Kuantum Papers Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Kuantum Papers Ltd filed with BSE on 01 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Kuantum Papers reported Q4 FY26 operational income of INR301 crores with EBITDA of INR48 crores and EBITDA margins of 15.90%, alongside completion of the Paper Machine 2 rebuild and progress on the Displacement Digester System. For full year FY26, operational income was INR1,093 crores with EBITDA of INR162 crores and PAT of INR42 crores, reflecting continued pressure from cheaper imports and elevated input costs. Management discussed capacity expansion plans, an antidumping and anti-subsidy application, and gradual reduction of exposure to the notebook paper segment following the GST change.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Operational income: INR301 crores (Q4 FY26)
p. 4
“operational income stood at INR301 crores, registering a sequential growth of 4%, primarily driven by an improved NSR of INR3,700 per metric ton”
Vikram Kumar Khaitan, page 4 of the filed PDF · View the filing
EBITDA: INR48 crores (Q4 FY26)
p. 4
“EBITDA for the quarter stood at INR48 crores, reflecting a strong growth of 22% quarter-on-quarter, while EBITDA margins improved significantly to 15.90%, representing an expansion of 234 basis points on quarter-on-quarter basis”
Vikram Kumar Khaitan, page 4 of the filed PDF · View the filing
Profit after tax: INR14 crores (Q4 FY26)
p. 4
“Profit after tax for the quarter stood at INR14 crores, registering a healthy growth of 46% quarter-on-quarter with PAT margins improving to 4.75%, an expansion of 137 basis points sequentially”
Vikram Kumar Khaitan, page 4 of the filed PDF · View the filing
Operational income: INR1,093 crores (FY26)
p. 4
“For the financial year 2025-'26, operational income stood at INR1,093 crores, reflecting a marginal decline of 1% year-on-year despite phased and strategic shutdowns of 3 Paper”
Vikram Kumar Khaitan, page 4 of the filed PDF · View the filing
Production volume: 1,62,885 metric tons (FY26)
p. 5
“the company maintained a healthy production volume of 1,62,885 metric tons”
Vikram Kumar Khaitan, page 5 of the filed PDF · View the filing
EBITDA margin: 14.80% (FY26)
p. 5
“EBITDA for the year stood at INR162 crores, with EBITDA margins at 14.80%, which is healthy in the present market scenario, although on a lower side year-on-year basis”
Vikram Kumar Khaitan, page 5 of the filed PDF · View the filing
Profit after tax: INR42 crores (FY26)
p. 5
“Profit after tax for the year stood at INR42 crores, translating into PAT margins of 3.84%”
Vikram Kumar Khaitan, page 5 of the filed PDF · View the filing
Long-term debt: INR720 crores (as on 31st March)
p. 7
“On the debt position, as on 31st March, we have a long-term debt of INR720 crores”
Vikram Kumar Khaitan, page 7 of the filed PDF · View the filing
Plant utilization (OE levels): above 92% (Q4 FY26)
p. 6
“So on the utilization front, if we talk of the OE levels, so they are above 92%, and this is post expansion of all the 3 machines, PM 4, PM 1 and PM 2”
Jagdeep Hira, page 6 of the filed PDF · View the filing
Current pricing: between INR69,000 and INR70,000 per ton
p. 7
“we are being able to maintain our pricing at a healthy level of about between INR69,000 and INR70,000 per ton, and it's working well and stable for us”
Pavan Khaitan, page 7 of the filed PDF · View the filing
Social farm forestry area added: 854 acres (Q4 FY26)
p. 4
“we added 854 acres of social farm forestry during the quarter, taking the total area under plantation to more than 18,300 acres and benefiting over”
Pavan Khaitan, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Sales volume — about 2,30,000 tons
stated as an aspiration by Pavan Khaitan
p. 8
“We should be manufacturing and selling about 2,30,000 tons. So that's the kind of increase that we are expecting, which is about between 40% to 50%”
Pavan Khaitan, page 8 of the filed PDF · View the filing
Top line revenue — INR1,600 crores to INR1,700 crores
stated as an aspiration by Pavan Khaitan
p. 8
“you can expect the top line to be in the range of INR1,600 crores to INR1,700 crores thereabouts”
