Company Disclosure

Financial Results Highlights

Consolidated Performance (₹ in Crores)

  • Q2 FY27 Revenue: ₹1276.77, showing 21% growth from Q1 FY27 (₹1051.26)
  • Q2 FY27 EBIDTA: ₹223.54, declined 10% from Q1 FY27 (₹247.97)
  • Q2 FY27 PAT: ₹111.94, declined 21% from Q1 FY27 (₹141.84)
  • PAT Margin: 9% in Q2 FY27 vs 13% in Q1 FY27, a decline of 400 basis points
  • EPS: ₹16.77 in Q2 FY27 vs ₹20.21 in Q1 FY27, declined 17%

Standalone Performance (₹ in Crores)

  • Q2 FY27 Revenue: ₹812.97, showing 27% growth from Q1 FY27 (₹638.10)
  • Q2 FY27 EBIDTA: ₹182.99, increased 7% from Q1 FY27 (₹170.60)
  • Q2 FY27 PAT: ₹110.51, increased 2% from Q1 FY27 (₹108.68)
  • PAT Margin: 14% in Q2 FY27 vs 17% in Q1 FY27, a decline of 300 basis points
  • EPS: ₹16.73 in Q2 FY27 vs ₹16.45 in Q1 FY27, increased 2%

Management Commentary

Mr. S.K. Bangur, Chairman & Managing Director, stated that higher input costs impacted the Paper Division's performance during the quarter. However, the Cable Division showed improvement driven by better operational efficiency, higher realizations, and optimized product mix. The company remains focused on improving operational efficiencies, optimizing product mix, strengthening cost competitiveness, and leveraging emerging market opportunities across both divisions.

Capacity Expansion Announcement

West Coast Optilinks (WCO), a division of West Coast Paper Mills Limited, received Board approval for significant capacity enhancement:

  • Optical Fiber Capacity Expansion: Additional 4.00 Mn Fiber Kms per annum
  • Optical Fiber Cable Capacity Expansion: Additional 3.10 Mn Fiber Kms per annum
  • Total Project Cost: ₹290 Crore
  • Completion Timeline: Expected by 3rd Quarter of FY 2028-29

Post-Expansion Capacity

Upon completion, WCO's manufacturing capacities will increase to:

  • Optical Fiber: 8.00 Mn Fiber Kms per annum (doubling from current capacity)
  • Optical Fiber Cable: 7.30 Mn Fiber Kms per annum (almost doubling from current capacity)
  • The expansion will include addition of new product line in Optical Fiber Cable

Funding Structure

The investment is proposed to be funded through an appropriate mix of internal accruals and/or debt financing through Banks and/or financial institutions.

Strategic Rationale

Mr. Virendraa Bangur, Joint Managing Director, stated that the expansion is aligned with company's growth strategy to cater to increasing demand in domestic and international markets. The enhanced capacities will strengthen the company's ability to meet growing customer requirements arising from hyperscale data centers, AI-enabled digital infrastructures, telecom network expansion & modernization, and defense applications.

Company Background

West Coast Paper Mills Limited, established in 1955, is one of India's oldest and largest producers of writing, printing and board paper based in Dandeli. The company also manufactures and exports optical fiber and optical fiber cable with state-of-the-art manufacturing facilities in Mysuru and Hyderabad.