Latest: Kuantum Papers Ltd Q2 FY27 (Jul–Sep 2026) results →This page is Q2 FY26 (Jul–Sep 2025).All Q2 FY26 results →

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Kuantum Papers Ltd

Q2 FY26Paper, Forest & Jute Products

Kuantum Papers Q2 FY26 earnings call: Revenue & Margins

Q2 FY26 earnings call: what management said on revenue, margins and capex.

Price₹74

Market cap₹701 Cr

P/E16.6

Updated23 Aug 2026

Read5 min read

The short version

FY'26 expected volume growth: Approx. Kuantum Papers expects volume growth of about 10% in the current year (FY25-26) due to upgradation of paper machines. - For FY26-27, volume growth is projected between 40% to 50%, driven by full-scale capacity utilization post-upgrades. - EBITDA margins are targeted to increase to around 18% to 20% in FY26-27 from current levels. - The company aims to keep EBITDA margins above 15% in the current financial year. - Cost of production is expected to reduce by 7% to 8% with efficiency improvements and better pulp yield. - Specialty paper segments, which fetch higher realizations, are expected to grow to 28%-30% of volumes, supporting margin expansion. - Profitability growth is linked to displacement of imports and product upgrades. - No major CAPEX planned beyond current Rs.

From Kuantum Papers Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

FY'26 expected volume growth: Approx. 10% increase over the previous year driven by upgraded paper machine 4 and planned upgrades of PM1, PM2, PM3.
FY'27 expected volume growth: 40% to 50% volume growth year-over-year as full capacity expansions and upgrades come online.
Revenue growth outlook: Positive growth anticipated due to volume increase and strategic focus on specialty papers rather than notebooks.
EBITDA margin targets: Aiming for 18% to 20% EBITDA margins for FY'27, with a goal to maintain above 15% in FY'26 despite current challenges.
Export contribution: Around 12%-15% of production is exported, supporting sales growth.

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Profitability & Margins

Kuantum Papers expects volume growth of about 10% in the current year (FY25-26) due to upgradation of paper machines.
For FY26-27, volume growth is projected between 40% to 50%, driven by full-scale capacity utilization post-upgrades.
EBITDA margins are targeted to increase to around 18% to 20% in FY26-27 from current levels.
The company aims to keep EBITDA margins above 15% in the current financial year.
Cost of production is expected to reduce by 7% to 8% with efficiency improvements and better pulp yield.
Specialty paper segments, which fetch higher realizations, are expected to grow to 28%-30% of volumes, supporting margin expansion.

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Capital Expenditure Plans

Current CAPEX: Rs. 735 crores focused on upgrading existing infrastructure (no greenfield expansion).
Rs. 340 crores for upgrading paper machines.
Around Rs. 200 crores for wood pulp mill upgradation.
Remaining for chemical recovery, power sector, and sustainability initiatives (water supply, effluent treatment).
CAPEX status:
About Rs. 435 crores already spent.
Purchase orders released for Rs. 200 crores more.
Approximately Rs. 300 crores left to spend in H2 FY26 and Q1 FY27.
Future plans:
No concrete new CAPEX planned beyond current Rs. 735 crores.
Possible expansion into specialty paper segments and tissue paper market considered.

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Fundraising & Capital Structure

Kuantum Papers Ltd. currently has a peak debt expected in the range of Rs. 600 to Rs. 650 crores on the term loan, with working capital between Rs. 50 to Rs. 80 crores.
The cost of debt is approximately 8.5% to 9%.
There is ongoing capitalization of interest cost related to capacity expansion projects, such as PM4.

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Order Book & Pipeline

Kuantum Papers Ltd. indicated a confident position with a very long-standing relationship with their dealers spanning three generations.
The company is not dependent on any singular paper mill for sourcing material, enabling flexibility.
They have a ready market for their products, expecting to largely sell all capacities once expansions/upgradations come online.
The company aims to replace some imported specialty grades with domestic products once new machines reach full speed.
Exports account for about 12% to 15% of overall production.

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Kuantum Papers Ltd — Quarterly revenue & net profit

Revenue Net profit

Jun 2025Q1 FY26

Sep 2025Q2 FY26

Dec 2025Q3 FY26

Mar 2026Q4 FY26

Jun 2026Q1 FY27

Sep 2026Q2 FY27

Reported quarterly figures (₹ Cr). Latest (Q2 FY27): revenue ₹279 Cr, net profit ₹2 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.

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What Kuantum Papers's management said in earlier quarters

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Frequently Asked Questions

What were Kuantum Papers Ltd Q2 FY26 results?

FY'26 expected volume growth: Approx. Kuantum Papers expects volume growth of about 10% in the current year (FY25-26) due to upgradation of paper machines. - For FY26-27, volume growth is projected between 40% to 50%, driven by full-scale capacity utilization post-upgrades. - EBITDA margins are targeted to increase to around 18% to 20% in FY26-27 from current levels. - The company aims to keep EBITDA margins above 15% in the current financial year. - Cost of production is expected to reduce by 7% to 8% with efficiency improvements and better pulp yield. - Specialty paper segments, which fetch higher realizations, are expected to grow to 28%-30% of volumes, supporting margin expansion. - Profitability growth is linked to displacement of imports and product upgrades. - No major CAPEX planned beyond current Rs.

What is Kuantum Papers Ltd share price analysis?

Kuantum Papers Ltd currently shows a neutral. The stock trades at a P/E of 16.6 with a market cap of ₹701 Cr. Investors should review the full earnings analysis for detailed insights.

Is Kuantum Papers Ltd planning capital expenditure?

Current CAPEX: Rs.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.