T N Newsprint Q1 FY27 Results (NSE: TNPL)
Signal: Loss reversed
The read
The operating inflection is visible in EBITDA of ₹128.61 Cr, +12.9% YoY, and PBT of ₹7.68 Cr versus a ₹11.82 Cr loss, but the recovery is not yet durable: production declined 6.1% for paper and 3.3% for packaging board, power/fuel/water costs rose 19.8%, and other income of ₹13.74 Cr represented 178.9% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,146.64 Cr | 0.4% | -9.9% |
| EBIT | ₹50.58 Cr | 38.2% | |
| Net profit | ₹5.74 Cr | N/A | |
| EPS | ₹0.83 | N/A | |
| EBIT margin | 11.2% |
P&L walk
Revenue was broadly flat at ₹1146.64 Cr, +0.4% YoY and -9.9% QoQ, while calculated gross margin expanded to 53.2% from 47.7% YoY; EBITDA increased 12.9% to ₹128.61 Cr, but ₹5.74 Cr PAT was supported by other income of ₹13.74 Cr against only ₹7.68 Cr PBT.
Segments
Paper & Paper board drove the group with segment result of ₹31.76 Cr, +51.2% YoY, while Energy dragged with a ₹0.39 Cr loss versus ₹0.13 Cr profit YoY; the paper segment accounted for ₹1143.66 Cr of reported revenue.
Key positives
- EBITDA increased to ₹128.61 Cr, +12.9% YoY, materially ahead of revenue growth of +0.4%, and EBITDA margin expanded 122bps to 11.2%.
- PBT improved to ₹7.68 Cr from a ₹11.82 Cr loss YoY despite finance costs of ₹42.90 Cr, down 11.4% YoY.
- Paper & Paper board segment result rose to ₹31.76 Cr from ₹21.01 Cr YoY, a 51.2% improvement.
Key concerns
- Paper production declined 6.1% YoY to 99,914 MT and packaging-board production declined 3.3% to 48,064 MT, so the 0.4% revenue growth was not volume-led.
- Power, fuel and water charges increased 19.8% YoY to ₹244.47 Cr, while management stated that higher imported coal, pulp and chemical prices affected production costs.
- Energy moved to a ₹0.39 Cr segment loss from a ₹0.13 Cr profit YoY.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.