Kuantum Papers’ profit drops 64.04% QoQ as costs squeeze margin
Revenue declined faster than expenses, while higher interest and depreciation reduced pre-tax profit to Rs 1.22 cr.
Filed 28 Oct 2026, 16:25 IST · after market close · Kuantum Papers Ltd (KUANTUM)
Key takeaways
- Standalone operating margin narrowed by 0.85 percentage points QoQ to 12.35% as expenses fell 7.21% against an 8.12% revenue decline.
- Net profit fell 64.04% QoQ to Rs 2.24 cr as interest rose 13.83% and depreciation rose 11.61%.
- Other income represented 245.90% of pre-tax profit, while the -83.61% tax rate supported reported net profit.
Price around the results
Revenue fell faster than expenses in Q2FY27
Standalone revenue declined 8.12% QoQ, while expenses fell 7.21%, so operating profit dropped 14.06% and operating margin narrowed by 0.85 percentage points to 12.35%. The results were filed after market close on 28 October 2026 at 16:25 IST.
Higher finance and depreciation costs cut into profit
Interest expense rose 13.83% QoQ and depreciation increased 11.61%, worsening the impact of the revenue decline on pre-tax profit, which fell 88.67% to Rs 1.22 cr. Other income of Rs 3.0 cr was 245.90% of pre-tax profit, showing that reported profit was heavily dependent on this non-operating line. The tax rate swung from 42.15% to -83.61%, with the negative tax line also supporting net profit.
Margin remained below the Commodities peer median
Kuantum Papers’ 12.35% operating margin was 2.28 percentage points below the 14.63% median for 35 Commodities peers that had reported the quarter. It ranked 12th from the bottom among those companies. Sequentially, margin also moved down from 13.20% in Q1FY27, while net profit fell 64.04%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹279 cr | ₹304 cr | -8.12% |
| Other income | ₹3 cr | ₹3 cr | +5.26% |
| Expenses | ₹245 cr | ₹264 cr | -7.21% |
| Operating profit | ₹34 cr | ₹40 cr | -14.06% |
| Operating margin (%) | 12.35% | 13.20% | — |
| Interest | ₹17 cr | ₹15 cr | +13.83% |
| Depreciation | ₹20 cr | ₹18 cr | +11.61% |
| Profit before tax | ₹1 cr | ₹11 cr | -88.67% |
| Tax | ₹-1 cr | ₹5 cr | — |
| Net profit | ₹2 cr | ₹6 cr | -64.04% |
| EPS (₹) | ₹0.26 | ₹0.71 | -63.38% |
Operating margin of 12.35% compares with a Commodities sector median of 14.63% across 35 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves back above the 13.20% recorded in Q1FY27.
- Whether interest expense falls from Rs 16.54 cr after its 13.83% QoQ increase.
- Whether the tax rate moves away from -83.61% after the negative Rs 1.02 cr tax line.