Company Overview

Kuantum Papers Ltd is a leading agro and wood-based paper manufacturer that began operations in 1980 in Hoshiarpur, Punjab. The company started with 30 TPD capacity and has expanded to currently operate at 540 TPD. The fully integrated manufacturing facility spans 259 acres. Its product portfolio includes writing and printing papers such as maplitho, cream wove, and specialty products like thermal paper, bond paper, parchment paper, and base paper for cups and straws, with a GSM range of 40–200. The company serves 120+ dealers across India and exports to 26 countries. Marquee clients include Macmillan Education India, McGraw Hill Education India, Oxford University Press, and HT Media. The Social Farm Forestry Program covers 22,000+ acres of wood plantations, with an aim to expand to 75,000 acres by 2030.

Q2-FY27 Financial Performance

  • Operational Income: INR 2,791 Mn, decreased by 0.2% YoY (vs. INR 2,797 Mn in Q2-FY26) and decreased by 8.1% QoQ (vs. INR 3,038 Mn in Q1-FY27)
  • Total Expenses: INR 2,446 Mn, decreased by 0.3% YoY and 7.2% QoQ
  • EBITDA: INR 345 Mn, increased by 0.3% YoY (vs. INR 344 Mn) but decreased by 14.0% QoQ (vs. INR 401 Mn)
  • EBITDA Margins: 12.36%, increased by 6 bps YoY (vs. 12.30%) but decreased by 84 bps QoQ (vs. 13.20%)
  • Other Income: INR 29 Mn, increased by 31.8% YoY (vs. INR 22 Mn) and remained flat QoQ
  • Depreciation: INR 197 Mn, increased by 20.9% YoY (vs. INR 163 Mn) and 11.3% QoQ (vs. INR 177 Mn)
  • Finance Cost: INR 165 Mn, increased by 38.7% YoY (vs. INR 119 Mn) and 13.8% QoQ (vs. INR 145 Mn)
  • PBT: INR 12 Mn, decreased by 85.7% YoY (vs. INR 84 Mn) and 88.9% QoQ (vs. INR 108 Mn)
  • Tax: INR (10) Mn credit, compared to INR 26 Mn expense in Q2-FY26 and INR 46 Mn expense in Q1-FY27
  • Profit After Tax: INR 22 Mn, decreased by 62.1% YoY (vs. INR 58 Mn) and 64.5% QoQ (vs. INR 62 Mn)
  • PAT Margins: 0.79%, decreased by 128 bps YoY (vs. 2.07%) and 126 bps QoQ (vs. 2.05%)
  • Diluted EPS: INR 0.26, decreased by 60.6% YoY (vs. INR 0.66) and 63.4% QoQ (vs. INR 0.71)

H1-FY27 Financial Performance

  • Operational Income: INR 5,829 Mn, increased by 16.0% YoY (vs. INR 5,026 Mn in H1-FY26)
  • Total Expenses: INR 5,083 Mn, increased by 18.8% YoY
  • EBITDA: INR 746 Mn, decreased by 0.3% YoY (vs. INR 748 Mn)
  • EBITDA Margins: 12.80%, decreased by 208 bps YoY (vs. 14.88%)
  • Other Income: INR 59 Mn, increased by 63.9% YoY (vs. INR 36 Mn)
  • Depreciation: INR 374 Mn, increased by 18.7% YoY (vs. INR 315 Mn)
  • Finance Cost: INR 311 Mn, increased by 39.5% YoY (vs. INR 223 Mn)
  • PBT: INR 120 Mn, decreased by 51.2% YoY (vs. INR 246 Mn)
  • Tax: INR 35 Mn, decreased by 48.5% YoY (vs. INR 68 Mn)
  • Profit After Tax: INR 85 Mn, decreased by 52.2% YoY (vs. INR 178 Mn)
  • PAT Margins: 1.46%, decreased by 208 bps YoY (vs. 3.54%)
  • Diluted EPS: INR 0.97, decreased by 52.5% YoY (vs. INR 2.04)

