Kuantum Papers LimitedQ2 FY27 Results & Financial Update
Kuantum Papers Limited: Q2 FY27 standalone results and company financials – revenue ₹279.10 Cr, PAT ₹2.24 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Kuantum Papers Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Kuantum Papers recorded operational income of INR 279.10 crore for the second quarter ended September 30, 2026, marking a sequential decrease from the preceding quarter primarily driven by a planned strategic shutdown for mill modernization.
Paper sales volume for Q2 FY27 stood at 40,162 metric tonnes, compared with 42,922 metric tonnes in Q1 FY27 and 42,644 metric tonnes in Q2 FY26, reflecting the volume impact of plant downtime during the machine rebuild.
Profit after tax (PAT) for the quarter came in at INR 2.24 crore, yielding a basic and diluted EPS of INR 0.26, while profit before tax (PBT) stood at INR 1.22 crore after factoring in finance costs of INR 16.54 crore and depreciation of INR 19.70 crore.
EBITDA margin demonstrated resilience at 12.36% (INR 34.5 crore), contracting by only 84 basis points sequentially despite the combined pressures of lower net sales realisations during the seasonally lean demand period and elevated raw material and fuel expenses.
The major operational highlight of the quarter was the successful commissioning of Paper Machine 3 on August 26, 2026, completed in a record span of 59 days against a planned 65-day shutdown, marking the successful modernization of all four paper manufacturing lines.
The company advanced its sustainability and supply chain backward integration initiatives by achieving its highest-ever quarterly clonal sapling production of 17.93 lakh saplings and expanding its social farm forestry footprint by 2,387 acres to surpass 22,000 total acres under plantation.
Kuantum Papers reported standalone revenue from operations of INR 279.10 crore for the quarter ended September 30, 2026 (Q2 FY27), accompanied by other income of INR 3.00 crore, bringing total income to INR 282.10 crore.
Net profit after tax (PAT) for the quarter stood at INR 2.24 crore, resulting in a basic and diluted earnings per share of INR 0.26.
01 · Business model
What does Kuantum Papers do?
Kuantum Papers Limited is a leading agro and wood-based paper manufacturer that commenced commercial operations in 1980 in Hoshiarpur, Punjab, starting at 30 TPD and currently operating at 540 TPD following continuous process upgrades and backward integration projects.
The company's manufacturing facility spans 259 acres in the Shivalik foothills, allowing strategic utilization of agricultural residues such as wheat straw, sarkanda, and bagasse alongside wood chips, veneer waste, and bamboo to produce writing, printing, and specialty paper grades.
Kuantum's portfolio encompasses maplitho, cream wove, and value-added specialty grades including thermal paper, bond paper, parchment paper, azure laid paper, cartridge paper, coloured paper, ledger paper, stiffener paper, and base paper for cups and straws within a GSM range of 40 to 200.
The company distributes its products through an order-based system via an extensive network of over 120 dealers across India, maintains a growing export footprint spanning 26 countries, and supplies marquee educational publishers and media houses.
02 · Historical context
What shaped the business before this quarter
Started commercial operations in 1980 with an initial capacity of 30 TPD in an economically backward village of Hoshiarpur, Punjab.
Scaled export operations over recent years to reach a footprint spanning 26 international countries by FY27.
Grew its Social Farm Forestry Program over prior years to encompass over 22,000 acres of wood plantations prior to the Q2 FY27 additions.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q2 FY27 |
|---|---|
| Revenue from operations | ₹279.10 Cr |
| Total income | ₹282.10 Cr |
| Profit before tax | ₹1.22 Cr |
| Profit after tax | ₹2.24 Cr |
| EPS | ₹0.26 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Operational income moderated to INR 279.10 crore due to scheduled downtime for the modernization and rebuild of Paper Machine 3.
Top-line performance reflected seasonally lean demand conditions during the monsoon quarter alongside lower net sales realisations.
Delivered total paper sales volume of 40,162 MT for the quarter, compared to 42,922 MT in Q1 FY27 and 42,644 MT in Q2 FY26.
