West Coast Paper Q1 FY27 Results (NSE: WSTCSTPAPR)
Signal: Margin expansion
The read
The earnings inflection is genuine at the operating level: consolidated EBITDA margin expanded 734bps YoY to 23.6% after contracting through Q3FY26, with revenue growth accelerating to 10.1% from 2.0% in Q3FY26 and telecom-cable profit rising to ₹7,401.87 lakh from ₹45.33 lakh; however, the recovery is partly subsidiary-led and Andhra Paper's Kadiyam disruption could affect the next quarter.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,051.26 Cr | +10.1% | -15.6% |
| EBIT | ₹188.93 Cr | +94.2% | |
| Net profit | ₹141.84 Cr | +135.3% | |
| EPS | ₹20.21 | +145.3% | |
| EBIT margin | 23.6% |
P&L walk
Consolidated revenue rose to ₹1,05,125.98 lakh, +10.1% YoY but -15.6% QoQ; gross margin expanded to 44.8% from 40.2% YoY as raw-material intensity fell to 64.7%, EBITDA margin rose to 23.6% from 16.3%, and PAT increased to ₹14,184.37 lakh, with telecom cables providing the sharpest improvement.
Segments
Telecommunication Cables was the main momentum driver: revenue rose 105.8% YoY to ₹15,218.50 lakh and segment result rose to ₹7,401.87 lakh from ₹45.33 lakh, while Paper and Paper Board revenue rose only 2.1% YoY to ₹89,906.36 lakh but remained the largest profit contributor at ₹10,296.36 lakh.
Key positives
- Consolidated EBITDA margin rose 734bps YoY to 23.6%, with EBITDA growth of approximately 59.8% versus revenue growth of 10.1%; employee costs rose only 1.7% and depreciation 2.1%.
- Raw-material intensity fell to 64.7% of revenue from 72.1% YoY, supporting a 463bps gross-margin expansion to 44.8%; the filing does not disclose whether this was input deflation, pricing or mix.
- Telecommunication Cables revenue increased 105.8% YoY to ₹15,218.50 lakh and segment result increased to ₹7,401.87 lakh from ₹45.33 lakh.
- Finance costs declined 29.9% YoY to ₹768.78 lakh, strengthening the conversion of operating profit into PBT.
Key concerns
- Paper and Paper Board revenue grew only 2.1% YoY to ₹89,906.36 lakh, so the consolidated acceleration is concentrated in telecom cables rather than the core paper segment.
- Andhra Paper's Kadiyam unit was suspended from April 27 to May 29, 2026 due to a contract-workmen strike; operations only partially resumed on July 15, 2026 at approximately 93% of normal capacity.
- Consolidated other income of ₹4,467.37 lakh represented approximately 24.6% of PBT and was broadly flat YoY, making the earnings mix less purely operating than the PAT growth suggests.
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