Kuantum Papers reports mixed Q2/H1 results, profit falls sharply

Kuantum Papers reported operational income of INR 2,797 Mn for Q2-FY26, a 25.5% quarter-on-quarter increase driven by higher paper production and sales after PM4 upgradation. However, EBITDA for the quarter declined by 43.4% year-on-year to INR 344 Mn, with EBITDA margins at 12.30%, a drop of 582 basis points quarter-on-quarter. This was attributed to a decline in Net Sales Realization per ton by INR 3,200 and an increase in production cost by INR 1,300/Ton, impacted by higher raw material prices due to floods.

For H1-FY26, operational income stood at INR 5,026 Mn, a 10.2% decrease year-on-year. EBITDA for the half-year was INR 748 Mn, down 43.5% from H1-FY25, with EBITDA margins at 14.88%. Profit After Tax for Q2-FY26 was INR 58 Mn, an 80.6% decrease year-on-year, leading to diluted EPS of INR 0.66. H1-FY26 PAT was INR 178 Mn, a 73.9% year-on-year decline, with diluted EPS at INR 2.04.

Despite the financial shifts, Kuantum Papers made operational progress, including achieving its highest-ever monthly production of 8,303 MT (277 TPD) in September and daily production of 360 MT in July 2025 on PM4. The company also reported a record quarterly distribution of 18.21 lakh clonal saplings under its Social Farm Forestry program.