.25 Cr labour-code exceptional was in Q4 FY26 only). TotalIncome 560.37 = 560.16+0.21; PAT 38.61 = PBT 53.26 - tax 14.65. Both checks pass.