Kuantum Papers Limited — PPTs, 11-08-2025: Investor Presentation

**Financial Highlights:**

Kuantum reported Q1 FY26 operational income of ₹222.9 Cr, EBITDA of ₹40.4 Cr (18.12% margin), and Net Profit of ₹12.1 Cr. Diluted EPS was ₹1.38. Revenue and profit declined due to a planned PM4 shutdown for modernization, impacting production volumes.

**Strategic Initiatives & Growth Drivers:**

Future growth targets a ~50% capacity increase and cost optimization through debottlenecking. Kuantum is expanding specialty products, leveraging the plastic ban, and exploring the tissue paper segment. Industry 4.0 adoption, including AI and IoT, is a key strategy for operational efficiency.

**Business Developments:**

Q1 FY26 included successful upgrades for PM4, enhancing output for higher-value products, and recovery boiler retrofitting. PM1 & PM2 achieved record monthly productions. Project Nirmaan, an AI-based transformation, is progressing, with PM4's automation phase ready for Q2.

**Market Position & Competitive Advantage:**

Kuantum's strength lies in its integrated agro/wood-based manufacturing and diverse product portfolio. Strategic raw material access in Punjab, an extensive 100+ dealer network, and global exports bolster its market position. Superior product quality allows a 5-7% pricing premium.

**Investor Implications:**

Q1 financials reflect a temporary dip from strategic modernization. The completed PM4 upgrade and recovery boiler retrofitting signal future growth investments. Capacity expansion and higher-value product diversification offer positive growth potential. Execution will be a key monitoring point.