Operational Highlights

  • Q2 Sales Volume: 40,162 MT (Q2-FY27), compared to 42,644 MT (Q2-FY26) and 42,922 MT (Q1-FY27)
  • H1 Sales Volume: 83,084 MT (H1-FY27), compared to 74,374 MT (H1-FY26)
  • Q2 operational income decline attributed to planned shutdown of one Paper Machine line for upgradation and modernization
  • EBITDA margin resilience despite headwinds from lower net sales realization (seasonally lean demand) and higher raw material/fuel costs due to ongoing West Asia War

Mill Expansion and Upgradation

  • Paper Machine 3 successfully commissioned on 26th August 2026 in 59 days (vs. planned 65 days)
  • Rebuild included new technologies: film press, I-table, table vision, web break monitoring, state-of-the-art calendar system, and automatic starch cooking module
  • All 4 paper machines now successfully upgraded
  • Implementation of Displacement Digester System (DDS) for wood pulping resulted in 1.0% improvement in pulp yield and reduction in steam consumption from 1.8 MT to 0.8 MT

Plant Updates

  • Achieved highest-ever copier paper production of 4,482 MT in August 2026
  • Major overhauling of 20 MW Turbine Generator and 130 TPH boiler undertaken to improve efficiency and reduce energy consumption
  • Implemented single-vendor chemical solution under TCM (Total Cost Management) concept across pulp mills, resulting in savings

New Product Development

  • R&D completed and production protocol established for PFAS-free 40 GSM Oil & Grease Resistant (OGR) paper for food wrapping

Environment and Sustainability

  • Achieved highest-ever clonal sapling production of 17.93 lakh in Q2-FY27
  • Added 2,387 acres of social farm forestry in Q2-FY27, taking total area under plantation to 22,000+ acres

Historical Financial Performance

| Particulars (INR Mn) | FY24 | FY25 | FY26 | H1-FY27 |

| Operational Income | 12,113 | 11,070 | 10,932 | 5,829 |

| EBITDA | 3,330 | 2,426 | 1,618 | 746 |

| EBITDA Margins (%) | 27.49% | 21.92% | 14.80% | 12.80% |

| Profit After Tax | 1,838 | 1,152 | 420 | 85 |

| PAT Margins (%) | 15.17% | 10.41% | 3.84% | 1.46% |

| Diluted EPS (INR) | 21.07 | 13.20 | 4.81 | 0.97 |

Balance Sheet Highlights (H1-FY27)

  • Total Assets: INR 25,595 Mn
  • Property, plant and equipment: INR 20,660 Mn
  • Capital work-in-progress: INR 1,390 Mn
  • Inventories: INR 1,502 Mn
  • Cash and Cash equivalents: INR 608 Mn
  • Total Equity: INR 12,150 Mn
  • Borrowings (Non-Current): INR 7,087 Mn
  • Borrowings (Current): INR 2,529 Mn
  • Total Liabilities: INR 13,445 Mn

Market Data (as of 30th September, 2026)

  • Face Value: INR 1.0
  • Market Price: INR 77.7
  • 52 Week H/L: INR 114.0/65.5
  • Market Cap: INR 6,776.9 Mn
  • Equity Shares Outstanding: 87.3 Mn
  • 1 Year Avg Trading Volume: 89,700

Future Growth Strategy

  • Debottlenecking and upgrading plant operations to increase production capacity by ~50%
  • Leveraging single-use plastic ban by developing specialty products portfolio
  • Exploring technology in specialty/tissue paper segment for diversification
  • Harnessing Industry 4.0 including IoT, AI and cloud computing for operational efficiency
  • Augmenting Clonal Propagation Center capacity to produce 1 crore clones annually by 2030

Disclaimer and Investor Contact

The presentation includes standard forward-looking statements disclaimer noting that it contains beliefs and assumptions of management expressed in good faith. Valorem Advisors is listed as the Independent Investor Relations Management Service company. Contact: Mr. Anuj Sonpal, Valorem Advisors, Tel: +91-22-35075100, Email: anuj@valoremadvisors.com.