West Coast Paper Mills (500444) Q2 25/26 earnings summary

Executive summary

• Revenue grew sequentially in both standalone and consolidated results, but consolidated EBITDA and PAT declined sharply due to industry headwinds and a one-time production loss at a subsidiary.

• The domestic paper industry faced continued pricing pressure from elevated imports and high input costs, particularly wood.

• A workers' strike and a 14-day planned maintenance shutdown at Andhra Paper Limited led to a one-time loss of production and earnings.

Financial highlights

• Standalone Q2FY26 revenue: ₹644.53 crore, up 16% sequentially; consolidated Q2FY26 revenue: ₹1,043.02 crore, up 9%.

• Standalone PAT: ₹45.02 crore, up 10% sequentially; consolidated PAT: ₹11.91 crore, down 80% sequentially.

• Standalone EBITDA: ₹97.46 crore, up 3% sequentially; consolidated EBITDA: ₹90.55 crore, down 42% sequentially.

• Standalone EPS: ₹6.82; consolidated EPS: ₹2.65.

• Standalone net profit margin stable at 7%; consolidated PAT margin dropped to 1% from 6% in the previous quarter.

Outlook and guidance

• Focus remains on strengthening product mix, securing raw material supply, and driving cost efficiencies to sustain profitability.

• Management expects continued margin pressure due to high input costs and import competition.