Operational revenue was impacted during the quarter by the scheduled shutdown of Paper Machine 3 for modernization, lowering quarterly sales volume to 40,162 MT.
Encountered seasonally lean demand periods during the quarter that exerted downward pressure on net sales realisations across standard writing and printing paper grades.
Achieved highest-ever copier paper production of 4,482 MT in August 2026, capturing steady market demand for high-quality A4 office paper.
Generated INR 279.10 crore in revenue from operations for the quarter ended September 30, 2026.
Total income reached INR 282.10 crore, augmented by INR 3.00 crore in other income and INR 2.40 crore in interest income.
What drove margins
EBITDA margin held resilient at 12.36% (INR 34.50 crore), down by 84 bps sequentially despite input cost headwinds.
Margins absorbed higher raw material and fuel expenses driven by external geopolitical pressures stemming from the ongoing West Asia conflict.
Total Cost Management (TCM) single-vendor chemical solutions and pulp mill efficiency improvements helped cushion operating profitability.
Maintained high operating efficiency in the Chemical Recovery Plant, recovering over 95% of caustic soda to support cost reduction and pulp production runs.
Implemented a single-vendor chemical solution under the Total Cost Management (TCM) concept across both agro and hardwood pulp mills to secure cost savings.
Finance costs stood at INR 16.54 crore for the quarter, placing a heavy fixed servicing load on operating earnings.
Depreciation charges of INR 19.70 crore reflected the capital-intensive nature of the manufacturing infrastructure.
05 · Demand, customers & order book
Where demand is coming from
Retained long-standing commercial relationships with key educational publishers including Macmillan Education, Oxford University Press, and Pearson India.
Maintained multi-generational ties across a distributor network where many dealers have partnered with the company for over three decades.
Operates on a robust order-based manufacturing system working alongside a long-standing dealer network, with numerous dealer relationships extending beyond three decades.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Maintained an extensive product range covering maplitho, cream wove, copier, and value-added specialty grades for publishing and stationery.
Completed R&D and established production protocols for PFAS-free 40 GSM Oil & Grease Resistant (OGR) paper for food packaging applications.
Geography and market mix
Served customers across India via a network of over 120 dealers, leveraging proximity to northern consumption centers including the NCR.
Continued export shipments to an active footprint spanning 26 countries worldwide.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Successfully commissioned PM 3 on August 26, 2026, in 59 days (against a planned 65-day shut), completing the upgrade of all 4 paper machines.
Implementation of the Displacement Digester System (DDS) for wood pulping improved pulp yield by 1.0% and reduced steam consumption from 1.8 MT to 0.8 MT.
Completed major overhauls of the 20 MW Turbine Generator and 130 TPH boiler to enhance energy efficiency and reduce consumption.
Successfully commissioned Paper Machine 3 on August 26, 2026, in 59 days, incorporating advanced features like a film press, I-table, web break monitoring, and an automatic starch cooking module.
Projects, capex and execution
Integrated advanced technologies during the PM 3 rebuild, including film press, I-table, table vision, web break monitoring, advanced calendar systems, and automatic starch cooking.
Concluded the comprehensive modernization cycle across all four manufacturing lines, aligning plant infrastructure with long-term efficiency and quality targets.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Added 2,387 acres of social farm forestry in Q2 FY27 to take total plantation area past 22,000 acres, targeting 75,000 acres by 2030.
Achieved record clonal sapling production of 17.93 lakh in Q2 FY27 as part of long-term sustainable wood sourcing initiatives.
Achieved a milestone sapling production of 17.93 lakh clonal saplings in Q2 FY27, supporting the long-term goal of scaling up the propagation center to 1 crore annual clones.
Expanded plantation footprint by adding 2,387 acres of social farm forestry during the quarter, taking total plantation coverage past the 22,000-acre threshold.
09 · Reported developments
What changed operationally
Completed the major modernization shutdown of Paper Machine 3 six days ahead of schedule, ensuring timely resumption of operations.