Pavan Khaitan, page 8 of the filed PDF · View the filing
EBITDA margin — 18% to 20%
stated as an aspiration by Pavan Khaitan
p. 8
“And profit dimension, I think we should try and touch about between 18% to 20% EBITDA”
Pavan Khaitan, page 8 of the filed PDF · View the filing
Top line revenue — INR1,400 crores to INR1,500 crores · FY27
stated as an aspiration by Pavan Khaitan
p. 9
“FY27, it will be like about INR1,400 crores to INR1,500 crores and then gradually inch up to”
Pavan Khaitan, page 9 of the filed PDF · View the filing
Peak debt — between 650 to 675 · by end of 2027
stated firmly by Vikram Kumar Khaitan
p. 7
“So the peak debt will be in between 650 to 675 by end of 2027”
Vikram Kumar Khaitan, page 7 of the filed PDF · View the filing
Debt reduction — between INR100 crores to INR200 crores per year
stated firmly by Pavan Khaitan
p. 8
“And every year, it is going to reduce by between INR100 crores to INR200 crores”
Pavan Khaitan, page 8 of the filed PDF · View the filing
Capex — around INR125 crores remaining · FY26-27
stated firmly by Vikram Kumar Khaitan
p. 7
“we have already the remaining capex of around INR125 crores, which will be expensed out during this year”
Vikram Kumar Khaitan, page 7 of the filed PDF · View the filing
Annual debt repayment — INR170 crores to INR180 crores per year · next 2, 3 years
stated firmly by Vikram Kumar Khaitan
p. 12
“Annual repayment is almost in between INR170 crores to INR180 crores per year in next 2, 3 years”
Vikram Kumar Khaitan, page 12 of the filed PDF · View the filing
PM3 upgradation commissioning — mid-June
stated firmly by Pavan Khaitan
p. 6
“So, it's on -- planning it in by mid-June”
Pavan Khaitan, page 6 of the filed PDF · View the filing
Operating cost reduction from AI/mill-wide initiatives — 5% to 8% of total cost of manufacturing · next 1 year
stated as an aspiration by Jagdeep Hira
p. 11
“we look forward at around 5% to 8% of total cost of manufacturing coming down from the existing levels”
Jagdeep Hira, page 11 of the filed PDF · View the filing
Specialty paper share of capacity — 25% to 30%
stated as an aspiration by Pavan Khaitan
p. 10
“we are going to look at having about 25% to 30% of our entire capacity sort of catering to specialty needs”
Pavan Khaitan, page 10 of the filed PDF · View the filing
Anti-subsidy application resolution — this financial year-end
stated conditionally by Pavan Khaitan
p. 9
“we are expecting that to be processed and come to fruition by, let's say, this year-end or by this financial year-end”
Pavan Khaitan, page 9 of the filed PDF · View the filing
Capex plans — no new capex · FY27/FY28
stated firmly by Pavan Khaitan
p. 6
“After this round of capex, we are not really foreseeing any other capex or any kind of investment happening”
Pavan Khaitan, page 6 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said West Asia crisis freight costs had delayed volume inflows in Q4, which helped domestically, but the impact could resume once the crisis eases.
Answered by Pavan Khaitan
Asked by Saania Jain: Are import pressures from China/Indonesia already visible in the market and will they cause pricing pressure?
p. 5
“the volumes incoming in Q4 did not happen, and that kind of helped us out in the industry a bit”
Pavan Khaitan, page 5 of the filed PDF · View the filing
Management said pulp prices are currently $600-700 per ton and expected to remain range-bound due to added global capacity.
Answered by Pavan Khaitan
Asked by Saania Jain: What is the current global pulp pricing outlook?
p. 5
“currently, pulp pricing is in the range of $600 to $700 per ton depending on whether it's hardwood pulp or softwood pulp”
Pavan Khaitan, page 5 of the filed PDF · View the filing
Management confirmed a delay due to import of German parts affected by the global crisis.
Answered by Jagdeep Hira
Asked by Parth: Has the PM3 upgradation timeline slipped?
p. 6
“Yes, it has been delayed a bit because of the global crisis. So major parts are from Germany, which is import”
Jagdeep Hira, page 6 of the filed PDF · View the filing
Management guided to volumes rising to around 2,30,000 tons and top line of INR1,600-1,700 crores with EBITDA margin of 18-20%.
