Kuantum Papers Limited — Credit Ratings, 09-07-2025: Credit Rating

India Ratings and Research has assigned Kuantum Papers Limited an IND A/Stable rating on its bank facilities and fixed deposits, reflecting a stable outlook. The rating factors in Kuantum’s healthy business profile with integrated operations, diversified raw material mix, and improved operating efficiencies, supporting steady EBITDA margins and cash flows despite a 27% EBITDA decline in FY25 due to price pressures from rising imports. A 50% capacity expansion underway is expected to drive volume growth from FY27, aiding deleveraging after elevated net leverage rose to 2.7x in FY25 due to capex. The stable rating implies moderate borrowing costs and sustained investor confidence, though profitability remains sensitive to import-induced pricing pressures and cyclical raw material costs.