Displacement Digester System deployment successfully delivered a 1.0% increase in pulp yield and a substantial reduction in steam consumption.
Completed the rebuilding of Paper Machine 3 ahead of schedule in 59 days, boosting overall asset reliability.
10 · Pressure points & risks
What is not going smoothly
Scheduled downtime for machine upgrades and seasonal demand softness led to lower operating revenue and reduced profitability compared to preceding quarters.
Global supply chain pressures stemming from the West Asia conflict exerted upward pressure on raw material and fuel expenses.
Experienced a temporary reduction in operational revenue and sales volumes during the quarter due to the scheduled major shutdown for machine upgrades.
11 · Items worth noticing
The line items that can distort a quick read
Recorded a tax credit of INR 1.02 crore for the quarter.
The company reported provisions amounting to INR 0.56 crore for the quarter.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital allocation & funding
Incurred finance costs of INR 16.54 crore for the quarter reflecting debt servicing on plant expansion and modernization borrowings.
Reported quarterly finance costs of INR 16.54 crore reflecting capital liabilities associated with ongoing facility investments.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
PFAS-Free OGR Paper
Developed and finalized production protocols for PFAS-free 40 GSM oil and grease-resistant paper targeted at sustainable food wrapping applications.
Reported update
Clonal Sapling Milestone
Set a new benchmark in environmental sustainability by producing 17.93 lakh clonal saplings during the quarter.
Reported update
Tax Credit Support
The company recorded a tax credit of INR 1.02 crore for the quarter, which contributed positively to the final profit after tax relative to pre-tax earnings.
14 · Previous-quarter changes
What changed since the previous quarter
Paper sales volume moderated from 42,922 MT in Q1 FY27 to 40,162 MT in Q2 FY27 due to the planned plant shutdown.
15 · Key Q&A
The quarter, answered directly
What does Kuantum Papers do?
Kuantum Papers Limited is a leading agro and wood-based paper manufacturer that commenced commercial operations in 1980 in Hoshiarpur, Punjab, starting at 30 TPD and currently operating at 540 TPD following continuous process upgrades and backward integration projects.
What is the clearest takeaway from Q2 FY27?
Kuantum Papers recorded operational income of INR 279.10 crore for the second quarter ended September 30, 2026, marking a sequential decrease from the preceding quarter primarily driven by a planned strategic shutdown for mill modernization.
What drove revenue or demand?
Operational income moderated to INR 279.10 crore due to scheduled downtime for the modernization and rebuild of Paper Machine 3.
What mattered most for margins or profitability?
EBITDA margin held resilient at 12.36% (INR 34.50 crore), down by 84 bps sequentially despite input cost headwinds.
What changed operationally beyond the headline numbers?
Successfully commissioned PM 3 on August 26, 2026, in 59 days (against a planned 65-day shut), completing the upgrade of all 4 paper machines.
What are the main pressure points disclosed for the quarter?
Scheduled downtime for machine upgrades and seasonal demand softness led to lower operating revenue and reduced profitability compared to preceding quarters.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Post-Upgrade Production Ramp-up: Track post-commissioning capacity utilization and operational stability across all four modernized paper machine lines.
- 02
Specialty Paper Commercialization: Monitor market uptake and commercial scaling of newly developed PFAS-free OGR food wrapping paper.
- 03
Farm Forestry Progress: Observe ongoing additions to the social farm forestry acreage toward the 2030 target of 75,000 acres.
- 04
Post-Upgrade Production Run-Rate: Monitor operational normalization and volume recovery across all four upgraded paper machine lines following the completion of the PM-3 modernization project.
- 05
Input Cost and Realisation Trends: Track raw material price movements and net sales realisations against broader seasonal demand patterns in the paper sector.
- 06
Debt Servicing and Finance Costs: Monitor future quarterly filings for trends in finance costs (INR 16.54 crore in Q2 FY27) relative to operating cash generation.
- 07
Profitability Margins: Track sequential movements in PBT and PAT to evaluate bottom-line stabilisation against raw material and fixed overhead pressures.
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