Answered by Pavan Khaitan
Asked by Rajesh Bhandari: What turnover and profit can be expected over the next 2-3 years?
p. 8
“We should be manufacturing and selling about 2,30,000 tons”
Pavan Khaitan, page 8 of the filed PDF · View the filing
Management said its wide dealer network and specialty paper focus would allow absorption without major competitive issues.
Answered by Pavan Khaitan
Asked by Rishi Mody: How will the new capacity be absorbed given weak demand?
p. 10
“our dealer network is very widely spread, widely sort of penetrated into the entire country length and breadth”
Pavan Khaitan, page 10 of the filed PDF · View the filing
Management said the lean season would dampen pricing near-term but expected a reversal from around September.
Answered by Pavan Khaitan
Asked by Saurabh: How is April-May tracking versus Q4 in terms of realization and profitability?
p. 13
“I think this is a lean season, the next 2, 3 months. And historically also, we see dampening in pricing”
Pavan Khaitan, page 13 of the filed PDF · View the filing
Management said the project is deferred, not shelved, until debt levels are brought under control.
Answered by Pavan Khaitan
Asked by Madhur Rathi: What is the status of the tissue paper plant project?
p. 14
“The plan for tissue project only stands deferred. It's not shelved.”
Pavan Khaitan, page 14 of the filed PDF · View the filing
Management said the share has fallen to 7-8% from about 22% before the GST change, and will eventually be eliminated.
Answered by Pavan Khaitan
Asked by Saurabh: What is the notebook paper share of overall sales now?
p. 13
“we are already down to about 7% to 8%”
Pavan Khaitan, page 13 of the filed PDF · View the filing
Risks flagged
Elevated energy and fuel costs due to West Asia conflict
p. 3
“Energy costs stayed elevated through much of the quarter, driven by the ongoing geopolitical conflict in West Asia, which not only pushed up fuel and power pricing, but also disrupted established trade corridors”
Pavan Khaitan, page 3 of the filed PDF · View the filing
Low-priced import pressure depressing domestic pricing
p. 3
“Low-priced import pressures persisted throughout the year, resulted in lowering of pricing in the domestic market”
Pavan Khaitan, page 3 of the filed PDF · View the filing
Risk of trade diversion from China and Indonesia at predatory pricing
p. 3
“the West Asia crisis has also created the risk of trade diversion with export-oriented paper producers from China and Indonesia potentially redirecting surplus inventories to India at predatory pricing, aggravating the existing dumping in the domestic market”
Pavan Khaitan, page 3 of the filed PDF · View the filing
Rising input costs per metric ton due to raw material, chemical and fuel prices
p. 4
“input costs increased by nearly INR2,000 per metric ton due to higher raw material, chemical and fuel prices amid the ongoing West Asia conflict”
Vikram Kumar Khaitan, page 4 of the filed PDF · View the filing
Nil GST structure on notebook segment impacting market sentiment
p. 5
“the nil GST structure on the notebook segment also continued to impact market sentiment”
Vikram Kumar Khaitan, page 5 of the filed PDF · View the filing
Higher wheat straw pricing due to scarcity and flood impact on crop
p. 7
“Wheat straw has been a bit challenging during the open of the season, primarily coming from two factors. One is the flood-like situation during the last year which has impacted the crop and the availability was lesser at the fag end of the season”
Jagdeep Hira, page 7 of the filed PDF · View the filing
Elevated chemical input costs not fully passed on
p. 7
“So this is a bit of a temporary stage where we see the input chemical cost has risen in some chemicals, not all by around 3% to 5%. So right now, pushing that, looking at the market scenario is a bit difficult”
Jagdeep Hira, page 7 of the filed PDF · View the filing
Higher wheat straw pricing compared to last year
p. 13
“Wheat straw pricing is higher by about 50%, 60% compared to last year in a similar period”
Pavan Khaitan, page 13 of the filed PDF · View the filing
Seasonal lean period expected to dampen pricing
p. 13
“Going further, I think this is a lean season, the next 2, 3 months. And historically also, we see dampening in pricing.”
Pavan Khaitan, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.